+++ Carmakers and battery producers are accelerating their investment in BATTERY PLANTS around the globe as the automotive industry becomes increasingly electrified. Europe and the United States are ramping up their efforts, but China still has more projects and investment in the segment, according to a report by Fitch Solutions. Globally, in the third quarter this year, there were at least 34 manufacturing projects for electric car batteries and related components and materials, with their combined investment reaching $36.3 billion. This is 12 more projects than in the second quarter, whose combined investment stood at $11.9 billion. Fitch Solutions said geographically, there was a reversal of the trend it saw in the second quarter when investment moved away from Asia to Western Europe and North America. In the third quarter, projects in Asia accounted for 56.4 percent of the total global investment value, and over half of the Asian projects were in China. Some of the biggest projects in China include a $3.4 billion plant for domestic battery maker Svolt. The plant, expected to be completed by 2025 in Chengdu, Sichuan province, will have an annual battery capacity of 60 gigawatt-hours. China Lithium Battery Technology is spending $3.8 billion in Hefei, Anhui province, to build a plant that can produce 50 GWh a year. It did not give a date when the plant will be ready for production. International companies are stepping up their own construction in China. South Korea’s SK Innovation announced a $1.06 billion project in September. Construction on the project in Yancheng, Jiangsu province, will be finished in 2023, and will have an annual production capacity of 22 GWh. “This suggests that despite efforts by companies in other regions to reduce their reliance on China, it will continue to be a major player in the battery industry”, said Fitch Solutions. China is the largest market for electric cars and plug-in hybrids. The China Association of Automobile Manufacturers estimates that sales this year could reach 3 million units, up 119 percent from 2020. Electrification is picking up speed in other parts of the world as well. In the first 3 quarters this year, there were 83 electrification-related projects worldwide, more than double the number in the whole of 2020. The combined value of the 83 projects is $74.4 billion, an increase from the $21 billion recorded in 2020, reflecting the accelerated development of the battery supply chain throughout 2021. Asia accounted for almost half of all investment value in the first three quarters this year. Outside of Asia, North America had the biggest share of investment in both the third quarter and the past 3 quarters, accounting for 31.4 percent and 25.2 percent respectively, as the region continues to develop its domestic supply chain. The Biden administration announced an executive order in August aimed at making half of all new vehicles sold in 2030 electric. US carmakers GM, Ford and Chrysler parent Stellantis said in a joint statement they aspire for electric vehicles to account for 40-50 percent of total annual sales by 2030. +++
+++ BMW has officially sold its 1 millionth electrified vehicle, handing over the keys to an all-electric BMW iX to a customer at the BMW Welt facility in Germany. Speaking with journalists after the delivery ceremony Pieter Nota, a member of the Board of Management of BMW and responsible for Customer, Brands & Sales, revealed that roughly 70 percent of the electrified vehicles that BMW has sold have been hybrids. He added that BMW will have delivered around 2 million fully-electric vehicles to customers by 2025 and believes that at least 50 percent of all the vehicles they’ll be selling by 2030 will be electric. “The delivery of our 1 millionth electrified vehicle marks a milestone in our transformation and we already have the next one in our sights: We aim to break through the 2 million mark in just 2 years”, Nota said. “Thanks to our steadily growing product range, we are setting ourselves ambitious sales targets, in particular for fully-electric vehicles: In 2022, we aim to double this year’s sales. By 2025 the BMW Group will have delivered around 2 million fully-electric vehicles to customers. We expect at least 1 out of every 2 vehicles sold by the BMW Group to be fully electric by 2030”. BMW will introduce a host of all-electric models in the coming years. Among the first to launch will be electric versions of the BMW 7-Series and BMW X1. Additionally, an electric 5-Series will be added to the automaker’s range in 2023. Other EVs being planned include the successor to the Mini Countryman and the Rolls-Royce Spectre. In fact, all Mini models will be electric by the early 2030s while Rolls-Royce will become an all-electric brand by 2030. In a statement, the head of Strategic Product Management at the BMW Group, Andreas Aumann, said that charging infrastructure will play an important role in the ramp-up of electromobility. “Electromobility needs holistic thinking and implementation”, Aumann said. “That is why we don’t just offer our customers highly attractive electrified cars; we also make sure charging is easy and convenient. Our commitment spans the entire value chain: from compelling products and services through strategic investments, all the way to building our own company charging infrastructure”. +++
