+++ Chinese car giants locked in a cut-throat price war descended on the capital for the start of the AUTO CHINA SHOW , vying to draw consumers and headlines in the world’s biggest electric vehicle market and abroad. China’s EV sector has exploded in recent years, and firms are now engaged in a no-holds-barred battle to offer customers the coolest accessories at the lowest prices. EV makers from China have made inroads into markets from Europe to Southeast Asia and Tesla’s Elon Musk described them in January as “the most competitive car companies in the world”. Beijing’s Auto China show, which lasts until May 4, will see dozens of firms square off in a bid to draw customers at one of the country’s biggest car shows. There are a staggering 129 EV brands in China, but just 20 have managed to achieve a domestic market share of 1 percent or more. Among the most closely watched firms will be BYD; a Shenzhen-based battery and automotive giant that beat Tesla in last year’s fourth quarter to become the world’s top seller of EVs. Tesla reclaimed that title in the first quarter of this year, but BYD remains firmly on top in its home market. The firm is expected to unveil its first electric pickup, the Shark, at the event. The Shark’s price has yet to be disclosed, but BYD has said it will be equipped with the firm’s dedicated off-road technology platform. Traditional automaking juggernauts, who have struggled to keep up with a surging wave of domestic challengers in recent years, will also be present. Volkswagen, which last year lost its crown as the best-selling brand in China to BYD, has moved to prevent a sales slide in its most important market. The German auto giant announced earlier this month that it would invest 2.5 billion euros to expand a production and innovation hub in the eastern province of Anhui. It has also invested tens of billions globally in its pivot to EVs, including by taking a minority stake in Chinese automaker XPeng last year. Nio, a Shanghai-based manufacturer of premium EVs, will also be at the auto show, hoping it can breathe new life into its business with the unveiling of a 2024 lineup of 8 models. A fresh entrant to the fierce electric market is Xiaomi, a consumer tech giant that last month launched its first EV model, with CEO Lei Jun saying he was putting his “reputation on the line”. Initial signs are positive: Lei said during a livestream last week that sales of its SU7 had been 3 to 5 times higher than expected. The show also comes in the face of an intensifying price war between EV companies, made all the more competitive as consumer spending slows in China. On Monday, Beijing-based Li Auto slashed the prices of its models by up to 30.000 yuan ($4,141). That followed a decision by Tesla in China to lower its prices by 14.000 yuan. And as competition turbo-charges in China, the rapid expansion of its EV production has raised eyebrows in the West, where regulators fret that an oversupply of cheap Chinese vehicles could outprice local competitors. Beijing has labelled foreign concerns of overcapacity “groundless”, insisting that the success of its EV sector is down to innovation and advanced supply chains, not subsidies. But it had long given EV firms a boost, funneling generous amounts of state cash towards domestic manufacturers and offering purchasing discounts in a bid to spur growth and speed up the shift towards clean-energy cars. Those central government retail subsidies were phased out in late 2022. But as firms push aggressively into countries across Europe, Southeast Asia and Latin America, they are increasingly under the spotlight. The European Union launched an investigation last year into Chinese state EV subsidies, which it said had given companies from the country an “unfair” leg up in the local market. The probe coincides with reports of Chinese vehicles piling up at European ports, as logistics networks struggle to cope with the surge and local consumers are slow to buy them. Those headwinds haven’t stopped BYD from launching a future EV factory in Hungary, making it the first Chinese firm to manufacture passenger cars in Europe. And last week, state-owned Chery signed a deal to produce mainly electric vehicles in Spain. +++
+++ A single factory on the Old Continent might not be enough and maybe not even two, said Stella Li, executive vice president of BYD Company Limited and president of BYD Europe, at an event held at the Chinese company’s Shenzen headquarters during the week of the Beijing Motor Show. Having already announced the construction of a factory in Hungary by the end of the year, BYD’s strategy for conquering the Old Continent could involve opening 1 new factory or even 2 as Li points out: “There is no dialogue with the Italian government. It could be Italy, but also Spain, France or Germany. We’ll have to wait and see. “It’s true that producing in Europe costs more in terms of energy and labor, but being established in a territory and investing there is necessary as well as being an advantage in terms of brand perception, because producing locally means creating jobs and actively contributing to economic and social life”, Stella Li said. BYD is experiencing a period of strong growth worldwide thanks to the production of electric cars, as well as plug-in hybrids. Between now and the end of the year, 3 or 4 new factories will be announced, including one already announced in Mexico. The product range has never been so