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Quick Summary BYD has lost over US$60 billion in market value  since May amid a sharp sell-off China EV demand is cooling faster than expected , with subsidies fading Rising battery and chip costs are crushing margins Investors fear widespread earnings downgrades  across the sector What’s Happening Shares of  BYD Co  have come under heavy pressure, with Hong Kong-listed stock down about  7% this week  following weak sales data. The decline extends a months-long sell-off that has erased  more than US$60 billion  in market capitalisation. The rout has spilled over to other Chinese EV names, amplifying concerns over the sector’s  profitability and growth outlook . Demand Is Cooling — Fast Investors were already bracing for slower growth in 2026 as  government subsidies were reduced , but the pace of the slowdown has surprised the market. BYD January domestic sales:   109,569 units ,  ~50% lower YoY XPeng : Deliveries  down ov...

Key Takeaway: Geely Automobile Holdings Ltd saw a 92% surge in net income for Q3 2024, propelled by strong electric vehicle (EV) and hybrid sales. (Nov 14): Geely, a core asset of billionaire Li Shufu’s auto empire, reported a net income increase of 92% to 2.46 billion yuan (US$340 million) and 20% revenue growth to 60.38 billion yuan in Q3 2024, thanks to a surge in demand for its EV and hybrid models. Geely sold 1.72 million vehicles as of October , up 32% from last year, and is on track to reach its 2 million sales target by year-end, needing only around 150,000 units per month in November and December. EV Success: Sales of EVs and hybrids nearly doubled to 655,000 units, with popular models like the Zeekr premium EV and Galaxy E5 crossover SUV driving demand. Government incentives, including China’s cash-for-clunkers program, further supported EV growth. Export Growth Amid Challenges: Geely’s exports rose 71% in the first 10 months , but face challenges from new tariffs in ...

Malaysia is set to leverage its 40-year experience in automotive production and a robust semiconductor sector to position itself as a regional hub for electric vehicle (EV) manufacturing in Asean , Deputy Minister of Investment, Trade, and Industry Liew Chin Tong announced. Highlighting Malaysia's significance as the sixth-largest exporter of semiconductor products , Liew emphasized the strategic potential of integrating the automotive and semiconductor industries to create locally designed automotive chips. During his recent visit to Detroit, he noted how global automotive manufacturing was impacted when Malaysia’s semiconductor production slowed during the pandemic, underscoring Malaysia’s vital role in global chip supply. The government’s ambitious EV adoption targets aim for EVs to constitute 20% of total industry volume (TIV) by 2030 , 50% by 2040 , and 80% by 2050 . Liew encouraged manufacturers to see electrification as both a business opportunity and a national agend...

Chinese automakers are making aggressive moves into Europe's luxury car market , offering vehicles with high-tech features like digital dashboards, leather interiors, and champagne coolers , often at half the price of their European counterparts. While Porsche and Mercedes continue to dominate the luxury segment with their brand allure and heritage, Chinese manufacturers , led by companies like BYD and Xiaomi , are rapidly gaining ground. Having tripled their market share in China's high-end segment in just two years, these manufacturers are now eyeing Europe. Xiaomi's SU7 sports car has even garnered praise from Ford CEO Jim Farley , who has been driving it for the past six months. Despite the allure, Chinese automakers are facing challenges, including tariffs on Chinese-made electric vehicles (EVs) set to be imposed by the European Union (EU) this week. These tariffs come after eight rounds of negotiations with Beijing failed to resolve key trade disputes. The pus...

Several Chinese electric vehicle (EV) makers are planning to establish manufacturing and assembly plants in Europe as part of their strategy to sell lower-cost cars and compete with European automakers, according to a report by Business Today . This move follows the European Union's (EU) decision to impose import tariffs on Chinese-made EVs , citing concerns over state subsidies provided to these manufacturers. By setting up factories in Europe, Chinese companies like Chery , BYD , Leapmotor , SAIC , Xpeng , Geely , GAC , GWM , and Dongfeng Motor aim to reduce costs and mitigate the impact of these tariffs, allowing them to better challenge European competitors in the world's largest car market.

