+++ BMW is confident that buyers of the new 5-Series will be very receptive to the all-electric i5 version, so much so that it believes it will account for half of all 5-Series sales in Europe. BMW believes that customers will be impressed by the i5 and in addition to expecting a 50-50 sales split with the ICE model in Europe, believes the i5 will account for approximately 30% of global sales over the course of its life cycle, a spokesman told. +++
+++ CUPRA is supposed to be VW’s exciting mainstream brand, but the current Leon’s styling is so unmemorable it could give an insomniac a solid 7 hours of rest with just once glimpse of its face. That’s something Cupra is changing for mid-2024 by giving its otherwise solid Golf-sized hatch and ST wagon a flavor of the brand’s new Tavascan. The Tavascan is Cupra’s take on parent company VW’s ID.5, meaning it’s an electric SUV coupe built on the group’s MEB platform. And while the Leon won’t be doing anything as radical as hopping on the same architecture, because the 2024 update will only be a simple facelift of the current MQB Evo-based car, it will adopt some major Tavascan styling cues. Most of the big visual tweaks take place around the nose, where the Leon ditches its old fashioned and entirely forgettable conventional grille for a slimmer opening that stretches right across the bumper and is paired with a gaping intake mounted below. And you don’t need to take our word for it or to squint too hard at this camo-clad prototype for proof. Cupra gave us a sneak peek at the facelifted Leon way back in June 2022 when it rolled out the updated car as well as the refreshed Formentor, Born and the Tavascan at a public event. Though the sheetmetal, including the hood and fenders appears unchanged, the shape of the headlight units and the design of the DRLs contained within them is new, and last June’s preview showed that the 2024 Cupra would feature a pair of body-color fangs pointing down from each lamp. We can expect some handy upgrades to the tablet touchscreen inside the cabin that hopefully includes the bigger display seen on other new VW Group cars, but there probably won’t be a ton of changes in the engine bay. The current powertrain lineup is broad, starting with a simple 150 hp 1.5-liter and stretching to a 2.0-liter with 310 hp, while a 1.4-liter PHEV with 245 hp is also on the menu. +++
+++ The DACIA Sandero and Tesla Model Y are locked in the race for the best-selling new vehicle in Europe this year after jostling for the top spot during the January-October period. Through the first 10 months of 2023, 184.088 examples of the Dacia Sandero have been registered across the continent, positioning it just ahead of the Tesla Model Y with 183.799 registrations. These figures are preliminary and based on data representing 92% of sales in the European Union, EFTA countries and the UK, and compiled by Dataforce. It was the Sandero that led the charge in October with 21.139 registrations, placing it ahead of the Renault Clio with 14.534 and well ahead of the Model Y in 24th position with 9.660 registrations. While this could lead you to believe that demand for the Model Y has dropped off a cliff, that’s likely not the case. Sales for the electric SUV are usually significantly lower in the first month of a quarter than they are in the final 2 months. For example, in July it was the 17th best-selling new car and in January was ranked number 32 but was the top-seller in February, March, May, June, August, and September. With this in mind, registrations of the Model Y are expected to be strong through November and December, potentially putting it in the position to outsell the Sandero. In third position of Europe’s best-selling new vehicles through January-October is the Volkswagen T-Roc with 164.833 sales, followed by the Peugeot 208 with 163.672 units and the Renault Clio with 154.493 registrations. Sales of the Model Y have soared in Europe this year, as they are up 142.3% year-to-date, from 75.854 registrations to the aforementioned 183.799 as of the end of October. The only other car to experience a triple-digit percentage gain in sales this year is the MG ZS with sales of it climbing 107.7% from 31.971 units to 66.402. +++
+++ Toyota has filed for 3 intriguing trademarks in Europe which indicate that it might have a new EV for LEXUS around the corner. The trademark applications were made through the European Union Intellectual Property Office. They consist of HZ 300e, HZ 450e and HZ 550e, and obviously reference 3 different versions of the same model. But, just what form could this model take? Like many of its premium competitors, Lexus is making moves towards electrification. It plans to offer an EV option on all its models by 2030 and will become an electric-only brand by 2035. Earlier this year, Lexus filed trademarks for the names TZ 450e and TZ 550e, prompting theories this model will serve as a 3-row electric SUV to sit above the RZ. If this is true then it is possible that the HZ may be an SUV that sits below the RZ. Whatever the case may be, the possibility of having 3 distinct variants on offer should entice buyers. The current RZ 450e features a pair of electric motors delivering 313 hp and 435 Nm, and it’s certainly possible the HZ 450e will have the same powertrain. This could mean the HZ 300e may be driven by a single electric motor, while the HZ 550e would have a healthy dose of additional power over the 450e, potentially upwards of 400 hp. While details about the Lexus HZ are thin on the ground at the moment, we do know that the firm’s most advanced, next-generation EV will take the form of the LF-ZC, previewed in the form of a concept at last month’s Japan Mobility Show. This innovative new model will be constructed using gigacasting and feature batteries with a prismatic structure that is expected to significantly boost range while also reducing weight. The LF-ZC will be similar in size to the Tesla Model 3 and BMW i4. +++