broad: in addition to the BYD brand, which, with Seal, Seal U, Dolphin and Atto 3, targets a general market, the manufacturer is launching and will launch models of the premium and luxury Denza brands, a joint venture with Daimler, Fangcheng Bao and YangWang. “Plug-in hybrids are the best solution for Central Europe”: Stella Li believes that at present. Much of continental Europe is not ready for the transition to electric power. This is why BYD continues to develop and improve its DMI plug-in technology, in which the electric motor is powered by a battery which is in turn recharged by a combustion engine. The powertrain will be presented in the coming weeks in the Seal U. An ideal transitional solution for a market where electric vehicles are not taking off. According to Li, consumers will be able to enjoy their first “electric experience” without having to face any constraints or fears. Given the nature of Europe’s cities and roads, there was some question as to whether the Seagull would make it to our shores. Stella Li has confirmed that the electric compact is on the home straight, but it won’t be the one we’ve already seen, but rather a new version. +++
+++ Chinese carmaker DONGFENG MOTORS is planning to set up a new plant in Italy to produce 100.000 hybrid cars a year for both the local market and the European market as a whole. The news was given yesterday by Qian Xie, head of Dongfeng’s European operations, who spoke of preliminary negotiations with the Italian government, which would be prepared to offer the Chinese manufacturer a list of production sites in the coming weeks. If the deal goes ob, it would be the first case of a Chinese manufacturer ready to set up production lines in Italy, following rumors of the possible arrival of Chery (which was then diverted to Spain) and BYD, which chose Hungary. At a meeting with the press in Milan, Qian Xie himself said: “Italy is one of the biggest European car markets and for a Chinese manufacturer, having local production means being able to supply all the other countries in the region”. It should be remembered, however, that if this agreement between the Italian government and Dongfeng were to materialize, a kind of clash could arise between the policy and Stellantis, which remains the benchmark group for Italian cars. A few days ago, Carlos Tavares spoke of the possible opening of Chinese car plants in Italy and the subsequent closure of Stellantis plants: “If someone wanted to introduce Chinese competition, they would be responsible for the unpopular decisions that might be taken. If we are under pressure, the only thing we can do is accelerate our efforts to increase productivity and be competitive. We may not need as many factories as we have today. We are ready to fight, but in a battle there are casualties”. Dongfeng Motor Group sold 1.74 million cars in 2023, down 19% on the previous year. The Asian carmaker is part of the Dongfeng Motor Corporation group, which is 100% owned by the Chinese central government, also produces commercial vehicles and has a number of joint venture agreements with other international groups. The main joint ventures include those with Nissan and Honda, as well as with Stellantis for the production of Citroën and Peugeot cars in China, and EGT New Energy, which also builds the Dacia Spring. One of Dongfeng’s car brands is Voyah. +++
+++ FIAT is working towards offering two distinct families of cars: one inspired by today’s 500 and the other by the original Panda. The brand recently revealed five new concept cars inspired by the Panda, which are due to evolve into production cars in the next 3 years, but there remains room in the line-up for the 500 to evolve and spawn new derivatives as its ‘vintage’ appeal “will never die”, according to Fiat design boss François Leboine. He explained that he perceives Fiat as having 2 ‘souls’: the ‘Dolcevita’ ethos, as embodied by the 500 and its derivatives, and the ‘more practical, functional’ language that defined Giorgetto Giugiaro’s original Panda. “These 2 souls of our brand are answering 2 different types of customers”, he said. “We are super-happy to have this because it’s 2 translations that are both, for designers, very cool to translate and play with”. He added that adopting different design languages for 2 distinct vehicle families means Fiat “will not be too repetitive and too boring”. Each of the Fiat’s five new concepts is designed with heavy inspiration from Fiat’s old Lingotto factory in Turin, famous for its roof-top test track, which is mirrored in the design of certain ovoid interior elements. Leboine also highlighted how the factory’s windows have inspired the pixel-style headlights and brake lights, and generally how the building’s utilitarian architecture manifests in a “form follows function” approach to the cars’ designs. Leboine insisted, though, that despite taking influence from a century-old building and nodding heavily to Fiat’s utilitarian heritage, the brand is not switching to a retro design language for its future cars. He said: “What we get from Lingotto is an eternal modernity. I don’t think there is anything retro about what we’ve done. I’m quite comfortable with this. We use the past to tell a story, but actually the products we are doing are definitely modern and looking forward”. The Panda concept, which serves as the halo for this new family, gives the best idea since 2019’s acclaimed Centoventi concept of