Strategy & Innovation Newsletter

Edition 9 2023

OEM News

Net zero threatens end of the line for Volkswagen’s best-selling Polo

Volkswagen could scrap its best-selling Polo before the end of the decade as the German car giant goes electric. The Wolfsburg-based company is weighing up whether to end production in Europe as it shifts to electric, the Financial Times reported. It comes as executives assess which models to electrify and which to retire.
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Exclusive: Tesla proposes building battery storage factory in India

Tesla (TSLA.O) has drawn up plans to make and sell battery storage systems in India and submitted a proposal to officials seeking incentives to build a factory, two people aware of the plan said, as Elon Musk continues a push to enter the country.
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Toyota blames factory shutdown in Japan on ‘insufficient disk space’

The Japanese carmaker said the stoppage on 29 August at all 14 of its domestic plants occurred after servers that process orders for vehicle parts broke down following a maintenance procedure carried out the previous day.
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All-new coupe on its way

Skoda’s all-new Enyaq Coupe is set to start being delivered to consumers in New Zealand from early October with the zero-emissions model the latest addition to the marque’s line-up.
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Ford pausing work on $3.5 billion Michigan electric vehicle battery plant

Ford is pausing work on a new, $3.5 billion electric vehicle battery plant in Michigan, even as the transition to electric vehicles has become a major sticking point in a United Auto Workers strike against automakers Ford, GM and Stellantis.
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Chinese brand HiPhi opens first European experience centre in Munich

HiPhi was established in 2017, a premium EV brand belongs to Chinese technology and mobility company Human Horizons. It is one of a number of Chinese brands with plans to expand in Europe. There are already hubs at 100 locations in Chine. The brand is now focusing on Europe with right hand drive reportedly possible thereafter. The hub will display the supercar SUV – HiPhi X, the Digital GT – HiPhi Z, and the new HiPhi Y LuxTech SUV.
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Ford Mustang Mach-E GT review: Real Mustang? Real fast.

Ford Mustang Mach-E GT review: Real Mustang? Real fast.
It is highly unlikely the debate around whether the Mach-E is “a real Mustang” or not isn’t likely to be settled any time soon - I mean, the Mustang II that launched in 1973 without a V8 in the line up (that wouldn’t come until the worst of the oil crisis of the 70s was over in 1975) and an entry-level four cylinder engine that produced 66kW is largely remembered with derision now. But the thing is; it was actually very popular back when it launched, selling more than a million examples during its four-year production run, with its 1973 debut being the fourth largest sales year for the Mustang. Read more

Insurance News

ADAS Technologies to Enhance Safety for London Buses

Specifically, the strategy has committed to retrofitting advanced technologies onto TfL’s existing fleet. This includes fitting a further 1,800 buses with Intelligent Speed Assistance (ISA). ISA is an advanced driver assistance system (ADAS) that uses speed limit sign recognition cameras and/or GPS speed limit data to inform drivers of the current speed limit and reduce the speed of the vehicle if required.
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Is the automated driver an insurer's best friend?

Car insurance rates used to be dictated by the cost of the vehicle, the driving record, the insured's location, and the annual mileage. But these goalposts have moved, as accident-avoiding ADAS detect obstacles, automate braking and assist with steering (to name a few) are becoming more common in fleets. Some features, like automated emergency calls (eCall) and intelligent speed assist (ISA), have become mandatory in the EU.
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Digital Marketing & Retail News

Retail consolidation is happening at pace

Lithia’s move, which follows on from their purchase of the 50 outlet Jardine business, and last week’s news that the Financial Conduct Authority had given the go-ahead for the takeover of Lookers by Global Auto Holdings, (a bidding vehicle for Canadian firm Alpha Auto Group) are just some of the latest foreign investment moves in UK vehicle retailing. These ‘mega’ moves sit alongside a continuing theme of sales/acquisitions across the UK market.
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What does artificial intelligence mean for automotive retail?

With artificial intelligence (AI) advancing rapidly, many industries are preparing for development and disruption. Autovista24 editor Tom Geggus asks what this latest technological phenomenon means for automotive retail.
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Leasing / Fleet News

Less than 2% of commercial fleet vehicles across Europe are electric

Less than 2% of commercial fleet vehicles across Europe are electric By Gareth Roberts Electric vehicle (EV) fleet penetration in the commercial sector is still in its early stages, with approximately 1.4% of the total European commercial vehicle fleet being electric, new research suggests. Just 0.8% of light commercial vehicles (LCVs) and 0.1% of trucks operated by commercial fleets were classified as electric at the end of 2022, according to the new fleet report from Charles River Associates (CRA).
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Fleet dismay as UK delays ban on ICE vehicles until 2035

Fleets, leasing companies and manufacturers have reacted with anger to the UK Government’s decision today (20 September) to introduce a five-year delay to the ban on the sale of cars and vans with internal combustion engines. They argue that the young EV sector needs certainty and support from the Government, not political confusion and procrastination.
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Other News

How China can dominate the American EV market without selling a single car

The Chinese electric vehicle market is huge and growing — and that success has many wondering what's next. About 27% of new vehicle sales in China in 2022 were electrified (either pure EVs or hybrids), says advisory firm Automobility. And given the number of Chinese buyers, those sales made up about two-thirds of the global EV market.
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EU ministers weaken position on vehicle emissions

European Union ministers agreed on Monday to dilute a European Commission proposal on new vehicle commissions after eight states, including France and Italy said the changes could divert investment from the electric vehicle industry. The European Union has progressively tightened road vehicle emission limits since 1992. The Commission's latest proposed rules, called "Euro 7", were designed to introduce new standards on particle emissions from brakes and tyres.
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Title of top car exporter won’t make China’s auto industry No 1 in the world. Here’s what will

The global automotive industry is undergoing profound changes and China may be the most important driver. In the first half of 2023, Chinese carmakers exported 2.14 million vehicles, according to the China Association of Automobile Manufacturers, surpassing their Japanese counterparts (2.02 million). It’s the first time China has captured the crown as the world’s largest car exporter.
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JATO in the News

Perception issues ‘remain a barrier’ to Chinese carmakers

Problems with the perception of Chinese cars remain a barrier to them gaining traction in the European market, new research suggests. So far, progress varies between developed and developing markets. According to data from Jato Dynamics, the market share of Chinese brands grew in developing economies from 4.79% in 2021, to 6.46% in 2022.
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Tesla's five big challenges to overcome

Tesla has been able to lead the global electric vehicle market by introducing attractive and competitive cars at the right time and in the right places. The company owned and led by Elon Musk has therefore become the point of reference when every motorist thinks about an electric car.
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JATO’s overview of local markets


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.

Asia Pacific

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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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 for more information.


Donny Gow | Research Manager

Alice Song | Content and Communications Manager