+++ The import automobile market in CHINA is experiencing significant changes. According to the China Passenger Car Association, the country saw a continued downturn in import car sales for the past 6 years with signs of improvement in 2023. Notably, the demand for high-end vehicles within the domestic market remained resilient. Though the luxury car sector thrives domestically, the status of standard imported passenger vehicles has been giving signals. Aside from the strong luxury car market, the volume of imports has sustained an incremental decline since 2017. Data shows in 2017 China imported cars totaled 1.24 million units and declined continuously with only 940.000 units sold in 2021 and 880.000 in 2022. However, even with a slow start this year, spurred by luxury sales, the first 11 months of this year saw 820.000 units sold, a 7% year-on-year increase. Until this year, the annual rate of decrease since 2017 has been around 10% per year on average. Imports from Germany, Japan and the United States saw the most decline in 2023 with Japan leading the way with the most significant decrease in sales totals. Remarkably, imports from Korea surged by an exceptional 264% during the same period. As for the luxury car sales, the top-5 import brands from January to November 2023 were BMW, Mercedes, Lexus, Porsche and Audi. BMW and Mercedes showed impressive growth at 23% and 14% respectively, while Audi achieved an even better 37% expansion. However, both Lexus and Porsche saw declines in 2023. Lexus, historically one of Japan’s top luxury brands had strong sales in previous years, however, in 2023 it trended down 6% year on year. An industry insider stated: “Although Lexus is also transitioning to electrification, it has not been widely recognized by the market”. Observers would surmise this trend is due to strong and growing domestic manufacturers taking market share. In general, according to the China Passenger Car Association, the import car market is slightly cooler than its domestic rivals. As more China car manufacturers ramp up their production, this trend is likely to continue. +++
+++ DACIA has certainly been a success story within the Renault Group, known for its cost-effective approach. It was only a matter of time before the Romanian brand expanded its lineup into more mainstream segments. Following the Duster and Bigster SUV siblings, Dacia is currently developing 2 new compact-sized models: a crossover wagon and a fastback-style sedan, both set to debut in 2026. The new project, known as the Dacia C-Neo, is aimed at filling a gap in the automotive market. Many mainstream automakers have either discontinued traditional internal combustion engine (ICE) compact hatchbacks and sedans or committed to going fully electric in this segment. This has created a void in the market for affordable ICE-powered models. Dacia is stepping in to seize this opportunity by offering a vehicle with a roomy interior, adventurous characteristics, and a competitive price tag. Think of it as the Romanian response to the highly successful Skoda Octavia, which is available in both 3-box hatchback and combi (wagon) body styles. As shown in our renderings, the Dacia C-Neo is anticipated to adopt the new design language introduced by the Duster and Bigster SUVs. It will likely include slim LED lights, sleek surfaces and design elements commonly found in crossovers, imparting a sense of adventure. In addition to the wagon variant, there will also be a sleeker fastback version that combines the convenience of 5 doors with a 3-box silhouette. The C-Neo is expected to measure around 4.600 mm long, resulting in a spacious cabin. For reference, the Dacia Jogger is 4.547 mm long and is already offered with a 7-seater layout. It’s possible that the dashboard and most of the controls will be shared with the Duster and Bigster SUVs, allowing Dacia to save on research and development expenses. Additionally, Dacia’s extensive range of accessories will make it an ideal choice for camping and various outdoor activities. In regards to the underpinnings, Dacia’s entire lineup is built on Renault Group’s CMF-B architecture, which provides cost-saving benefits in both production and development. The C-Neo models won’t be an exception, sharing their underpinnings with the Bigster, Dacia’s upcoming flagship SUV offering. Powertrain option are expected to include mild-hybrid, bi-fuel (gas/LPG), and hybrid versions, with the possibility of a plug-in hybrid in the future. A strong contender for the compact models is Renault’s turbocharged 1.2-liter 3-cylinder gasoline engine, featuring a 48 Volt mild-hybrid system, producing 130 hp. This engine is currently used in the Dacia Duster where it is available in FWD and AWD forms. As for the full hybrid, there are rumors about a new 1.8-liter engine that could be introduced in the Bigster in 2025 as an evolution of the electrified 1.6-liter Hybrid 140 mill found in the Jogger and the Duster. While the C-Neo project has yet to be formally announced, Denis Le Vot, CEO of Dacia, has confirmed that 2 new models are set to debut in 2026. Given Dacia’s pricing strategy, the C-Neo model will likely undercut similarly-sized competitors like the Volkswagen Golf, Peugeot 308, Opel Astra and Toyota Corolla. At the same time, they are expected to bridge the gap between the Duster and the Bigster in Dacia’s lineup in terms of both spaciousness and pricing. I anticipate that Dacia officials will release more details about these compact-sized models before spy photographers come across camouflaged prototypes in the coming months. +++
