+++ Changes are likely to occur in the domestic minicar market after DAIHATSU suspended shipments of its car models following revelations that it had falsified vehicle-safety tests. Daihatsu has long been Japan’s top minicar seller, but its market may diminish due to recent developments. “It’s a pity, as we have been selling Daihatsu models with confidence and trust due to the company being a member of the world-renowned Toyota Group”, said the head of an Osaka Prefecture distributor that has dealt with Daihatsu cars for around 50 years. Regular dealers specialize in selling new vehicles of a particular automaker, while distributors (often comprising repair shops and used car dealers) sell new vehicles purchased from the dealers. The Osaka distributor began fielding inquiries from concerned customers after Daihatsu announced that it had identified irregularities relating to 64 models. In 1 case, the distributor had delivered a Suzuki to a customer who was expecting to receive a Daihatsu. As of April, Daihatsu had 58 dealers with 778 outlets and had ties with almost 30.000 distributors. If the shipment suspension drags on, some distributors that handle vehicles from various automakers will likely give Daihatsu the cold shoulder. A Honda dealership in Gunma Prefecture said it had been contacted by a customer who was keen for a safety check to be carried out on their Daihatsu vehicle. In Japan, demand for minicars (traditionally known for their maneuverability and ease of use) has remained strong, accounting for nearly 40% of new car sales. Daihatsu has long been the market leader, selling about 560.000 units domestically in fiscal 2022 when it had a 33.4% slice of the market, ahead of Suzuki (30.5%) and Honda (17.6%). Daihatsu has maintained its top place for 17 consecutive years since fiscal 2006. The firm’s latest sales figures were robust. On Wednesday, Daihatsu announced that it had sold 552.352 units in Japan between January and November, marking a 4.8% increase over the same period last year. According to data compiled by the Japan Light Motor Vehicle and Motorcycle Association, Daihatsu’s Tanto and Move models ranked second and fifth, respectively, in terms of sales volumes. However, shipments of 27 models, including popular models and various vehicles supplied to Toyota and other companies, were suspended. The impact of this move is expected to be reflected in sales figures. Mitsubishi, which was found to have faked fuel-economy data in 2016, saw sales of its minicars drop nearly 20% year-on-year. The company’s business performance took a battering and the MMC president resigned to take responsibility. To help rebuild its business, the company was brought under the umbrella of Nissan. “There are many Daihatsu models that are superior in terms of features and prices”, said a representative of a Daihatsu competitor. “Consumers won’t make immediate moves to change their vehicle brand”. Another rival firm said the latest incident allowed it to convey the appeal of its products. Daihatsu’s shipment suspension is expected to last at least until the end of January, and it will likely prove difficult for Daihatsu to make up for its drop in sales during the suspension period. Daihatsu has decided not to attend Tokyo Auto Salon, one of the world’s largest exhibitions for custom-made cars, set to be held at the Makuhari Messe convention center in Chiba from January 12 to 14, according to sources. The company is not expected to participate in exhibitions until it resolves its problems. Tokyo Auto Salon was inaugurated in 1983 as the Tokyo Exciting Car Show, and Daihatsu exhibited a wide variety of models there (including sports cars and vans) with the aim of broadening its fan base by highlighting the appeal of custom-made minicars. However, the company pulled out of the 2023 Fukuoka Mobility Show, a large-scale event featuring prototypes and new models at Marine Messe Fukuoka in Fukuoka. “It’s difficult to participate in exhibition events under the current circumstances, in which instances of fraud have been detected and our shipments have been suspended”, said a Daihatsu public relations official. +++
