Sashika Liyanage’s Post

Global Light Vehicle Sales: Current Situation ⏳ The latest update to this report continues to show our expectation that global Light Vehicle sales in 2024 will grow versus 2023, though the pace of that growth is now a little slower, at around the 2% mark in YoY terms (down from 2.6%). There have been some positive adjustments made, most notably in China, but overall, the more conservative adjustments to the Japanese, Western European and North American forecasts have outweighed the positives. In Europe and North America, consumers are facing high vehicle pricing which is a drag on demand and is in stark contrast to the price war being seen in China. #automotive #sales #global

***Global Light Vehicle Production per region***

📉 European Car Market Faces Challenges: A Flat Outlook Following September Drop According to the latest report from GlobalData, the Western European car market has experienced a significant downturn, with the passenger vehicle (PV) selling rate plummeting to 11.3 million units/year in September, down from over 12 million units/year in August. This decline marks a 4.8% decrease in year-on-year sales volumes, reflecting the challenges faced by the industry amidst geopolitical tensions and economic uncertainties. Year-to-date, the market remains nearly flat compared to last year, showing only a 0.3% increase. Key markets such as Germany and Italy have struggled, with Germany reporting a 7% decline in sales to 209,000 units and Italy facing a 10.7% drop in new car registrations. Despite these setbacks, there is cautious optimism for the future. GlobalData anticipates improved market activity in 2025, driven by easing monetary policies and more favorable vehicle pricing for consumers. However, the road ahead remains fraught with challenges, including high vehicle prices and limited incentives for buyers. As we navigate these turbulent times, it's crucial for industry stakeholders to remain informed and agile in their strategies. #automotive #europe #results

Carwow acquires GRIDSERVE Leasing to enhance car leasing comparison engine 🚘 This move is part of Carwow's strategy to "rapidly-accelerate" in the online car changing marketplace, with a particular focus on EV lease deals. The acquisition marks Carwow Group's second major business move in 2024, following the purchase of Autovia, an automotive content and commerce media company. Carwow's car leasing comparison engine is set to benefit significantly from the integration of Gridserve Car Leasing. This will provide Carwow users with an even broader range of car leasing options from various brokers throughout the UK. The company plans to list its leasing offers alongside those from its existing partners. Gridserve Leasing will continue to operate as an independent business unit within Carwow, under the leadership of Gridserve Leasing director Rob Buckland. Carwow Group CEO John Veichmanis said: “Bringing Gridserve Car Leasing into the fold will enable us to develop a range of exciting new product experiences for those that are looking to lease their new car. “We plan to substantially increase our overall investment into the leasing category and quickly expand our reach.” While Gridserve has previously focused solely on leasing EVs, Carwow aims to broaden the service to include PHEVs and ICE cars. The expansion is expected to take place later in the fourth quarter, coinciding with the launch of a new brand name and visual identity for the leasing operation. Gridserve official Roy Williamson said: “We are delighted to announce that Gridserve’s car leasing business has been acquired by Carwow, under whose guidance and support the team will be able to accelerate their work to offer drivers a comprehensive range of leasing solutions. #automotive #acquisition #electric

General Motors says it is ‘approaching EV profitability’ GM said its product portfolio is taking EV market share from competitors and pulling in many new customers. It also claims to be ‘making rapid progress toward EV profitability’. The company says it is on track build and wholesale about 200,000 GM-branded EVs this year. GM says it is addressing range anxiety, and that most GM EVs in North America ‘now boast a range of more than 300 miles, and we will continue to add more range – the new Silverado EV RST can go nearly 500 miles on a full charge’. GM maintains that EV profitability is benefitting from declining battery cell costs, ‘thanks to the quality, efficiency, and scale of our joint venture cell plants, as well as the other efficiencies driven by our purpose-built EV platform’. Th company also says it has been ‘aggressive on reducing fixed costs, which have come down by $2 billion over the last two years net of depreciation and amortization’. GM has told investors that it expects to keep 2025 capital spending consistent with this year’s level and that it has already made many of the large investments required to grow its EV business. #automotive #ev #profitability

Primearth EV Energy becomes Toyota Battery 🔋 Toyota Motor Corporation this week celebrated the launch of its newly renamed Toyota Battery Company Ltd subsidiary, previously known as Primearth EV Energy Company Ltd. Toyota took full control of the company earlier this year by acquiring its partner Panasonic Holding’s outstanding 19.5% stake. The launch event was held at the Kosai Battery Park, near Toyota’s Arai Plant, and was attended by around 100 Toyota group executives and guests including Toyota chairman Akio Toyoda, Toyota Battery president Masamichi Okada and Kosai City Mayor Takeshi Kageyama. Speaking at the event, Mr Okada confirmed his company “will contribute to Toyota’s multi-pathway strategy with batteries for HEVs (hybrid electric vehicles), PHEVs (plug-in hybrid electric vehicles) and BEVs (battery electric vehicles), as well as secondary batteries for fuel cell vehicles. "In addition, we want to explore all possible ways of supporting Toyota’s commitment to developing hydrogen-engine vehicles, including the potential for batteries to extend the cruising range or reduce fuel tank size.” #toyota #battery #acquisition

