Strategy & Innovation Newsletter

Edition 8 2023

OEM News

Tesla Superchargers free to use for all electric cars today

EV company marks 10th anniversary of Superchargers after bringing latest-generation V4 devices to UK. Tesla is today allowing electric car drivers in the UK to charge for free to mark the 10th anniversary of its Supercharger network in Europe.
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BYD to launch multiple EVs in Europe during IAA Mobility, including sub-brand Denza

Chinese automaker Build Your Dreams (BYD) will continue its global expansion with upcoming EV debuts in Europe, not only under its own namesake, but alongside the official launch of its Denza sub-brand overseas. Here’s what visitors to next month’s IAA Mobility in Munich can look forward to seeing.
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Toyota halts Aygo X and Yaris production due to parts shortage

Toyota has paused production at its factory in the Czech Republic due to a fire at a local supplier. Flames ripped through Novares CZ Zebrak’s plant in Zebrak last week, destroying production and storage facilities.
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Focus: Gas-electric hybrid vehicles get a boost in the US from Ford, others

Hybrid gasoline-electric vehicles may not be dying as fast as some predicted in the auto sector’s rush to develop all-electric models. Ford Motor (F.N) is the latest of several top automakers, including Toyota (7203.T) and Stellantis (STLAM.MI), planning to build and sell hundreds of thousands of hybrid vehicles in the U.S. over the next five years, industry forecasters told Reuters.
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Vauxhall to boost on-street residential charging with new campaign

Vauxhall has teamed up with leading charge point operators on a new campaign to help the 40% of households without off-street parking make the switch to electric. Its new Electric Streets of Britain initiative reveals some 72% of UK councils have not yet published a strategy for residential on-street charging.
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China’s Geely reveals first-half profit, rising revenue at high-end EV brand Zeekr, banks on lower prices to almost double last year’s sales tally

Geely Automobile Holdings, China’s largest privately owned carmaker, is betting on a strategy of price reductions as it plays catch-up with electric-vehicle (EV) market leaders such as Tesla. The Zhejiang province-based carmaker expects to deliver 140,000 units of its premium EV brand Zeekr this year, almost doubling last year’s total of 71,941 vehicles, it said after announcing its first-half earnings on Tuesday.
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Volkswagen strikes direct supply deals for chips to avoid global shortage

Volkswagen strikes direct supply deals for chips to avoid global shortage
The German carmaker, which previously relied on its component suppliers to purchase chips, began striking direct deals with chipmakers last October to ensure its supply was secure, according to Karsten Schnake, head of a Volkswagen-wide taskforce for component supply founded in 2022. Read more

Insurance News

Do Safety Features In Cars Actually Reduce Car Accidents?

Advanced Driver-Assistance Systems (ADAS) are growing in popularity. The global market for ADAS will increase from $27 billion this year to $83 billion by 2030, according to research by MarketsandMarkets. That’s an impressive 12% annual growth rate for semi-autonomous driving systems.
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Advanced Driver Assistance Tech Could Save 250,000 Lives In The U.S. Over The Next 30 Years

A new study from AAA predicts that ADAS technologies could prevent 37 million crashes, 14 million injuries, and 250,000 lives by 2053. The dangers facing American drivers are currently at historically high levels, but advancing active safety technology could help avoid many tragedies. New data from AAA finds that advanced driver assistance systems (ADAS) could save hundreds of thousands of lives over the coming 30 years.
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Digital Marketing & Retail News

Younger buyers prefer not to visit a showroom for next car

A new survey commissioned by Marketing Delivery showed that 75% of 18- to 25-year-old motorists said they ‘agree’ or ‘strongly agree’ with the statement: “When I next shop for a new or used car, I would prefer not to visit a showroom at all”. Older prospective buyers are currently far more willing to visit dealers’ showroom facilities. The proportion indicating they would prefer not to do so falls to 29% among 25- to 34-year-olds, 15% among 45- to 54-year-olds, and as little as 7% among those aged over 65.
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China auto retail insights from brand builder Tony Whitehorn

Industry veteran Tony Whitehorn has been part of the UK motor industry for over 30 years holding senior roles with Renault, Toyota and most recently as president and CEO of Hyundai in the UK. Now an authoritative advisor, he has worked with both Chinese OEMs who want to tap the Chinese EV market and the UK dealers who want to deliver its potential.
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Leasing / Fleet News

Average fleet vehicle off-road times show ‘dramatic’ increase

Average fleet vehicle off-road (VOR) times in the UK have increased dramatically since the pandemic, according to new data released by Epyx. Northern Ireland has the longest average downtime at 2.40 days, while the shortest VOR wait is in the North West, with 1.82 days between when a car or van enters a workshop and is finally repaired.
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Tax Incentives, High Interest Rates Mean Leasing An EV Is The Cheapest Way To Drive A New Car Today

Despite having high sticker prices, electric vehicles may actually be the cheapest way for consumers to get behind the wheel of a new vehicle. Thanks to high interest rates for buyers, attractive tax incentives for lessees, and low running costs for EVs, going electric might be as kind to your wallet as it is to the environment. Energy Innovation, a non-partisan energy and environmental policy think tank, took a look at the prices that consumers have to pay every month to get behind the wheel of comparable vehicles.
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Other News