Global sales of fully electric (BEV) and plug-in hybrid vehicles (PHEV) surged by 30.5% in September compared to the previous year, driven by record-breaking sales in China and a recovery in European markets, according to data from market research firm Rho Motion. China led the global market, with sales rising by an impressive 47.9% to 1.12 million vehicles , surpassing its record set in August. Meanwhile, European EV sales grew by 4.2% to 0.3 million units , with significant growth in the United Kingdom (up 24%) , as well as gains in Italy, Germany, and Denmark. In contrast, growth in the U.S. and Canadian markets remained more modest, with a 4.3% increase to 0.15 million vehicles. The upcoming Nov. 5 election in the U.S. has led to uncertainty, making it difficult to predict future trends in the region, according to Rho Motion’s data manager, Charles Lester. Chinese automakers are continuing their push into the European Union despite facing challenges such as import duties of ...

Volkswagen AG has issued its second profit warning in three months, signaling deepening challenges for Europe’s largest automaker . The company slashed expectations for revenue, profit, and cash flow on Friday due to weakening demand, predicting it will sell fewer vehicles in 2024 than in 2023—marking the fourth sales slump in five years. This decline underscores Volkswagen’s difficulties, particularly its struggles with the shift to electric vehicles (EVs) and its shrinking market share in China , where local competitors like BYD have surged ahead. Volkswagen’s VW, Audi, and Porsche brands are losing relevance, especially in China’s rapidly evolving EV market, while competition from Tesla and Chinese EV makers continues to squeeze profits. In China, once a key market for Volkswagen’s gasoline-powered cars , the company has failed to adapt quickly to the EV revolution , allowing local rivals to gain ground with innovative, affordable models. To counteract this, Volkswagen is cl...

Blink Charging announced on Tuesday that it would lay off about 14% of its global workforce as part of a broader cost-reduction plan, as the electric vehicle (EV) charging equipment maker faces weaker demand in the market. Higher borrowing costs and a shift in consumer preference towards gasoline-electric hybrids have slowed down EV sales , exerting pressure on both electric vehicle manufacturers and companies involved in building the associated charging infrastructure. The job cuts at Blink Charging are expected to generate annualized savings of approximately US$9 million (RM38.28 million) and are planned for completion in the first quarter of 2025, according to a company statement. In a similar move, Tesla laid off employees from its vehicle charging business in May, including the head of the division, surprising automakers that rely on the Tesla Supercharger network. "The timing of these cost-cutting measures, as indicated in our last earnings announcement, is a proactive...

Bosch CEO Stefan Hartung anticipates minimal growth in the global car and commercial vehicle markets this year and next, attributing the sluggish demand to factors lower than the industry predicted five years ago. " Demand on the car market globally is lower than the industry expected five years ago," Hartung said during the IAA Transportation trade fair in Hanover, Germany. He mentioned that Europe is projected to produce several million fewer cars than anticipated five years ago, and he expects it will take a few years for demand to recover. European carmakers are currently grappling with high labor and energy costs, compounded by increasing competition from lower-cost Asian rivals. For example, Volkswagen , Europe's largest carmaker by sales, recently stated that it is considering shutting some plants in Germany for the first time in its history as part of a cost-cutting strategy to stay competitive against Asian competitors. Hartung also noted a slowdown in the g...

  Electric vehicles (EVs) have officially outnumbered gasoline cars in Norway, marking a significant milestone in the country's transition towards cleaner transportation, according to the Norwegian Road Federation (OFV). As of September 16, there are 754,303 electric cars out of the 2.8 million registered passenger vehicles in Norway, accounting for 26.3% of the total . Meanwhile, diesel cars now make up 35% of the registered vehicles , with September being the first month since 2011 that there are fewer than one million diesel cars on Norwegian roads. “The electrification of passenger cars continues to move at a high tempo,” stated Oyvind Solberg Thorsen, Director of the Norwegian Road Federation, reflecting the nation's commitment to sustainable mobility.

