+++ The Japanese transport ministry has begun procedures to revoke type certificates for 3 vehicle models made by DAIHATSU , including the Gran Max, over its involvement in fraudulent safety tests. The other 2 affected models are the Town Ace, which is supplied to Toyota, and the Bongo, which is provided to Mazda. The ministry will make an official decision to revoke the type certificates after hearing from Daihatsu on January 23. Type certificates are required to mass-produce a certain model. “It’s a big problem that might threaten the trustworthiness of the Japanese manufacturing industry”, transport minister Tetsuo Saito told a press conference. The administrative punishment to be leveled against Daihatsu over its involvement in fraudulent safety tests will be the first such sanction to affect compact vehicles well known to the public. The Land, Infrastructure, Transport and Tourism Ministry will hear opinions from Daihatsu about the revocation before taking action. Daihatsu intends to seek to reacquire the certificates, but the ministry’s investigation has uncovered more irregularities, diminishing the prospect that it will be able to resume production. The automaker’s credibility will inevitably be damaged, impacting its dealers and business partners. “This is serious wrongdoing that undermines the national certification system, and we sincerely apologize for it”, Daihatsu president Soichiro Okudaira told reporters at the transport ministry. “We will do our utmost to improve the situation”. Okudaira acknowledged management’s responsibility, saying: “We failed to change our overcrowded, rigid work schedule. This environment and culture was fostered by management”. Daihatsu will submit preventive measures to the ministry within a month, Okudaira said. About 6.200 of the 3 models in question were sold domestically in January-November 2023. Although these trucks account for only a small percentage of Daihatsu’s annual domestic production (about 870.000 units in fiscal 2022) they are mainly purchased by small and medium-sized companies or sole proprietors engaged in electrical work, delivery and other businesses. “These models are driven on a daily basis for work purposes, and reliability is key”, a person involved with Daihatsu’s sales said. “If their type certificates are revoked, it will have a big impact”. The fraud has damaged the reputations of Daihatsu’s parent company Toyota and its supplier Mazda. A Mazda spokesperson said: “It is truly regrettable that this fraud has affected us. We’ll discuss future measures with Daihatsu”. Daihatsu will become the third automaker to have type certificates revoked, following Hino and Toyota Industries. These firms were censured over engines used in trucks and buses for Hino and in forklifts for Toyota Industries. Daihatsu, however, has many ordinary drivers among its users, and the impact could be more serious. More irregularities have been found through the ministry’s investigation, and additional models may be subject to the punishment. “If the revocation of certificates affects popular passenger car models, such as Tanto and Mira e:S, it could threaten Daihatsu’s survival”, said economic journalist Hisao Inoue. Toyota Motor will consider reviewing Daihatsu’s management structure, including a shakeup of its board members, in about a month’s time, Toyota president Koji Sato told reporters in Tokyo. “We take the matter very seriously and will work on drastic reforms to ensure that fraud will never occur again”, Sato said. “Mini vehicles are Daihatsu’s core. If the company was overburdened by expansion in other areas, we need to reorganize our business”. +++
+++ The HYUNDAI MOTOR GROUP said Wednesday it has sold its Chongqing plant in China to the region’s industrial park developer Yufu Industrial Complex Construction for approximately 1.62 billion yuan ($290 million), as part of a global operational restructuring aimed at shifting focus from volatile markets to expanding in growing Asian countries like India and Indonesia. The sale comes in the wake of the company’s dwindling market share in China, which fell to 1.4 percent in 2023. This decline is attributed to multiple factors, including the rising popularity of local car brands, governmental policies favoring domestic manufacturers and geopolitical strains. “In our quest to boost business efficiency in China, selling the Chongqing plant is a step towards enhancing profitability by streamlining our production operations”, a Hyundai Motor Group official said. Established in 2017 with a capital injection of 1.6 trillion won ($1.2 billion), the Chongqing plant was Hyundai’s fifth Chinese plant boasting an annual production capacity of more than 300.000 units. Its acquisition by Yufu Industrial Park Construction Company, with the majority shareholder being Liangjiang New Area Development & Investment Group, owned by the city of Chongqing, shows the city’s significant role in the deal. Plans are in place to convert the plant into an electric vehicle production facility, managed by Chongqing Liangjiang New Auto, another subsidiary of the investment group. This transaction follows Hyundai’s 2021 sale of its Beijing Plant 1, reducing its manufacturing footprint in China from 5 to 3 facilities. The rapid sale process, which began in late August of the previous year, initially sought 3.68 billion yuan for the plant. However, the final sale price was considerably lower due to a downturn in the Chinese market. Hyundai’s global realignment also includes the decision by the board to sell off its Russian plant in Saint Petersburg amid the ongoing conflict in Ukraine. Meanwhile, the group is bolstering its presence in India and the ASEAN region. Hyundai has been a major player in the Indian market since 1996, with over 9 million vehicles sold. In August last year, it acquired General Motors’ Talegaon plant in Maharashtra, India, with plans for an investment of about 70 billion rupees ($842 million) to boost EV production, aligning with India’s EV expansion policies. In the ASEAN region, the company has been ramping up its EV production facilities and model range in its Indonesian plant since last year. +++