+++ NIO president and co-founder Qin Lihong said the company would launch a major product on Nio Day in December. It will be a 1 million yuan (about 200.000 euro in the Netherlands) luxurious electric sedan to compete with the Maybach S class in China. Last December, Chinese media reported Nio was developing its most expensive car, an ultra-luxury Maybach-like electric vehicle that will be unveiled in 2023. Nio CEO William Li previously announced that it would not launch any new product in 2024. According to China car reviewer Sean from Telescope, a former Nio employee, the new sedan will be launched in 2025. The flagship sedan will have a Nio badge and won’t be operated by any subbrands coming in 2024 (Alps, Firefly) dedicated to entry-level vehicles. The new saloon will sit on Nio’s new NT3 platform, being the first EV to be equipped with Nio’s self-developed autonomous chip. It will also have an extra long wheelbase of 3.3 meters. It is so long it will be on the upper limit of what a third-generation Power Swap Station (PSS) can handle. This means it won’t be possible to battery swap in 1.0 or 2.0 gen PSS. Nio unveiled a new generation 300 kW motor in August, and the new flagship EV will almost certainly feature it. Nio has had a lot on its plate recently. Aside from moving upmarket with the new flagship sedan and moving downmarket to offer more affordable EVs under Alps and Firefly brands, it is also developing its chips, maintaining a battery swap station network, and navigating complex expansion into European markets where it faces BBA (Chinese term for German trio Benz, BMA, Audi) on their home ground. 2024 will be a challenging year for the Hefei-based automaker as it won’t launch a new Nio-badged product; only a few facelifts are expected, and it will need to market and prove the latest sub-brands. We will keep an eye on it. +++
+++ 2 giants of the global automotive market, STELLANTIS and CATL, signed a memorandum of understanding for the supply of LFP cells to the European market. Both companies are considering establishing a 50:50 joint venture as Stellantis aims to have their Europe-made EVs with CATL inside. The Netherlands-headquartered legacy automaker wants to build an LFP battery plant with CATL to offer more affordable EVs in Europe. “This MoU with CATL on LFP battery chemistry is another ingredient in our long-term strategy to protect freedom of mobility for the European middle class”, said Stellantis CEO Carlos Tavares. As part of the Dare Forward 2030 strategic plan, Stellantis announced plans of reaching a 100% passenger car battery electric vehicle (BEV) sales mix in Europe and a 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. It would be CATL’s latest move in its intent of global expansions. For CATL, it won’t be the first cooperation with a strong domestic player to penetrate the overseas market. Ningde-based battery giant already teamed up with Ford to produce LFP batteries in the United States. The plant would be operated by Ford but equipped with CATL’s tech, thus being referred to as CATL-inside. However, the work on the plant was halted in September. Stellantis Global Head of Purchasing and Supply Chain Maxime Picat told Reuters the deals with CATL would complement the group’s electrification strategy, with LFP batteries helping cut production costs in Europe while maintaining output of NMC batteries for more expensive cars. LFP (Lithium iron phosphate) batteries have lower energy density than NMC ternary ones. However, they are cheaper to produce and don’t need precious metals such as manganese, nickel and, most importantly, cobalt. Thus, NMC batteries are usually installed into top trim-level EVs, while LFPs are becoming popular for mid-tier and entry-level EVs. Stellantis is currently reassessing its China and EV strategy. In 2022, Stellantis closed its last plant in China, effectively pulling out of the biggest car market. However, the company announced it would invest in Chinese EV startup Leapmotor to tap their EV architecture and tech in October. “If you can’t beat them, invest in them”, commented Lei Xing, China EV analyst and co-host of China EVs and more podcast. The CATL deal seems to be another move in this direction. +++
