+++ The latest generation BMW 5 Series is the first to come with an all-electric variant in the form of the i5 and soon the electric saloon will be joined by a more practical BMW i5 Touring estate version. We’ve seen precious little of the i5 Touring during its development phase although BMW has issued a shadowy teaser image. It should look identical to the i5 saloon from the front however, with a rather imposing nose incorporating a big kidney grille shape (closed off for better aerodynamics). As for the all-important rear of the i5 Touring, this has been previewed in part by that teaser image from BMW, which shows the shape of the car in profile and a different set of rear lights compared to those on the saloon (a common design trait of the 5 Series Touring). The angle of the rear window also looks more rakish than on the outgoing G31-generation 5 Series Touring. I expect the i5 Touring’s lineup to mirror the saloon’s. That means we’ll see a rear-wheel drive i5 eDrive40 at the bottom end of the range. In the saloon the eDrive40 comes with a single rear-mounted electric motor with 340 hp and 400 Nm of torque. Power comes from an 81.2 kWh battery, which is enough for a 0-100 kph time of 6 second flat; the Touring’s extra weight will probably bump this acceleration figure up slightly. The i5 eDrive40 Touring should also return a marginally lower range than the sleeker saloon’s 582 km. There’s no reason why the charging speed of 205 kW won’t remain the same with a 10-80 per cent recharge taking 30 minutes. BMW’s boss of M division, Franciscus van Meel has said the hot M60 xDrive Touring range-topper will arrive in the spring. It’ll offer M5-rivalling performance from a dual-motor 4-wheel drive powertrain with 601 hp and 795 Nm of torque coming from the same 81.2 kWh battery as the eDrive40. The 0-100 kph sprint takes just 3.8 seconds in the M60 saloon with a top speed of 230 kph. BMW claims a maximum range of 516 km for the M60 i5 in saloon form so a figure nearer 500 km is likely for the hot estate. The interior of the i5 Touring will also share its layout and technology with the all-electric saloon. We’ll see a 12.3-inch driver’s display and a curved panel connected to it on the dash featuring a 12.3-inch touchscreen with BMW’s latest iDrive infotainment system. The outgoing 5 Series Touring has one of the biggest boots of any estate with 570 liters. We’re yet to see the boot capacity for the upcoming 5 Series Touring but in saloon form there’s no difference between the new ICE 5 Series and the EV at 490 liters. +++
+++ In 2023, 21.706 million new cars were sold in the Chinese market, with sales increasing by 5.6% year-on-year, according to the China Passenger Car Association (CPCA). Although the overall market grew by more than 5%, due to the impact of EVs and PHEVs, ICE sales fell from 14.870 million vehicles in 2022 to 13.958 million in 2023, a decrease of 6.1%. Sales of EVs and PHEVs increased from 5.679 million to 7.748 million, up 36.5%. EVs and PHEVs have accounted for 35.7% of the total market sales. Chinese automaker BYD leads the way, achieving sales of 2.571.109 vehicles in 2023, a year-on-year increase of 43.3%. BYD has ranked first in sales of Chinese automobile brands for four consecutive quarters, with a market share of 11.85% this quarter. Volkswagen ranked second with sales of 2.228.635 vehicles, a year-on-year decrease of 0.2%, and a market share of 10.27%. Although Volkswagen was the sales champion every quarter in 2022, after entering 2023, Volkswagen’s sales have been defeated by BYD every quarter. Toyota ranked third with sales of 1.702.773 units, a year-on-year decrease of 3.8%, and a market share of 7.84%. Honda and Changan rounded out the top-5 with sales of 1.193.019 and 962.061 vehicles, respectively. BYD has extended its dominance in the new energy vehicle (NEV) field, ranking first in electric and plug-in hybrid cars. BYD has a market share of up to 26% in China’s Pure EV market. The brand’s dominance is even more pronounced in the PHEV category, capturing 48% of the market in 2023. In the pure electric vehicle market, BYD sold 1.318.835 vehicles, with a market share of 25.58%. Tesla ranked second with sales of 603.664 cars and the Model Y alone sold more than 456.000 vehicles. In the ranking of electric vehicle sales, Aion, Wuling and Nio occupy the third, fourth and fifth places, respectively. The top-3 vehicles in the Chinese market for 2023 were: 1) Tesla Model Y with an impressive sales figure of 456.394 cars, 2) BYD Qin Plus with 434.213 units sold, 3) BYD Song Plus with 390.213 vehicles sold. +++