+++ HYUNDAI , which recently decided to sell its Russian plant due to the impact of the Russia-Ukraine war, is demonstrating successful market diversification into India and Southeast Asia, winning the India Car of the Year 2024 award, the company said. Hyundai said its new Exter, a compact SUV which was launched in the Indian market this year, was selected for the highest award, the India Car of the Year 2024. The company added that its Ioniq 5 won the Green Car Award 2024. Voted by the jury, which consists of automotive journalists in India, this award is considered the country’s most prestigious car-related award. “This award plays an important role in the new car purchase decisions of local consumers”, Hyundai said. “It’s an honor to receive awards in 2 categories at the 2024 India Car of the Year”, a company spokesperson said. “We won the awards thanks to the trust our customers have in Hyundai, and we will continue efforts to improve customer satisfaction”. This achievement comes at a time when the company is moving its focus from Russia and concentrating on emerging markets like India and Southeast Asia, showing that Hyundai’s shifting strategy is working. India has the third-largest vehicle market in the world, following China and the United States. Hyundai recorded sales of more than 559.000 vehicles in India from January to November this year. The Exter, launched in July, has sold over 39.000 vehicles until November, becoming one of the most popular models there. Hyundai’s shift to new overseas markets seems to have been largely influenced by a loss of influence in China, the world’s largest vehicle market, in addition to the escalating losses from the prolonged Russia-Ukraine war. In 2022, Hyundai recorded an operating loss of 821.2 billion won ($632 million) in China and suffered a significant loss due to production stoppages caused by the war in Russia, where it once achieved the top sales. As a result, Hyundai announced that its board decided to sell its factory in Russia to a local company. Negotiations for the sale are underway with the local Russian company, and the sale price is known to be around 10.000 rubles ($108). Hyundai is also establishing Southeast Asia as its major hub. In November, the company completed the Hyundai Motor Group Innovation Center in Singapore (HMGICS), the group’s core electrification facility. “The Hyundai Motor Group plans to continue various collaborative strategies with Singapore to develop future mobility production and technological innovation solutions, and to build and develop a sustainable ecosystem”, Hyundai CEO Chang Jae-hoon said at the time. +++
+++ HYUNDAI MOTOR GROUP ’s Namyang Research and Development Center, located in Hwaseong, Gyeonggi Province, South Korea, spans a significant 3.3-square-meter area and is staffed by 14.000 researchers. The center recently experienced a significant reorganization, highlighted by the departure of Kim Yong-hwa, the Chief Technology Officer (CTO). This shift comes just 6 months after his appointment and is seen as unusual due to its rapid occurrence. Kim Yong-hwa, who played a key role in helping Hyundai-Kia achieve a record operating profit of more than $19.4 billion (25 trillion won) this year, stepped down from his role as an advisor, marking a significant transition in the company’s leadership structure. The restructuring at the Namyang R&D Center is partly attributed to the need for accountability in the midst of confusion surrounding software development. As the automotive industry pivots towards software as a crucial component in future vehicles, the Hyundai Motor Group has faced challenges in integrating this new focus with its traditional strengths in engine and transmission performance. In its New Year’s speech earlier this year, Hyundai Motor Group expressed its intention to transform all of its vehicles into ‘software-centered cars’ by 2025. This strategic pivot towards Software Defined Vehicle (SDV), which would be equipped with 2.000 to 3.000 semiconductors, is seen as core to the future of automotive technology. To achieve this goal, Hyundai and Kia have been restructuring their organizations over the past 4 to 5 years. This includes merging with and acquiring autonomous driving technology companies, such as 42dot, and significantly expanding their focus on software and semiconductor expertise. The recent appointments and structural changes at the Hyundai Motor Group underscore the complexities of this transformation. This acquisition of 42dot last year, which positioned the company as the group’s ‘global software center,’ has led to some operational challenges. These challenges arise primarily from its integration with the separate software development organization at the existing Namyang R&D Center. The leader dynamics, with Song Chang-hyun at the helm of 42dot and Kim Yong-hwa leading the Namyang R&D Center, have reportedly faced obstacles in achieving smooth collaboration. These