+++ TESLA is reportedly closing in on a $2 billion deal to build a factory deal in India after years of ups and downs in negotiations. India has the biggest auto market that Tesla has yet to enter. There has been a ton of back and forth between the Indian government and Tesla to make it happen, but the negotiations have been harder than usual. The Indian government wants Tesla to build a factory in the country in order for them to enter the market, but the automaker prefers to first test the waters with imported vehicles. However, India has strong EV import duties that prevent that. In 2021, Tesla officially incorporated an Indian company in Bengaluru, the capital of India’s southern Karnataka state. During the summer, Indian government officials said that they are considering Tesla’s proposal to greatly reduce import duties for electric cars. Later that year, Tesla vehicles were spotted being tested on Indian roads and the company got seven 7 vehicle variants approved in the country. However, the company wasn’t able to come to a deal on import tariffs, and in 2022, Tesla decided to put its plans to enter the Indian market on hold. Over the last year, there has been a renewed effort for Tesla to enter the market and the company has engaged with the government in new negotiations. Earlier this month, we learned that India was again considering a special deal with Tesla to reduce the import duties. Now, Tesla seems getting close to a deal that would involve a $2 billion investment in a factory: India is closing in on an agreement with Tesla that would allow the US automaker to ship its electric cars to the country from next year and set up a factory within 2 years, according to people familiar with the Indian government’s thinking. On top of the $2 billion investment in a factory, Tesla would commit to buying $15 billion in parts from Indian suppliers. The automaker is reportedly also considering a battery factory in the country. +++
+++ Bigger doesn’t always mean better, anyone who’s driven a GR Yaris will tell you that. But when it comes to the car industry, the world’s biggest automaker is also the one with the greatest brand strength, according to a new study. TOYOTA was ranked 6th in Interbrand’s prestigious Global Best Brands 2023 list for the second year running, nosing ahead of Mercedes, which came 7th, up one spot on 2022, and BMW, who placed 9th, climbing 3 positions. The only other automaker to make it into the top 20 was Tesla, which once again grabbed 12th spot. Now in its 24th year, Interbrands’ study ranks brands according to three criteria. The first is the financial performance of the brand’s products or services, the second is the role of the brand in the customer’s purchase decision process, and the third is the strength of the brand with regards to securing the company’s future earnings. Having crunched all of that data, Interbrands comes up with a league table of the top 100 brands each year, covering not just cars, but tech, hospitality, fashion, and many more sectors. Toyota and Mercedes ranked ahead of both Coca Cola and Nike, BMW placed ahead of McDonalds, and Tesla got the better of Disney and Louis Vuitton. But even Toyota will have to seriously up its game to trouble the top five. Apple, Microsoft, and Amazon once again grabbed the first three positions, and in the exact same position they did in last year’s study, while Google and Samsung came in fourth and fifth. Looking at the full list of 100 brands shows up a few more automakers, though all are some way off the lead pack: Honda (27), Hyundai (32), Audi (45), Porsche (47, notably up six places), VW (50), Ford (51), Nissan (63), Ferrari (70, up five), Kia (88). +++
+++ The price of VOLVO shares fell as much as 14 percent on Friday, causing it to reach record lows. However, the drop was prompted by a sale from the automaker’s owner, Geely, which says this is all part of its long-term plan. At its peak, the Chinese company held an 82 percent stake in Volvo and contends that the resulting limited availability of public shares led to price volatility. This is a challenge that VinFast faces as well, as its owner commands around 99.7 percent of the company’s shares, causing sharp fluctuations in its value. In an effort to address this issue, Geely opted to divest 100 million of its Volvo Cars shares for $350 million. These shares were sold at a rate of 37 Swedish crowns ($3.51 at current exchange rates) on Thursday, which was below the market value of 40.84 Swedish crowns ($3.87) when trading concluded for the day. Due to this transaction, along with an earlier one driven by similar considerations, Geely’s ownership of Volvo Cars has been reduced to 78.7 percent. In a statement, Geely noted that this move aims tol “increase the free float and further broaden the shareholder base”. Volvo CEO Jim Rowan was also in favor of the move, saying that the “increase in our public float and improvement in trading liquidity benefits both new and existing investors” Geely was clear that it continues to believe in Volvo. “As the majority shareholder, we remain steadfast in our commitment to continue our support of Volvo on its transformation towards becoming a fully electric car maker, and we look forward to continuing this ongoing global success story”, said Daniel Donghui, Geely Holding Group CEO. While some of the share price losses are showing signs of recovery, Volvo shares have still declined by 25 percent year-to-date. On a positive note, Geely has stated that the proceeds from this trade will be directed toward its business development efforts. +++
