+++ In CHINA , local auto brands are on track to account for just over 50% of the cars sold in their home market this year thanks to a growing dominance in electric vehicles. It would represent the first time Chinese automakers have controlled a majority share of China’s car market; the world’s largest. For the past 4 decades, China’s auto market has been dominated by established global brands such as Volkswagen and Toyota operating in joint ventures with Chinese partners. But competitive pricing, faster rollouts of new models and the rise of domestic electric carmakers like BYD, Nio and Xpeng have changed the dynamic for made-in-China auto brands. China passed Japan as the world’s largest auto exporter in the first quarter of this year. It is forecasted that China’s overall auto sales would grow 3% this year to 24.9 million vehicles, recovering to the level of sales before Covid-19. Another forecasts is growth to 30.6 million vehicles in 2030, when it projected more than half of vehicles sold in China would be EVs. China’s market for what it calls “new energy vehicles” (NEVs), including plug-in hybrids and pure electrics, has benefited from the equivalent of $57 billion in subsidies from the government during 2016 to 2022, the consultancy said. By contrast, the U.S. government has provided $12 billion in subsidies over that time. But Chinese EV makers have also gained ground from a focus on features such as advanced driver assistance systems even on cheaper cars, the firm said. That competitiveness will make Chinese automakers as disruptive to established global automakers in coming years as Tesla has been, said Stephen Dyer, who heads AlixPartners automotive consulting in Asia. “It would be the best for foreign brands to learn from new Chinese EV startups if they want to survive in China or face the disruptive impact from those brands in their home markets”, Dyer said at a briefing. Dyer forecast annual sales of Chinese-branded cars in overseas markets would grow to 9 million vehicles by 2030. That would give Chinese brands 30% of global share and a market share of 15% in Europe, 19% in South America and 19% in South East Asia and South Asia. China’s market also faces massive overcapacity and Dyer forecast a wave of consolidation. Only 25 to 30 out of the 167 NEV brands can survive by 2030, Dyer said. Over two-thirds of those brands haven’t recorded any sales last year, he said. “Even with best-in-class operations, it takes up to 400.000 units of annual production to reach breakeven”, he said. +++
+++ The much-anticipated revived FIAT PANDA will arrive next year as a “less is more” crossover to take on the Dacia Sandero, boss Olivier Francois has all but confirmed. Hinting that a date for the “very special” reveal that “will surprise you” will be 11 July 2024 (Fiat’s 125th anniversary), the Frenchman said the car will take inspiration from 2019’s Centoventi concept, which previewed a futuristic Panda lookalike. “We have room to make another B-segment car, alongside the electric 600e, more in the ‘essential’ category. Clearly our offering could accommodate another product”, he said, smiling. It will sit at around 4 metres in length and have a “simple clever” approach “a little bit like the Panda used to be”. “The car that you are going to see next year will be cool, popular, affordable”, added Francois, making it a perfect rival to the Sandero. However, any electrically powered Panda is not expected to arrive with a price less than the 500e ’s entry point. Francois noted that the car would need to cater to “global markets”, such as Latin America (where the majority of its 1.2 million cars were sold last year), as well as the Middle East and Asia. This nods to the car sitting on the same CMP platform as the Jeep Avenger and the 600, given it can be fitted with electric or combustion powertrains. “We need something that is 100% following the European tastes but really can be global”, said Francois. “And this is why I said there may be space for something else, other than the 600 in the B-segment, which is very, very European. So, that one is joyful, a little bit retro, but the other one would be closer to what you think”, he added when answering questions on the Centoventi production model. Some parts of the concept will not make it to production, Francois confirmed, such as swappable batteries. “It was something that sounded reachable when the concept was originally unveiled”, said Francois. The size and position of the car was also confirmed by Fiat parent company Stellantis’s boss Carlos Tavares in February. He told reporters: “There will be a big return in the B-segment and crossovers. We’re going back to the most relevant segments. We only have the Fiat 500X now. My objective is to have 3 cars in the B-segment”. Given the 600e and 500X would make 2 of these, it leaves a natural place for the Panda; a nameplate that has already been confirmed to return. +++
+++ Those who’ve waited this long to plunk down a deposit on a LAMBORGHINI with a full combustion motor have waited too long. For 6 decades, the Italian brand, founded in 1963 to compete with Ferrari, delivered V8s, V10s and V12 gasoline powered engines to its aficionados. But as of now, its official: the order books have closed on Lambo’s Huracan and Urus models. Stephan Winkelmann, head of the Volkswagen subsidiary, said that all ICE models are now sold out until the end of their production cycle. Only hybrid and electric vehicles will be made from next year and transitioning to the end of the decade. To prepare for the switch to hybrid power, Lamborghini has invested “at least 1.8 billion euros” to produce a lineup of hybrid vehicles ready for release by late 2024 and into 2025. The company’s next hybrid model is the Revuelto, which pairs a V12 engine with a plug-in hybrid powertrain. The brand anticipates offering a fully electric car “by the end of the decade”, Winkelmann has said. Globally, Lamborghini delivered 9.233 vehicles in 2022, up from 8.420 the previous year. +++
