1. Stellantis CEO Says No Sale of Any Brands to Chinese Companies

The Italian government is currently in talks with Tesla and several Chinese automakers — including Chery — to attract one of them to begin production in Italy, in a bid to revive the country's long-declining domestic auto manufacturing output.

Carlos Tavares, CEO of Stellantis — which owns Italian brands such as Fiat, Alfa Romeo, and Maserati — stated that if Chinese carmakers were to begin manufacturing in Italy, Stellantis could be forced to make some tough decisions, including shutting down local factories.

At the same time, Tavares declared with pride that he would not sell any Stellantis brands to Chinese companies. He also criticized the strategies of some industry peers:

“Those bringing Chinese automakers into Italy are aligned with those who sold Volvo to Geely and MG to SAIC.”

“That will not happen to Stellantis, and it will not happen to Alfa Romeo.”

According to the Italian trade union Fiom, Stellantis is planning to cut approximately 3,700 jobs in Italy. The automaker declined to comment on the exact number of job reductions but said that all departures would be on a voluntary basis. Since the beginning of 2024, demand for electric vehicles in Italy has dropped significantly, as buyers await new incentives proposed by the Roman government at the end of 2023.

— Source: CARSCOOPS & Automotive News Europe
https://www.carscoops.com/2024/04/stellantis-boss-wont-sell-alfa-romeo-to-chinese-new-stelvio-arrives-in-2025

2. German Luxury Carmakers Report Sales Decline in China in Q1

Germany's three top luxury car brands — BMW, Mercedes-Benz, and Porsche — reported a continued sales decline in China for Q1 2024, despite various government and manufacturer stimulus measures. The sales of the three brands dropped by 3.8%, 12%, and 24%, respectively.

Additionally, Porsche's North American sales fell 23% due to thousands of Porsche, Bentley, and Audi vehicles being held at U.S. ports over allegations of violating forced labor regulations.

Mercedes-Benz also reported supply chain bottlenecks in Asia but did not disclose further details. Both companies acknowledged that model transitions also impacted their sales. Mercedes-Benz, for example, increased sales of its E-Class in China, while Porsche updated its Panamera and Taycan models.

Against a backdrop of weakening global demand and intensifying competition, these automakers anticipate a challenging year ahead, with slower sales growth. All three are pushing forward with the development of electric vehicle models while updating their traditional internal combustion engine lineups.

— Source: business-standard
https://www.business-standard.com/industry/auto/german-premium-car-manufacturers-struggle-to-revive-demand-in-china-124041001272_1.html

3. Indian Government Urges Automotive Sector to Prepare "Automotive Mission Plan 2047"

According to reports from New Delhi on April 10, Prime Minister Narendra Modi plans to announce the new "Automotive Mission Plan 2047 (AMP 2047)" at the SIAM and ACMA annual meetings this September. This initiative is part of the government’s 100-day agenda post-election, aimed at significantly boosting India's exports of vehicles and components.

On April 8, the Ministry of Heavy Industries (MHI) held a meeting to discuss integrating success stories and key themes into AMP 2047. The target is to reach 30% automotive and components export share by 2030 and 50% by 2047.

This would mark the third such plan after AMP 2006 and AMP 2016, both of which aimed to make India a preferred global destination for automotive manufacturing and design, though with limited success. Final details are still being developed, with further discussions planned to finalize AMP 2047’s structure and execution roadmap.

— Source: thehindubusinessline
https://www.thehindubusinessline.com/news/govt-asks-auto-industry-to-prepare-automotive-mission-plan-2047/article68051121.ece

4. Indian Auto Exports to Remain Weak in FY25

According to the latest report from India Ratings and Research (Ind-Ra), the country’s automotive and components exports are expected to remain subdued in FY25 due to weakening demand from Europe and the U.S.

Although auto ancillary exports showed a 2.7% year-on-year increase in the first half of FY24, this was down from the 5.2% growth seen in FY23. The report indicates that macroeconomic challenges and geopolitical uncertainties could impact exports from Q4 FY24 through the first half of FY25.

Moreover, slowing domestic demand for commercial vehicles and continued weakness in export markets may limit annual revenue growth to 6%-8%. Indian suppliers, especially those dependent on overseas replacement markets, will need to adapt their strategies as global OEMs diversify supply chains away from China and Europe.

— Source: business-standard
https://www.business-standard.com/industry/auto/muted-exports-for-auto-sector-in-fy25-amid-weak-overseas-demand-ind-ra-124041001064_1.html

5. Africa to Emerge as a Key Battery Export Market, Morocco Leading

According to GlobalData, Africa is quickly becoming a major player in the battery industry. Morocco alone is expected to account for 80% of the region's battery demand by 2035, primarily driven by the automotive sector.

