+++ China’s BYD has told its India joint-venture partner it would shelve plans for a new 1 billion dollar investment to build electric cars after its investment proposal faced scrutiny from New Delhi, 2 people with knowledge of the discussions said. BYD and its partner, privately held Megha Engineering and Infrastructures submitted a proposal to the Indian government in April to jointly build electric cars in India. But in the initial review, officials from 3 Indian ministries, including finance and external affairs, raised what 2 Indian officials described as security concerns about investment from the Chinese company and signalled opposition. BYD executives told Megha Engineering last week that the battery and EV maker wanted to drop pursuit of the investment, according to the 2 people with knowledge of that exchange. It was not immediately clear whether BYD could have second-thoughts, and as of Thursday BYD had not formally withdrawn the investment proposal from government review, the two officials with knowledge of the review said. BYD, China’s largest EV maker, declined to comment on the status of its investment proposal and whether it would pull the plan to produce electric cars in India. In a statement, the company said it has had a presence in India for 16 years, selling both passenger cars and electric-drive buses. During a meeting last week, Hyderabad-based Megha Engineering urged BYD to wait for more clarity on the situation before moving to drop the electric cars manufacturing plan, according to the 2 people with knowledge of the discussion. BYD had understood its investment proposal would be politically charged because of the scrutiny of Chinese investment in India and had attempted to head off concerns, the 2 people with knowledge of its planning said. For instance, the proposal said voice-activated commands for apps would be available in Indian languages in BYD electric cars built in India and that all data from the vehicles would be housed in India, one of the people said. BYD had proposed starting production in India by 2025, the people familiar with the plan said. India began subjecting investment from China to closer scrutiny in 2020 amid a series of border clashes between the 2 countries. China’s Great Wall Motor shelved its plans to invest $1 billion after failing to get clearances from the Indian government. A final decision on whether to approve BYD’s investment proposal would be taken by Indian ministries of trade and heavy industries. BYD, the world’s largest producer of EVs and plug-in hybrid vehicles, entered the Indian market in 2007 producing batteries and components for mobile phone makers. In 2013 it started building electric buses in India with Megha Engineering, under a joint venture company called Olectra Greentech. BYD, which has already invested over $200 million in India, markets the Atto 3 and the e6 to corporate fleets and plans to launch sales of its Seal later this year. BYD has sold about 1.950 cars in India since starting sales in 2022, according to government registration data. India’s EV market is small but growing with domestic automaker Tata Motors dominating sales. Electric models made up less than 2% of total car sales in 2022 but the government wants to grow this to 30% by 2030. +++
+++ LAMBORGHINI could sell 10.000 cars this year for the first time, its CEO said, as the luxury sports carmaker reported a rise in profit and revenues for the first half. The Italian brand, a subsidiary of Germany’s Volkswagen, sold 5.341 cars between January and June; up 4.9% on the same period last year. The United States was its largest single market, with 1.625 deliveries. Chairman and CEO Stephan Winkelmann said it was not easy to make forecasts due to market uncertainties, including with raw materials, but added that selling 10.000 cars this year was a “feasible goal”. “It is not something we are obliged to achieve, but it’s important to show what the health of the company is and how big clients’ willingness to buy our cars is”, Winkelmann said. Supported by the success of its Urus, Lamborghini has in recent years expanded its output, relying on solid demand from wealthy car lovers. It delivered over 9.200 vehicles in 2022. Rival Ferrari, whose headquarters is less than 40 kms away, shipped more than 13.200 cars last year. In the first half, Lamborghini’s revenues grew 6.7% to 1.42 billion euros and its operating income rose 7.2% to a record 456 million euros, the company said. Lamborghini is investing 1.9 billion euros to 2027 in its shift to hybrid and electric cars, but further investments are expected. The carmaker earlier this year presented its first plug-in hybrid model, the Revuelto, adding to the Huracan 10-cylinder sports car and the Urus in its current range. The line-up is set to become all hybrid next year with the new Urus and a new sports car replacing the Huracan. Lamborghini plans to launch its first fully-electric model in 2028, which is 3 years after the first promised by Ferrari, followed by a battery version of Urus in 2029. “What matters is to be there at the right time, when we know we are at our best and the market is ready”, Winkelmann said. He added the use of so called e-fuels was an option, but only for the brand’s sports car models. But any decisions about possible e-fuel powered models for the next decade would depend on future regulation in different parts of the world, not only in Europe, Winkelmann said. +++