  Several Chinese companies are in discussions with Malaysian authorities regarding potential investments in Perlis, particularly in the Chuping area near Padang Besar, according to the Malaysian Investment Development Board’s ( MIDA ) Kedah and Perlis director, Mohd Rushdan Mohd Ghazali . The proposed investments are expected to focus on the electric vehicle (EV) industry. "These potential new investments in Perlis may take time. We cannot estimate when Perlis will receive the investments because it is still in negotiations," Mohd Rushdan mentioned during a MIDA dialogue session with the Perlis Tiong Hwa Chamber of Commerce and Industry . He noted that the Chuping Valley Industrial Area is centered around four key clusters: the green industry, halal industry (including pharmaceuticals), EVs, and renewable energy . Additionally, Mohd Rushdan highlighted that many companies, particularly from China, are also looking at Kulim and Sungai Petani in Kedah for investments in the...

China has strongly advised its carmakers to ensure that advanced electric vehicle (EV) technology remains within the country, even as they expand their global footprint by building factories abroad to avoid punitive tariffs on Chinese exports, according to sources familiar with the matter. The Chinese government is encouraging automakers to export knock-down kits to their overseas plants. This approach involves producing key vehicle components domestically and then shipping them abroad for final assembly, the sources said. These instructions come as Chinese companies such as BYD Co and Chery Automobile Co push forward with plans to establish factories in locations like Spain, Thailand, and Hungary to meet growing demand for their innovative and affordable EVs in foreign markets. In a July meeting with more than a dozen automakers, China's Ministry of Commerce (Mofcom) also advised against any auto-related investments in India . This move aims to protect the technological know...

Chery Automobile Co’s Omoda achieved a significant milestone in August, outselling major brands like Tesla, Jeep, and Fiat in Spain. The Chinese automaker sold 744 new cars, a remarkable 8,167% increase compared to just nine cars registered in the same month last year, according to the Spanish Association of Automobile and Truck Manufacturers (Anfac). Key Highlights: Rapid Sales Growth for Omoda : Omoda's sales surge reflects its successful entry into the European market, with the €28,000 (RM134,590) Omoda 5—a combustion-engine SUV—playing a central role. The model also has a more expensive electric version, broadening its appeal to a range of customers. Strategic Expansion into Europe : Chery's push into Spain marks the beginning of its broader European strategy. The company plans to start producing electric Omoda SUVs by the end of this year at a former Nissan Motor Co factory near Barcelona, a move designed to circumvent new European Union (EU) tariffs on Chinese-made electr...

China announced plans to initiate an anti-dumping investigation into canola imports from Canada following Canada's recent decision to impose tariffs on Chinese electric vehicles (EVs) and other goods. This development is the latest in a series of escalating trade tensions between the two countries. Key Takeaways: Retaliation for Canadian Tariffs : China's announcement comes after Canada imposed a 100% tariff on Chinese electric vehicles and a 25% tariff on imported steel and aluminum, aligning itself with similar actions taken by the US and the European Union. China's Commerce Ministry condemned these "discriminatory unilateral restrictive measures," stating that it opposes Canada's actions despite the objections of multiple parties. Allegations of Dumping and Market Impact : The Chinese investigation focuses on the rapid increase in Canadian canola exports, which rose by 170% year-on-year to $3.47 billion in 2023, accompanied by a decline in prices. The Chine...

  Tesla shares tumbled 12% on Wednesday, wiping out nearly US$100 billion in stock market value. This drop followed CEO Elon Musk's discussion of futuristic projects like humanoid robots and driverless taxis, which failed to allay investor concerns about the electric car maker's shrinking profit margins. Key Points for Investors: Stock Decline: Biggest Drop Since 2020: Tesla's stock fell 12%, marking the largest one-day percentage drop since 2020. This reduced Tesla's market capitalization to just under US$700 billion, down from over US$1 trillion in 2021. Profit Margin Concerns: Lowest in Five Years: Tesla posted its lowest quarterly profit margin in five years, with earnings per share missing estimates for the fourth consecutive quarter. Sales Challenges: EV deliveries have fallen for two straight quarters, and Tesla has not introduced a lower-cost model that many expected, leading buyers to turn to rival EV makers like China's BYD. Market Reactions: Investor S...