+++ MG parent SAIC Motor is seeking to build a manufacturing base in Europe as part of the on-going expansion of its international business activities, the Chinese state-owned car maker has confirmed. The plans (revealed by the general manager of SAIC’s international business department, Yu De, in an address to Chinese media on Tuesday) aim to provide the parent company of MG with a 4th production base outside of China. The new European manufacturing base, a site for which has yet to be decided, is set to join factories in Thailand, Indonesia and India as part of a growing global production presence for SAIC Motor, which is headquartered in Shanghai. Yu indicated that Europe market is set to become SAIC’s largest overseas market, with annual sales predicted to exceed 200.000 cars in the longer term. Much of SAIC’s sales growth in Europe is being generated by the company’s MG brand, which it purchased from Nanjing Automobile in 2007, with models such as the 4, ZS and HS. During the first half of 2023, SAIC achieved overseas sales of 530.000, representing a 40% increase year on year. This comes after a record 1.100.000 overseas sales in 2022, in which SAIC Motor sold 5.3 million cars globally. SAIC brands include MG, Maxus, Roewe, Rising Auto and the newly established IM Auto (the last of which co-operates closely with WAE (formerly Williams Advanced Engineering) on the development of new electric-powered models, including the IM L7 and LS7). It also operates the Boajun and Wuling brands in partnership with Wuling and General Motors. Additionally, SAIC operates joint-venture production and sales activities with General Motors (for the Cadillac, Chevrolet and Buick brands) as well as the Volkswagen Group (for the Audi, Skoda and Volkswagen brands) in China. +++
+++ OPEL will show its next concept car, named simply the Experimental, at the Munich motor show in September. Created at the firm’s design centre in Rüsselheim, Germany, it will preview the next evolution of the brand’s design identity. Opel CEO Florian Huettl said: “As the name indicates, the Opel Experimental will give a clear vision for the brand and not just for a car line. It shows where our brand is heading in the coming years and will influence all our next generation production vehicles. It is a symbol for what we want to achieve with the Opel brand”. The new Experimental concept is expected to place a strong emphasis on aerodynamic developments, as well as a simpler, more spacious interior. Opel design chief Mark Adams told in December that “aero will be important” as electrification ramps up and “the whole idea is to ‘detox’ the interior to make it simpler”. The Experimental follows the GT X Experimental from 2018, which strongly influenced the current-generation Mokka. That car introduced the flat ‘Vizor’ grille identity (since grafted onto the Astra, Corsa, Crossland and Grandland) which has come to define the brand over the past few years. Opel is set to significantly ramp up its electric car offering over the next few years as it transitions into offering solely EVs by 2028. New models on the horizon include electric conversions of its current line-up (such as the Astra Electric and Corsa Electric) as well as all-new models. The Experimental shown at Munich is expected to preview the first car in this next wave and could hint at the design of the next-generation Crossland, arriving in 2024. Adams told in June that these new models will mark “a significant milestone” for the brand. When they are launched, Vauxhall will be one of the first manufacturers to offer an electric variant of every model in its line-up. +++
+++ We don’t get to see it paired with a car yet, but STELLANTIS just revealed a bunch of details about its upcoming STLA Medium electric vehicle platform. As a reminder, this is just one of four that will ultimately come out, including STLA Small, Medium, Large and Frame. The “Medium” is specifically designated for vehicles in the C and D segments, but Stellantis isn’t explicitly saying which new models will sit on it. At the very least, Stellantis is providing a boatload of specs to chew on. Maximum range for vehicles on the STLA Medium platform is said to be 700 km when paired with a “Performance” pack and tested on the WLTP cycle. The “Standard” pack brings that max range down to 500 km. All those kilometers come courtesy of a 98 kWh battery pack, which is the highest-range Performance pack. Stellantis hasn’t said what the standard pack capacity will be quite yet. As for charging, all STLA Medium vehicles will feature a 400 volt electric architecture that will be able to facilitate charging from 20-80 % in 27 minutes. A maximum charge speed is not yet specified. Stellantis also claims an astoundingly efficient 7 km per kWh, “depending on the application”. Basically, don’t expect all of the STLA Medium vehicles to touch that level of efficiency, but some might for WLTP testing. As for driving enjoyment, you can expect power output to range between 218-386 horsepower. STLA Medium cars will be available with either front-wheel drive or all-wheel drive and come in body styles including “passenger cars, crossovers and SUVs”. The platform allows for some flexibility in size, so wheelbase can range from 264 to 290 centimeters. Overall length will vary from 430 to 490 centimeters , and ground clearance maxes out at 22 centimeters, for those curious about how Jeep models might fare on this platform. Stellantis says it’s going to deliver “best-in-class battery packaging cost”, explaining that despite various total energy options, the perimeter dimensions of the battery pack, common tray and cooling designs will remain constant. It also claims that the STLA family of platforms will be future-proof, as it’s engineered with provisions for future battery chemistries, including solid-state batteries. Capacity to build vehicles on the STLA Medium platform is scheduled to be installed in “several plants”. Stellantis says it will start in Europe, but also plans to outfit other plants across the world. +++