+++ HYUNDAI and its smaller affiliate KIA said their vehicle sales in Europe hit an all-time high in 2023 on brisk demand for SUV and electric models. Hyundai and Kia sold a combined 1.106.467 units in Europe last year, up 4.3 percent from a year earlier, the companies said, citing data from the European Automobile Manufacturers’ Association (ACEA). The number broke the previous record of 1.065.227 vehicles set 4 years earlier. Their European sales surpassed the 1 million mark for 3 years running in 2023. Hyundai saw its top line expand 3.1 percent in 2023 from a year earlier, with Kia’s sales climbing 5.4 percent. Hyundai and Kia accounted for 8.6 percent of the European passenger vehicle market last year, trailing Volkswagen Group with a share of 25.9 percent, Stellantis’ 16.6 percent and Renault Group’s 9.7 percent. Hyundai and Kia’s proportion was down 0.8 percentage point from a year earlier. Hyundai and Kia took the No. 4 spot for the third straight year. Hyundai’s bestselling models included the Tuscon and Kona SUVs, as well as the Kona and Ioniq electric vehicles. In December, Hyundai and Kia saw combined sales in Europe rise 5.1 percent on-year to 77.059 units, with their market share edging up 0.6 percentage point to 7.3 percent, according to the ACEA data. +++
+++ Data from PPK JSC reveals a remarkable 69% year-on-year increase in RUSSIA ’s new car market in 2023, reaching 1.058.708 vehicles. Despite this substantial growth, the sales volume remains below the levels observed before the Russia-Ukraine conflict in 2021. Owing to sanctions and the withdrawal of most foreign companies, most cars sold in the Russian market now originate from Russia or China. Local Russian car brand Lada has experienced a significant surge in sales, escalating from 174.688 vehicles in 2022 to 324.446 cars in 2023. Consequently, its market share has expanded from 27.9% to 30.6%. Chinese cars have also seen a surge in sales, with their market share capturing approximately 47% of all passenger car sales in Russia, totaling around 498.000 units. In the wake of numerous manufacturers exiting the country after the Ukraine conflict, Chinese brands have rapidly gained ground, with 6 of the top 10 best-selling brands in Russia in 2023 hailing from China. The Chery brand stands out with sales reaching 118.950 units, securing the second spot and claiming an 11.2% market share. Moreover, both Exeed, ranking 6th, and Omoda, ranking 7th, are sub-brands of Chery, contributing to Chery’s overall sales figure of around 200.000 cars in Russia in 2023. Chery Group’s global sales 2023 reached approximately 1.88 million vehicles, emphasizing that more than 10% of Chery’s cars find buyers in Russia. Other Chinese brands such as Haval, Geely, and Changan have also witnessed substantial sales growth, securing the 3rd, 4th and 5th positions in the sales list. Despite the prevailing sanctions, some analysts anticipate that Russia’s car sales will persist in their growth trajectory throughout 2024. Projections suggest a further increase in automobile sales by 25-30% on the current basis, potentially reaching 1.3-1.4 million units in 2024. +++
+++ In SOUTH KOREA , General Motors (GM) Korea, Renault Korea and KG Mobility are moving to place more strategic focus on boosting exports this year to offset their falling market share here amid domestic carmakers’ widening dominance, according to industry officials and data, Thursday. They have no other choice, as their presence in Korea is weakening amid aggressive sales expansion of Hyundai Motor and Kia. The combined market share for the nation’s 3 mid-tier carmakers reached a record low of 8.3 percent in 2023, down 2.5 percentage points from the previous year. This is a shaper decline from 17.1 percent from 2019. The carmakers are, however, moving to place their management focus on overseas markets, rather than struggling to increase their share here, as they seek to continue their winning streak in exports. GM Korea sold more than 420.000 vehicles to overseas markets last year, which accounts for around 90 percent of its total sales. Its exports surged by 88 percent from the previous year, the highest level since 2015. GM’s key export driver was its Trailblazer mid-sized SUV and Trax compact SUV. KG Mobility also reported export growth of 17.6 percent during the same period, buoyed by robust sales of its Torres SUV. The company aims to expand its presence in Europe and the Asia-Pacific region this year. 2023 is a meaningful year for the carmaker, as it is widely expected to have achieved a major turnaround last year for the first time since 2016. Even if KG still relies more on the domestic market, its plans to expand its sales portion to untapped territories, such as the Middle East and Africa. Renault Korea was the only firm to have suffered an export decline last year. According to the carmaker, its exports fell by 29.7 percent during the same period, but its sales for the Korean market extended a bigger loss of 58.1 percent. The company seeks to regain its glory with a planned launch of its strategic mid-sized hybrid SUV, which will be unveiled sometime in the latter half of the year. “It appears realistically difficult for the carmakers to put the brakes on the widening market power exuded by Hyundai Motor and Kia in the local market, so their reliance on exports will be accelerated down the road,” an official from a local carmaker said. +++
