Car quiz. It seems european makes are losing sales in china to new chinese EV start uos.

[syed putra]

Weird but true: ICE cars in EU are losing sales to EVs but Toyota is posting record high sales - what's happening?​

Hans
20.01.2023 10:50 AM

The European Union (EU), especially in the more developed Western and Northern Europe regions are hot spots for battery EV sales. The European trade bloc is committed to phasing out sales of new internal combustion engine (ICE) cars and vans by 2035, with a fine print that allows for a review by 2026.
Boosted by generous incentives, high fuel prices denting the appeal of ICE cars, and a political climate that lends a very positive image to battery EVs, sales of ICE cars have been dropping fast, especially in Germany. The fallout of Diesel-gate accelerated the transition too.

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As of Q3 2022, sales of ICE cars, (excluding hybrids) have dropped by a shocking 31 percent from the pre-pandemic 2020. Sales of battery EVs however, reached 356,425 units, up 83 percent from 2020.
The breakdown of total 2022 sales by vehicle fuel type are still being tabulated by the ACEA (European Automobile Manufacturers Association) and will only be published in February / March.
But we already know that nearly 15 percent of all new cars sold in wealthy Germany is now fully electric, and EVs are expected to overtake diesels (19 percent) in the next few quarters.

Across the European Union, sales of battery EVs is lower, at 10.57 percent (as of Q3 2022). Although it's far from mainstream, the figure is doubled from year 2020's 5.42 percent.
The conclusion is clear, ICE cars on the way out of the Old Continent, so Tesla fans can continue to launch more attacks on the supposedly ‘anti-EV’ Toyota.
There is however one problem – Toyota (including Lexus) posted its highest ever market share in the EU, at 7.3 percent, and this is not including Toyota’s commercial vans and pick-up trucks.

Corolla is Toyota Motor Europe's best seller, 182,278 units sold in 2022, hybrids make up 76 percent
Even without Lexus, Toyota’s 6.9 percent market share is already enough to solidify its position as the No.2 brand in Europe, behind Volkswagen’s 11 percent, leapfrogging other popular European brands like Peugeot (6 percent), Renault (5.9 percent), and Opel (3.7 percent).
Deliveries of Toyota-badged passenger cars grew by 8.9 percent, to 635,533 units, which is an amazing feat because the EU's passenger car market had actually contracted twice as much, -4.6 percent, excluding commercial vehicles.

EVs are growing, but hybrids are growing even more​

So, what happened to the narrative about ICE car sales are losing sales because of EVs? Yes, EVs are winning more and more buyers every year, but it’s quite a stretch to say that drivers are selling the ICE cars to go electric, because simple math will tell you that this conclusion doesn’t add up.
The market share for EVs is still at around 11 percent. It’s growing, but the doesn't explain where the rest of the customers went to. Meanwhile, the market share of hybrids has doubled from 11.9 percent in 2020 to 22.8 percent by Q3 2022.

Battery EVs are growing but hybrids (HEVs) are growing even faster. Low base effect amplifies the % of BEV's growth. Source: ACEA
Nearly one in every four new cars sold in the EU is a hybrid, and Toyota and Lexus models make up more than half of these.
If you look at the numbers closely, ICE customers are not going to EVs, but to Toyota and Honda hybrids. All non-luxury European manufacturers saw a big drop in sales, except for Toyota and Honda, which offers only hybrid models (except for Toyota commercial vans and trucks, which are diesels).

Yaris is the best selling hybrid in Europe, with 147,082 units sold in 2022
The diesels and plug-in hybrid-heavy Volkswagen contracted 6.7 percent, Skoda -8.4 percent, Seat -12 percent, Peugeot -14.3 percent, Fiat -17.6 percent, Opel -12.8 percent, and Renault -15.2 percent.
Toyota's and Honda's line-up focus on cheaper, proven reliability regular hybrids that don’t require plug-in charging, went up 8.9 percent and 4.4 percent respectively. Toyota's hybrid tech has been continously improved since 1997, Honda since 1999.

‘The power of And’​

Often lampooned for its refusal to commit to ending combustion engines, Toyota is the whipping boy for EV enthusiasts.

Hydrogen fuel cell electric (FCEV) Toyota Mirai
Toyota argues that keeping an open mind and be willing to try multiple options is always better than stubbornly insisting on only one solution, especially in the early stages of a change.
Toyota also argues that spreading the limited availability of expensive minerals required to make batteries across many more hybrids, which use 50x to 100x smaller batteries than battery EVs, is a much more effective option because it spreads the carbon reduction potential across so many more cars. But critics say this is just an excuse for not doing more for EVs.
That Greta girl might protest but one thing is certain – European customers are voting their money, and Toyota is reaping the benefit.

Battery electric vehicle (BEV) Toyota bZ4X
“Toyota’s global strategy relates closely to meeting the diverse needs of its European customers with a line-up which includes battery electric and fuel-cell and hybrid and plug-in hybrid vehicles,” said Kylie Jimenez, Senior Vice-President for People, Technology & Corporate Affairs at Toyota Motor Europe, at the company’s annual Kenshiki event.
“We call this the ‘power of And’ because rarely does one size fit all, especially when you consider the diversity of customer needs and infrastructure readiness,” he added.

