As the market enters its third quarter, so the annual winding-down of production commences. The summer months typically mean sales peaking in the June and July months, but this year, numbers are further up on previous levels. This can be attributed to the unusual sales and registrations situation of the past 18 months due to production and material issues, but it should be noted tallies remain consistently down compared to pre-Covid numbers.

According to the Federal Motor Transport Authority (KBA), German sales were up a fairly substantial 13% for H1 compared to the same period in 2022. June saw a near 25% rise in registrations over the previous month, with EVs in particular seeing a healthy growth of over 30% for the year-to-date. Brands such as Ford have started to reduce retail pricing, an example being the Mach-E, now offered for between 7,000 and 12,000 euros less than previous list prices. Conversely, registrations for plug-ins and hybrid vehicles fell, mainly due to a lack of subsidy support from Government.

Neighbouring Austria sales also saw a sharp rise for the first half of 2023, around 17%, with nearly half of market registrations of the non-combustion powertrains.

French sales improved in a similar vein, increasing 13% on last year. There now appears to be a growing appetite for mild-hybrid vehicles, as evidenced by near double-digit growth over the first six months compared to the same timeframe in 2022. The Renault/Nissan alliance recently introduced its 1.2 three-cylinder unit with electric motor, fitted to the Espace and X-Trail model respectively.

As we’ve seen increasingly in Europe, cities in France are also beginning to see the introduction of low emission zones, for example in Toulouse and Grenoble. The desire to reduce pollution in built-up areas a key factor in the push to increase hybrid and EV sales in the market.

A similar sales story in Italy has seen half-year rises over 2022; 840,000 units compared to 684,000 in 2022, but still some way short of 2019’s near 1.1 million mark at this stage of the year. Gasoline market share rose to 27.9%, EV remained fairly stable, and plug-in technology fell by nearly one percentage point to just over 4.5%. Although diesel has fallen across the region in recent years, this fuel type still accounts for nearly a fifth of Italian sales, dipping slightly on the same period in 2022.

Swiss plug-in sales increased in the first half of 2023, sitting at 49% more than sales for the same period last year. Share for non-combustion vehicles is, once again, on the rise and is edging ever closer to two-thirds of the market, up nearly a quarter over 2022. According to local sources, there is a sense that most new vehicles being introduced in the market are either plug-in or hybrid, driving up the market. However, BEV sales have slowed.

Sales of hybrid and electric vehicles in Taiwan year-to-date reached almost 57,000 units, now accounting for a quarter of total volumes; MHEV and HEV totaling over 9%, BEVs 5.8% Full electric vehicle sales had an almost two-fold growth in 2023 compared to 2022 (3.1% vs 5.8% ).

The China Association of Automobile Manufacturers recently organized 16 leading automobile production companies in the market to sign a ‘Commitment Letter for Maintaining Fair Market Order in the Automotive Industry’. The commitment was made during the China Automotive Forum. Senior officials from the Association, along with marques such as FAW, Dongfeng, SAIC, Changan, BAIC, GAC, China National Heavy Duty Truck Group, Chery, JAC, Geely, Great Wall, Li Auto, XPeng, NIO and Tesla all signed up to the agreement.

The association also urged these 16 companies and other member enterprises in automobile production to abide by the Anti-Monopoly Law, relevant administrative regulations, guidelines, and rules; independently set prices; engage in fair competition; and jointly contribute to the industry's standardized, healthy, and innovative development.

The State Administration for Market Regulation (SAMR) of China announced the implementation of China’s national emission standards phase VI (B). The new stage’s revised requirements focus on pollutant emission limits for light vehicles and heavy-duty diesel vehicles. Both will need to surpass enhanced minimum limits starting from July 1, 2023.

A strategic partnership has been signed between Proton and Aapico Hitech, one of the largest auto parts companies in Thailand, which is set to supply exhaust emission control systems to Proton. This will be accomplished through Purem Aapico, a joint venture company set up by German exhaust component supplier Purem International and Aapico Hitech. Both companies penned the agreement to enter into a partnership in Thailand last August, with Purem – which is part of the Eberspacher Group – holding a 51% shareholding interest in the new business, and Aapico the remainder.

Chery has also launched the new Omoda 5 and Tiggo 8 Pro in Malaysia with CKD local assembly from production start, with 31 dealers all across the market. Additionally, the company announced that it has signed a services agreement with transportation logistics provider Tiong Nam Logistics Holdings to handle Chery’s spare parts warehousing in the market.

The Canadian light vehicle market saw another strong month in June with sales as estimated by DAC coming in at 161,901 units – up 12.6% from the same month last year. The market has now seen eight consecutive months of growth, with double-digit percentage increases in the last two months alone. Larger brands and groups significantly contributed to buoyant numbers, with General Motors up nearly 16% from last year. However, three lower-volume marques (Maserati, Land Rover and Jaguar) gained healthy market share too, with sales of 65.5%, 44.5% and 30.3% respectively, albeit from weak 2022 sales figures.

Ford has announced plans to discontinue its Transit Connect in the U.S. by the end of next year. The automaker had planned to build a next-generation model in Hermosillo, Mexico, starting in 2023, but recently scrapped the programme. The model will live on as a Europe-only model. Ford also plans to discontinue its midsize Edge crossover at the end of its lifecycle next year, ahead of converting its Oakville Assembly into an EV facility.

Mazda has confirmed its next-generation 2026 MX-5 Miata will be electrified. However, the automaker stopped short of saying what form the electrification will take—fully EV, hybrid, or plug-in hybrid.

Volvo Cars in the U.S. has delayed the introduction of its flagship electric vehicle, the EX90 SUV, by five to six months to mid-2024. The announcement was made due to the ‘complexity of the software code’ according to its CEO. LiDAR is also expected to feature in the brand’s EV model as standard equipment, currently optional on the Polestar 3.