+++ STELLANTIS has revealed more details on its new STLA Large electric car platform set to underpin range-topping models from Alfa Romeo, Jeep and Maserati. Cars based on STLA Large are set to offer a maximum range of around 800 km, fast charging from 400 and 800 volt architectures and performance for some models with 0-100 kph times in the 2-second range. An all-electric Jeep Wagoneer S will be the first STLA Large model to arrive in Europe from 2025, although it’s set to launch in the US later this year. Stellantis boss Carlos Tavares confirmed that the Wagoneer would be coming to Europe, telling: “Jeep is a global brand totally by nature. They can be sold anywhere, including Europe”. In total 8 new models will be launched on STLA Large before 2026 covering car, crossover and SUV bodystyles. The platform is flexible enough to accommodate off-road models with a 148 mm difference in ground clearance possible between models; the Jeep Wagoneer S will be Trail Rated like other Jeeps for off-road driving. Overall length of STLA Large models can range between 4.764 and 5.126 mm with wheelbases ranging from 2.870 to 3.075 mm. Widths can range from 1.897 to 2.030 mm. Tavares also reassured buyers of the different brands that a common platform did not mean a convergence of character for STLA Large-based vehicles. “We can accommodate very different ground clearances for off-road and highway driving, we can accommodate different tunings”, he said. “You can tune your products in very different ways and can offer different levels of acoustics in the car; that is imbedded in the initial thinking of our engineers. We gave them the frame that they need to cover from day one: for very different kinds of cars from very different brands. We set the stage from day one”. Slippery saloon models are expected to be the most efficient, with a range of around 800 km possible from STLA models using the biggest-possible 118 kWh battery. Smaller battery versions of cars based on STLA Large will also be available with battery sizes starting at 85 kWh, while front, rear or all-wheel drive will also be available. Fast charging using the 800 volt architecture will add up to 4.5 kWh per minute, while performance and efficiency can also be upgraded over time via over-the-air software updates. However, although the focus of the STLA Large platform is on all-electric power, like the other STLA platforms, Large will also support hybrid and internal combustion propulsion systems with flexibility for transverse and longitudinal engine configurations. Little is known about the upcoming Alfa STLA Large SUV and saloon models, but Autointernationaal.nl exclusively revealed details of Maserati’s new Quattroporte and Levante models, both set to use STLA Large. Bernard Loire, then Maserati chief commercial officer, said: “You’ll see the first electric-only Maserati in 2025 with a new Quattroporte. You will see that it’s a real Maserati and a real Quattroporte. It will be a full electric car only, it’s not going to look like an electric car at all. That’s the route that we are choosing. Stellantis offers us an opportunity of getting access to technologies and that’s extremely important when you know the investments that have to be made on the powertrains, on the batteries, on the software, et cetera”, said Loire. “For us it’s a chance to have access to that. And yes, we will try to build our cars on the most common platform taken from Stellantis, but it has to be kept as a Maserati”. Following on from the Quattroporte will be a new all-electric Levante, but Loire confirmed that it would not be a 7-seater. “The product definition is not yet frozen, but certainly we are working on a new Levante”, he told. “We are not going to build a boxy car just to have a roominess or package. We will build, in any case a Maserati: a compromise on the design won’t be made. And I’ve got a question for instance, will we have a 3-rows Maserati? The answer is no”. +++
+++ VOLKSWAGEN , whose drive to develop a “solid-state” electric car battery with U.S. startup QuantumScape has been dogged by delays, is casting its net wider in pursuit of the potentially game-changing technology. The German auto giant is holding talks with France’s Blue Solutions, which already produces solid-state batteries for Daimler electric buses, about adapting the design for cars, said a source with direct knowledge of the discussions. VW and Blue Solutions aim to reach a joint development agreement in the coming months, according to the source who asked not to be identified as the talks are private. Volkswagen’s move to widen its options in the field points to the array of technical hurdles holding back wider development of solid-state technology, seen by its backers as the “holy grail” of EV batteries, promising longer driving ranges and shorter charging times than traditional lithium-ion packs. VW said