+++ Electric vehicle chargers can’t fuel hydrogen vehicles and hydrogen chargers can’t juice up electric vehicles. But what if there’s a solution to charge BOTH at the same time? Che Hoo-seok, chief operating officer at Doosan Fuel Cell, the hydrogen business unit of South Korean conglomerate Doosan Group, says the infrastructure conundrum can be addressed with a breakthrough “triple” energy generation technology. “With natural gas, Doosan Fuel Cell’s Tri-gen system can produce electricity, hydrogen and heat simultaneously on-site. The system will become the cheapest hydrogen production and charging solution in the early stages of the hydrogen economy”, the Chief Operating Officer said in an interview. Hydrogen can’t be transported through the existing underground natural gas pipeline network due to a leakage issue, as hydrogen is a much smaller molecule than natural gas. For this reason, hydrogen has to be compressed inside special tanks and delivered by trucks, but this drives up the cost significantly. “Tri-gen can produce 220 kilograms of hydrogen per day and generate 350-440 kilowatts of electricity to fast-charge electric vehicles. With Tri-gen, you can operate an EV charger and a hydrogen fueling station at the same time”, the Doosan executive said. Some 220 kilograms of hydrogen is enough to fuel 40 to 60 hydrogen cars. Also, 350-440 kilowatts of electricity can quick-charge Hyundai’s Ioniq5 in 10 to 12 minutes. “We are planning to install the Tri-gen system in locations such as bus depots where steady demand for hydrogen exists. To save space, Tri-gen can be built underground or stacked in multiple stories”, he said. Tri-gen, which looks like a small container, won the CES 2022 Innovation Awards last month, as it is expected to contribute to expanding the much-needed hydrogen charging infrastructure. In South Korea, there are some 100 hydrogen filling stations, but only 20-30 of them are operational. Most of the stations struggle to turn a profit as there aren’t enough hydrogen vehicles on the road yet. Doosan’s ambition isn’t just limited to dominating the local hydrogen charging infrastructure. It also aims to control the domestic commercial hydrogen vehicle market, which is currently up for grabs, as established automakers cannot easily enter the market. “We will also develop a hydrogen power pack for land vehicles such as hydrogen buses”, the executive said. A hydrogen power pack is a type of generator equivalent to the engine of a car. Inside, fuel cells are installed to generate electricity and power an electric motor. Doosan previously manufactured hydrogen power packs for drones only, and this is its first time developing them for cars. Conventional automakers such as Hyundai already manufacture hydrogen buses, but the world’s No. 3 carmaker has yet to achieve an economy of scale. A domestically made hydrogen bus costs around 400 million won ($339.000), which is 100 million won more expensive than a Chinese-made model, sources say. This is why Doosan is entering the commercial hydrogen vehicle market with its hydrogen power pack. Immediate demand is expected, as the government plans to switch 2.000 public buses to hydrogen buses next year. More orders are on the way, as the government aims to put 40.000 hydrogen buses on the road and export 20.000 by 2040. As for hydrogen trucks, the target is 30.000 for domestic use and 90.000 for export. To further bolster its hydrogen strength, Doosan Group in September formed Doosan H2 Innovation to consolidate the group’s hydrogen research and development efforts dispersed across different affiliates. “Through the newly formed entity, Doosan will maximize its development capabilities of next-generation fuel cells such as solid oxide fuel cells and solid oxide electrolysis cells, which exhibit greater life span and safety”, the COO said. In September, Doosan Fuel Cell shipped 4 hydrogen fuel cells worth $13.2 million to China in what was marked as Korea’s first export of the product. The fuel cells, with a combined capacity of 1.8 megawatts, will be installed at seven apartment buildings of 400 households and one commercial building in Foshan, Guangdong province, to provide heat and electricity. “Doosan Fuel Cell will also bolster its global competitiveness in fuel cells for ships and distributed power generation”, the official said. +++