challenges are further compounded by the differing work cultures of the mechanical and computing departments. Mechanical engineers, who focus on minimizing defects through rigorous testing and uphold a strict hierarchical structure due to the intricate nature of automobile components, contrast sharply with computing professionals. The latter group tends to be more accommodating of minor errors, prioritizing overall functionality over perfection. Internal conflicts within the Hyundai Motor Company have also surfaced. Researchers in the internal combustion engine department emphasize that the fundamental aspect of a car is safety, viewing any failure as unacceptable, focusing on rectifying errors to enhance the vehicle’s performance. Furthermore, there is a perception within the group that despite the substantial profits generated by internal combustion and hybrid cars, the organization places greater emphasis on software personnel, who command significant resources. The head of the group has expressed a desire to reorganize before these internal differences adversely impact the group’s overall competitiveness. +++
+++ Hyundai Motor Group’s 2 auto brands, Hyundai and KIA , have set a new record by selling some 767.000 hybrid electric vehicles across the world through November this year, the South Korean auto giant said Wednesday. According to the automakers, Hyundai and Kia sold 254.258 HEVs in the Korean market, accounting for 21 percent of their total domestic sales during the January to November period. The 2 companies sold 513.000 HEVs overseas in the same timeframe. Their combined HEV sales worldwide saw an annual increase of approximately 32 percent. The automakers said the Hyundai Motor Group could retain the title of the world’s third-biggest auto manufacturer again this year, as the companies were successful in both the hybrid car market and in the all-electric vehicle market. According to Korean automotive industry sources, the number of hybrid cars sold in the domestic market surpassed 300.000 as of November this year; up more than 40 percent from the same period last year. The size of the local hybrid vehicle market was around 62.000 units per year in 2016. Hyundai and Kia pointed to the automaker’s long development of engine systems as an important factor behind the expansion of their vehicles. In 2011, the automakers launched the world’s first parallel hybrid system as the hybrid models of the Hyundai Sonata and the Kia K5 made their debut when global auto leaders such as Toyota and General Motors expanded their market presence with hybrid systems that combined series and parallel architectures. Hyundai and Kia continued to work on improving the efficiency of hybrid systems after their first mass-produced models. In 2020, Hyundai launched a new hybrid version of the Sante Fe that featured 180 hp on the back of a 1.6-liter turbo engine. The automaker also utilized advanced materials to lighten the weight of the hybrid system for better mileage. The latest Santa Fe launched in Korea in August this year was equipped with Hyundai’s first self-developed battery for a hybrid vehicle, demonstrating the automaker’s continuous research and development efforts in enhancing its hybrid technologies. The newest Kia Carnival, a minivan launched in South Korea last month, combined the accumulated hybrid technologies of the automakers. The hybrid model’s 1.6-liter turbo engine linked with a high-performance electric motor boasts a maximum of 245 hp with a fuel efficiency of up to 14 kilometers per liter. Due to its high-quality hybrid features, Kia said the hybrid model of the new Carnival accounted for about 70 percent of the new minivan’s orders. The Hyundai Motor Group is developing a next-generation hybrid system aimed for launch in 2025. It says the new system will be coupled with a high-performance engine and is expected to undergo groundbreaking improvements in fuel efficiency. As the global shift towards pure EVs lags, the outlook for the hybrid vehicle market has come under the limelight. According to market analyst Global Fortune Business Insight, the world hybrid car market is expected to hit $272 billion this year; up 19.2 percent on year, and projected to reach $444 billion by 2030 with a compound annual growth rate of 7.3 percent. “As we accelerate the transformation into automation from internal combustion engine vehicles, we will actively respond to the increasing need for hybrid vehicles”, said a Hyundai Motor Group official. “We will concentrate all of the accumulated technical development capabilities to offer a better driving experience and a more varied selection of eco-friendly cars for customers”. +++