Lack of EVs is trouble on the horizon for Lexus?​

For now this strategy appears to be working for Toyota but there is one segment where it is very clear that EVs will dominate – the luxury car segment.

While Toyota grew its sales by 8.9 percent, sales of Lexus dropped 15.7 percent, losing more than BMW (-5.7 percent), Mercedes-Benz (+0.01 percent), Audi (+5.3 percent), and Porsche (+7 percent).
Lexus’ weak offering in EV models is one factor in it losing ground to models like the BMW iX and Mercedes-Benz EQS.
So while the general public is concerned about the practicality of EVs, wealthy buyers who already have many other ICE cars in their garage are clamoring for EVs, which are now the in-demand toy to showoff at the golf course’s parking.
Lexus has said that it will be an EV-only brand in North America, Europe, and China by 2030. At the moment, it only has two EV models in Lexus' portfolio – the Lexus UX 300e, and Lexus RZ 450e – and it’s not enough. The UX 300e isn’t hitting the right notes among EV fans, but the Lexus RZ will go on sale in the coming months (including Malaysia).
Also read: EV fans can expect the Lexus RZ to launch in Malaysia in 2023 – registration of interest opens

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Hans
Head of Content
Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.

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[syed putra]

China car sales plunge 38% in January as subsidies, tax cut end​

Reuters

Cars drive on the road during the morning rush hour in Beijing, China, July 2, 2019. REUTERS/Jason Lee

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SHANGHAI/BEIJING, Feb 8 (Reuters) - China's passenger car sales slumped 38% in January, reversing a 2.4% gain in the previous month, industry data showed on Wednesday, as demand weakened after a tax cut on combustion engine cars and subsidies on electric vehicles (EV) expired.
Sales of new energy cars that include pure battery EVs and plug-in hybrids also fell 6.3% in January after a blistering 90% growth in 2022, the China Passenger Car Association (CPCA) said.
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"New energy car sales in January didn't meet our expectation, with a rare year-on-year decline in a single month sales," said Cui Dongshu, secretary general of CPCA in an online briefing on Wednesday.

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He said the Lunar New Year and the end of EV subsidies were among the factors leading to the decline.
Chinese people celebrated a full week of the Lunar New Year holiday in the month, making it a quieter January compared with the previous years.
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Despite signs of easing demand in the world's largest car market, China's central government did not extend a 50% purchase tax cut on combustion engine vehicles when it expired at the end of December.
It also decided to end a more than decade-long national subsidy for EV purchases, forcing automakers including Tesla (TSLA.O) to deepen discounts to defend their market shares.
China's auto market is more reliant on various incentives from local governments to encourage purchases.
Shanghai extended a 10,000-yuan ($1,470) rebate for those who exchange their oil cars for electric ones, while cities of Zhengzhou, Wuxi, Shenyang and Beijing issued coupons for auto consumption.
Tesla sold 66,951 China-made EVs in January. That was up 18% from December and 10% higher from a year earlier.
Its market share in China's battery electric car sector rose to 12.5% in January from 9% in December, according to a Reuters calculation.

The U.S. company was the second best-selling EV maker in China last month after BYD Co Ltd (002594.SZ), which shipped 150,164 cars, the CPCA said.

New energy vehicles accounted for a quarter of the total 1.3 million car sales in the month, CPCA data showed, down sharply from 35% in November 2022.

Reuters Graphics
($1 = 6.7830 Chinese yuan renminbi)

 

[syed putra]

To change to EV or not to change. It seems EV's mark up their price due to subdidies and incentives.

 

[Hypocrite-The]

So basically ICE vehicles are being replaced by hybrids instead of EVs? That means the average consumer have issues charging their vehicles due to living in apartments etc. So EVs take up is dependent on chargebility . However Hybrid and EV costs are not much different

 

[syed putra]

But the moment EV subsidies and incentives ended, the makers quickly reduce their car prices. They were taking consumers for a ride with huge mark ups.

 

[syed putra]

 

[eatshitndie]

what about extra virgin cars?

 

[syed putra]

what about extra virgin cars?

You mean olive oil?

 

[eatshitndie]

You mean olive oil?

extra virgin cars that run on olive oil?

 

[syed putra]

extra virgin cars that run on olive oil?

Sustainable petrol. Thailand already using it from sugar cane.

 

[eatshitndie]

Sustainable petrol. Thailand already using it from sugar cane.

running on $6.9 per small bottle of sextra virgin olive oil will be too atas and sexpensive. may be recycled gutter oil.

 

[Hypocrite-The]

running on $6.9 per small bottle of sextra virgin olive oil will be too atas and sexpensive. may be recycled gutter oil.

There was actually bio diesel that use recycled cooking oil, gutter oil etc....that never took off...also good as it reduces oil in the waste water pipes n prevent fatbergs etc... Wonder why..

 

[syed putra]

There was actually bio diesel that use recycled cooking oil, gutter oil etc....that never took off...also good as it reduces oil in the waste water pipes n prevent fatbergs etc... Wonder why..