+++ CHINA ’s auto exports surged 63.7% in 2023 while domestic sales, boosted by year-end incentives, rose 4.2%, an industry association said Thursday. Chinese automakers have aggressively expanded exports in search of growth missing at home as China’s economy slows. They have also pushed into electric vehicles as government subsidies transformed China into the world’s largest EV market, even as car sales have stagnated overall. Auto sales in China totaled 21.9 million cars last year while exports jumped to 4.1 million, the China Association of Automobile Manufacturers reported. Domestic sales are down from a peak of about 24 million in 2017. The surge in exports may propel China past Japan as the world’s number one exporter of cars. Japan exported 3.6 million cars in the first 11 months of the year, with a final tally expected on January 31. An explosion in sales to Russia helped drive up China’s exports in 2023, as European and Japanese makers pulled back because of the war in Ukraine. China exported 840.000 vehicles to Russia in the first 11 months of last year, including trucks and buses as well as cars. The China Passenger Car Association said earlier this week that demand in Russia and neighboring countries is slowing and future export growth will depend on an expansion of EV sales overseas. Chinese EV makers have targeted markets in Southeast Asia, Europe and Australia, among others. The manufacturers’ association does not provide a breakdown for electric vehicles, but data released by the passenger car association showed that electric vehicles accounted for 24% of new car sales in China in 2023, up from 12% in 2021. Including hybrids, the share of new-energy vehicles in total sales reached 36% last year. The Tesla Model Y was the best-selling electric vehicle in China last year, with 646.800 units sold, followed by the BYD Song sedan at 428.600 units, according to the passenger car group. The Model Y retails for 266.400 to 363.900 yuan ($37.500 to $51.200), according to the Tesla website, and the BYD Song for 129.800 to 159.800 yuan ($18.300 to $22.500). Bill Russo, founder of the Automobility consultancy in Shanghai, said Chinese firms have democratized the electric vehicle by driving down its price. The next challenge will be to convince buyers that an EV can meet their driving needs. But the first step is to make it available at a price that will get them to consider one, Russo said. “That’s the paradigm that the Chinese have broken, that you can make an EV affordable”, he said in a recent interview. “What China is doing with the EV is it’s using its domestic market to generate economies of scale that it can then take internationally”. Fitch Ratings said in a report last month that it expects the share of new energy vehicles including hybrids in China’s total sales to rise to 42%-45% in 2024. It also projected that exports would grow 20% to 30% this year. The European Union, concerned about rising imports from China, opened a trade investigation last year into Chinese subsidies for electric vehicles. The investigation is ongoing. The Chinese manufacturer’s association said the total sales of all vehicles, at home and abroad and including trucks and buses, reached the 30-million-unit milestone in 2023, a 12% rise over the previous year. It forecast growth would slow to about 3% this year. +++
+++ HONDA boss Toshihiro Mibe hasn’t ruled out the possibility of car production returning to Europe, even though his company closed its factory in Swindon in 2021. He was speaking at the Consumer Electronics Show in Las Vegas, US, where the firm launched its new generation of electric vehicles under the 0 Series sub-brand. This will start with a production version of its Saloon concept, which is set to be followed by a couple of SUVs, a small Jazz-sized affordable car and a sports car. Honda is planning to make all its products and activities carbon neutral by 2050, so localised production would seem a natural step towards that goal. Asked whether he thought Honda’s decision to close the Swindon plant was premature, given the brand’s carbon-neutral goals, Mibe told: “The decision at the time was correct. For the future, Honda will be active in the European market with cars produced in the rest of the world”. Asked if local production could return