what to expect from the third generation of Fiat’s B-segment hatchback. The latest concept marks a substantial departure from that earlier show car, which was notably lower-slung and more rounded, but Leboine insisted that the “Centoventi is still in our mind. The Centoventi is definitely embedded into these concepts”, he told. “That was a great concept car that translated the strong philosophy of Fiat in terms of simplicity, affordability, flexibility: all these very smart and clever solutions that Fiat is very good at proposing”. He explained that when the Centoventi was unveiled, Fiat did not have the necessary resources to turn it into a production car, but having since become part of the 14-brand Stellantis portfolio, the marque now has “other opportunities” to shape the future of the Panda. More specifically, Fiat has access to the value-focused Smart Car platform, which underpins the new Citroën C3 and Opel Frontera, and can accommodate pure-combustion, hybrid and electric powertrains. This is crucial to giving Fiat the flexibility it needs to cater cost-effectively to differing global demands and legislation with its 5 new Panda-inspired models. While Leboine was adamant about those cars not taking a retro approach, he suggested the style of today’s 500 (which is heavily inspired by its 1950s namesake) can live on as it still holds huge appeal for customers. “If you’re talking about the 500, it’s another story. We talk to customers who are definitely in love with the vintage vibe of the 500, which will never die. It’s a history that does not belong to a trend. It’s just forever. This car is forever. I don’t think the 500 can go down in terms of taste or trend”. Leboine also oversees design for Abarth but refused to be drawn on giving any clues to the look of Fiat’s sporting sibling brand. “I don’t think it’s the moment to talk about it, because I need content to tell you the story behind it”, he said, suggesting the brand does plan to detail its design strategy in the near future. +++
+++ HONDA has announced the largest automotive investment in Canada’s history, worth $11 billion, for a massive new EV battery and vehicle assembly plant. Honda chief executive Toshihiro Mibe told a joint news conference with prime minister Justin Trudeau and other officials that electric vehicles (EVs) will start rolling off the new assembly line in 2028. Once fully operational, the factory will have a production capacity of 240,000 vehicles per year, and a batteries output of 36 GWh per year. “The world is changing rapidly, and we must work toward realizing carbon neutrality to sustain the global environment”, Mibe said. Honda estimates that 1.000 new jobs will be created at the facility, which is to be built next to its existing Civic and CR-V assembly plants north of Toronto that already employ 4.200 workers. Trudeau touted Ottawa’s efforts to set up “a whole ecosystem” around the production of electric batteries, positioning Canada as an attractive destination for electric vehicle investment, with generous tax incentives, renewable energy access and its rare mineral deposits. “Because of the choices our government has made over the past few years, Canada now ranks first, globally in Bloomberg’s ranking of lithium-ion battery supply chains”, Trudeau said. Ontario premier Doug Ford noted that his province is “the only place in the world that 6 of the largest automakers call home” and with Honda’s investment is now “leading the world in the electric vehicle revolution”. In the federal budget last week, Trudeau’s government introduced a new business tax credit, granting companies a 10 percent rebate on construction costs for new facilities used in key segments of the electric vehicle supply chain. The estimated value of the federal tax credit for Honda’s new facility is Can$2.5 billion, while Ford said the province is contributing another Can$2.5 billion in incentives. In the last 4 years, automotive and battery makers have announced more than Can$31 billion in investments in electric vehicle manufacturing across Canada. Canada’s strategy follows that of the neighboring United States, whose Inflation Reduction Act has provided a host of incentives for green industry. Since 2021, Honda has made big outlays as it aggressively pursues its objective of becoming 100 percent electric in its automobile segment by 2040. Its new facility in Alliston, Ontario will be the first to tap into Canada’s EV supply chain investment tax credit and joins recently announced Volkswagen and Stellantis battery plants in Canada. Honda will also build a cathode active material and precursor processing plant as well as a separator plant through joint ventures with chemical companies POSCO Future M and Asahi Kasei in order to complete its local EV supply chain. +++
+++ JLR (Jaguar Land Rover) will build cars from scratch at a new plant in southern India, according to a new report. The new factory in Tamil Nadu, owned by JLR parent Tata, will be used to produce cars for global export as well as sale in India. JLR currently assembles cars from knock-down kits at a plant in Pune, near Mumbai, but has yet to completely build any single model in India. +++