It costs too much to collect and reprocess.
But biodiesel using palm oil straight ftom the mill is available. Currently in jiu hu is 10% mixed in diesel. Indonesia going 20% soon. But with protests from the greens as it may cause cooking oil to escalate.

 

[syed putra]

 

[Splendicker]

Low mileage and noisy EV motor will be significant after a year use for all Chinese made EV, good luck for those who missed Tesla.

 

[syed putra]

Tesla’s China price war may ruin some carmakers​

Companies without sound external funding may face survival challenges in the coming years.
Bloomberg - 23 Mar 2023, 2:02pm
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Discounts have made some Teslas almost 50% cheaper than in the US. (Unsplash pic)
SHANGHAI: Tesla Inc triggered a price war in China that’s poised to reshape the world’s biggest car market, with hefty discounts threatening to drive some automakers out of business.
In October, Elon Musk’s electric-vehicle maker — a major player in hyper-competitive China — cut prices on models produced at its enormous factory on the outskirts of Shanghai. Matters escalated in January, with another discount that left Tesla’s locally-made cars up to 14% cheaper than last year, and in some cases almost 50% less expensive than in the US and Europe.

The moves left rivals with little option but to follow suit. Among them were local EV upstarts such as Xpeng Inc. and Nio Inc. as well as leading international brands like Volkswagen AG and Mercedes-Benz Group AG, which offered discounts of up to 70,000 yuan (US$10,000). Ford Motor Co’s Mach-E electric SUV is down to a starting price of 209,900 yuan, about a third cheaper than in the US.


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“Tesla created havoc for the rest of the market,” said Jochen Siebert, managing director of JSC Automotive, a consultancy with offices in Shanghai and Stuttgart.





At least 30 more carmakers have cut prices, according to calculations by Bloomberg News and local media.

The China Association of Automobile Manufacturers called for an end to the price war on Wednesday, saying that it wasn’t a long-term solution to a slowdown in sales and accumulation of inventory. The industry should “return to normal operation” to ensure its healthy development, the body .
Chinese state media has also weighed in, with commentaries earlier this week saying it was improper for regional governments to offer subsidies on vehicles produced locally. In one example, Hubei province and state-backed carmaker Dongfeng Motor Group Co. lowered prices by as much as 90,000 yuan — or almost 40% — on Citroen C6 models.

The cuts come amid a difficult period for China’s auto sector. Consumer spending was badly dented by the country’s long-running Covid restrictions, while sales were also impacted by the removal of government subsidies on EV purchases at the end of last year. Supply-chain disruptions have hurt the auto industry globally, too.

Even with those challenges and a slower economy, retail sales of new energy vehicles — including fully electric and plug-in hybrids — almost doubled to 5.67 million in China last year. Local giant BYD Co accounted for around 30% of those. Tesla shipped a monthly record of over 100,000 EVs from Shanghai in November.

With the increasing adoption of EVs, China’s auto market is going through “a very profound reshuffle”, Nio CFO Steven Feng told Bloomberg Television on Wednesday.

“We need to go through this price war at the beginning of the year, and then we expect the industry to go through some profound fundamental consolidation,” he said. “It’s almost consensus that China now has too many automakers.”

Customers are becoming more selective and demand is strong, Feng said, adding that Nio is confident of meeting its target of a quarter-million EV sales this year, more than double its 2022 total. Tesla’s head of production Tom Zhu has said the company’s price cuts “generated huge demand”.

According to Bloomberg New Energy Finance, EV sales could reach 8.1 million units in China this year, compared with 3.2 million in Europe and 1.9 million estimated for the US.

There are few signs of a let up in competition, with 155 new pure electric and plug-in hybrid models expected to be unveiled in China this year alone, according to Sanford C Bernstein & Co.

That means more price reductions could come from the financially stronger bigger players.

Tesla has “several billion dollars that they can use for this purpose while others don’t”, JSC Automotive’s Siebert said.

In addition to Tesla, BYD is capable of carrying out another round of cuts, Morgan Stanley analysts including Tim Hsiao and Cindy Huang wrote in a March 19 note. The price war initiated by the Austin, Texas-based company came on faster and more severely than expected and will “expedite a market reshuffle”, they said.

The Chinese trio of Nio, Xpeng and Li Auto Inc also have strong enough balance sheets to stay self-financed over the next 18 months, according to Morgan Stanley.

“The price cuts on EVs make them even more attractive compared to gasoline cars, further squeezing traditional carmakers,” Yang Jing, director of China Corporate Research at Fitch Ratings Ltd., said in an interview. Separately, in a March 16 note, she said companies without sound external funding may face “survival challenges” in the coming two years.

The reaction in markets has been mixed. Tesla shares dropped immediately after the company’s pricing shifts, but they’re on the up again and far outperform major Chinese EV makers. Tesla has rallied 60% this year, while Li Auto’s US depositary receipts have added 15%. Nio is down 7% in Hong Kong.

“It’s going to stay brutal through mid-2024,” said Tu Le, managing director of consultancy Sino Auto Insights. “It’s really existential for some of the weaker players.”