China Threatens EU, U.S. with Tariffs Up To 25%

News: Industry Segments

2024-06-18

China Threatens EU, U.S. with Tariffs Up To 25%

Guy Youngs
Guy Youngs

Trade tensions have continually risen among China, the European Union, and the US in recent years, with much of the drama surrounding imported EVs, so 10 days after the Biden administration introduced a 100% tariff on several categories of Chinese goods, including EVs, China has threatened to retaliate with tariffs on its own vehicle imports.

The EU has also been included in this threat but while it is conducting a probe into China’s EV exports, it has placed this probe on a temporary halt pending EU’s elections

Source: Electrek: Read The Article

PSR Analysis: With China not having enough car carriers to export all the EVs it is manufacturing, it’s very hard to see the EU not following the tariff route, but the real question that arises is whether or not this will lead to a trade war. China produces so many EVs that it needs to export, it’s also hard to see how they can retaliate without widening the areas affected. PSR Top of Form

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Diesel Demand Hits 26-Year Low

US diesel demand plummeted to its lowest seasonal level in 26 years in Q1 2024. The production of distillate, the petroleum-based fuel that powers trucking, heating, and heavy industry, plunged to 3.67 million barrels per day in March (down from more 4.1 million barrels last year) according to monthly data from the US Energy Information Administration.

Even in diesel-loving Europe, the diesel engine is dying. Volvo, for example, recently built its last-ever diesel vehicle, and companies like Nissan, Hyundai, and Daimler (parent company of Mercedes-Benz and the Freightliner and Rizon truck brands) have also backed away from developing new internal combustion engines.

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North America and Europe MHCV Alternative Power Update

Chris Fisher
Chris Fisher

As the governments of Europe and North America (U.S. and Canada) continue to push for a transition from fossil fuel powered vehicles to zero-emission vehicles, a number of significant barriers to adoption will continue to hamper this initiative.  

Significant barriers to adoption of zero-emission vehicles include the total cost of vehicle ownership, a lack of charging and grid infrastructure, truck resale values and duty cycle issues.  The primary types of alternative propulsion that are in focus include Battery Electric, Hydrogen Fuel Cell and Hydrogen ICE engines and to a lesser degree, Natural Gas and Biodiesel ICE engines. The vast majority of the medium and heavy commercial vehicle industry support the transition to zero-emission vehicles but the short timeline for implementation is causing great concern throughout the industry.

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2024 Global Golf Cart Revenue To Hit $1.84 Billion

Michael Aistrup

Power Systems Research estimates the Global Golf Cart Market to be $1.84 billion in 2024 and expects this market to reach $2.81 billion by 2032, growing at a CAGR of 5.65% during the forecast period.

Market Demand Drivers. Theincreased popularity of the game of golf by senior citizens, women, and juniors has increased the demand for golf carts. The increased use of these eco-friendly electric vehicles by government and industry also has pushed demand.

  • Sustainability and Environmental Concerns. Governments, golf courses, and consumers increasingly are emphasizing the need for eco-friendly alternatives. Electric golf carts, with their lower emissions and reduced environmental impact, meet these concerns.
  • The solar golf cart segment is projected to experience rapid growth, primarily due to its eco-friendly nature and lower operating costs.
  • Popular golf destinations and resorts experienced an influx of tourists, and millions of new participants have started golfing for the first time are leading to higher demand for golf carts.
  • Increased participation. More than 2 million newcomers have been added to the industry for eight consecutive years between 2012 and 2019, with the number exceeding 3 million per year between 2020 and 2022.
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Iseki develops one of the largest unmanned tractors in Japan

FAR EAST: JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

Iseki announced the development of an unmanned tractor that operates without a pilot under the supervision of a human operator. With 123 horsepower, one of the largest in Japan, the tractor will support labor-saving agricultural work amid the trend toward large-scale farming. Priced from 21.9 million yen, the tractor will be marketed to large-scale farmers, mainly in Hokkaido.

The company’s human-supervised robotic tractor, which previously had a maximum power of 98 hp, has increased its power to 123 hp, thereby expanding the range of work and reducing the time required. It also reduces the time needed to train farmers who are unfamiliar with operating the tractor, allowing them to work more efficiently.