+++ CHINA ’s startups are getting a foothold in the new energy vehicle segment. At least four of them saw their sales hit 10.000 in November and they expect the trend to continue as the market heats up. Nasdaq-listed Li Auto sold 13.485 vehicles last month, soaring 192 percent from the same month last year. This is a monthly record for the six-year-old Beijing-based startup. The Li One, their sole model so far, is the first vehicle of those from Chinese startups to reach the milestone of 10.000 deliveries in a month. “We are excited to see Li One emerge as one of the best choices for large SUV users and families in China. This impressive result reflects widespread user endorsement of our outstanding product features and performance”, said Shen Yanan, co-founder and president of Li Auto. Statistics show that the model’s total deliveries in the 11 months this year reached 76.404 units. It takes cumulative deliveries past 110.000 units since the first production vehicle rolled off the assembly in December 2019. Li Auto expects its deliveries to exceed 10.000 units in December as well. It estimated sales in the fourth quarter are to reach between 30.000 and 32.000 vehicles. This would be more than double the figure from the same quarter of last year. “In light of our strong order intake and users’ rising acceptance of smart electric vehicles, we remain as enthusiastic as ever about our growth prospects”, said Li Xiang, founder, chairman and CEO of Li Auto. New energy vehicles have become a serious choice for Chinese car buyers, especially those living in big cities where gasoline vehicle license plates are harder to obtain and charging facilities are easy to find. NEV deliveries soared 141.1 percent in October to 320.000 units, around 20 percent of the total vehicle sales that month, according to statistics from the China Passenger Car Association. Zhang Yongwei, a chief expert at Chinese auto think tank EV 100, said the sector in China, the world’s largest vehicle market, is growing faster than expected. He expects electric cars and plug-in hybrids to account for 30 percent of new vehicle sales in China in 2025. When it comes to NEV models, many Chinese car buyers tend to choose those from startups than established giants, arguing that they have a fancier design and more technical features. That preference has pushed up sales as well of other leading startups, including Nio and Xpeng, both of which are listed on the New York Stock Exchange. Nio, which positions itself among premium brands including BMW and Mercedes-Benz in the age of electrification, delivered 10.878 vehicles in November, up 105.6 percent year-on-year. It is not the first month the Shanghai-based startup has sold more than 10.000 vehicles. Nio has delivered 80.940 vehicles in 2021. Cumulative deliveries of its 3 models reached 156.581 vehicles. In September, Nio started exploring the European market, with the first dealership now open in Oslo, Norway. Nio president Qin Lihong said the carmaker will make inroads into Sweden in 2022. Xpeng, headquartered in Guangzhou, Guangdong province, sold the most vehicles among startups in November, at 15.613 units. Like Nio, it has 3 models (2 sedans and 1 SUV) in its lineup. A 4th model, another SUV, is expected to hit the market in late 2022. The G9 SUV is Xpeng’s first model to be designed in line with international safety and environmental protection standards. It is also the carmaker’s first production model to incorporate a set of new technologies designed by its in-house staff, including the vehicle architecture, driver assistance system and powertrain and supercharging system. Another startup, Nezha, which is backed by Chinese internet company 360, hit the milestone of selling 10.000 units a month in November. Unlike Nio, Xpeng and Li Auto, Nezha’s models are smaller and more affordable, targeted at the volume car market. Investors are optimistic about such carmakers’ prospects as the segment will account for a larger share in the electric vehicle market as is the case of the gasoline market. Nezha raised 4 billion yuan ($627.5 million) in the latest round in late October. One-half came from 360, which is now its second-largest shareholder. WM Motor, another company focused on the mainstream electric vehicle market, announced it had raised $152 million from property developer Agile Group. The new funding brought WM Motor’s total capital raised in the fourth quarter to $457 million. The company said other investors will join and bring the total fund to more than $500 million. WM sold more than 5.000 vehicles in November. It expects deliveries this year to reach 40.000 units. +++
