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Malaysia H1 2024 Car Sales Gain Ground
MALAYSIA REPORT
Akihiro Komuro New vehicle sales in the six major Southeast Asian countries in the first six months of 2024 fell 9% year-on-year to about 1.49 million units, the lowest level since 2021, when they were battered by COVID-19. Malaysia, which has benefited from strong domestic demand, is closing in on Indonesia, the largest market in the region.
Malaysia grew by 7% to 390,296 units. Sales growth was driven by strong domestic demand linked to economic growth. Sales of domestically produced small cars such as the Proton and Produa were particularly strong. In contrast, sales in Indonesia, the region’s largest market, fell 19% to 408,012 units due to a decline in the use of car loans and other factors caused by high policy interest rates. Thailand was down 24% to 308,027 units; Vietnam was down 2% to 134,884 units and the Philippines was up 10% to 227,225 units.
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Hyundai To Double Number of Hybrid Models
SOUTH KOREA REPORT
Hyundai Motor in August announced plans to expand its lineup of hybrid vehicles from seven to 14 models in response to slowing global demand for electric vehicles. The company will also use HVs for the first time in its Genesis luxury car brand. The company also announced plans to increase its annual global sales volume by 30% from 2023 to 5.55 million units by 2030, and to invest 120.5 trillion won (about 13 trillion yen) in R&D and capital investment over the 10 years out to 2033. The company will focus on advanced technologies such as next-generation HVs, in-vehicle batteries and automated driving technology.
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Yuchai, Kim Long Motor Vietnam Sign Agreement
CHINA REPORT
Jack Hao Following the opening of Yuchai’s Thailand factory, Guangxi Yuchai Machinery Co., Ltd. (Yuchai) and Kim Long Motor Hue Joint Stock Company, a subsidiary of Vietnam’s FUTA Group (Kim Long Motor), have signed a comprehensive strategic cooperation agreement in Vietnam. The two parties have jointly initiated the construction of an engine factory with a total investment of $260 million.
The engine factory, a collaboration between Yuchai Machinery Co., Ltd. and Kim Long Motor Hue, a subsidiary of Vietnam’s FUTA Group, will be invested in two phases, with the first phase expected to commence production in the second quarter of 2025. The factory will be equipped with a globally leading, highly automated engine assembly line, primarily producing Yuchai’s full range of diesel and natural gas engines for applications in commercial vehicles, engineering machinery, agricultural machinery, ships, power generation, and more, with an annual production capacity exceeding 12,000 units.
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Rural Recovery Drives Surge in Auto Demand
INDIA REPORT
Aditya Kondejkar The upcoming festive season presents a promising outlook for India’s automobile sector, with expectations of significant growth, particularly in the two-wheeler (2W) segment. A projected increase of over 15% in the sector reflects heightened consumer interest, fueled largely by a recovering rural economy.
Rural areas, which contribute more than half of two-wheeler demand, are showing early signs of post-COVID recovery. The rise in customer inquiries, especially for mass-market brands like TVS Motors, Hero MotoCorp, and Bajaj Auto, suggests a favorable trend for the festive season.
The launch of new two-wheeler models, such as the TVS Jupiter and Hero Xtreme 125R, is likely to further drive sales. However, premium motorcycle manufacturers like Eicher Motors, producing Royal Enfield, may not experience the same robust demand due to a different target demographic, where rural recovery has less impact.
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Thoughts About FCVs and Hydrogen Stations
Akihiro Komuro I traveled recently in the Toyosu area of Tokyo, an upscale residential area, and while there I stopped at a Hydrogen refueling station. While there, I spoke with one of the station’s staff, and I found his comments interesting.
He told me that the only FCVs on the market in Japan are the Toyota MIRAI sedan and Crown FCEV. Honda used to sell the Clarity FCV, but it has been discontinued and few are seen on the road. There are also no FCVs in trucks. There are about 80 hydrogen buses in Tokyo, but they don’t stop at this station because there is a hydrogen station is in the bus company’s office.
On weekends, maybe four or five cars come to the station each day, but on weekdays there are often days when not even one car comes. It’s very quiet. Filling up with hydrogen requires a person with a national qualification, so it’s not possible to operate it like a self-service gas station.
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Rising Inventory Levels Challenge Auto Dealers
INDIA REPORT
Aditya Kondejkar The Indian automotive market is grappling with a significant inventory challenge, with passenger vehicle stock levels reaching 55 to 60 days’ worth, equating to approximately 550,000 to 600,000 unsold vehicles as of May 2024. This rise in inventory has been a concern for auto dealers, who are already feeling the strain from prolonged high inventory levels. During the previous festive season, inventory levels surpassed 60 days, prompting the Federation of Automobile Dealers’ Associations (FADA) to request reductions in stock dispatches from OEMs and the Society of Indian Automobile Manufacturers (SIAM).
The increasing inventory is placing considerable financial pressure on dealerships. Longer inventory holding periods impact cash flow and increase interest costs, making it challenging for dealers to manage their finances effectively. In response to this growing issue, FADA plans to approach SIAM to advise its members on moderating stock inflow and addressing the inventory surplus.
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BYD Plans Factory in Turkey To Produce 150,000 Vehicles
CHINA REPORT
Jack Hao
BYD has signed an agreement with the Turkish government to invest USD 1 Billion to build a factory in Turkey. This is BYD’s second factory in Europe following one built in Hungary. Under the agreement, BYD will build a factory and research and development center with an annual production of 150,000 vehicles. The factory is planned to start production by the end of 2026 and will provide job opportunities for up to 5,000 workers. The factory is expected to improve BYD’s logistics efficiency.The Turkish government is welcoming the factory construction of Chinese automotive enterprises and is holding discussions regarding factory construction are taking place with SAIC and Great Wall, as well as BYD and Chery. Previously, Turkey announced the cancellation of a plan to impose an additional 40% tariff on all vehicles from China, which was announced a month earlier, to encourage Chinese automotive enterprises to invest in Turkey.
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Canada Considers Tariffs on Chinese EVs Similar To US and EU Moves
ALTERNATIVE POWER REPORT
Guy Youngs The Canadian government is preparing tariffs on Chinese-made EVs to align with the US and European Union, which have already proposed heavy duties to deter “unfair” competition imported from overseas
The country holds strong ties with the US and EU and looks to align with its trade partners in solidarity while blocking a potential loophole China could use to enter North America.
Source: Electrek: Read The Article
PSR Analysis: Canada is still in the early stages…
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EU Tariffs Hit Chinese EVs, Draw Stern Words from Beijing
The European Commission told automakers (July 11, 2024) it would impose extra duties of up to 38.1% on imported Chinese electric cars starting in July 2024, risking retaliation from Beijing, which called the move protectionist. Less than a month after Washington announced plans to quadruple duties for Chinese EVs to 100%, Brussels said it would set additional tariffs ranging from 17.4% for BYD to 38.1% for SAIC, on top of the standard 10% car duty. It said this was to combat excessive subsidies
it’s…
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