+++ NISSAN , which is undergoing major changes such as the levelling of capital ties with Renault and a shift to electric vehicles, is set to mark its 90th anniversary. Nissan suffered financial difficulties following the collapse of Japan’s bubble economy in the 1990s, and rebuilt operations after receiving capital support from Renault in 1999. This year, the automaker succeeded in reforming the once Renault-dominated alliance. The Japanese automaker is aiming for growth by accelerating its strategy to boost sales of EVs as well as of hybrid vehicles equipped with the company’s original technologies. But it is continuing to struggle in the Chinese market. Nissan’s Tochigi plant in Kaminomikawa, Tochigi Prefecture, is home to state-of-the-art equipment such as one to paint the body and bumper at once and one to automatically wind copper wires for motors. The automaker believes that spreading the Tochigi plant’s knowhow on efficient production is key to its plan of adding 27 EVs to its lineup by fiscal 2030. “We will spread our achievements to other plants around the world”, Eiji Kikuchi, head of the Tochigi plant, which produces the Ariya, told reporters earlier this month. The ongoing fiscal year through next March is the last year of Nissan’s 4-year plan to depart from its old strategy of focusing on expanding sales. Under the leadership of Carlos Ghosn, who came from Renault to Nissan in 1999 and served as its president and chairman, Nissan focused heavily on increasing the number of units sold. Under the 4-year plan, the automaker has shifted its focus to securing profitability. In July, Nissan and Renault agreed to reduce the French automaker’s stake in the Japanese company from 43% to 15%, making the 2 firms hold equal stakes in each other. Under president Makoto Uchida, who is leading the company’s move away from the sales-oriented strategy championed by Ghosn, Nissan revised up the company’s consolidated earnings forecasts for the current fiscal year last month. Meanwhile, Ghosn told his lawyer in Japan in an online meeting that the brighter projection is merely the result of the yen’s weakening, according to the lawyer. The challenge for Nissan’s current management is to strengthen the competitiveness of its EVs and realize profit growth in a way that does not invite criticism. It faces the urgent task of rebuilding its operations in the Chinese market, where Nissan’s sales have plunged due to competition from local automakers. On December 14, Nissan held a ceremony marking its 90-year anniversary in Yokohama, where the company is based. At the event, Uchida touched on Nissan’s founding principle of doing what others do not dare to do and expressed his determination to “return to the basics and aim for further growth into the future”, according to Nissan. +++
+++ Toyota has stopped shipments of 6 vehicle models to 5 SOUTHEAST ASIAN COUNTRIES , due to the safety scandal enveloping its subsidiary Daihatsu. An investigation found Daihatsu did not properly test its vehicles for collision safety. Daihatsu has suspended all shipments and halted operations at its Japan plants. The 6 models are Toyota-brand vehicles that Daihatsu was involved in developing. Toyota said talks are underway with the authorities in each country on when to resume shipments. The cars are currently not being sent to Thailand, Indonesia, Malaysia, Vietnam or Cambodia. Toyota suspended shipments of Veloz and Avanza compact cars and 4 other models from Wednesday, when a third party reported finding numerous instances of misconduct by Daihatsu over an extended period of time. Toyota has also reported details about the fraud to authorities in each country. The certification system for vehicles differs in each country. In Thailand, Toyota will have the Veloz recertified based on the instructions of the Thai authorities. The affected shipments make up about 5% of Toyota’s production in Asia and are not expected to have a great impact. “We want to fully resume shipments next year”, Masahiko Maeda, Toyota’s Asia region chief executive officer, told reporters in Thailand on Saturday. Daihatsu conducts business overseas through joint ventures with local companies, among other means, and has 4 plants in Malaysia and Indonesia. Daihatsu, which produced about 860.000 units overseas in fiscal 2022, supplies some of its vehicles to Toyota. In Malaysia, Daihatsu has a 20% stake in local manufacturer Perodua, which had the top share of sales volume at 40% in 2022. Although shipments have been suspended, production has continued. +++