+++ The transition to electric vehicles could cost hundreds of thousands of auto industry jobs in the EUROPEAN UNION in the years leading up to 2035, according to a poll of suppliers in the sector. A survey of 100 companies, conducted by industry trade group the European Association of Automotive Suppliers, known as CLEPA, showed more than 500.000 jobs could be at risk as the sector transitions to emissions-free technology. It also found that 226.000 new jobs would likely be created in manufacturing electric vehicle, also known as EV, parts, but said this may not fully offset the potential “social and economic impacts” caused by mass unemployment. Policy announced this year by the European Commission on emissions from new cars effectively prohibits the sale of fossil fuel-powered vehicles after 2035. But CLEPA has long been lobbying for the use of interim technologies, other than battery-power, to soften the impact on employment. Automakers want fuels made from renewable energy but burned in a combustion engine to form part of the solution. In a news release issued on Monday, CLEPA said a mixed technology approach would still cut emissions by 50 percent and maintain current employment levels. “The study highlights the risks of an EV-only approach for the livelihood of hundreds of thousands of people working hard to deliver the technological solutions for sustainable mobility”, CLEPA secretary general Sigrid de Vries said in the release. “Society’s needs are far too diverse for a one-fits-all approach”. “The use of hybrid technologies, green hydrogen and renewable sustainable fuels, will enable innovation as we redefine mobility in the coming decades”. The CLEPA report, prepared by accountants PwC, found that 1.7 million people work at automotive suppliers in Europe, while 1.2 million more are employed by automakers. It noted that there are a further 1.21 million jobs in activities such as tire and vehicle body manufacturing, chemicals, batteries and electrical equipment, and 3.2 million in support services. It said the biggest job losses would be in Germany, Italy, Spain and Romania. A more optimistic assessment was published in July by the Boston Consulting Group, also known as BCG, which considered overall industry employment levels. BCG found that the battery supply chain will be the biggest driver of new jobs. “Maintaining or even accelerating the transition to EVs as the core automotive technology for the near term is essential to give a ‘green boost’ to employment”, its report said. “However, such a strategy must be accompanied by skill building and retraining on a tremendous scale”, BCG said. “Governments, companies, and individuals all have a role to play in meeting the challenges”. +++
+++ When FORD announced they were building an electric F-150, many were skeptical. Would traditional pickup buyers desire or shun a green machine in the most traditional of vehicle categories? Well, if orders for the F-150 Lightning are any indication, Ford’s ambitious plan seems to have paid off. The waiting list for the e-truck is already over 3 years long. In fact, Ford has received so many reservations that they’ve had to put a temporary stop on them. Dearborn is no longer taking the $100 refundable deposits. The landing page for the non-binding reservations now reads, “As we prepare to make history together, we’ve closed reservations so we can start accepting orders. Sign up for updates and get exciting news on the electric revolution. We can’t wait to get you behind the wheel of an F-150 Lightning truck”. Initially, Dearborn said they planned to produce 15.000 units in the first year, when the truck launches in spring 2022. The following year, according to a Ford source, production would ramp up to 55.000. In 2024, that number would increase to 80.000 units, already representing a doubling from the initial target of 40,000 thanks to the authorization of an $850 million spend. If you do the math, that’s 150.000 units. But as CEO Jim Farley told Ford has received 200.000 reservations already. In other words, over 3 years of production capacity are already spoken for. To compensate, Ford told that they are looking into fast-tracking production to 80.000 in Lightning’s second year. If that happens, that’ll still be short of the backlog, assuming reservations turn into hard orders. Ford had also set a target of 160.000 units a year by 2025, when the second-generation F-150 Lightning was set to debut. As it stands now, the truck looks to be a huge success (remember, Ford had expected 20.000 units a year initially) which should help quiet the skeptics. Of course, not 100 percent of reservation holders will follow through, but it leaves those who do are lucky enough to get the truck with a new dilemma. Drive it or flip it? It’s clear the demand is there. +++