+++ Troubled electric vehicle manufacturer FARADAY FUTURE is at risk of being delisted from the Nasdaq with its share price falling below $1. The company recently received a written notice from the Nasdaq noting that it had failed to maintain a minimum bid price of at least $1 per share for 30 consecutive trading days from November 9 to December 27. At the time of writing, the firm’s share price was sitting at $0.23 and has dropped around 96% since the beginning of September. The Nasdaq will now provide Faraday Future with 180 calendar days, or until June 24, 2024, for its share price to meet or exceed $1 per share for a minimum of 10 consecutive trading days. If it fails to achieve this by the set date, the EV maker could be afforded a second 180 calendar-day grace period and if its share price still does not recover, it will be subject to delisting. Faraday Future initiated a stock split in August in a bid to boost its share price but it failed to have a material impact. This stock split came just 2 months after the firm announced that it had received an additional $90 million in investment from ATW Partners with participation from Senyun International. The carmaker said this money would support the production of delivery of the FF 91. Deliveries of the FF 91 officially started on May 31st last year but were paused after just a few days. The company had claimed that phase 2 deliveries would commence in August but it is unclear if that ever actually happened. No doubt limiting the appeal of the brand’s sole model is the fact that the entry-level variant costs an eye-watering $249.000 while the flagship version has been priced at $309.000. +++
+++ The HYUNDAI MOTOR GROUP has set its sights on the Southeast Asian region in search of alternative markets outside of China and Russia as the Korean automaker looks to move beyond its heyday in the 2 state-dominated nations. Hyundai’s Chinese business used to boast upbeat sales of over 1 million units per year with 5 local manufacturing plants in operation. This came to an abrupt end in 2017 when Beijing took retaliatory actions against South Korean companies in response to Seoul’s decision to bring in the US Terminal High-Altitude Area Defense System, or THAAD, to counter missile threats from North Korea. Since then, sales declined and some of the plants had to halt operations. The downturn led to Hyundai’s sell-off of its first Beijing factory in 2021. The automaker put its Chongqing plant up for sale in August this year. Hyundai’s Changzhou plant is expected to be up for sale in the future, eventually shrinking the company’s manufacturing foothold in China from 5 facilities to 2. Earlier this month, the automaker also announced the decision to sell its manufacturing plant in Russia, putting an official end to its local operation. The plant, which once had an annual production capacity of some 230.000 units, was shut down after Russia invaded Ukraine in February 2022. The sell-off includes a General Motor plant site that Hyundai acquired in 2020. The Korean auto giant’s 2 brands (Hyundai and Kia) enjoyed an increase in popularity after its Russian plant began operations in 2011. The 2 brands accounted for about one-quarter of the total market share in 2018, making the Hyundai Motor Group the biggest auto manufacturer in the country. Regarding the company’s fallouts in the 2 countries, auto experts point to geopolitical uncertainties out of the private sector’s control. In response, the Korean automaker has been trying to find answers elsewhere, prompting Hyundai Motor Group executive chairman Chung Euisun’s visits to India and Indonesia in August and September, respectively. With the world’s largest population of 1.4 billion, India became the third biggest auto market behind China and the US in 2022, as some 4.76 million new vehicles were sold there. The local passenger car market, which accounted for 3.8 million units, is projected to reach 5 million in 2030. Of them, over 1 million are expected to be all-electric vehicles as the Indian government looks to expand the proportion of EVs to 30 percent of total sales by 2030. Hyundai has held the No. 2 spot in the Indian auto market but its position is being threatened by Tata Motors, under the Indian conglomerate Tata Group. According to a global auto industry analysis by Marklines, Hyundai and Kia have sold approximately 800.000 units in India from January to November, whereas Tata Motors sold about 850.000 units during the same period. Hyundai said it will continue to release SUVs tailored to the Indian market, such as the Exter, a compact SUV that recently won the Indian Car of the Year award after it was launched there in July. Hyundai and Kia vowed to introduce several new EVs in the coming future and expand the local charging infrastructures to aid the EV transformation there. Hyundai also plans to bulk up the local production capacity to 1 million units per year, acquiring GM’s Indian plant at an undisclosed price in August. For Hyundai, the Indonesian market appears to have more hurdles compared to India, as the local market is dominated by Japanese brands. Hyundai said it expects to see a market share of 3.9 percent by the end of the year. The Korean automaker’s blueprint aims to focus on the EV transformation in Indonesia, which has a population of about 274 million people and is the fourth largest country in the world. Hyundai is setting up the Association of Southeast Asian Nations’ first complete EV chain as it is building a joint battery cell plant with LG Energy Solution. The automaker is pinning its hopes on Indonesia to become the main hub for the ASEAN market. Hyundai expects Thailand and Malaysia to lead the EV transformation in the ASEAN region with Indonesia and Vietnam following the trend. The automaker said that as each ASEAN country puts more emphasis on EVs, the EV market will continue to grow there with EVs forecast to take up 15 percent of the total auto market in 2030. +++
