According to IJIWEI News, two Indian government officials have revealed that India is considering Tesla’s request to reduce import duties on electric vehicles as an enticement for the company to establish a factory in the country.

Tesla has reportedly indicated that establishing a facility in India hinges on government concessions regarding import duties. Officials mentioned that Tesla insists on “at least a duty relaxation for a certain transition period” and added that “there would be sunset clauses.”

Currently, India imposes a 70% tax on imported cars under $40,000 USD to support the local automobile industry, while those above $40,000 USD face a 100% duty. India is contemplating reducing tariffs on all electric vehicles to 15%, regardless of their selling price, although there’s no unified consensus within the government.

As reported, the proposing officials hope that the aforementioned legislation will not only benefit India but also other qualifying manufacturers, instead of favoring a specific company alone.

Previously, there were reports suggesting Tesla’s intention to establish a factory in India for manufacturing low-cost electric vehicles, catering to the domestic market and planning for exports. However, Tesla’s 2022 plans for reduced import duties on electric vehicles were canceled as the Indian government insisted that the vehicles must be manufactured in India.

Over the past year, senior Tesla executives have met with Indian government officials at least three times. When Indian Prime Minister Narendra Modi visited the United States for an official visit in June this year, he met with Tesla CEO Elon Musk in New York to discuss the potential establishment of a plant in India.

(Photo credit: Pixabay)

Once considered a driving force behind economic growth, the electric vehicle (EV) market is facing a reality check as consumers are becoming more practical about their needs due to rising inflation and high-interest rates. Automakers acknowledge that in times of inflation, electric vehicles won’t be on consumers’ radar in the coming years unless their prices are lowered.

In the third quarter, the U.S. saw a surge in EV sales, breaking the 313,000 mark, almost a 50% increase from the same period the previous year. The EV market share reached an all-time high of 7.9%.

However, this growth may be reaching its peak as major automakers are now either postponing their electric vehicle sales targets and production plans or resorting to price reductions.

For instance, Ford has extended the annual production target for electric vehicles to 600,000 units by one year, abandoned the goal of producing 2 million electric vehicles by 2026, and temporarily halted a $12 billion investment in EV projects.

General Motors has also abandoned its sales targets, and Honda has given up on its plans to jointly develop electric vehicles priced below $30,000 with General Motors. Tesla has postponed its super factory project in Mexico.

More manufacturers are resorting to price reductions, including Mercedes-Benz, Tesla, and Ford’s electric trucks, all of which are offering significant discounts.

Price vs. Affordability

Consumers are primarily concerned with the price difference between EVs and gasoline vehicles. In the U.S., most compact electric SUVs are priced at around $52,000, while similar gasoline SUVs cost only about $34,000.

According to Ford’s CEO, in the EV industry, exceptional products alone are no longer sufficient; they must also be cost-competitive. Elon Musk also noted that the high-interest-rate environment is unfavorable for market demand, and making products more affordable is essential to encourage people to make purchases.

However, even with price reductions and discounts, it seems that buyers remain unimpressed. U.S. dealers have observed that the next wave of buyers, unlike those who made impulsive purchases in the past couple of years, are now more focused on practical factors such as cost, infrastructure challenges, and lifestyle impediments.

Practical Considerations

Market analysts suggest that over the past decade of low-interest rates, consumers have increased their spending. However, as interest rates rise, consumers now find the need to be more frugal.

The price of EVs has gone beyond the affordability range of many consumers. The current high-interest-rate environment is also unfavorable for convincing consumers to explore immature automotive technologies.

A survey found that aside from price, consumers still worry about range anxiety and the lack of charging infrastructure. Up to 77% of respondents said these were the most pressing issues when considering EVs. Consumers are less likely to consider immature products when their budgets are tight.

The U.S. government aims to have half of all new vehicles sold be zero-emission vehicles by 2030. Just a few years ago, policymakers believed that Americans would adopt EVs without needing much persuasion. However, this optimism now appears to be overly idealistic.