+++ GREAT WALL MOTORS sold 1.12 million vehicles in the first 11 months this year, up 16.3 percent from the same period last year, said the largest Chinese SUV and pickup maker. Its deliveries last month stood at 122.510 vehicles, down 15.65 percent year-on-year. But they brought total deliveries this year to exceed those in the whole year of 2020, said the carmaker. Of its 5 brands, Haval vehicles accounted for the majority of Great Wall Motors’ sales in November. Their sales reached 69.170 units last month, and deliveries in the first 11 months totaled 675.621 units, up 4.8 percent year-on-year. The Haval H6 SUV was the bestseller, with 32.443 units sold in November. It had been the bestselling SUV in China for 101 months. Great Wall Motors’ electric car brand Ora saw its sales in November reach 16.136 units, up 39.2 percent year-on-year. The brand’s total sales from January to November reached 114.102 units, up 162.2 percent year-on-year. Its premium Wey brand sold 6,286 vehicles last month, up 7.4 percent from October. Great Wall Motors’ pickups continued their sales momentum, with over 20.810 sold in November. In the first 11 months, over 200.000 pickups were sold. The carmaker continued its overseas expansion. Last month, a record number of 15.006 units were sold in international markets. Great Wall Motors’ overseas sales from January to November totaled 127.026 units, rising 106.3 percent from the same period last year. The carmaker opened its European headquarters last month in Munich, Germany, paving the way for its models to hit the country from 2022. It presented a plug-in hybrid SUV from its Wey brand and a full-electric model from its Ora brand at the Munich auto show in September. “Chinese carmakers now have the courage and ability to take European brands head-on”, said the carmaker in a statement. Great Wall Motors also plans to open brand experience centers in Munich and Berlin in 2022 as part of its plan to build a “lifestyle ecosystem” for European customers. “The launch in Europe is an important milestone for Great Wall Motors,” said Qiao Xianghua, CEO of the carmaker’s European operations. “We have ambitious goals for this market as well”. +++
+++ HONGQI , an automobile brand under China’s leading automaker FAW Group Co Ltd, posted a rise of 46.7 percent in sales in the first 11 months of this year. A total of 261.400 Hongqi-branded vehicles were sold during the period, said FAW Group. Meanwhile, Hongqi has sped up the development of new energy vehicles. A factory focusing on electric cars with an investment of 8 billion yuan ($1.3 billion) has started production. Hongqi, meaning “red flag”, is China’s iconic sedan brand. Established in 1958, the brand has been used in parades for national celebrations. Founded in 1953 in the northeastern city of Changchun, the capital of Jilin province, FAW Group is considered the birthplace of China’s auto industry. +++
+++ The HYUNDAI MOTOR GROUP is likely to post a better-than-expected 4th quarter result as well as a record-high operating profit of 7 trillion won ($5.9 billion) this year, despite the ongoing chip shortage, market experts said. Market analysts viewed that the Korean automaker’s focus on expanding sales of its ecofriendly models and broadening its product mix to enhance its brand value has helped the company to anticipate a turnaround this year. 9 local securities firms’ outlook on Hyundai’s yearly profit came at 7.9 trillion won on average, about 196 percent jump compared to a year ago; a record-high since 2014 when it hit the 7.5 trillion won of operating profit for the first time. Experts also forecasted Hyundai’s Q4 operating profit at 1.9 trillion won on average, up by 53 percent on-year. They said the Korean automaker will post about 30 trillion won in sales on average, inched up by 5 percent compared to 2020. From January to September, Hyundai recorded an accumulated 5.1 trillion won in operating profit. According to Hyundai’s sister company Kia, it has already surpassed its record-high operating profit in Q3 with an accumulated 3.8 trillion in operating profit from January to September. Its highest so far was 3.5 trillion won in 2012. The 9 securities firms’ outlook on Kia’s Q4 operating profit came at 1.4 trillion won on average, a nearly 16 percent rise from a year ago. From January to September, both Hyundai and Kia sold many cars globally compared to a year ago. Hyundai’s luxury brand Genesis sold 144,000 cars with its latest GV70 and G80, dragging its sales up by 57 percent from 2020. Kia’s high-priced RV models such as Sorento and Carnival also led its sales. Global interest in electric models also powered Hyundai’s Ioniq 5 and Kia EV6 sales. The company said an accumulated 47.267 Ioniq 5 and 19.068 Kia EV6 have been sold from January to October. Meanwhile, analysts also viewed that the Korean automaker will continue with an upward momentum, with reviving consumer demand for automotive. KB Securities forecasted that Hyundai Motor Group will post 7.9 trillion won in operating profit in 2022, about 10.5 percent increase from this year, while 5.5 trillion won of operating profit in 2022 for Kia. “With the market gradually recovering from the aftermath of Covid-19 and solving the semiconductor supply chain issue, the automaker will have its operating profit increase compared to this year”, said Kang Sung-jin, researcher from KB Securities. According to market data, the global automotive market will see its demand increase 2.3 percent to 79 million cars in the next year, with some 6.3 million EV models globally, which is about a 58 percent increase on-year. +++