+++ By 2030, Jaguar Land Rover, also known as JLR , plans to launch up to 9 full electric models, including the entire future Jaguar range, which will become a fully zero-emission brand well before that deadline, but also new models that will be integrated into the offerings of the new Range Rover, Defender and Discovery brands. Among the factories set to support this evolution, alongside historic plants such as Solihull, Coventry and Halewood, is Slovakia’s newest and most modern plant in Nitra, which will be transformed into an electric SUV and off-roader factory in the coming years. Jaguar Land Rover Slovakia was founded in 2015 in Bratislava, the capital of Slovakia, followed by the groundbreaking of the new plant in Nitra, the capital of the region of the same name in the west of the country. The complex, built with an investment of £1.3 billion, more than €1.5 billion, occupies an area of 300.000 m2, completed in 2018 and earmarked for the production of the Discovery V, whose production line was moved from Solihull, and the new Defender which arrived in 2020. In fact, Nitra has grown at the same rate as the Defender, which is built there exclusively. Its success and the expansion of the range to 3 variants (the latest is the 8-seat 130) has seen the workforce grow from an initial 1.500 to as many as 5.000, shifts increase from 2 to 3 and weekly production from 2.000 to 3.000 vehicles, bringing total production to 365.000 units, 5 years after opening. The highlight of the Nitra complex is the adoption, for the first time in Europe, of Kuka’s carrier system PULSE (Propulsion Using Linear Synchronous Energy). This is an innovative electromagnetic drive solution that speeds up body production and sub-assembly by up to 30 per cent, while reducing the associated energy costs. This was followed by a further €60 million in digitisation technology and the construction of additional buildings. In 2023, JLR announces a new £15 billion (€17.3 billion) investment plan for the electrification of its range and factory conversion, although initially the distribution of the new electric models is only partially formalised. Electric variants of the Ranger Rover and Range Rover Sport, as well as some Jaguar models, are destined for Solihull, while details for Nitra have yet to be announced, although logically they should be variants of models already built here, namely Defender and Discovery. +++
+++ The successor to the LAMBORGHINI Huracán will be revealed in the coming months as the final entrant into the Italian firm’s all-electrified model line-up, representing the most radical reinvention of its junior supercar since the Gallardo arrived in 2003. Due on sale by the end of 2024, Lamborghini’s next entry-level supercar will make the landmark switch from its trademark naturally aspirated V10 engine to a plug-in hybrid powertrain based around a new V8 that has been engineered in-house, rather than taken wholesale from sibling firm Audi. Visually, the new car will be clearly related to the flagship V12 PHEV Revuelto supercar launched early in 2023. It will have a dramatic silhouette that adheres to head of design Mitja Borkert’s ‘spaceship’ ethos, as well as a raft of cues that have become Lamborghini hallmarks, including a gaping hexagonal exhaust, Y-shaped led light designs and prominent air channels throughout the body to boost downforce. The basic principles of the ‘monofuselage’ carbonfibre monocoque introduced with the Revuelto are also expected to be carried over. However, the abundance of expensive composites used in the flagship supercar’s structure are unlikely to be shared by the junior model. Instead, it’s set to use cheaper aluminium where possible without incurring a major penalty to rigidity, in line with its more entry-level billing. The rear subframe is already aluminium on the Revuelto, but the front end could follow suit on the junior supercar, for instance. This philosophy of reserving exotic materials for key structural elements would match that used for the Huracán and the closely related Audi R8. They featured a carbonfibre ‘backbone’ (the central tunnel and rear bulkhead) but used mostly aluminium elsewhere. The platform will also be shortened to visually distinguish the new car from the Revuelto. For reference, the new flagship supercar is 4.947 mm long. That’s significantly longer than the run-out-edition Huracán Tecnica, which is 4/567 mm. The move to the monofuselage chassis also enables the electrification of the Huracán successor. It will be Lamborghini’s third PHEV, following the Revuelto and the revamped, 2024 edition of the Urus, which will combine its V8 with a battery and an electric