Porsche is working to restore production volumes and shift spending priorities towards a more flexible product line-up following months of supply chain issues, slow electric vehicle (EV) demand, and a sales slump in China. Despite solid half-year results, news of significant production cuts in the second quarter has shaken investor confidence. Key Points for Investors: Production Challenges: Output Cut: Porsche disclosed that production would likely fall by over 10,000 cars in the second half due to an aluminum shortage. Impact: The shortage has particularly affected Porsche due to its high percentage of pre-ordered cars, low volumes, and detailed car specifications. Supply Chain Improvements: Dual Sourcing: Porsche is increasing dual sourcing in its supply chain and improving visibility over problems at indirect suppliers to mitigate future risks. Financial Performance: Operating Profit: Fell by just over 20% in the first half to €3.06 billion. Sales: Declined 4.8% to €19.46 bill...

  China's BYD has significantly expanded its sales lead over Tesla in Singapore during the first half of this year, according to government data. This development highlights the competitive challenge Tesla faces from Chinese electric vehicle (EV) manufacturers in Southeast Asia. Key Highlights Sales Performance : BYD’s EV sales in Singapore surged by 83% in the first half of this year, reaching 2,587 units. In contrast, Tesla sold 969 cars, only 28 more than last year. The lack of significant price difference between BYD and Tesla in Singapore underscores BYD’s competitive pricing strategy. Market Expansion : BYD’s success in Singapore, one of the smallest auto markets in the region, reflects its broader ambition to dominate the Southeast Asia market. BYD has established Thailand as its biggest overseas market and continues to expand its distribution partnerships with local conglomerates. Recently, BYD opened its first stores in Vietnam, further expanding its presence in Southeast ...

Ford Motor Co will invest US$3 billion (RM14 billion) to build its highly profitable Super Duty F-Series pickup truck at a plant in Ontario, Canada, shifting focus after previously delaying plans for an electric sport utility vehicle (SUV). Key Points: Investment and Production: Ford will open the plant in 2026, employing 1,800 workers and adding 100,000 units of Super Duty production. The automaker is on pace to produce about 400,000 Super Duty trucks annually. Market Changes: Slowing growth in electric vehicle (EV) demand led Ford to delay a three-row plug-in model until 2027. Increased demand for large trucks prompted the shift in focus to meet market needs. Statements: “Super Duty is a vital tool for businesses and people around the world and, even with our Kentucky Truck Plant and Ohio Assembly Plant running flat out, we can’t meet the demand,” said CEO Jim Farley. Ford hinted at future electrified versions of the Super Duty, potentially including hybrid-electric vehicles suitable...

Key Points: Sales Forecast Adjustment: Volvo Car AB lowered its 2024 sales growth forecast to 12%-15%, down from at least 15%. The adjustment is due to uncertainties related to the EU-China trade conflict over EV subsidies. Impact of Trade Conflict: The EU's trade spat with China affects Volvo, as it makes electric vehicles in China and could face tariffs. CEO Jim Rowan cited uncertainty around trade tariffs and their potential impact on demand as reasons for the forecast adjustment. Second-Quarter Performance: Despite the trade issues, Volvo had a strong second quarter. Operating income rose to 8 billion kronor ($758 million), beating analysts' expectations of 6.6 billion kronor. The company saw strong demand for its electric and plug-in hybrid models and maintained good pricing and cost discipline. Future Plans: Volvo's EX30, a compact electric SUV made in China, has been in high demand. Production of the EX30 will begin at Volvo's Ghent, Belgium plant next year. CEO ...

The UK government is evaluating its response after the European Union imposed provisional tariffs on electric vehicles (EVs) imported from China. Business Secretary Jonathan Reynolds is actively engaging with industry stakeholders to determine the best course of action, according to the Department for Business and Trade. Key Points: Concerns Over EV Imports: The UK is worried about the impact of Chinese EV imports on its domestic market. Business Secretary Reynolds is holding discussions with EU trade commissioner Valdis Dombrovskis following the EU's decision to impose tariffs on Chinese EVs. Considerations for the UK Economy: Any UK response will need to consider the country's auto sector exports and be tailored to fit the UK’s economic needs. Global Context: EU and US Actions: The EU's tariffs follow an investigation into alleged unfair subsidies to Chinese EV makers. The US has also announced plans for a 102.5% levy on Chinese EV imports, while Canada is considering ...