+++ VOLKSWAGEN has revealed a radical shift in design for its future electric models with the unveiling of the ID.Code concept at the 2024 Beijing motor show. Sporting a sleek new design language conceived exclusively for Chinese-market cars, the SUV-coupé concept previews a new range of electric models being developed in partnership with Volkswagen’s various joint venture partners in China, says Volkswagen CEO Thomas Schäfer. Based on an unspecified platform architecture that is claimed to accommodate both single-motor rear-wheel drive and dual-motor four-wheel drive (as well as varying battery capacities and ranges), the ID.Code itself will evolve into a new flagship model to top Volkswagen’s newly announced ID.UX Chinese EV family. Departing dramatically in look and packaging from today’s ID-badged models, the new car adopts a distinctive front end with flamboyant headlight styling and an illuminated Volkswagen logo; features that, Volkswagen says, resonate well with younger EV buyers in China. Volkswagen design boss Andreas Mindt described the ID.Code as “distinguished” and “inspiring”. He said: “It’s thoroughly contemporary and more expressive than any of our existing models”. The former Bentley design boss said efforts have been made to provide the new concept with human-like qualities through light animations, including a welcome function for the headlights that mimic the blinking of eyes. “We wanted to give the ID.Code a warm human-like touch. It should provide visual attachment the moment you see it. It is not robotic and cold”, he told. The light animations are conceived to be altered every 3 months to freshen the look of the car via over-the-air software updates on a subscription basis. The clean, low front end features an undercut design without a traditional grille, which progresses into a long bonnet, raked windscreen and a curved roofline, giving the new Volkswagen concept more traditional proportions than existing, cab-forward ID models. This is further accentuated by a high waistline and a relatively shallow glasshouse. Other distinguishing elements include prominent front wheel arches and rear haunches above large wheelhouses all round. An extended wheelbase also helps to shorten the overhangs, while wide tracks provide a muscular stance and should boost stability on the move. As part of Volkswagen’s efforts to match its Chinese rivals on digital functionality, an avatar appears on the driver’s side window when you approach with the key, providing information on the traffic and weather conditions, as part of what Volkswagen calls its Smart Window Concept.
The.ID Code has a heavily angled back window and horizontal brake lights that mirror the headlights, all hosted in a shooting brake-style tailgate and decorated with an illuminated logo. There is heavy tapering to the corners, backing up Mindt’s claims that the new concept has been developed as much for style as outright space. Along with its progressive exterior styling, the 4.800 mm-long car also previews a new driver-centric interior design, based around AI-supported infotainment functions and advanced level-four autonomous driving capability – the latter function signalled by lidar units that light up the exterior of the car when it’s driving itself.
Created to support a diverse range of electric lifestyle-oriented models, the ID.UX electric car sub-brand is intended to appeal to a younger audience than Volkswagen’s existing range of ID models. “The ID Code gives the first glimpse of the future of Volkswagen in China”, said Schäfer. “It is part of a sharpened brand experience aimed at tapping into new customer groups in China”. The ideas, technology and processes behind the new concept have been developed to bring future Volkswagen models into closer competition with those from both established Chinese car makers and newer electric car start-ups such as Nio, Xpeng, and Li Auto. Although the new design language has been conceived for models to be sold in China, insiders at Volkswagen’s design headquarters in Wolfsburg, Germany, say discussions are already under way as to how it may influence future models planned for sale in Europe. “We’ve shown how we will progress the look of electric models for Europe with the ID.2 and ID.2 GTI. They’re more traditional in terms of styling”, said Mindt. “However, we are not ruling out a car like the ID.Code being introduced to other markets in the future. For now, though, it is only planned for China”. The first model in the ID.UX line-up is the ID.Unyx: a rebadged version of the Cupra Tavascan produced at a joint-venture factory operated in partnership with JAC in the Chinese city of Hefei. An extension of the existing ID line-up conceived exclusively for the Chinese market, it forms an integral part of Volkswagen’s ‘In China, for China’ strategy. At the unveiling of the ID Code, Volkswagen revealed the ID line-up will grow to a total of 16 models by 2030, including 5 models from the ID.UX range. Despite the heavy focus on its electric car offerings, however, the German car maker says it remains committed to combustion vehicles, with plans to expand its line-up in China with 12 new petrol models and 6 new plug-in-hybrids; the latter all offering an electric range of more than 100 km. In addition to models based on its existing MQB (ICE) and MEB (EV) platforms, it plans to launch new models on the EE electric car platform being developed in partnership with Xpeng as well as a new electric car platform that goes under the name China Main Platform (CMP) from 2026. Volkswagen has also teamed with Horizon Robotics and Thundersoft in China for the development of autonomous driving, infotainment and connectivity features. +++