+++ Germany’s car watchdog has cleared MERCEDES-BENZ ’s Drive Pilot semi-autonomous driving system, paving the way for the Daimler subsidiary to begin offering Drive Pilot internationally. The highly automated system allows the driver to focus on other activities while a car equipped with the technology is in heavy traffic or on congested highways, Mercedes-Benz said in a statement. Germany’s KBA authority approved the system based on technical requirements laid out in United Nations regulations. “The KBA is setting national, European and international standards in road safety on the road to autonomous driving”, said the authority’s president, Richard Damm, in a statement. Beyond the U.N. regulation on technical requirements, countries also have to pass legislation clarifying where and how such systems can be used, as well as issues of liability. “With this milestone, we are once again proving our pioneering work in automated driving and also initiating a radical paradigm shift”, said Markus Schaefer, Daimler chief technology officer. As soon as legislation in China and the United States is in place, Mercedes-Benz will offer the system in those markets, Schaefer added. Germany’s approval means Mercedes-Benz can offer the S-Class with Drive Pilot to customers in Germany in the first half of 2022. Such Level 3 automated systems have been allowed in Germany since 2017. According to Mercedes-Benz, there are over 13.100 kilometers of motorway suitable for the Drive Pilot system in Germany. The German government regards Tesla Autopilot, by comparison, as a Level 2 system. With Drive Pilot, the driver can engage the system in slow-moving traffic and concentrate on phone calls, writing e-mails, surfing the Internet or watching a film. The KBA approved the system for driving speeds of up to 60 km/h. It has not decided whether to clear it for speeds of up to 130 kph, or a lane-change assistant that would automate overtaking another car. +++
+++ It wasn’t long ago that SOUTH KOREA ’s roads had nothing but boring sedans, until campers discovered the glories of SUVs. Now it’s pick-ups’ turn. According to the Korea Automobile Manufacturers Association, sales of pick-up trucks in Korea, which had stalled at around 20.000 units per year until 2017, jumped to 42.000 units in 2019, a more than 80 percent rise in just 2 years. Last year, some 38.000 pick-ups were sold. Which means new models will soon be coming from abroad. The fact that pick-up trucks are categorized as commercial vehicles and are not liable to the special consumption tax is also driving sales. Chevrolet’s Colorado pick-up truck is the rig of the moment. Launched here last year, it was the first imported pick-up truck in South Korea. GM Korea hopes the facelifted model, with an updated transmission system, will add to the mystique. The Colorado sold 3.551 units in the first 10 months of this year, making it the top imported model in Korea, beating the German sedans that usually claim that crown. Ford introduced 2 pick-up trucks in Korea early this year, trying to get a piece of the growing pie. The Ranger Raptor and Ranger Wildtrak were launched in April and sold 821 units through October. SsangYong Motor is the only domestic carmaker offering a pick-up truck and it’s become the carmaker’s savior. The Rexton Sports sold 3.159 units in November, the most of any model vehicle. Hyundai recently launched a pick-up, the Santa Cruz, but it is currently sold only in North America. The segment’s growth is likely to continue next year and new models are coming. GM Korea announced last month that it will bring in GMC’s Sierra pick-up next year to boost its domestic sales. Sierra is a pick-up that dates to 1998. GMC targets the premium truck market. Japanese commercial vehicle brand Isuzu is bringing its D-Max pick-up model to Korea in the first half of next year. D-Max is being sold in 100 countries and will be sold in South Korea through domestic distributor Curo Motors. +++
+++ Driven by global zero emissions targets and THAILAND ’s ambitions to gradually phase out fossil fuel cars, Chinese automakers are trying to shake a market that has long been dominated by Japanese players, by promoting pure electric vehicles (EVs). At the ongoing Thailand International Motor Expo 2021 which runs through December 12, one of China’s biggest car manufacturers SAIC has unveiled its latest electric vehicle MG Cyberster, a concept car scheduled to start delivering in 2023, to beef up its EV lineup. SAIC Thailand said its 2 imported EV models, MG ZS EV and MG EP, debuted in 2019, currently account for some 90 percent of the pure electric vehicle market in Thailand. Zhang Haibo, president of SAIC Motor-CP and MG Sales Thailand, expressed hope that Chinese EV producers can bring new dynamic to the