its venture with QuantumScape was on track and declined to comment when asked about any discussions with Blue Solutions. A spokesperson for Blue Solutions, a unit of French conglomerate Bollore, confirmed that it was working on a battery for passenger cars and said it had signed development deals with BMW and another company, and was in talks with a third, but declined to identify the others. VW, Toyota, BMW and other global automakers are vying to crack the conundrum of solid-state batteries, which remain technically elusive despite decades of research and billions of dollars of investment. “A lot of promises haven’t been delivered and several automakers and investors have been burnt”, said Rory McNulty at consultancy Benchmark Mineral Intelligence. “There’s loads of really good verified data and technology, but can the industry do it reliably, at scale?” Blue Solutions, for its part, faces stiff challenges to radically bring down the 4 hour charging time required by its current batteries, which is feasible for buses parked overnight in depots. The company’s spokesperson said it was working on a passenger car battery with a charging time of 20 minutes, and aimed to construct a “gigafactory” for it by 2029. The sector’s lack of commercial success has dampened market enthusiasm; the amount of global venture capital deal activity in solid-state battery companies fell 72% last year to $146 million, according to data from PitchBook. “Investor interest in solid state batteries has waned. They are questioning whether the risk of solid state is worth it”, Ibex Investors partner Jeff Peters said. Solid state ideally envisions replacing the liquid electrolyte though which the electrical charge passes in lithium-ion EV batteries with a solid substitute, thus reducing a fire hazard and shrinking the size of battery packs, and using lithium metal for its negative terminal to boost performance. Gauging precisely the right combination of chemicals and materials so they don’t react adversely with each other is a minefield, though. QuantumScape’s venture with its top shareholder VW, which has invested $300 million in the startup, is an example how solid-state technology has failed to live up to its initial promise. The development deal signed in 2018 envisaged solid-state powering Volkswagen EVs by 2025, enabling the e-Golf to more than double its range to 750 kilometers. When QuantumScape subsequently went public via a reverse merger with a special purpose acquisition company in New York in 2020, it said it was aiming for commercial battery production in 2024. Yet mass commercial production remains a distant prospect, even after QuantumScape shipped its first prototypes to VW and other prospective customers in late 2022, the start of what is typically a multiyear process of testing and certification. Furthermore, the battery isn’t pure solid state since it uses a liquid electrolyte though uses ceramic to separate the positive and negative terminals. “We still have a lot of work to do”, QuantumScape’s CEO Jagdeep Singh said. “The prototype is meant to show the core functionality is there, not that the cell is fully ironed out in terms of all the different defects that can be introduced during the production process”. QuantumScape’s shares, which hit a peak of $132.70 in December 2020, have since sunk to $7.37, giving the company a market value of about $3.6 billion. It has not said when it expects high-volume commercial production. Goldman Sachs said this was likely in the latter part of the decade. QuantumScape said in a regulatory filing to the U.S. Securities and Exchange Commission last October that it had missed commercialization timeline milestones envisaged in the 2018 deal with VW, and that the German automaker thus had the right to terminate the joint venture should it choose to. Volkswagen and QuantumScape aren’t the only players that have pared their ambitions as they grapple with the technical complexities of solid state. Toyota, the world’s biggest automaker ahead of VW, had targeted a 2025 production startup date for its solid-state batteries, but said in June it now does not expect to produce the cells at scale before 2027 or 2028. The Japanese company nonetheless said it had achieved a technical breakthrough, without providing details beyond a projected driving range of 1.200 km miles or more and charging time of 10 minutes. Several other companies have plans to roll out solid-state batteries including Chinese battery leader CATL, LG Energy Solution, Solid Power, ProLogium, Honda and Nissan. EV market leader Tesla is an industry outlier in not having detailed any solid-state battery development plans. A key issue solid-state scientists have been grappling with is the impact of introducing lithium metal for the anode. Lithium metal can dramatically lift performance, but often sparks reactions with the solid compounds, including creating dendrites, spiky formations that create cracks and imperfections and can ultimately short-circuit a battery. Battery makers, automakers and researchers have tried using a variety of substances for the solid electrolyte in three main categories: polymers, sulfides and oxides. Some companies have already rolled out partial versions of solid-state batteries that offer some benefits of the technology. China’s EV firms Nio and Seres have both launched EV models with “semi-solid-state” batteries which have both solid and gel-like electrolyte components but do not use lithium metal anodes. +++
