+++ China’s BYD, the world’s third-largest electric vehicle (EV) producer after Tesla and Volkswagen, is preparing to commence sales in South Korea, according to industry officials. The move comes 6 years after the Chinese automaker established a Korean unit. BYD recently opened an official Korean website and a sales office in Seoul last month, in addition to an existing office in the western port city of Incheon. According to industry sources, BYD began a certification process and promotions for domestic EV sales, while it is also looking for dealers. Kolon Global, which imports BYD forklifts, is being considered as a candidate to become a dealer. Kolon Global has accumulated experience in selling imported cars for brands such as BMW, Mini, Rolls-Royce, Audi and Volvo. It also operates a repair business for foreign automobiles, already possessing both sales and maintenance networks. “We have not been officially contacted by BYD at the moment”, a Kolon Global official said. KCC Auto Group is also cited as a possible BYD dealer. It is putting together a dealership network for Mercedes-Benz, Jaguar Land Rover, Porsche and Jeep. And like Kolon Global, KCC Auto operates an imported car maintenance service center. GS Global, which is currently in charge of the domestic distributor of BYD buses, is also believed to be interested in becoming an EV dealer for the Chinese automaker. The names of BYD’s representative models are all derived from Chinese dynasties. The electric car that BYD will sell in Korea is likely to be the midsize sedan Han, which is its bestselling model in China. Han comes in 2 versions: an EV and a plug-in hybrid vehicle (PHEV). The length and wheelbase are similar to the Tesla Model S, but the price is less than half. The Song EV is a semi-midsize SUV. It is being introduced as an EV and a PHEV, but only the EV model is expected to be launched in Korea. The high-performance electric sedan Seal, which was recently released and attracted attention in Korea, is not currently on the Korean website’s homepage. However, BYD registered the domestic trademark for Seal in July. In addition to these cars, BYD registered trademarks such as Dophin, Carpe, Fari, Halo and Atto with the Korean Intellectual Property Office. However, some insiders believe the Korean public’s perception of Chinese EV brands falls somewhat behind competitors and it will take time for BYD to enhance its brand value despite the cheaper prices of its vehicles. “Customers have a wider range of choices, so it is thought that they will buy a vehicle after thorough comparison and analysis, and it is likely that customers will judge the value of the vehicle accordingly”, an industry official said. The Japanese division of China’s BYD will start selling its first battery electric vehicles (BEVs) in Japan early next year, as the world’s largest EV-maker further steps up its plan to either sell or make its cars available across major markets. BYD, in which Berkshire Hathaway owns a stake, said it will roll out an electric SUV, called Atto 3, in Japan starting January 31. The car has a cruising distance of 485 kilometers and will cost ¥4.4 million ($32,735.66). In comparison, Nissan’s electric Leaf standard model has a cruising range of 322 km and costs about ¥3.7 million. BYD’s Japan chapter is planning to introduce 2 more models by the end of 2023 and more than 100 dealerships in Japan by the end of 2025, the company said. Gasoline-electric hybrid models remain more popular than BEVs in Japan. However, the share of the battery-driven vehicles is expected to grow, partly due to non-Japanese automakers like BYD and Volkswagen making their way into the market. BYD’s Japan division is planning to set up tentative retailers starting late January in 22 cities but is eager to cover all 47 prefectures, said Atsuki Tofukuji, BYD Auto Japan chief executive. “We hope that we can make our presence felt little by little as we work toward carbon neutrality and as our customers demand a variety of choices”, he said. Japanese automakers have recently been criticized by activists and green investors, who slam them for not embracing battery electric vehicles fast enough. Toyota Motor began selling its first mass-produced fully electric vehicle BZ4X in May as lease-only in its domestic market, charging ¥106,700 per month for the first 4 years in a 10-year contract. However, it was forced to recall less than 2 months later due to safety concerns. It began producing again in October. Just a year into its $38 billion EV plan, Toyota is already considering starting again to better compete in a market growing beyond the automaker’s projections, it was reported in October. +++
+++ HONDA ’s Type R models will continue into the electrified age, giving the firm’s hot hatchbacks and other driver’s cars a future despite the demise of internal combustion engines. In recent years, Peugeot, Ford and Renault have axed their respective GTI and RS programmes due to a lack of profitability caused by stringent emissions laws. However, Hideki Kakinuma, lead engineer for Honda’s Type R project, told: “Without Type R, there is no Honda”. Speaking after the launch of the most recent incarnation of the iconic Civic Type R, he said: “Honda strongly believes that driving pleasure is the core essence of private mobility, personal mobility”. However, Kakinuma admitted that in the face of “carbon neutrality and emissions regulations that are very stringent, it’s very difficult to think about such a sports model in these boundaries”. He added: “But for Honda, they are only new hurdles, new challenges to provide our customers the joy of driving. Yes, we will definitely be keen to bring further Type Rs”. This will be welcome news for fans of the hot hatch and means Honda joins Volkswagen in keeping hold of its sporting models. The German car maker recently