+++ TESLA has emerged as a major player in Korea’s imported passenger vehicle market this year, with BMW, Mercedes-Benz and Audi set to close the year as the 3 best-selling brands, industry data showed Wednesday. Tesla’s vehicle sales have been on the rise since September when it began to bring in Model Y manufactured at its Shanghai plant at sharply lowered prices compared with the Model Y’s U.S.-made versions. Tesla began to deliver its models, starting with the Model S 90D, to the Korean market in June 2017. It currently sells the Model S, the Model X and the rear-wheel-drive Model Y in Korea, while operating 1.007 stalls at 147 supercharger stations here. The Shanghai-made Model Y is widely expected to continue to boost Tesla’s vehicle sales due to its price competitiveness and the rising demand for emission-free cars. In the January-November period, Tesla ranked 4th with sales of 15.439 units, exceeding its bigger rivals: Volvo with 15.410 units and Lexus with 12.191 units, according to data from the Korea Automobile Importers & Distributors Association (KAIDA) and local market tracker CarIsYou. Local demand for German brands remained strong this year as a growing number of consumers prefer high-end and high-performance models. German carmakers, including the 3 brands mentioned above and the Volkswagen brand, sold a total of 173.579 units in the 11-month period, accounting for 71 percent of overall imported vehicle sales of 243.811 autos, KAIDA data showed. BMW topped others by selling 69.546 units, followed by Mercedes with 68,156 units and Audi with 16.650 units in the first 11 months. Japanese brands (Honda, Toyota and Lexus) saw their sales rebound this year after suffering years of sluggish demand due to a trade dispute between Seoul and Tokyo. Local consumers shunned Japanese vehicles over the neighbor’s restrictions on exports of key materials to Korea in 2019. In July 2019, Japan tightened regulations on exports to Korea of 3 high-tech materials critical for the production of semiconductors and displays. In the following month, Japan officially removed Korea from its list of countries given preferential treatment in trade procedures. The Japanese moves were widely seen as retaliation against court rulings here that ordered Japanese firms to compensate Korean victims of forced labor during Japan’s 1910-45 colonial rule of the Korean Peninsula. Helped by improving ties between the 2 countries, however, Japanese brands’ vehicle sales jumped 37 percent to 21.027 units in the 11-month period from 15.315 units. In particular, Lexus vehicle sales soared 87 percent to 12.191 units from 6,534 during the same period due to robust demand for fuel-efficient gasoline hybrid models. Among luxury brands, Porsche stood out, with its vehicle sales jumping 31 percent to exceed 10.000 units for the first time in the first 11 months. “A growing number of brands has advanced to the Korean market in recent years, providing local customers more options to choose from at reasonable prices”, an industry official said. “Some imported cars are no longer regarded as luxury items”. +++
+++ The government of THAILAND says that 4 Japanese automakers are expected to invest a total of 150 billion baht ($4.3 billion) for the production of electric vehicles in Thailand over the next 5 years amid Chinese companies’ dominance in the segment. The announcement involving Toyota, Honda, Isuzu and Mitsubishi came after prime minister Srettha Thavisin held talks with several Japanese automakers during his visit to Japan earlier this month. Toyota and Honda are expected to invest 50 billion baht each, while Isuzu will put up 30 billion baht and Mitsubishi 20 billion baht, a Thai government spokesman said in a statement. The government’s investment board said some of the four automakers will start manufacturing EV pickup trucks within 2 to 3 years. Srettha, a businessman-turned-politician,