to Europe, Mibe said, “It may be a possibility, but for the time being we plan to export to Europe. Nothing is decided at this point”. Honda’s Swindon plant was established in 1985, with engine production starting in 1989. Models such as the Civic, Jazz, CR-V and Accord were all made there, with cars exported across Europe and even to Japan and the US. The plant was closed in July 2021 when there were still around 3.400 employees. It’s expected that the 370-acre site will eventually be turned over to housing, although a Honda Heritage Garden, which features play and learning areas, plus areas celebrating nature and the models made in Swindon, opened for community use in 2022. +++
+++ While electric vehicles are gaining the lion’s share of the attention for carbon-neutral technology at CES 2024, HYDROGEN energy has snuck its way back into the conversation thanks to 2 automotive giants. Hyundai spotlighted its plans for utilizing hydrogen energy at the sprawling tech and gadget show in Las Vegas. Beyond making vehicles powered by hydrogen-powered fuel cells, the South Korean automaker signaled that it could work toward aiding a “hydrogen society” by expanding into energy production, storage and transportation. It’s already technologically feasible, and it will eventually make sense economically, too, José Muñoz, president and global chief operating officer of Hyundai, predicted. Meanwhile, automotive supplier Bosch Mobility plans to launch its first hydrogen combustion engine this year; another key step toward reducing global man-made carbon emissions, the company said during its CES 2024 event. Both Bosch and Hyundai say they’ve been encouraged to move forward with their respective initiatives because of investments such as the $7 billion that the U.S. government is pouring into the development of hydrogen infrastructure. Honda on Tuesday unveiled 2 concept vehicles, dubbed the Saloon and Space-Hub. The Japanese automaker says the Zero Series approach for EV development focuses on models that are “thin, light and wise”, with specific goals to minimize battery size and weight. Kia, meanwhile, introduced a trio of electric vans that can quickly swap body modules from cargo haulers to taxis and other purposes. Production of the vans will begin in 2025 in South Korea. And Vietnam-based electric upstart VinFast unveiled an electric truck concept. The mid-size truck is dubbed the VF Wild. Mercedes-Benz showed off updates to its infotainment systems, including a new AI-powered virtual assistant that strives to personalize interactions between drivers and their cars. The update will connect the AI with functions for automated driving, seating comfort, data displays and charging. But while automakers like Mercedes are focusing on improving their proprietary in-car ecosystems, others are striking more partnerships with Google to pre-install apps such as Google Maps and Assistant in their vehicles, the tech giant revealed at CES 2024. The Google built-in will come to select models from Nissan, Ford Motor’s luxury brand Lincoln, and others this year, with Porsche following suit in 2025. And even Mercedes-Benz is layering Google apps into its own technology. Honda also touched on plans for its Zero Series and wider EV advances down the road; notably, the company’s independent development of solid-state batteries. In a news conference, executive vice president Shinji Aoyama said Honda aims to apply solid-state batteries to the Zero Series by the late 2020s. Solid-state batteries are widely believed to be essential for mass commercialization of battery-powered EVs. Today, lithium-ion batteries are more commonly used in EVs, but are prone to fires. Solid-state batteries are more stable and potentially more powerful. Honda’s Mitsuru Kariya, who leads the research and development group behind the EV tech, explained that solid-state batteries have higher energy density, which means they can be smaller while maintaining a good range with stronger outputs. This could also contribute to making EVs lighter, he said, potentially improving fuel economy. Honda isn’t the only automaker with eyes on a solid-state battery future. Toyota, for example, recently agreed to work with Japanese oil company Idemitsu on technology solid-state battery production. +++