motor. Lamborghini hasn’t yet said whether the junior supercar’s V8 is related to the Urus’s 4.0-litre twin-turbo arrangement. However, given the need to cultivate a highly distinct character and offer a markedly different driving experience, it’s likely that the Huracán successor’s petrol engine will be a highly bespoke proposition, irrespective of its fundamental specification. Lamborghini called on Oxford-based specialist Yasa to supply its slimline axialflux electric motors for the Revuelto, in the interests of saving weight and boosting power efficiency, and this format could be reprised for the smaller supercar. However, it remains to be seen whether the Huracán’s successor will also feature 2 motors on the front axle, plus a third integrated in the gearbox, as in the 1.001 hp Revuelto. It’s also unclear whether Lamborghini still plans to offer rear- and four-wheel-drive variants. The motors will be fed by a small, lightweight battery (possibly the same 3.8 kWh pack used by the Revuelto) situated in the same central spine of the chassis and giving an electric-only range of 15 km. More important than the slight gains in homologated fuel economy and emissions will be the dynamic benefits of such a set-up. The Revuelto deploys its 3 motors to great effect: torque vectoring at the nose helps to neutralise the supercar’s handling, while the rear motor masks the effects of the highly strung V12 bogging down at low revs. The ability to ‘torque fill’ in this way has prompted speculation that the Huracán successor’s engine will be biased towards high revs. This would make it similar in character to the Revuelto’s naturally aspirated V12, which doesn’t deliver its full 825 hp until a screaming 9.250 rpm. Lamborghini will build the Huracán successor on the same production line as the Revuelto. It will be the first time that the brand has built both of its supercars in series, on the same line, facilitated no doubt by the sharing of major architectural and electrical components. +++
+++ RIMAC will show a highly autonomous ‘robotaxi’ in early 2024 and plans for it to be in commercial operation by 2026. The Croatian company, maker of the 1.900 hp Nevera electric hypercar and parent of Bugatti, is expanding into the mass-mobility market under the Project 3 Mobility banner. Rimac has revealed only a few details of the commercial plan for its robotaxi so far, but it has been announced that some backing will come from Kia. Founder and boss Mate Rimac told that the Nevera serves an important purpose as a halo product for Rimac but the robotaxi project aims to “change the lives of more people” by providing easy-access, electric urban transport. Details remain scarce ahead of its unveiling, but the robotaxi is understood to be capable of driving entirely without human input and will operate within a framework of infrastructure that Rimac is developing alongside the vehicle itself, including chargers, storage hubs and parking spaces. However, Rimac revealed that the mysterious machine “is a car but a completely different type”. This suggests that it will be a largely bespoke proposition, designed with an emphasis on maximising interior space and electric powertrain efficiency. The fact that Rimac has been using a Renault Espace for testing purposes could give some indication as to the robotaxi’s size and shape. Mate Rimac said it “could change the way people move around cities”. His thinking is that the service can be premium but “that doesn’t mean expensive or posh”. His company is purposely staying under the radar until it has a product to show, in order to avoid “underdelivering”. Project 3 is a stand-alone brand within the Rimac Group portfolio, separate from both the eponymous supercar maker and Bugatti. It was recently awarded €179.5 million in funding from the EU’s Recovery and Resilience Facility, which exists to encourage economic growth across the bloc post-pandemic. Project 3 is centred on the Croatian capital, Zagreb, but it also has an R&D presence in the UK, with around 100 engineers based at a new facility at the Rimac Technology R&D UK base near Warwick. Project 3’s first priority is to build a dedicated factory for the robotaxi, before beginning operations in various locations outside Croatia. Mate Rimac explained in a statement: “The goal is for the production of vehicles and a large number of components to be based in Croatia, which would then export tens of thousands of units per year to locations where the robotaxi service will be provided”. The company is reportedly in discussions with 20 cities across Europe and the Middle East about offering the service after a pilot scheme in Zagreb. Rimac’s website details a plan for it to be in operation in Croatia by 2026, followed a year later by Germany and the United Kingdom. +++