+++ TOYOTA has commenced sales of its all-new Crown Sport Plug-in Hybrid Electric Vehicle (PHEV) model in Japan. A new addition to the Crown line-up, the Sport PHEV model is designed to enhance its fun, sporty driving experience. While retaining a beautiful design that resonates with the senses, the Sport PHEV model promises drivers a sportier feel incorporating exclusive equipment enabling drivers to more fully experience the joy of driving. Furthermore, fitted with a large-capacity lithium-ion battery, the PHEV delivers a BEV-mode cruising range suitable for everyday use, thereby combining the joy of driving with superb environmental performance. Alongside the Crown Crossover HEV, Sport HEV, Sedan HEV and FCEV models, through the all-new Sport PHEV, Toyota provides customers with an important range of options as it continues its path of decarbonization. Equipped with a high-output density drive motor, the Sport PHEV reaches a maximum system output of 306 hp and, by fully utilizing the motor, achieves seamless and powerful acceleration. A large-capacity lithium-ion battery has been positioned beneath the floor in the center of the vehicle. It provides a BEV-mode cruising range suitable for everyday use without compromising on interior space, which enables operation in BEV mode for most everyday driving situations. A fully charged battery delivers a BEV-mode driving range of 90 km and a hybrid-mode fuel economy of 20.3 km per liter. With a gasoline tank capacity of 55 liter, the PHEV boasts a total cruising range of 1.200 kilometers or more. +++
+++ In the UNITED STATES , local automakers have staked their futures on the notion that electric vehicles will dominate sales in the coming years, spurred by buyers determined to reduce carbon emissions and save on fuel. But so far, while EV sales are growing, their pace is falling well short of the industry’s ambitious timetable for transitioning away from combustion engines. Instead, buyers are increasingly embracing a quarter-century-old technology whose popularity has been surging: The gas-electric hybrid, which alternates from gas to battery power to maximize efficiency. So far in 2023, Americans have bought a record 1 million-plus hybrids; up 76% from the same period last year. As recently as last year, purchases had fallen below 2021’s total. This year’s figures don’t even include sales of 148.000 plug-in hybrids, which drive a short distance on battery power before a gas-electric system kicks in. Though electric vehicle sales are nearing an annual record of over 1 million this year, their year-over-year growth rate has begun to stall. EVs still account for only about 7% of all U.S. auto sales. The slowdown has raised concern among automakers that buyer interest in EVs is faltering. Some companies are cutting production and scaling down plans for new battery or assembly plants. The reasons why hybrids have quickly become the preferred choice for many buyers vary. They range from the higher prices of comparable EVs to concern about the scarcity of charging stations to a recognition that hybrids provide many of the same advantages without the hassles of EVs. Ford, the nation’s No. 2 hybrid seller behind Toyota, expects to produce enough hybrids to quadruple sales within 5 years. General Motors, which abandoned most hybrids in the U.S. 4 years ago in favor of EVs, now says it’s considering bringing them back. In the meantime, surveys show that consumers remain uneasy about either the availability of charging stations or the sale prices of EVs, even factoring in tax credits that the federal government makes available for EV purchases in many cases. “Your standard hybrid makes the most sense to most people”, said Ivan Drury, a market analyst. “I think you’ll find that people don’t want to deal with the hassle or the difficulties of charging”. Hybrids do emit some tailpipe pollution. But because they burn less fuel than autos equipped solely with gasoline engines, their emissions are less. What’s more, purchase prices for hybrids are akin to those of gas vehicles and typically far less than for comparable EVs. “People are perfectly fine with a car that gets 45 or 50 miles per gallon, and you don’t have to do anything” different from current behavior, said Scott Adams, owner of a Toyota dealership in suburban Kansas City. Here are some key reasons why hybrids, which use both a gas engine and battery power to efficiently turn the wheels, have taken off this year: 1) Saving the planet: The proliferation of wildfires, heat waves and more intense storms has led more people to view climate change as a grave crisis, one they can help mitigate by burning less carbon-spewing fuel. Yet even among those people, some remain skeptical that an electric vehicle will allow them to travel long distances or tow trailers. “People want to participate in this; the idea of reducing carbon”, said Jack Hollis, who heads North American sales and marketing for Toyota, which leads in hybrid sales and has moved only gradually toward EVs. “I think the hybrid gives them what they’re most looking for”. 