+++ If you thought the latest MAZDA 2 looked familiar then there’s a good reason because it’s essentially a re-badged Toyota Yaris, but now Mazda has tweaked its hybrid supermini with some more bespoke design and technology upgrades for 2024. Mazda says we can expect to see the revised hybrid model in the showrooms from March, where it’ll do battle with other hybrid superminis like the Renault Clio E-Tech, Honda Jazz Hybrid and of course, the mechanically identical Toyota Yaris. On the decision to offer both the newly updated Mazda 2 Hybrid and the third-generation Mazda 2 (which has been a part of the Mazda’s line up since 2015 and a is a completely different car), a spokesman said: “we are giving customers in the supermini segment the choice of 2 distinct models, depending on their needs, ensuring Mazda has the widest customer offering in a sector that has seen several key models disappear in recent months”. The 2024 Mazda 2 Hybrid gets some bespoke styling tweaks over the old car, and indeed the Yaris, including a new front bumper and grille shape, plus a new rear boot lid design. As before, every Mazda 2 Hybrid gets the same powertrain taken from the Toyota Yaris. It’s a 1.5-litre 3-cylinder petrol engine mated to a self-charging hybrid system. There’s 116 hp available for a 0-100 kph time of 9.7 seconds and a WLTP-rated CO2 emission of 87 gram/km. The powertrain also features a selection of driving modes. ‘Normal mode’ provides the “optimal balance of fuel economy, quietness, and dynamic performance” according to Mazda. ‘Power mode’ is for occasions when extra power is required, ‘Eco drive mode’ is for maximising fuel efficiency, and ‘EV mode’ can let the Mazda run solely on electric power – but only for up to 1.5 km and at speeds under 50 kph. +++
+++ After the appearance of rumors, NIO announced it signed a strategic cooperation agreement with Chery and JAC in the field of battery swap stations. Last year, Nio signed similar contracts with Geely and Changan. These companies will establish standards for swappable batteries and develop the battery swap business. Nio also cooperated with Wenergy Group and Anhui Transportation Holding Group (ATHG) to build 1,000 PSS (Power Swap Stations). Nio and Chery signed the strategic cooperation agreement on January 11. Together, they will construct and share battery swap station networks, develop battery swap standards, etc. According to Nio’s press release, it is impressed by Chery’s performance both in domestic and overseas markets. Chery is actively exploring the high-end electric cars business in China. It has recently launched the Luxeed S7 EV sedan jointly developed with Huawei. Chery’s high-end brand has started sales of the EV series called Exlantix (domestic name is Sterra). JAC (Jianghuai Automobile Co) and Nio have a long story of cooperation. The Anhui-based car maker manufactured Nio cars from 2018 until December 2023, when the Chinese startup acquired F1 and F2 plants from JAC. On January 4, Nio and JAC signed the strategic cooperation agreement on battery swapping. They will establish battery swapping standards and battery swapping tech. Moreover, Nio and JAC will build and share a battery swap station network. Nio will also help JAC develop NEVs (BEV, EREV, PHEV, FCEV). JAC is actively pushing the sodium-battery-powered EV manufacturing. In December last year, it began trial production of the JAC Yiwei E10X hatchback with HiNa’s sodium battery on board. It hints that Nio and JAC can develop swap standards for sodium packs. The same day, Nio announced a strategic cooperation with Wenergy Group and Anhui Transportation Holding Group to build battery swap stations jointly. They will jointly build 1.000 battery swap stations with energy storage, charging, and battery swap capabilities. They will also promote other aspects of the battery swap business. As we can see, Nio is gaining momentum, signing strategic cooperation agreements with many Chinese companies. Previously, Nio confirmed cooperation with Geely and Changan. With a massive EV output from Geely, Changan, JAC, and Chery, Nio can focus more on providing a battery swap network than building cars. +++