The Importance of AI in the Automotive Industry 🤖 In recent years, the automotive industry has witnessed a significant surge in the integration of artificial intelligence (AI), marking a transformative shift that is reshaping the landscape of vehicle manufacturing, sales, and customer engagement. According to GlobalData Plc, mentions of AI in automotive company filings increased by 31% in Q2 of 2022 and saw a staggering 271% rise in frequency since 2016, highlighting the growing recognition of AI's critical role in the industry. The automotive sector experienced a compound average growth rate (CAGR) of 35% in AI-related patent publications from 2018 to 2023, driven by the demand for advanced technologies in autonomous vehicles (AVs) and connected vehicles. For companies in the automotive industry, staying ahead of the curve is paramount. The "Strategic Intelligence: Artificial Intelligence in Automotive (2024)" report offers essential insights into the future of AI in the sector. This report provides an analysis of how AI can be leveraged to enhance operational efficiency, optimize supply chains, and improve customer experiences. Its clear that companies that proactively invest in AI technologies and understand their implications will be better positioned to thrive in a rapidly changing environment. Message me to access the full report 📑 #automotive #ai #analysis

EU votes for new China BEV tariffs 🚘 European Union member states have approved European Commission proposal to impose new duties on imports of battery electric vehicles (BEVs) from China. The European Commission – the EU’s executive arm - said it has obtained the necessary support from EU member states for the adoption of the tariffs. This, it said, represents another step towards the conclusion of the Commission's anti-subsidy investigation. EU lowers proposed import duties on Chinese BEVs. However, it also said the EU and China would ‘continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the Commission's investigation, monitorable and enforceable’. Reuters reported that ten EU member states backed the tariffs, with twelve abstentions. Germany was among five member states that voted against the China tariffs proposal. A European Commission investigation has concluded that Chinese-made BEVs have benefitted from unfair subsidies that make them cheaper than European made competition. The new China-specific tariffs for BEVs would be on top of the existing 10% tariff applying to all cars imported to the EU from countries that don’t benefit from separate trade agreements. However, Germany is reportedly concerned about rising trade tensions between the EU and China, especially in automotive trade. German OEMs have sunk big investment in manufacturing in JVs in China. “I am not a fan of countervailing duties because this will likely lead to countermeasures and involve us in a tariff dispute, perhaps a tariff war, with China,” German Economy Minister Robert Habeck said earlier this week, according to Reuters. “I am working to find a political solution that will not drive us into a tariff war with China.” A number of Chinese companies are also looking to set up manufacturing facilities inside the EU in order to avoid import tariffs. #tariff #eu #china

EU tariff proposal for China BEVs likely to be carried 💸 The EU’s 27 member states are expected to vote on Friday (4 October) in favour of a European Commission – the EU’s executive - proposal for new additional import duties for Chinese battery electric vehicles (BEVs). Reuters reported that under EU rules, the European Commission can impose the tariffs for the next five years unless a qualified majority of 15 EU countries representing 65% of the EU's population votes against the plan. Italy, France, Poland and Greece will vote in favour of the new tariffs, according to the news agency – and they represent almost 40% of the EU’s population. A European Commission investigation has concluded that Chinese-made BEVs have benefitted from unfair subsidies that make them cheaper than European made competition. The new China-specific tariffs for BEVs would be on top of the existing 10% tariff applying to all cars imported to the EU from countries that don’t benefit from separate trade agreements. Germany is reportedly concerned about rising trade tensions between the EU and China, especially in automotive trade. German OEMs have sunk big investment in manufacturing in JVs in China. “I am not a fan of countervailing duties because this will likely lead to countermeasures and involve us in a tariff dispute, perhaps a tariff war, with China,” German Economy Minister Robert Habeck said earlier this week, according to Reuters. “I am working to find a political solution that will not drive us into a tariff war with China.” Some reports suggest that negotiations between Brussels and Beijing could continue after the Friday vote. A number of Chinese companies are also looking to set up manufacturing facilities inside the EU in order to avoid tariffs. #tariff #china #eu

Stellantis extends hydrogen powered vans to UK Stellantis has announced that the first customer trials of the Vauxhall Vivaro Hydrogen commercial vehicle in the UK are underway. Already sold in LHD markets by Opel, Vauxhall’s sister brand (in Europe, Vauxhall Motors Ltd is a UK-only brand, while other markets sell the same models under the Opel brand), Stellantis says Vivaro Hydrogen is the first commercially available production hydrogen van. Companies will take part in a fleet evaluation process ahead of UK launch of Movano Hydrogen later this year. Movano Hydrogen will offer a range of up to 311 miles (WLTP) and can be re-fuelled in under five minutes. Orders for Movano Hydrogen in the UK will open later this year, with first customer deliveries expected in 2025. Stellantis says Vauxhall in Britain will be the only manufacturer offering two zero emission solutions (BEV & FCEV), enabling van fleets to choose the one that best suits their operational requirements. Based on the existing fully electric Vivaro Electric, the Vivaro Hydrogen features a 45kW fuel cell and 10.5kWh lithium-ion battery located under the front seats. The 5kg hydrogen fuel tanks located under the floor can be re-filled in just five minutes - about the same time needed to fill up a conventional diesel or petrol vehicle. James Taylor, Managing Director, Vauxhall, said: “As the UK’s best-selling electric van manufacturer for the past three years, we are already leading the way in electrifying Britain’s businesses". #automotive #hydrogen #uk