2) A lower price: EV prices have being dropping, mainly a consequence of federal tax credits and price cuts by Tesla, the market leader. Yet they’re still pricier than hybrids or gas vehicles. After peaking at nearly $63.000 last year, the average EV sale price fell to just over $60,500 in November, not including tax credits or prices from Tesla, which doesn’t release them. Fewer EVs, though, will likely qualify for the tax credits in 2024 because of rules that will limit buyers from claiming a full credit if they purchase cars with battery materials from China or other countries that are considered hostile to the United States. The average price of a hybrid has stabilized at roughly $42,000. A typical hybrid costs somewhat more than its gasoline counterpart. A Toyota RAV4 hybrid with all-wheel-drive, for example, starts at $32.825, or $1.600 more than a comparable petrol version. Like many hybrid buyers, Shalinder Singh, an Uber driver from Sunnyvale, California, said that for him, the gas savings helped tip the price equation in favor of a Honda CR-V hybrid over the corresponding gasoline model. “The mileage for the hybrid is too good”, said Singh, who makes frequent trips to San Francisco and San Jose. The Environmental Protection Agency says a front-wheel-drive CR-V Hybrid gets 40 mpg in city and highway driving, 10 mpg better than the petrol version. The owner of a hybrid CR-V who drives 15.000 miles annually would save $450 a year on fuel over the petrol model. 3) Lifestyle Needs: Angie Rodesky, who recently moved to Jefferson City, Missouri, said her children wanted her to buy a Tesla to replace her old vehicle. Though she did consider an EV to help reduce emissions, she settled on a RAV4 Hybrid because she travels frequently to see children in Florida and Delaware. “I have a fear of plugging something in and not being able to travel as far, because it’s a 16-hour road trip from Delaware to Missouri”, Rodesky, 55, said. “I needed to make sure I had a vehicle that was comfortable to ride in and had good gas mileage”. After buying a 2023 model from Adams Toyota near Kansas City, she had to wait a month for it to arrive, mainly because of heavy customer demand for the vehicle. Brad Sowers, owner of Jim Butler Kia and other St. Louis-area dealerships, said customers who consider EVs often ask for hybrids or other alternatives. “They look at it as a baby step into the EV world”, Sowers said. “They’re saying to themselves, ‘I can’t really do 100% battery psychologically’ ”. 4) Colder weather: Dealers say many hybrid buyers appear to have done research and know that cold weather reduces the range of an EV battery. Tests conducted in Norway, where nearly 80% of new vehicles are electric, found that EVs lose between 10% and 36% of their range during winter. Most EV purchases in the United States occur on the coasts, where charging stations are more prevalent and weather is often warmer. In the Midwest, where stations are farther apart, Sowers said consumers worry about decreased wintertime range. “It’s cold here”, he said. “The charging infrastructure isn’t that great”. 5) In its auto reliability survey this year, Consumer Reports found that hybrids were the industry’s most reliable type of power system. Electric vehicles were least reliable. EVs contain glitch-prone new technology, Consumer Reports said. Hybrids have less. And with hybrids having been sold in the United States for more than 2 decades, automakers have had time to refine the vehicles’ engineering and construction. In general, vehicles that have been manufactured for longer periods are more reliable, said Jake Fisher, senior director of auto testing at Consumer Reports. Analysts say they still think more EVs than hybrids will eventually be sold in the United States. With government help, the industry is moving to build many more charging stations. Ford, GM, Hyundai and others have reached agreements for owners of their vehicles to charge them at many of Tesla’s widespread stations. The industry is standardizing its plugs to match Tesla’s. With direct-current fast chargers, charging times are becoming faster. Battery technology will likely improve cold-weather range, too. In addition, next year, EVs’ tax credits will be counted at the time of sale, thereby reducing the price and easing monthly payments. This year, buyers had to wait for income tax returns to receive their money. In addition, over time, tighter fuel economy and pollution regulations will likely compel automakers to sell more EVs. +++