confirmed to Autocar its plan to continue with GTI and R badging. In what form the next Type R arrives (the latest is the only non-electrified model in Honda European range) remains unknown. But the possibility that there will be another Type R without battery-electric power or hybrid assistance is “not zero”, according to Kakinuma. He said: “Carbon neutrality doesn’t have to be focused on the powertrain itself. It can have the possibility of achieving it even though you are driving a car with an ICE. So I would not reject the possibility that the next Type R can be ICE. However, given the current circumstances, this is very unlikely”. Kakinuma added: “But the Type R itself does not depend on the powertrain. It’s a certain philosophy, a principle of the joy of driving, and that involves a lot of aspects… If this excitement can be provided with a certain powertrain that is carbon neutral or somewhat electrified – or a completely different technology – this will also be justifiably a Type R”. Average fuel economy regulations will severely limit the number of new Civic Type Rs that can be exported to Europa to the “hundreds, not thousands”, confirmed Rebecca Adamson, Honda’s head of cars. Even though all Hondas apart from the Civic Type R are at least part-electrified and several new Honda BEVs are coming, the Civic’s 186 g/km emissions figures will mean supply of the hot hatch will be very limited. +++
+++ HYUNDAI is on the verge of achieving a double-digit sales share of the Brazilian market for the first time. According to statistics from the Brazilian Automobile Dealers Association, Hyundai sold a total of 171.312 vehicles in the Brazilian market between January and November this year, achieving a 9.8 percent share. In terms of sales by brand, it ranks 4th after Fiat, General Motors and Volkswagen. Attention is on whether Hyundai, which set a record annual market share of 9.9 percent in 2016, could achieve a double-digit market share this year. Hyundai entered the Brazilian market in 2012, selling 108.347 vehicles in its first year and ranking 8th in sales with a 3 percent market share. As its sales volume increased gradually, the market share rose to 5.9 percent (2013), 7.1 percent (2014) and 8.3 percent (2015). Annual sales exceeded 200.000 vehicles for 3 consecutive years from 2017 to 2019, but Hyundai’s sales ranking fell to 7th in 2019 due to increased sales volumes of Toyota, Renault and Ford. Hyundai’s market share also fell to the 8 percent level. Hyundai performed well while minimizing production disruptions amid a slump in the Brazilian car market due to Covid-19. Last year, the Korean automaker sold 184.284 vehicles, up 10 percent compared to 2020, raising its market share to 9.3 percent. The model that is leading Hyundai’s upward trend is the HB20, a strategic model developed for the Brazilian market. “This is a sign that Hyundai’s marketability is being recognized in the Brazilian car market, and we will strive to give satisfaction to our customers by selling local strategic models steadily”, a Hyundai official said. “As the Brazilian market is an emerging market with high potential for future development, we will continue our efforts to capture the hearts of customers with local strategic models”. From January to November this year, 89.286 HB20s were sold in Brazil, ranking first in sales of passenger vehicles and second in sales of all models. +++
+++ Stellantis has announced plans to indefinitely idle the Belvidere Assembly plant that builds the JEEP CHEROKEE . The plant will cease production on February 28th and leave more than 1.200 employees out of work. In a statement, Stellantis said the move was a “difficult but necessary action” as “our industry has been adversely affected by a multitude of factors like the ongoing Covid-19 pandemic and the global microchip shortage”. However, the company said the “most impactful challenge is the increasing cost related to the electrification of the automotive market”. Employees will be laid off when production comes to an end and the company is “working to identify other opportunities to repurpose the Belvidere facility”. As a result, there’s no word on when or if the plant could resume production. The move comes as a surprise and UAW vice president Cindy Estrada slammed the decision. In a statement, she said “We are all deeply angered by Stellantis’ s decision to idle the Belvidere Assembly plant without a plan for future product”. She went on to say: “There are many vehicle platforms imported from other countries that could be built in Belvidere” and note the “transition to electrification also creates opportunities for new product”. UAW president Ray Curry was more pointed in his criticism as he said, “We believe Stellantis is grossly misguided in idling this plant, which has produced profits for the company since 1965”. Curry went on to say: “Not allocating new product to plants like Belvidere is unacceptable” and he promised to “fight back against this announcement”. While it remains unclear how far the UAW will take things, Cherokee sales have declined significantly in the past few years. The company sold 239.437 units in the United States as recently as 2018, but sales dropped to 191.397 units the following year. Between the coronavirus pandemic and chip crisis, sales fell to 89.126 units last year and the company has only sold 30.852 units through the first 3 quarters of 2022. Despite the drop, Jeep’s Jim Morrison has previously suggested a next-generation Cherokee was in the works and would be “bigger and better than ever”. He also hinted the model would embrace electrification, but declined to say when the vehicle would arrive. +++