+++ TESLA drivers are about to have a lot more places to plug in. Naturally, some Tesla owners are worried about sharing space at Supercharger stations (the primary longtime differentiator between Tesla and other EV makers) once Ford and General Motors EV drivers get access. But experts say that the crowds are likely to thin as more non-Tesla stations convert to Elon Musk’s North American Charging Standard (NACS) connector. With newfound revenue from additional users, Tesla will also have the means to expand the network even further from the roughly 20,700 plugs already in North America. The auto industry has struggled for years to agree on a standard for EV charging, and it appears Tesla is finally winning the battle. Other major charging providers like Electrify America, Blink, and other big names will soon be able to accommodate Teslas. “All of this is happening because the automakers are fed up with the non-Tesla fast charging network customer experience and reliability”, Loren McDonald, CEO of market analysis firm EV Adoption, told. “The foundation of this, and why we’re seeing more and more automakers announce that they’re doing this, is because fundamentally they’ve realized how critical the charging experience is to your ability to sell EVs”, McDonald added, “but also keep existing customers happy and retain them so that three or four years down the road, they buy another one of your EVs”. Teslas have always used the NACS connectors, which is the only connector compatible with the Supercharger network. Ford, General Motors and Rivian all recently announced that their vehicles would also soon be fitted with the NACS connector, all but forcing other charging companies to adopt the standard to stay relevant. The Supercharger network is already the most robust fast-charging network globally. In the the first quarter of 2023, the number stations grew 33% to 4,947 from 3,724 the year prior. The number of charging plugs grew at roughly the same rate, hitting 45.169 in March. Now, it’s likely new revenue will enable Tesla to bolster the charging business even more, further assuring Tesla owners that the exclusivity of the network and charging capabilities won’t be lost as others join in on the fun. Cathie Wood, Ark Invest CEO, told in a June interview that, “What’s interesting about this is it does help Tesla underwrite the charging station expense”. Wood is a notorious Tesla bull, with a $2.000 price target on Tesla stock by 2027. “If you look at Tesla sales they are highly concentrated on the coasts”, Wood said. “Now, it’s going to make a lot more sense for Tesla to roll out charging stations that much faster throughout the country”. “Tesla is smart, right? Tesla has so much data”, McDonald added. “This whole concept will have been a failed exercise if all of a sudden, 2 years from now everybody’s waiting 30 minutes at hundreds of Superchargers because of all the other automakers. I just don’t think Tesla’s going to allow that to happen”. More chargers, whether from Tesla or third-party providers, will only mean more buyers. That’s huge for the entire industry, experts have told. It’s also a big win for Tesla as the company matures from scrappy startup to mass producer of electric cars. Adding to its already robust Supercharger network would add to Tesla’s moves into the mass market this year, including price slashing and more traditional incentive packages. Tesla’s plan to act like a normal car company is working out so far; it reported another record for deliveries in the second quarter. +++
+++ New vehicle sales in the UNITED STATES for top global automakers rose in the second quarter on improving supply and strong demand, signaling that rising interest rates have not yet had a meaningful impact on purchases. Vehicle production took a hit after the pandemic disrupted supply of semiconductor chips and other raw materials, hurting automakers’ ability to meet the upsurge for personal transport. Companies are now rushing to make up for the lost production as supply chain snags gradually ease. “The jobs market has remained healthy, and consumers have found a way to buy new wheels”, said Cox Automotive’s chief economist Jonathan Smoke. Toyota’s North America unit (TMNA) reported a 7.13% rise in U.S. sales to 568.962 units for the quarter ended June. General Motors, however, surpassed Toyota in the quarter, with a near 19% rise in U.S. sales to a total of 691.978 units, including 15.652 electric vehicles (EV). Compared to peers, the Japanese automaker has struggled to ship enough cars on time to dealers. The supply chain is improving and “we expect the second half of the year to be better in production and wholesale to our dealers than the first half”, said David Christ, group vice president and general manager at TMNA, in an interview. “The customer has been able to absorb the increase in transaction prices in the industry along with the rate increase”, he added. Earlier in the week, Stellantis and Hyundai reported a 6% and 14% increase, respectively, in total auto sales. EVs continue to see higher demand on incentives under the Inflation Reduction Act and a price war sparked by market leader Tesla, which delivered a record number of vehicles in the quarter. +++