+++ Toyota filed trademark applications with the European Union Intellectual Property Office and the British Intellectual Property Office for 2 new LEXUS model names. One is TZ450e, the other is TZ550e. There are no such Lexus models on sale anywhere in the world now. If the luxury brand’s naming conventions hold, the T suggests these are going to be 3-row SUVs like the new TX, the Z suggests they’ll be battery-electric vehicles. Right now, the only battery-powered Lexus models on sale are the UX300e in international markets and the RZ450e sold here and elsewhere. The RZ450e uses an electric motor on each axle linked to a 71.4 kWh lithium-ion battery pack. The front motor develops 204 horsepower, the rear axle e-motor generates 109 horsepower, for 313 hp and 430 Nm of torque. If that powertrain were transferred complete into a coming 3-row SUV, those output figures would certainly be decent. I suspect the larger platform on the 3-row would translate to a larger battery that could at least manage these totals. Toyota’s planning a three-row BZ5X for debut around 2025, perhaps for the 2026 model year. If the automaker’s new battery technology is ready for production then, the Toyota and Lexus haulers would be expected to make substantial improvements on the RZ figures, especially with a more powerful variant like a TZ550e bringing an even larger appetite for ions. Toyota’s electrification targets have been through a few adjustments in the past few years. +++
+++ Ladies and gentlemen, if you’re here to see the MAZDA MX-30 , the show’s over, you can go home. The Japanese automaker announced it’s taking the little electric crossover off the U.S. market after the 2023 model year, shifting focus to plug-in hybrid models like the CX-90 and CX-70, and non-plug-ins like the CX-50 Hybrid. So concludes the brief, quizzical life of the battery-electric crossover only sold in California, and not much of a hit there. On sale for 3 model years including 2023, just 181 buyers took an MX-30 home in 2021, 324 did so in 2022, while 66 have done the same so far this year through June. Paltry numbers, although apparently part of the plan; Mazda said last year its 2022 U.S. production run was sold out. The 35.5 kWh battery did the car no favors. The MX-30 has its charms, namely, styling and materials. Some other markets will continue to enjoy them in a redesigned package known as the MX-30 R-EV with an 830 cc range-extending rotary engine. Its battery capacity is half that of the full-electric model at 17.8 kWh. Mazda estimates 85 kilometers of range of pure-electric driving on the WLTP cycle, perhaps half what the electric version can do. The automaker’s retooling to make a better battery-electric run soon, with two EV lines planned. One line will employ an existing architecture, the other on a brand new platform. Reports say Mazda might get access to a new EV architecture Toyota’s designing that’s planned to go more than 1.200 km on a charge when powered with next-gen battery tech. +++
+++ Last week, MERCEDES released its quarterly sales and financial update, which showed positive signs for the year so far. The German premium automaker registered 515.746 deliveries in the second quarter of 2023, which represents an increase of 6 percent compared to the same period last year with top-end divisions Mercedes-AMG and Mercedes-Maybach enjoying growth of 19 and 39 percent, respectively. But even though things are looking good for the second half of the year, the manufacturer has no intentions to lower its prices. In fact, Mercedes will keep raising the prices of its products and that was confirmed by the company’s chief financial officer, Harald Wilhelm, right after the Q2 financial report was released. “Will the price lever be as strong in the coming quarters? We will be a bit more careful… but we still have cost increases to digest”, Wilhelm told during a press conference. But why is that price hike? Well, simply put, Mercedes estimates that its costs will continue to go up in the coming months. This includes production expenses, as well as property, plant and equipment, research and development expenditures. In general, the automaker calculates its costs in 2023 have been significantly higher compared to 2022. On the bright side, Mercedes is one of the few companies that report a “noticeably improved” supply chain. Also, energy prices are expected to continue to be at a significantly lower level than in the previous year for the rest of 2023 and also on average for the year as a whole. But while the Germans believe this will have benefits for the development of automotive markets in the second half of this year, the demand for new premium cars will likely remain subdued in some of the brand’s most important markets. Last but not least (considering the continuously increasing prices) what is the automaker’s outlook for the second half of 2023 in terms of sales? The rate of sales from the first-half is expected to remain at approximately the same level, and full-year sales are thus seen at the prior-year level. +++
+++ The top reason why Tesla Model 3 owners sold their cars and replaced them with a model from another brand is the disapproval of the company’s CEO, Elon MUSK , a survey of 5.000 verified owners has revealed. Among those questioned, 21.5 percent said that the outspoken head honcho led them to jump ship and choose another marque for their next vehicle, while concerns about the quality of the cars or the service are the second reason why Model 3 owners sold their EVs, with 18.7 percent. The third reason why people sold their Model 3s and went a different way is that they were unhappy with the company’s brand perception (17.8 percent). “I love the vehicles but do not want to support someone who has such vitriol and low opinion of the very people who have made Tesla a success”, one customer said. At the same time, however, it’s worth noting that the same survey shows most Tesla Model 3 owners are very happy with their purchase, with 75 percent of those questioned about their plans for buying a new car in the next 2 years saying that they’re considering another Tesla. The upcoming Cybertruck is the most popular choice, with the Model Y in second place, and the Model 3 in third place. The survey shows that there’s a clear relationship between Tesla owners’ opinion of its CEO and whether they’d stick with the brand in the future or not, with 96 percent of owners with positive views of Musk saying they’d buy a Tesla again, while 91 percent of owners who said they wouldn’t buy another Tesla vehicle had unfavourable opinions about the CEO. After answering a dozen questions about the chief operating officer, Tesla owners were given a chance to submit comments about him. “I’d prefer he not be so tied to the image of Tesla”, said one owner who disapproves of Musk. “I don’t want my car to be an Elon Musk conversation starter”. At the same time, one person who doesn’t see the CEO as a deal-breaker had this to say: “He is a brilliant and very well-intentioned person. Maybe not the most astute or clever in politics or the best diplomatic speaker. His words sometimes do get misrepresented or possibly he does not think about how they can be twisted around. But his intentions are all good”. +++