In-car USB ports are switching to a new standard — but not everyone is all-in yet

As the tech world coalesces around a single USB port design, some automakers are moving at a slower pace to keep customers happy and their devices plugged in.
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Xiaomi Gets Greenlight From Chinese Government Agency To Build EVs

Smartphone-maker still needs to win approval from China’s Ministry of Industry and Information but is looking good for 2024 production start. It’s now two years since smartphone firm Xiaomi formed its electric vehicle unit and announced plans to build EVs.
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When the Polestar 3 electric SUV will arrive in Australia

Polestar’s next car, the Polestar 3 SUV, will land in Australia late in the second quarter of 2024. That’s a few months later than initially planned, on the back of software development delays within the broader Geely and Volvo family. The same delays have also hit the related Volvo EX90, which is on track to arrive in Australia late in 2024.
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JATO in the News

Tesla and MG top the charts in the first half of 2023

JATO released the results of its research into new car sales in Europe in the first half of 2023. With Tesla and MG winning market shares, growth is positive but still not back to pre-pandemic levels. Let’s look at what’s helping and hindering growth in new car sales.
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China's EV makers face cost and consumer challenges to conquer Europe

China's electric vehicle (EV) makers, which have raced past foreign rivals to top sales rankings at home, are arriving in Europe – and facing a new set of challenges. Stereotypes of Chinese manufacturing, import costs, and a less developed EV market are just some of the issues Chinese brands such as BYD (002594.SZ), Nio (9866.HK) and SAIC's MG (600104.SS) will have to overcome to thrive in Europe.
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JATO’s overview of local markets

Europe

The European region has now entered its traditional summer holiday down period. Despite this, activity is high.

The UK market will see a significant environmentally-led change in the outer London area this month. From August 29, the Ultra Low Emissions Zone (ULEZ) expands to the outer edges of the capital, with a daily charge of GBP 12.50 levied for non-compliant vehicles. While the city’s mayor introduced a scrappage scheme designed to alleviate the costs of purchasing Euro 6 diesels and Euro 4 gasoline-engine cars and LCVs, there has been opposition to the changes.

German national brand BMW has now ceased production of physical price lists for customers in its home market, offering only digitised brochures. They are very similar to a printed price list but without pricing.

Audi has taken steps to reduce costs and carbon footprint by ceasing company car offerings for sales and distribution staff, with key account handling now only on a ‘digital’ basis.

Sales across Switzerland for July dropped significantly on June numbers, although they are still up on 2022 figures for the same period, with a near-19% increase. Plug-in sales reached 30% of the market share, up marginally on the 29% figure for the previous month, as the move away from pure combustion continues.


Asia Pacific

Volkswagen has invested nearly 5% into Chinese electric vehicle maker Xpeng at a cost of USD 700 million. It also agreed as part of a strategic partnership to develop two new models as it attempts to reverse a decline in sales in the world’s biggest car market. Both brands will initially co-develop two B-segment BEVs sold under the Volkswagen brand in the Chinese market using Xpeng's G9 platform, with an expected launch in 2026.

In July, Renault Group and Geely announced that they have teamed up for a new powertrain technology venture, with the agreement stating that a new company will be formed. Both have said they’re committed to developing, manufacturing and supplying powertrains for next-generation hybrids and ‘efficient’ internal combustion engines, which can also work with synthetic fuels.

Chinese firm DJI Automotive has launched a new intelligent driving solution called Chengxing. The first mass-produced vehicle equipped with Chengxing will be launched in the coming weeks and is said to be capable of achieving L2+ intelligent driving functions. These include City Memory Driving and Urban Navigation Driving using “strong real-time visual perception, independent of high-precision maps, and independent of LiDAR sensor” according to reports.

Mitsubishi Motors of Thailand will begin producing hybrid vehicles in the local market from early next year. This will be the first time the Japanese company has produced hybrids overseas. The firm believes emerging economies will need more time before large numbers of consumers buy electric vehicles, due to high sticker prices and recharging infrastructure development. In the meantime, hybrids will allow Mitsubishi Motors to compete with Chinese companies.

Thailand’s Board of Investment (BOI) has formally received investment plans from Changan Automobile. The plan is to invest approximately USD 250 million in RHD BEV, PHEV and EREV vehicle production, with the initial capacity of 100,000 units per year for domestic and internal RHD markets.


About us

JATO Dynamics, founded in 1984, now has representation in over 51 countries around the world. We provide precision under pressure, providing the world’s most timely, accurate and up-to-date automotive information on vehicle specifications, pricing, sales and registrations for over 30 years. We offer more than just data, as we have watched the world change, and consumer mindsets alter with it we have been able to offer insights that help inform the industry. We are able to react to short-term market movements, plan for long-term developments and ultimately to meet the needs of our clients. Visit JATO at www.JATO.com for more information.



Contact


Donny Gow | Research Manager
donny.gow@JATO.com

Alice Song | Content and Communications Manager
alice.song@jato.com