Due to the Government’s budget crisis in Germany, the state subsidy for BEVs has been terminated with effect from December 18, although the discount was originally planned to run until the end of 2024. It is not yet clear how OEMs and importers will react, though some have guaranteed the entire subsidy amount if a car was ordered before the cut-off date.

Italian car registrations for 2023 to date (November) increased by 20.1% compared to the same period in 2022, but were still down 18.1% compared to 2019 pre-Covid levels. Despite the manufacturer push for electrification, BEV market share has only totalled 4.1% and 8.5% when combined with PHEVs. Hybrid continues to be the stop-gap option to full EV uptake at 36.4% share. While these sales numbers are encouraging, Italy continues to fall behind other European markets and is now only the 8th largest market for vehicle manufacturing, behind countries like Romania and Hungary. Fiat’s next Panda model will now be built in Serbia (recently given the seal of approval by Prime Minister Giorgia Meloni).

With 22,005 new registrations in November, the market for new passenger cars in Switzerland and the Principality of Liechtenstein achieved its fifteenth monthly increase in a row. Since the beginning of the year, 225,266 new cars have now been registered, 12% more than the same time last year. Nevertheless, 2023 will remain noticeably below the market’s long-term average mark of 300,000 new passenger cars, likely due to the slowdown in the economy and the increased cost of living. At the same time, the Environment Committee of the National Council is proposing another emissions-based tax change, further details to be announced in the near future.

As expected, due to ongoing tensions, Israel car sales saw a drastic drop over the past two months, more than 40% down on November 2022 levels. Despite this, from the beginning of the year, there is still an increase of almost 3% in sales compared to 2022. EV market share currently sits at approximately 18% of the total market, with BYD, Geely, Tesla and Hyundai being the leading makes. After experiencing very few changes in the market during October, during November and the beginning of December several new models and new versions were launched, and several makes raised pricing.

In a filing with Bursa Malaysia dated December 13, Sime Darby announced it has completed the acquisition of Permodalan Nasional’s (PNB) 61.18% stake in UMW Holdings. The deal was completed through Sime Darby’s indirect wholly-owned subsidiary Sime Darby Enterprise (SDESB), with MYR 3.574 billion paid for the stake.

UMW holds a 51% stake in UMW Toyota Motor as well as a 38% stake in Perodua, and both mass-market brands will join Sime Darby’s vast portfolio that already includes BMW, Ford, Hyundai, Porsche, Rolls-Royce and Jaguar Land Rover to form Malaysia’s largest auto group.

Geely’s EV brand, Zeekr, has launched an 800V Golden Battery, which can charge 500 km in 15 minutes and withstand temperatures up to 1,000°C. The new lithium iron phosphate battery for 800V electric cars will be used for the first time in the Zeekr 007, which is due to be delivered in January 2024.

Nio’s co-founder and CEO, William Li, has personally tested the company’s new 150 kWh semi-solid state battery (SSB). The 14-hour trip was live-streamed online, starting on Sunday at 6.30 am at the battery swap station (PSS) in Shanghai, reaching a 1,044 km (650 miles) range with 3% battery capacity remaining. Beijing-based battery maker WeLion New Energy Technology developed the 150 kWh SSB. It was announced three years ago at Nio Day 2020 (held in January 2021) when Nio’s first sedan, ET7, was launched.

In Thailand, the highlights of the recently-held Motor Expo 2023 include:

• Official launch of Changan Deepal brand in Thailand with the L07 model (known as SL03 in China) and S07 (S7 in China). Changan aims to make Thailand a RHD production hub
• Hyundai Mobility Thailand launched the new Santa Fe, the Ioniq brand with the Ioniq 5 and N brand with the first RHD face-lifted Elantra N
• Mazda opened a pre-booking of the 20th limited edition of Mazda 6, which was not previous sold in the Thai market
• Jeep opened pre-booking of the Grand Cherokee 4xe
• Initial specifications of the KIA Sorento released to the public prior to the official launch in early 2024

In addition, the Honda e:N1 marks Thailand’s first CKD production of BEVs in its own Honda facility. The model is expected to be launched in Q1 2024.

Tesla has said that most trim levels of the Model 3 sedan will lose the federal USD 7,500 EV tax incentive when battery sourcing rules tighten at the beginning January. The loss of the tax break on Tesla's cheapest variant is likely to put additional downward pressure on sales for the compact sedan, analysts said, and could push the EV maker to further cut prices in the U.S.

Changes from 2024 could also significantly impact which clean cars qualify for the USD 7,500 discount. In 2022, the Inflation Reduction Act revised the EV tax credit to prioritize cars and batteries built in North America, to build out a local supply chain. However, the act stipulates that, starting in 2024, any vehicle containing battery components from a so-called “foreign entity of concern” (FEOC) like China will be disqualified from receiving tax breaks. The same rule will apply to battery minerals in 2025.