For now, General Motors, Ford, and even Tesla are deciding to hold onto their cash reserves and redeploy them when the economic situation stabilizes. Toyota Chairman Akio Toyoda, who has consistently argued that pure EVs are not the only solution, should be feeling vindicated as he stated at the recent Tokyo Motor Show, saying that “People are finally seeing reality.”

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(Photo credit: Pixabay)

The world’s largest automaker, Toyota (TM-US), announced on Thursday, the 19th, that its North American division has reached an agreement with Tesla (TSLA-US). Starting in 2025, Toyota’s electric vehicles will adopt Tesla’s North American Charging Standard (NACS).

Prior to Toyota’s announcement, companies like Ford, General Motors, and BMW had already joined the Tesla NACS alliance, providing customers with access to Tesla’s extensive Supercharger network.

In 2025, Toyota will integrate the NACS interface into specific Toyota and Lexus BEVs, including a new three-row electric SUV produced at Toyota’s Kentucky plant.

Vehicle owners can connect to Tesla’s widespread North American charging infrastructure, comprising over 84,000 charging stations, including Level 2 and DC fast chargers, using Toyota and Lexus apps.

Owners or lessees of Toyota and Lexus vehicles using the Combined Charging System (CCS) specification will have the option to purchase NACS charging connectors starting in 2025.

Notably, we have anticipated that by 2026, the global tally of public charging stations will soar to 16 million, marking an impressive threefold increase from 2023 figures. As this unfolds, the global ownership of NEVs—which includes both PHEVs and BEVs—will surge to 96 million.

According to China’s 21jingji.com, Guangzhou Auto Group (GAC) announced on October 12th that its board of directors has approved an investment of up to $1.49 billion in Didi’s autonomous driving company. This investment is made through GAC Capital and Guangzhou Development District Investment Group in the form of a special fund, with each contributing equally to its establishment.

GAC’s contribution to GAC Capital will not exceed $0.75 billion, and this capital injection will support Didi’s continuous research and development efforts in autonomous driving technology, accelerating product applications and fostering open collaboration within the industry.

Not the first GAC-DiDi collaboration

In May 2021, GAC Aion and Didi’s autonomous driving company announced their joint effort to develop a mass-market, self-driving electric vehicle. In May 2023, they deepened their collaboration with the “AIDI Project,” marking the establishment of a joint venture. This initiative is a groundbreaking move towards the large-scale production of self-driving, new-energy vehicles in China.

The first mass-produced model, based on GAC Aion’s AEP3.0 high-end electric vehicle platform, will integrate Didi’s autonomous driving L4 urban generalized engine, as well as its self-driving technology for ride-hailing services. By 2025, these vehicles are expected to join Didi’s shared mobility network, facilitating 24/7, large-scale autonomous ride-hailing services and speeding up the commercialization of L4 autonomous driving.

Apart from the investment in Didi’s autonomous driving company, GAC has made various moves in the autonomous driving field. In August this year, GAC’s ride-hailing app platform “Ruqi” submitted its prospectus to the Hong Kong Stock Exchange, making its mark as the first autonomous driving operation technology company to go public.

Next Stop for China’s Robotaxi

Robotaxi is a pivotal scenario likely to lead the commercialization of autonomous driving before widespread adoption. GAC’s “Ruqi” has been actively pushing forward the commercialization of Robotaxi and autonomous driving technology over the past two years.

Robotaxi started the development and commercialization in 2021. In October 2022, a hybrid operation combining human-driven ride-hailing and Robotaxi service was launched in Guangzhou. In April 2023, Ruqi obtained the Intelligent Connected Vehicle Demonstration Operation Qualification in Guangzhou’s Nansha District, becoming the first domestic autonomous driving service platform in China to demonstrate operations with a self-developed Robotaxi fleet.

The fundraising from the prospectus submission is intended to be used primarily for the research and development of autonomous driving and Robotaxi operational services (about 40% of the funds) and product upgrades and operational efficiency improvements of mobility services (about 20% of the funds).