+++ Volkswagen’s SCOUT MOTORS brand has teased its summer blockbuster unveiling. An all-electric SUV and pick-up truck from newly established brand are due to enter production by the end of 2026. 2 years ago, Volkswagen created a new brand called Scout Motors, reviving an iconic name from the world of off-roading and 4x4s, with plans to launch an all-electric SUV and pick-up truck designed specifically for the US market. Now, the newly minted brand has begun to tease a summer 2024 reveal for its first creation that will have Rivian, Land Rover, Ford and Jeep as targets. All Scout models will be built on a brand new and bespoke EV platform designed to be capable on and off-road. To do this, the company has said it’s prioritising typical off-roading attributes like ground clearance, axle articulation, approach and departure angles and payload capacity, as well as the all-electric range of its vehicles. The brand has also shared a teaser image of the front end design for its SUV model, which is not too dissimilar to other retro-styled off-roaders like the Ford Bronco and Toyota Land Cruiser. However, the boxy utilitarian proportions, upright windscreen and strong stance aren’t following current trends so closely. Instead, they hark back to the original Scout 4x4s produced between 1960 and 1980, as do the distinctive window-line flick and super short overhangs we can see in the design sketches the brand has also released. The sketches suggest that Scout will be taking a similar approach to Rivian, and will use one design for both its SUV and pick-up truck, just giving the truck an extended wheelbase and load bed. There are countless electric SUVs on the market now, with Scout’s entry in the class going up against the Rivian R1S and Tesla Model X among others, with the Jeep Recon and all-electric Wrangler still to come. And while zero-emissions pick-up trucks are less commonplace, Scout will still have to face off against the Rivian R1T, Ford F-150 Lightning and controversial Tesla Cybertruck. Scout Motors has not indicated if it will cross the pond and enter the European market, instead focusing its $2 billion investment in the US, which will incorporate a new 110-acre manufacturing facility in Columbia, South Carolina. The new factory will have capacity for up to 200.000 units per annum. Production of Scout’s first models is due to commence by the end of 2026. The Scout name was originally used on a series of off-road models built by the now-dead American commercial vehicle manufacturer International Harvester. The model was in production between 1960 and 1980, designed specifically to rival the contemporary Jeep CJ and the later Ford Bronco. Volkswagen’s electric reboot comes after the German conglomerate obtained naming rights to the Scout brand in 2021. The line-up will be designed purely for the US market, where the pick-up truck could potentially start for as little as $40,000, undercutting potential rivals like the F-150 Lightning and Chevrolet Silverado EV. Many brands are betting on the rapid growth of the electric pick up market, with Volkswagen keen to take a slice of the segment away from both legacy American manufacturers and EV start-ups like Rivian. In comment on the investment plan, former Volkswagen chief executive Herbert Diess stated: “Electrification provides a historic opportunity to now enter the highly attractive pick-up and R-SUV segment as a Group, underscoring our ambition to become a relevant player in the U.S. market”. Volkswagen’s wider goal is to double its EV market share in the US and become the world’s biggest-selling electric vehicle manufacturer by 2025. +++
+++ You might think that SUZUKI has enough SUV offerings in its global portfolio, but the local CEO in India thinks there’s room for at least 2 additional models. According to the latest reports, the automaker is working on a new sub-4 meter SUV and a larger 7-seater offering, both expected to debut sometime between 2025 and 2027. Insider sources suggest that the smaller model, which is codenamed Y43, could arrive in 2026 or 2027, as a rival to the Hyundai Exter, Tata Punch and the upcoming Kia Clavis. In terms of footprint, it should be smaller than the 3.995 mm long Brezza, serving as the new entry-level SUV in the local lineup with an affordable price tag. On the other hand, the larger 3-row SUV is codenamed Y17 and will reportedly debut in 2025 with a self-charging hybrid powertrain option. This one will likely share its underpinnings with the 4.345 mm long Grand Vitara, although its stretched body will make room for an extra row of seats and a larger boot. The Suzuki Grand Vitara is currently available in India, Indonesia, Middle East and South Africa. In the same context, Hisashi Takeuchi, CEO of Maruti Suzuki India, admitted that the company doesn’t have enough SUVs in its local lineup, and there are still “gaps” that could be filled by offering “something at the bottom and something at the top”. The local CEO said: “If a customer wants bigger SUVs, we will satisfy their needs. If they want a 3-row vehicle, we will supply those cars to the Indian customers holding onto entry cars. I think in the small car segment, some SUVs will come in the future. Our SUV play will become much wider”. As a refresher, Suzuki’s current SUV lineup in India comprises the Brezza, the Fronx, the Grand Vitara and the 5-door Jimny. There are also more than a few crossover-inspired city cars (S-Presso, Ignis) and minivans (XL6, Invicto), but those are not officially listed as SUVs. Furthermore, Suzuki has officially confirmed that the production version of the eVX concept will hit the market by 2025 with a fully electric powertrain, adding another member to the growing family of SUVs. Suzuki hopes that a wider lineup will help it reach the targeted 50% share of India’s passenger vehicle market, although this sounds like an ambitious goal judging from the competition. In any case, more SUVs will certainly attract more customers, not only in India but also in other markets around the world. +++