traditionally Japanese dominated car market in the Southeast Asian country. Thailand is aiming to significantly grow its EV market in hope of establishing 30 percent of its auto production as EV based. This move prompts Chinese carmakers such as SAIC and Great Wall Motors (GWM), both of which have entered the Thai market, to test the water with imported models and anticipate establishing production given sufficient demand. GWM plans to launch nine hybrid and pure EV models within three years and establish a local industrial chain for EV production in the long run, Elliot Zhang, president of GWM ASEAN and Thailand told Xinhua. The carmaker launched the Good Cat model through its EV sub-brand ORA not long before the motor expo, in mid-October. Nearly 2.000 pre-orders were placed by the end of November, according to GWM. “Thai consumers are increasingly embracing EVs in line with global trends. The demand for EVs is likely to increase, especially in the mass market, by 2030”, Kevalin Wangpichayasuk, assistant managing director of Kasikorn Research Center, said in a recent written interview with Xinhua. However, Thailand’s all-electric car market is still in the early stages due to higher prices and concerns over availability of charging stations, she added. A free trade agreement between ASEAN (Association of Southeast Asian Nations) and China allows Chinese manufacturers to export EVs customs-free to Thailand, which supports the price competitiveness of Chinese EVs. However, once the EV market has become sizable in Thailand, Chinese and other foreign manufacturers will consider setting up local EV production lines. “Japanese carmakers may have to increase their investment in EVs, if they want to maintain their mass customer segment here”, Kevalin said. Currently, Japanese brands here still focus strongly on their existing production of fossil fuel and hybrid cars. To tackle the EV-related infrastructure problems, the 2 Chinese companies of SAIC and GWM are working with Thai governmental bodies and enterprises in order to install more shared charging stations across the country, apart from their own exclusive charging points. These efforts have also helped them to build brand awareness among Thai consumers. “Now when talking about electric cars, many people will think of Chinese brands,” said Tawatchai, a car enthusiast at the motor expo, adding that if charging facilities are more widely available and the government offers sufficient incentives, “Thais will show more interest in electric vehicles, especially Chinese brands with high price-performance ratio”. +++
+++ VOLKSWAGEN boss Herbert Diess will stay on in a slightly modified role, the German carmaker said, ending weeks of uncertainty about his future as VW hiked its five-year spending plan for electric cars by about half. Rolf Brandstätter, who took over from Diess as head of the core Volkswagen brand last year, will join the board and lead a new division entitled Volkswagen Passenger Cars from January 1, the company said in a statement. He will also take over Volkswagen’s China business from Diess from August 1. However, Diess will take on responsibility for the company’s software unit Cariad. “I cannot complain about a lack of responsibilities. I continue to feel fully responsible for the company”, Diess said. Diess’s future had been in doubt following clashes with Volkswagen’s powerful labor unions. Diess’ management and communication style, warning of tens of thousands of possible job losses in coming years and frequently highlighting the threat of competition from Tesla, angered the carmaker’s works council, prompting weeks of negotiations over his future at the firm. At a news conference, works council head Daniela Cavallo said it was happy with the outcome of negotiations. “I have no interest for us to have these conflicts in public”, Cavallo said. “The conclusions of this planning round are clear: We have a solid and robust plan we can all be proud of”. The company’s supervisory board presented its annual update to the company’s 5-year investment plan, outlining investments of €159 billion; up from €150 billion last year, and involving electrifying more of Volkswagen’s sites across Europe. Spending for electric vehicles will be raised by about 50 % to €52 billion, compared with last year’s blueprint. “We are becoming a battery manufacturer, a charging infrastructure manager, software is playing a more dominant role. We are developing new business activities with an unbelievable dimension for us”, Diess said, adding the company expected to generate €20 billion of revenue by 2030 from its battery division alone. The reorganization of the leadership team would see the Volkswagen Group delegating management of individual car brands to focus on these overarching business areas, Diess said. The carmaker also confirmed it expected its operating margin to be at the upper end of its 6-7.5% target range for 2021. +++