Stellantis and Renault have made major investments in Morocco, further enhancing its position in global automotive and battery markets. In 2022, Stellantis announced a €300 million investment in its Kenitra plant, with a goal of achieving over 22% global market share by 2030.

CEO Carlos Tavares has emphasized that growth in the Middle East and Africa is crucial to Stellantis' global expansion strategy.

Additionally, Chinese battery manufacturers BTR New Materials and CNGR Advanced Materials are planning new factories near Tangier and Casablanca, boosting the region's production capabilities.

— Source: just-auto
https://www.just-auto.com/news/morocco-more-ev-battery-investments-expected/?cf-view

6. Indonesian Auto Market Sees Ninth Consecutive Monthly Decline

According to Gaikindo, Indonesia's car manufacturers association, March 2024 car sales dropped to 74,724 units, down 24% from 101,048 units in March 2023. This marks the ninth straight month of decline following the market rebound post-pandemic.

The central bank has raised interest rates from 3.5% to 6% over the past 18 months, dampening consumer demand for big-ticket items. Despite GDP growth of around 5% in Q4 2023, slower growth in private consumption and investment has weighed down the economy, partially offset by a rebound in exports and government spending.

Q1 2024 vehicle sales fell 24% to 215,069 units from 282,125 units a year earlier. Passenger car sales declined 19% to 170,403 units, while commercial vehicle sales plunged 37% to 44,666 units.

Toyota sales declined 23% YTD to 65,655 units; Daihatsu dropped 15% to 46,003; Honda plummeted 40% to 28,066; Mitsubishi fell 13% to 19,109; Suzuki decreased 21% to 17,801.

Battery Electric Vehicles (BEVs) still make up a small portion of the market, with only 5,920 units sold in 2024 so far. However, Chinese brands are gaining ground with low-cost models such as the Wuling Bingo, alongside other Chinese and Vietnamese models.

To boost domestic demand and attract foreign investment, Indonesia has reduced EV sales tax from 11% to 1% and suspended import duties for companies investing in local production through 2025.

— Source: just-auto
https://www.just-auto.com/news/indonesian-sales-plunge-24-in-march/?cf-view

7. Australia Achieves Record-Breaking New Car Sales, Toyota Leads

Australia's car market continues its upward trajectory, with March 2024 new vehicle sales reaching 109,647 units — breaking the previous March record of 106,988 set in 2018. Q1 2024 also marked an all-time high of 304,452 units, a 13.2% YoY increase.

FCAI CEO Tony Weber noted that 9 of the past 12 months have seen record-breaking sales, reflecting a resilient industry. However, he cautioned about challenges including rising living costs and the upcoming New Vehicle Efficiency Standard (NVES), which may impact both the industry and consumers in the next nine months.

SUVs comprised 58.9% of total sales, while passenger cars fell to 16.1%. Light commercial vehicles declined slightly from 22.6% to 21%. EV market share rose to 9.5%, while hybrids and plug-in hybrids surged to 14%, bringing the total share of electrified vehicles to 23.5%.

Toyota led with 18,961 vehicles sold, followed by Ford, Mazda, Mitsubishi, and Kia. The Ford Ranger was Australia’s top-selling model, joined by the Toyota RAV4, Tesla Model Y, Toyota HiLux, and Mitsubishi Outlander.

— Source: just-auto
https://www.just-auto.com/news/australia-sees-another-sales-record/?cf-view

8. New Zealand New Car Market Suffers Sharp Drop in March

According to Aimee Wiley, CEO of the Motor Industry Association (MIA), New Zealand's new car registrations in March 2024 totaled just 11,616 units, down 27.4% year-on-year and 44.7% from March 2022, due to economic slowdown and high interest rates aimed at curbing inflation.

Year-to-date new car sales dropped 10.8% from 2023, 27.8% from 2022, and 23.4% from 2021. Toyota remained the market leader with 20.6% share, followed by Mitsubishi (12.8%) and Ford (12.1%).

In terms of powertrain, EVs made up 4.5% of the market, plug-in hybrids 1.9%, and hybrids 22.2%. Internal combustion engine vehicles still dominated with a 71.4% share.

Top segments were pickups/chassis cabs (25.4%), mid-size SUVs (22.8%), and compact SUVs (22.1%). Top models included the Toyota RAV4, Kia Stonic, and Kia Seltos.

Commercial vehicle registrations in March were down 6.5% YoY but up 13.4% YTD. Ford led with a 32.6% market share, followed by Toyota (23.9%) and Mitsubishi (20.2%). Top-selling commercial models included the Ford Ranger, Mitsubishi Triton, and Toyota HiLux.

— Source: just-auto
https://www.just-auto.com/news/nz-sales-continue-slowing-in-march/

More Articles...