MONEY MASTER

Foreign automakers have cautioned that  affordable vehicle models could disappear from the US market  if the  US-Mexico-Canada Agreement (USMCA)  is not renewed or revised favorably. Trade Policy Uncertainty Clouds Auto Sector Outlook Industry players have raised concerns to the administration of  Donald Trump  that without a stable trade framework: Producing  low-cost vehicles may become uneconomical Supply chains across  North America could be disrupted The USMCA, which currently allows  tariff-free automotive trade , is under review, with negotiations facing delays amid rising tensions. Tariffs Threaten Cost Structure The situation has been exacerbated by  25% tariffs on auto imports  from Mexico and Canada imposed last year. These tariffs have: Increased  production costs Pressured margins for automakers Made  entry-level vehicles less viable  in the US market Without relief, manufacturers may  scale back or ...

Investor & Industry Impact Note India is preparing its most meaningful auto-market liberalisation in decades as part of a near-final  EU–India free trade agreement (FTA) . A sharp cut in car import tariffs will reshape competitive dynamics across  luxury, mass-market and EV segments , with clear winners and losers emerging. What’s Changing (Policy Snapshot) Import tariffs on EU-made cars cut to 40%  from as high as 110% Gradual reduction toward 10% over time Initial quota:  ~200,000 internal-combustion cars per year EVs excluded for first five years , then phased into similar cuts Deal announcement expected  imminently , subject to final ratification This is India’s biggest auto market opening to date. WINNERS European Automakers (Primary Beneficiaries) Volkswagen Mercedes-Benz BMW Renault Stellantis Why they win Ability to  import premium and niche models at far lower prices Can  test demand before committing capex  to local manufacturing Str...

The clock is ticking for EV buyers in the U.S. If you've been thinking about buying or leasing an electric vehicle (EV),  now’s the time to act . The  US$7,500 federal tax credit —a major incentive that’s been driving EV adoption—is  set to expire on Sept 30, 2025 . And automakers are making sure you know it. Tesla’s homepage is already flashing a banner warning: “US$7,500 Federal Tax Credit Ending. Take Delivery by Sept 30, 2025.” Ford is dangling extra perks too —extending its  free home charger + installation offer  until the end of September to lure buyers in before the credits disappear. Why This Matters Since 2008, the federal tax credit has been a  critical lever  for growing the EV market. But with the latest tax and budget legislation rolling in,  both the US$7,500 new EV and US$4,000 used EV credits will vanish by Q4 . Industry insiders expect a  pre-deadline buying frenzy , followed by a potential cooldown in demand. General Motors...

Momentum Accelerates Toyota Motor Corp. posted its  third consecutive monthly sales record  in May, clocking in  955,532 vehicles sold globally , an 8% jump from a year ago. Production also held strong at  906,984 units . The surge was driven by  robust hybrid vehicle demand  across key markets: North America: +11% Japan: +4% China: +7% A Price Hike Ahead Toyota plans to raise  US vehicle prices by over $200  starting next month, aligning with competitors like Mitsubishi Motors — a move that reflects both rising costs and the looming tariff impact from the U.S.-China trade war. The Tariff Shock While sales remain strong, Japanese automakers are bracing for a significant blow: Toyota expects a  ¥180 billion ($1.2B) loss from tariffs  just for April-May. Nissan and Honda are forecasting  $3B hits . Mazda and Subaru have  withheld profit guidance  amid uncertainty. Investor Insight: Can Toyota Maintain Its Lead? Despite geopo...

  Key Takeaways: Trump’s 25% import tariff on cars and light trucks , expected to take effect next week, could  push US car prices even higher , especially affecting  low-cost models  built overseas by brands like  GM, Ford, Kia, and Hyundai . Americans already face rising vehicle costs , and the latest tariffs risk further  squeezing consumers  and disrupting  automotive supply chains , particularly at the  entry-level market segment . Mexico, Japan, and South Korea , the largest sources of US car imports, will be among the  hardest hit . The  EV market could see selective benefit , with at least one electric carmaker poised to gain from the shake-up. Market Reaction : Shares of major automakers, including  Toyota, Mercedes-Benz, and GM , fell as investors weighed the impact of worsening  global trade tensions . Despite calling these tariffs “permanent,” Trump has recently backtracked on some trade threats —  offerin...