+++ RENAULT has no shortage of pure-electric cars on the way, from the family-sized Scenic to the ultra-cute reborn 4 and 5. But the company still needs to sell efficient combustion-engined models to customers for several years yet, and it’s going to double down on that effort in 2024, launching an all-new family SUV that will be sold alongside a facelifted version of the existing Captur crossover. Referred to by some as the Renault Grand Captur, although it’s unlikely to carry that badge, the new creation carries the internal codename DJB and will be positioned between the Captur and the Austral on size, with a slightly longer wheelbase than the regular small SUV. That will stretch it to an overall length of around 4.4 metres; only very slightly shorter, in fact, than a Nissan Qashqai, and pretty much the same length as a Kia Niro. The new car will be designed mainly to replace the combustion-engined Mégane hatchback (still on sale in some European countries, but ready to be phased out), while giving Renault an affordable rival to take on Chinese newcomers like the Omoda 5 and BYD’s Seal U. It’s all but certain to use the Captur’s CMF-B HS (high specification) underpinnings, and to therefore make use of its powertrains. That means that the 1.6-litre E-Tech full hybrid will be the bedrock of the line-up, although Renault could choose to introduce a plug-in hybrid option, technically feasible on CMF-B HS, to give the car extra appeal with transitioning company-car choosers. Expect Renault to pull no punches on practicality with the new car, which will have to appeal to regular family-car customers until the end of the decade. It should have a relatively long roofline and boxy profile, with a sharper drop at the tailgate in a bid to improve rear headroom and maximise the available boot capacity. Project DJB should also, in time, succeed the unloved Arkana coupé SUV. Introduced in 2020 and facelifted in summer 2023, that South Korean-built model is unlikely to get a direct successor. Indeed, the coupé-SUV Arkana (which is slightly longer than Renault’s flagship Austral, despite being based on the same cheaper architecture as Clio and Captur) may be phased out slightly ahead of its normal 7-year model cycle. +++
+++ SKODA is adding artificial intelligence chatbot ChatGPT to its next-generation infotainment system, following the lead of sister brand Volkswagen who debuted the technology at the 2024 Consumer Electronics Show (CES) in Las Vegas. ChatGPT will be used to enhance Skoda’s voice assistant ‘Laura’ and feature in select versions of the all-electric Enyaq and Enyaq Coupe, the next generations of the Skoda Superb and Kodiaq SUV launching later this year, and the facelifted Octavia that’s due to be unveiled in February 2024. Currently, Skoda’s voice assistant can be used to control the infotainment and airconditioning, and answer some general knowledge questions, among other things. But in the future, AI will enable new capabilities such as answering other questions using intuitive language and “enriching conversations”. Activating the voice assistant won’t be any different, with drivers or passengers only needing to say “Okay, Laura” or press a steering wheel button. If the car’s system can’t fulfil a request, then it will call on the AI for help. Skoda is keen to emphasise that ChatGPT does not access any vehicle data or personal information, and that all interactions are immediately deleted after processing to protect your data. Skoda CEO Klaus Zellmer believes “enriching Skoda voice assistance with artificial intelligence makes our cars an even better everyday companion. Drivers and passengers will have easy, verbal access to worlds of knowledge while on the road”. He added, “Integrating ChatGPT into our voice assistant Laura is just the latest way that Škoda adapts advanced technology to improve the driving experience. Everything remains hands-free for the driver, and data security remains a priority”. This new functionality is powered by the Cerence Chat Pro system from Skoda’s technology partner Cerence Inc – the same company that worked with Volkswagen to add ChatGPT to the facelifted Golf, among other models. DS has also added the generative AI chatbot to every model across its range, choosing to focus more on its ability to provide travel advice and information about places nearby. +++
+++ TOYOTA is believed to have secured the top spot in global vehicle sales for the fourth straight year in 2023. The Volkswagen Group said Tuesday that its global vehicle sales rose 12% from the previous year to about 9.24 million units. The Japanese automaker sold over 10.22 million vehicles globally in the first 11 months of 2023 alone. Toyota maintained its momentum thanks to brisk sales in North America and an improvement in semiconductor supplies. Toyota alone, excluding its Daihatsu and Hino units, also topped Volkswagen. +++