Source: The Nikkei

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Suzuki Withdraws from Thai 4-wheel Vehicle Production

THAILAND REPORT
Akihiro Komuro
Akihiro Komuro

Suzuki says it will withdraw from four-wheel vehicle production in Thailand. Production at the local subsidiary will cease by the end of 2025, and vehicles made at the main plant in India will be exported to Thailand for sale. Thailand has long been a stronghold of Japanese automakers, but Chinese automakers have gone on the offensive with low-cost EVs, and with Subaru’s decision to pull out, the plight of Japanese automakers is becoming more apparent.

Suzuki Motor Thailand (SMT), a local subsidiary, will cease production by the end of 2025, and SMT will focus on sales and customer service in Thailand. Thai Suzuki Motor, which produces motorcycles and outboard engines, will continue operations.

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Battery Swap Alliance Seen as EV Recharging Solution

CHINA REPORT
Jack Hao
Jack Hao

Driven by multiple factors such as government support, market demand, and battery technology upgrades, the battery swap solution is attracting much attention from the market.

NIO Energy has obtained a strategic investment of 1.5 billion yuan from Wuhan Guangchuang Xingxin Technology Phase I Venture Capital Fund Partnership and other institutions. Earlier, FAW Group signed a strategic cooperation framework agreement with NIO[ it is the seventh car company to sign a battery swap cooperation agreement with NIO, following GAC Group, Changan Automobile, Geely Holding, Chery Automobile, Jianghuai Automobile Group, and Lotus. This covers almost half of the mainstream domestic car companies.

Competition in the battery swap track involves more than just NIO and several passenger car companies. Recently, power battery enterprises, commercial vehicle companies, and mobility platforms also have been aggressively entering this field. On May 16, 2024, CATL signed a framework agreement for a battery swap project cooperation with GAC Aion and Era Electric Service; in the commercial vehicle sector, Nanjing Golden Dragon, Sany Automobile, China National Heavy-Duty Truck, Dongfeng Liuzhou, and Hanma Technology have all started to plan the layout of battery swap heavy trucks. In addition, State Power Investment, GCL New Energy, and Sany Group are also positioning to layout heavy truck battery swap stations.

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Hybrid Vehicles Adapted as Alternative To EVs

INDIA REPORT
Aditya Kondejkar

Hybrid vehicles are gaining traction in India as a practical alternative to fully electric vehicles (EVs), a trend driven by strategic manufacturer initiatives, evolving consumer preferences, and infrastructural and policy challenges.

Major automakers like Maruti Suzuki, Toyota, Nissan, Hyundai, and Kia are launching hybrid models to meet the increasing demand for fuel-efficient and environmentally friendly vehicles. Hybrids offer a balanced solution, providing the benefits of both internal combustion engines and electric powertrains without the range anxiety associated with EVs.

Despite higher taxes on hybrids compared to EVs, the slow development of EV infrastructure and long waiting periods for EVs make hybrids a more viable option for many consumers. The hybrid market is expected to continue its growth, supported by ongoing innovation and potential policy adjustments to reduce costs, positioning hybrids as a crucial component in India’s journey towards sustainable transportation.

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Alternative Power Report, June 2024

PSR Alternative Power Report – Jun 2024Download

China may place 25% tariffs on EVs in retaliation for similar moves by the US and the European Union. Read about this as well as articles on new battery development, the decline in diesel sales and a new battery from CATL in the June 2024 Alternative Power Report from Power Systems Research. PSR

2024 Global Snowmobile Production 

89,400 units is the estimate by Power Systems Research of the number of Snowmobiles expected to be produced in Canada, Finland, Italy, Japan and U.S. in 2024.

Snowmobiles, often called sleds, are motor vehicles that have a revolving tread in the rear and steerable runners in the front, for traveling over snow off-road, often at speeds exceeding 100 mph. They are used for recreation and industrial purposes.

This product information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers. PSR

Carol Turner is Senior Analyst, Global Operations, at Power Systems Research