 Despite a rebound in February, Malaysia’s auto sector is off to a sluggish start in 2025. Analysts from  Hong Leong Investment Bank (HLIB)  and  RHB Research  are keeping a  Neutral  stance on the sector, citing softening momentum and fading post-pandemic order backlogs. TIV Outlook: A Normalisation Year According to the  Malaysian Automotive Association (MAA) , total industry volume (TIV) surged 30.1% month-on-month to  63,906 units  in February 2025, helped by more working days. But on a year-to-date basis, TIV slumped  13.9%  to  113,100 units , reflecting a return to normal after a record-breaking 2024. HLIB forecasts  full-year TIV to decline 8.2% to 750,000 units , below MAA’s projection of 780,000 units. Slower new bookings and reduced backlogs are cited as key drivers, though new model launches may help support volumes. Market Leader: Perodua Holding Steady Perodua continues to lead with  31,400 units so...

Tesla stock ($TSLA.US$) surged to a record close on Wednesday, marking its sixth consecutive day of gains and setting new benchmarks for both adjusted closing and intraday highs. Market Performance Highlights: Closing Price:  Tesla ended the session at  $424.77 , up  5.9% , surpassing the previous record close of  $409.97  set on Nov. 4, 2021. Intraday High:  Shares peaked at  $424.88 , exceeding the prior intraday record of  $414.50 , also from Nov. 2021. The stock has climbed  67% year-to-date  and added  65%  since the Nov. 5 election, driven by heightened optimism surrounding Tesla’s future prospects. Key Catalysts Driving Tesla’s Rally: Market Context: November's inflation data, showing a year-over-year increase of  2.7% , aligned with expectations and supported optimism for a Federal Reserve rate cut next week. Broader market sentiment improved, with the S&P 500 rising  0.8% . Investor Optimism: Expectations...

General Motors (GM) announced on Wednesday that it will take non-cash charges exceeding $5 billion (RM22.2 billion) related to its joint venture in China. The charges stem from restructuring efforts and a reassessment of the joint venture’s value as GM contends with declining performance in the world's largest auto market. Details of the Charges Restructuring Costs: Estimated between $2.6 billion and $2.9 billion . Reduced Joint-Venture Value: Reflects a charge of $2.7 billion . These charges will be recorded in GM’s fourth-quarter earnings , impacting net income but not adjusted results, according to the automaker. China Market Challenges GM's partnership with SAIC Motors in China produces Buick, Chevrolet, and Cadillac vehicles. However, competition from domestic automakers and an intensifying price war have significantly eroded its market share: Sales Decline: SAIC-GM sales dropped 59% in the first 11 months of 2024 to 370,989 units, compared to local leader BYD , whic...

The Malaysian government has rolled out multiple   initiatives   to boost   local electric vehicle (EV) production   and support the country's transition to a   greener automotive industry . Deputy Minister of Investment, Trade, and Industry   Liew Chin Tong   highlighted these measures in Parliament, aiming to meet rising   local EV demand   and achieve   Net Zero   goals under the   National Industrial Master Plan 2030 . Key Incentives Tax Exemptions : Full  import and excise duty exemptions  for imported EVs until  Dec 31, 2025 . Full  tax exemptions  on domestically produced EVs until  Dec 31, 2027 . Road tax exemptions  for EV users until the end of  2024 . Tax Reliefs : Income tax allowance  or  pioneer status  for energy-efficient vehicle (EEV) manufacturers, including EV components. Individual tax relief  of up to  RM2,500  for  EV charging insta...