+++ Hyundai and affiliate KIA are expected to see electric vehicle (EV) sales reach a record high in Europe this year, with each selling more than 200.000 eco-friendly cars in that market in 2022. According to the European Automobile Manufacturers Association (ACEA), Kia sold 200.984 EVs in the European market as of the end of October. Kia sold 13.132 EVs in Europe in 2019, surpassing 10.000 vehicles sold per year for the first time, followed by 39.031 vehicles in 2020 and 63.419 automobiles last year. By vehicle type, the Niro EV was the most popular in the European market with 121.852 cars sold, followed by the Soul EV and the EV6. Sales of the EV6 exceeded 30.000 about a year after its launch in September of last year, accounting for 39 percent of Kia’s EV sales in Europe. The EV6 is widely recognized for its performance and marketability in Europe. It received the Car of the Year award in February, a first by a Korean automobile brand, beating out competitive foreign rivals. Hyundai exceeded 200.000 EV sales in Europe in April, 6 months ahead of Kia. As of October this year, the company’s cumulative EV sales in Europe reached 237.631 vehicles. The Kona EV was the bestselling EV at 145.144, followed by the Ioniq Electric and the Ioniq 5. The Ioniq 6, the most recently launched EV by Hyundai, is also receiving favorable responses, which has exceeded expectations in Europe. According to Hyundai, all 2.500 pre-orders of the First Edition have sold out in 5 countries: Germany, England, France, Norway and the Netherlands. If this trend continues, Hyundai is expected to record the highest number of EV sales in Europe this year. Last year, Hyundai Motor and Kia’s combined EV sales in the European market were 135.408 vehicles. According to ACEA, the sales volume of both companies between January and October of this year increased by 13.6 percent compared to the same period last year. +++
+++ While the GT2 RS and the GT3 RS variants of the 911 are amazingly fast, PORSCHE fans are dreaming of a new flagship model in the lines of the Carrera GT and the 918 Spyder. Thankfully, such a project is under development, although it won’t reach production before 2025 as Porsche prioritizes other EV launches. The new halo model was confirmed to be under development by Porsche CEO, Oliver Blume. In an interview he said: “The hypercar is always a part of Porsche’s strategy” adding that “Porsche was always successful with this kind of hypercar showing what is possible, showing future technologies, cutting-edge products”. While a new hypercar from Zuffenhausen is certainly good news, the project is not as close to production status as one would hope. Blume said they are now “concentrating on electromobility” with many new products coming up in the next few years. It is only after those EV launches that Porsche will leverage “when will be the right moment” for the new hypercar and which “cutting edge” technologies will be highlighted in it. Blume became more specific saying that the new flagship won’t come before 2025. While it is too early to talk about specs, there is a high chance that the new Porsche hypercar will use a fully electric powertrain. In previous statements, the CEO made it clear that Porsche is investing in high-power and high-density battery cells which could be used in a high-performance model in the second half of the decade. Looking back to the Porsche lineage, every decade had its own “flagship” model. The Porsche 959 appeared in 1986, the ultra-limited track-focused 911 GT1 Strassenversion followed in 1997, the Carrera GT was introduced in 2003 and the latest 918 Spyder entered production in 2013 featuring a hybrid powertrain. Honouring tradition, the next chapter will be written by the yet-unnamed model before the end of the decade. In the past years, Porsche showed us several “secret” concepts that could fulfill the role of a flagship hypercar including the 918 RS and the 919 Street, the 917 Living Legend, and the Vision 920. More recently, the automaker revealed the Vision GT concept for the Gran Turismo gaming series, featuring a quad-motor EV powertrain producing 1.292 hp. +++
+++ TOYOTA could be poised to announce a rethink of its EV strategy that might result in delays to vital new models due in the next 3 years, according to a new report. The Japanese automaker was a pioneer in electrified cars with its Prius but has been slow to join the full-EV market. And the cars it has launched, like the BZ4X, are less powerful and less efficient than Tesla’s equivalent models, while also making far less money. Tesla made nearly 8 times as much profit per vehicle compared to Toyota in the third quarter of 2022 and that the American company’s simpler EV production and lower costs are partly responsible for the difference. So Toyota has been working with suppliers to see if it make changes to its plan to help close the gap on Tesla, plus other established traditional carmakers that have responded more quickly and efficiently to the boom in EV sales. The most radical proposal on the table, according to sources, is the axing of the e-TNGA platform found under the BZ4X and Lexus RZ 450e in favor of a dedicated EV architecture. By creating the e-TNGA platform from an existing combustion base, Toyota was able to integrate the production of its EVs with ICE vehicles. But that plan was formulated when Toyota believed EVs would account for a smaller proportion of cars sold than they are now likely to. Unfortunately for Toyota’s current planned EV timescale, dropping the e-TNGA architecture would likely delay the next BZ3X and Lexus EVs. Other possible changes include pulling forward the launch of a new thermal management system, a more powerful electric powertrain, and also a silicone-carbide-based inverter that could help to charge efficiency and also reduce production costs. The EV strategy review is being headed by Shigeki Terashi, a 42-year Toyota veteran who helped the company forge a strong bond with China’s BYD that resulted in the Chinese-market BZ3 sedan. +++
