As we close in on the fourth quarter of this year, there are high expectations that sales will once again increase. However, across some parts of Europe, there’s been a swing downwards, perhaps as customers continue to feel spending pressures and economise.

In Germany, Citroen – once a brand that offered heavy discounting, though not in recent years – has begun to offer substantial price drops. German retailer pricing has fallen as much as EUR 6,000. Similarly, Nissan’s recently introduced ‘Net Price Strategy’ plan has seen price reductions for several models, such as the Aria, in the same EUR 6,000 region.

There has been much talk of Italian economic stability in recent months and consumers continue to vote with their feet. Sales to August 2023 are down 21% compared to 2019 pre-pandemic levels. Combustion engine market share in the same market appears to have plateaued – gasoline/diesel share continues to sit at the 50% mark, while hybrid/plug-in sits around the 40% region and pure electric has dipped to under 5%.

The recent announcement from UK government that they will push back the start of the pure ICE ban to 2035 has been met with some confusion and disappointment from OEMs. It brings the UK policy in line with many European markets from a timing perspective. The change comes as the market started to see a small positive shift towards BEV sales and BMW announced investment in the UK MINI plant for electrified models.

It is rumoured that the Swiss government intends to add a 4% purchase tax on EVs which, until now, had avoided taxation altogether. While not fully confirmed, the intention is to bring in the revised taxation system in January 2024.

The Israeli market, a strategic testbed for Chinese brands entering Europe, has seen EV market share increase over 16% this year and the steady increase seems to be continuing as more companies enter the market. BYD – a now well-established EV player in Europe – is currently the top-selling EV brand in the country.

In the Nordics, recently rebranded Korean firm KG Mobility (formerly known as SsangYong) has confirmed it will bring its latest Torres EVX SUV to the region. The BEV model, equipped with a lithium-ion phosphate (LEP) battery set-up and capable of 433 km on a single charge, will be launched in March of next year. The remaining European markets will receive the new model by mid-year.

Swedish market sales saw an increase of 16% in August compared to the same period last year, although this is largely down to the delayed delivery of vehicles ordered in 2022. However, electrified cars made up 60% of this increase, 41% of which were pure EV, despite the removal of state incentives for EV purchases at the end of last year. Discussions are currently taking place to encourage buyers to continue taking up the EV option with an all-new scrappage scheme.

In Malaysia, Sime Darby Ltd. has announced that it is acquiring a 61.2% stake in UMW Holdings Ltd. from Permodalan Nasional Ltd. (PNB) for MYR 3.57 billion. The exercise, one of the largest merger and acquisition deals in Malaysia, aims to help the company scale up and strengthen its presence in the local automotive sector. It will strategically transform Sime Darby into a leading automotive player in the country with the addition of high-volume mass-market brands, Toyota and Perodua, capturing up to 60% of domestic automotive industry volume.

Hyundai Motor and KIA are gearing up to enter the certified used car market in Korea. With an annual trading volume of KRW 30 trillion and transaction numbers exceeding new car sales by over 30% in the first half of this year, both brands are eager to tap into the lucrative used sector. They plan to purchase Hyundai and KIA vehicles that are less than five years old or 100,000 km mileage, with the used cars going through their own quality inspection and commercialization, akin to operations as seen in Europe for many years now.

According to the Bangkok Post, newly-appointed Industry Minister for Thailand, Pimphattra Wichaikul, has pledged to step up efforts to pass a new electric vehicle (EV) incentive package to develop the fledging Thai industry. He hopes to win approval from the Pheu Thai-led coalition government. The existing package of incentives, including tax cuts and subsidies, will aim to promote EV consumption and production. The subsidies range from THB 70,000 to THB 150,000 depending on the type and model of vehicle, with lower excise tax and import duties on completely knocked down (CKD) and completely built up (CBU) units.

Retail sales in the Canadian automotive industry have largely continued to grow in the first half of 2023. New light vehicle sales saw a raise of over 10% on the same period in 2022 and are showing year-over-year growth for ten consecutive months.

In the home US Market, Tesla has removed its cheapest Model Y AWD variant from its online configurator. It comes as rumours Tesla has shut down production of the model at its facility in Texas.

A number of key models were launched at this year’s Detroit Auto Show, although there was a much-reduced display of vehicles compared to recent years. Jeep displayed its revised 2024 Gladiator pick-up, with a rumoured 4xe offering in the pipeline for 2025. GMC unveiled its all-new full-size Acadia seven-seat SUV and Ford offered up its refreshed F-150.

The Brazilian Secretary of Industrial Development of the Ministry of Development, Industry, Commerce and Services (MDIC), Uallace Moreira, recently confirmed there will be a return to an import tax. This is justified by the need to stimulate local production of cars with clean technology and energy, with several countries adopting protectionist policies in this field. Industry sources say that the announcement will take place by the end of the month.

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