+++ The rumors were true: the new NISSAN Z Nismo is indeed only available with an automatic transmission. But that’s not all. It’s also packing more power, chassis upgrades and, of course, unique styling. On the outside, the Z Nismo gets unique front and rear bumpers, side skirts and a rear spoiler. Nissan says that the lower, longer nose is inspired by the 240ZG long-nose model offered in Japan, and we can kind of see what they mean, though it’s decidedly less retro than the standard Z fascia. The deeper front spoiler is matched by the side skirts and reworked rear bumper, and they’re tied together with a red stripe along the bottom edges. The 3-piece rear spoiler is larger than the Z Performance’s, too, and Nissan says the whole aero package is designed to reduce drag while also producing downforce, though it didn’t say how much of either. Additionally, the exterior features exclusive 19-inch Rays forged wheels, a unique gray trim piece along the tops of the windows and a black roof. Those wheels are an extra half-inch wider than the Z Performance examples, and they wear Dunlop SP Sport Maxx GT600 tires, the rears of which have an extra 10-mm of meat compared to the Performance. It’s available in black, white, silver, red and the exclusive gray paint shown in the gallery. The interior is subtly changed with red and black leather and Alcantara Recaro seats, a leather and Alcantara steering wheel and instrument graphics with the Nismo logo, red trim and a unique start-up animation. But Nismo is about performance, so it’s time to get to those specs. Nissan improved the engine oil cooler, increased the boost and added more aggressive timing to bring output up to 420 horsepower and 384 pound-feet of torque, increases of 20 ponies and 34 pound-feet. And while it is backed solely by Nissan’s nine-speed automatic, the transmission has been upgraded with beefier clutches and revised engine and transmission tuning. Nissan claims it can shift almost 50% faster than the standard Z automatic, and it gets a new Sport+ shift mode with sportier downshift tuning. Power continues on to the rear wheels via a clutch-type limited-slip differential. As for the chassis, Nissan added additional bracing front and rear improving torsional rigidity by a claimed 2.5%. Suspension features stiffer springs, retuned shocks and new anti-roll bars. Stiffer bushings for said suspension and the steering rack are added, too. Like the Z Performance, the Nismo also gets four-piston front brake calipers and two-piston rears, but the Nismo gets 1-inch larger front rotors (15 inches total diameter) and more aggressive brake pad compounds. The Z Nismo hits showrooms this fall. +++
+++ Where TESLA sits right now, reminds Ford CEO Jim Farley a lot of the early days of his own auto company. Tesla has obviously found success, but this moment in particular could be difficult for the EV market leader given the ongoing price war it started, Farley said on an episode of the Fully Charged podcast published in June. “I think this is really one of Tesla’s most challenging moments”, Farley told host Robert Llewellyn. “They got through Model 3 and Model Y commercialization in the plant and scaling production. The next big test turns out to be their heavy discounting to stimulate demand, which is a sugar high, and it continues to deteriorate the elasticity”. Tesla has been hitting record production and delivery numbers in recent quarters, but the company is also staring down shrinking market share and falling profit margin. “Less and less people are signing up as you cut the price. This is what Henry Ford found out with the Model T: that you commoditize your product when you’re telling people, Hey, the price is what really matters”, Farley added. “I think we’re basically where we were with Model T”, he added. “Henry Ford was only a year away from going bankrupt”. Ford and Tesla have been both friends and rivals over the past few years as Ford races to electrify and snatch up some of Tesla’s market share. The executives have tried to one-up each other with the price cuts, but also have found common ground in teaming up on Tesla’s charging tech. Farley put some distance between his company and Tesla by pointing to his plans to electrify commercial vehicles, larger, 3-row crossovers, pickup trucks, and high-performance vehicles. “We don’t want to make commodity products”, Farley said. “We want to participate in the part of the market where Ford knows the customer really well and we can innovate on their behalf for things that they don’t know they need”. At the same time, the auto executive admitted Tesla remains his biggest all-electric competition, in addition to the major Chinese auto players. “This should be no surprise to anyone. We’ve been watching this for years now play out. I’ve always said that our main competition in the pure electric space is going to be BYD, Geely and Tesla”, Farley said. “It’s not General Motors. It’s not going to be BMW or Volkswagen”. Farley also emphasized the need for vertical integration in the age of electrification (yet another way many automakers are having to mimic Tesla) as well as reducing the industry’s dependence on China’s battery supply chain. “We now pretty much vertically integrate all the raw material purchases. We’re going to the mine and buying the raw materials and then arranging for the processing, all the way to our battery plants, that’s all new”, Farley said. “When people buy that electric car, they probably have no idea how much of a shift it is”. The goal is to ultimately produce more affordable EVs. “We don’t want to just make another generic, affordable EV, because I think there’s going to be plenty of those”, Farley said. “It’s an open playing field”. +++