The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Chinese electric vehicle (EV) brands captured a record 11% share of the European market in June, driven by a surge in registrations before new European Union (EU) tariffs took effect this month.
SAIC Motor Corp led the charge, shipping its MG4 hatchback in significant volumes, according to Dataforce analysts. Cars registered before July 5 could be sold without the added duties on imported EVs. Chinese brands registered over 23,000 battery-electric vehicles across Europe in June, marking a 72% sequential jump from May, which was double the gain in overall European EV registrations.
The new EU tariffs impose an additional 38% charge on SAIC and 17% on BYD, on top of the existing 10% customs duty. This development will be closely monitored to see if the volume gains can be sustained.
Carmakers on both continents are rushing to add European EV manufacturing to avoid these new duties, amid rising tensions between Beijing and Brussels.
SAIC's increase in Chinese-branded imports was significant, but around 40% of the MG4s registered in June were self-registrations by dealers, indicating potentially unhealthy growth, noted Dataforce's Gabriel Juhas. The company has been offering generous leasing deals, such as a two-for-one MG4 promotion in Germany.
BYD Co showed progress with a marketing push centered on the Euro Cup Championships in Germany, gaining traction with consumers, according to Dataforce analyst Julian Litzinger.
In Italy, new incentives led to a doubling of battery-electric sales in June from a year ago, with €200 million in new-EV subsidies running out in less than nine hours. This pushed Italy into the top six regional markets for EVs.
Italian Prime Minister Giorgia Meloni is visiting China to strengthen ties as her government seeks to attract Chinese manufacturers, despite a recent crackdown on falsely branded Italian-made imports.
Overall, June saw the third-highest month for EV volumes with 208,872 registrations across the region, just behind December 2022 and March 2023, according to the European Automobile Manufacturers’ Association.
Key Takeaways:
- Chinese EV brands captured 11% of the European market in June, a record share.
- Registrations surged ahead of new EU tariffs that took effect in July.
- SAIC Motor Corp and BYD Co were significant players, with SAIC leading the surge.
- New EU tariffs impose additional charges on imported Chinese EVs.
- Carmakers are increasing European EV manufacturing to avoid new duties.
- Italy saw a doubling of EV sales due to new incentives.
- June was the third-highest month for EV registrations in Europe.
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