Path to Commercializing Autonomous Taxis in China

With the impetus from new players like Tesla, car manufacturers typically follow two paths in autonomous driving development: self-research and collaboration with suppliers. In the new trend, the outreach of automotive suppliers is expanding, as seen in the strategic investments by SAIC Group, General Motors in Momenta, Toyota’s investment in Pony.ai, and GAC’s strategic investment in WeRide

Some high-ranking executives in the autonomous driving industry believe that four key elements are required for the technology’s success: a shared mobility network, autonomous driving technology, support from automotive manufacturers and Tier 1 suppliers, and substantial capital support.

Era of Auto-Driving Is Coming                        

UBS Group predicts that by 2030, the global market for autonomous ride-hailing services may exceed $2 trillion, with China being a major force. IHS Markit has also predicted that by 2030, the total market size for shared mobility in China will reach $2.25 trillion, with a compound annual growth rate ranging from 20% to 28%. In this scenario, Robotaxi is expected to account for 60% of the market, with a size of $1.3 trillion, signifying a shift in the future of the ride-hailing market toward autonomous vehicle services.

(Image: Didi)

Source to China Times, despite the intense price wars engulfing the Chinese automotive market, domestic electric vehicle leader BYD is continuing to gain ground. In the third quarter of this year, BYD’s production volumes surpassed Tesla’s, making it the global leader in electric vehicle production. In terms of sales, BYD sold a total of 431,600 pure electric vehicles in the first three quarters of the year, just slightly behind Tesla, bringing it closer to the top spot in global electric vehicle sales.

According to reports from Chinese media on the 3rd of this month, BYD recently released its latest production and sales data. In September of this year, BYD produced approximately 280,000 new energy vehicles, representing a 36.6% increase compared to the same period last year.

TrendForce’s recent research showed that BYD surpassed Ford to become the fourth-largest global car brand in terms of car sales for August. Despite the weakening demand in the domestic car market, BYD was not significantly affected as all of its offerings are new energy vehicles. BYD saw a 5% increase in car sales compared with July and was just 0.1 percentage point behind Honda in market share, which held the third position.

It’s important to note that the term “new energy vehicles” in China includes plug-in hybrid vehicles and fully battery-electric vehicles. Regarding pure electric vehicles, BYD produced around 144,000 units in September, marking a 71% year-on-year increase. In the third quarter, BYD produced approximately 440,000 pure electric vehicles, which is a 67% increase compared to the previous year, establishing it as the largest manufacturer and seller of pure electric vehicles in China.

In contrast, Tesla, which exclusively produces pure electric vehicles, manufactured approximately 430,500 units in the third quarter of this year, marking an 18% year-on-year increase. Data indicates that in terms of production for that quarter, BYD has secured the title of the world’s largest electric vehicle manufacturer.

In terms of sales, BYD achieved a new record with 822,100 units of new energy vehicles sold in the third quarter of this year.

Specifically, BYD sold around 431,600 pure electric vehicles, representing a 23% increase from the second quarter, with 151,200 units sold in September, marking a 59% year-on-year increase. Tesla delivered 435,100 units in the third quarter, a decrease of more than 31,000 units compared to the previous quarter, marking its first decline since the second quarter of last year.

This narrows the gap between Tesla and BYD to 3,456 units, the closest it has been in their ongoing competition. Analysts point out that over the past year, BYD has aggressively expanded into new overseas markets such as Southeast Asia, Japan, the Middle East, Europe, and Latin America, leading to a continuous increase in deliveries. In contrast, Tesla faced production line adjustments and factory shutdowns, resulting in its first-quarter decline in deliveries in over a year, further closing the sales gap.

In recent years, with the Chinese government’s support and encouragement of car purchases, China has become the world’s largest market for pure electric vehicles, accounting for about 33% of global sales, and the market demand remains strong. Given BYD’s competitive advantage in the Chinese market, surpassing Tesla in both production and sales is not an impossible feat.

On the other hand, Tesla, despite initiating a price war successfully earlier this year in China, sacrificed its previously leading profit margins and now faces fierce competition not only from BYD but also from other peers like NIO in an increasingly competitive market. Even in its home market in the United States, Tesla must contend with competition from established automakers such as Ford, General Motors, Hyundai, and Volkswagen.

(Source: https://www.ctee.com.tw/news/20231004700119-439901)