UK new car sales recover in May as EV discounts attract buyers
Britain's new car sales rose from a year earlier in May, marking the second month of recovery in 2025, amid heavy discounting by electric vehicle makers, a report by the Society of Motor Manufacturers and Traders (SMMT) showed on Thursday.
Chinese EVs have been rapidly expanding in the European markets by offering deep discounts and forcing other automakers in an intense price war that has strained their profit margins.
New car registrations rose 1.6per cent year-over-year to 150,070 units during the month, SMMT said, the best May performance since 2021.
Electric vehicles accounted for more than 47per cent of the total car sales in May with
battery electric vehicle sales
rising 25.8per cent year-over-year.
"A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles," SMMT chief Mike Hawes said in a statement.
The auto industry, already strained by supply chain disruptions and stiff competition, has been forced to cut prices amid brittle consumer sentiment, uncertain global trade policies, and the costly shift away from internal combustion engines.
"The continued rise in EV registrations shows a growing consumer appetite for sustainable transport, further fuelled by the government's recent announcement to remove the need for planning applications for at home EV charging installations," said Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte.
Tesla sold 2,016 cars in the UK during the month, a 36.04per cent decline year-over-year, according to SMMT.
Data published earlier this week by research group New AutoMotive showed a bigger 45per cent drop in the automaker's UK sales.
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The Print
42 minutes ago
- The Print
Operation Sindoor: How Rafales, Pakistani J-10s & lots of propaganda moved global defence markets
But as the fog of war began to clear and these claims were found to be exaggerated, Dassault's shares staged a recovery, reflecting a broader market correction. A rally in defence stocks, particularly among Chinese firms, may be attributed to the speculation or claims that Pakistan Air Force (PAF) fighters, mainly Chinese-origin JF-17s and J-10Cs, had downed multiple Indian Rafale jets. This was the first instance of Chinese fighter jets being tested in real combat, attracting attention from defence watchers globally. Equally, it was the first time any claim emerged of a Rafale being shot down, an event that weighed on market sentiment, including on Dassault Aviation's stock. New Delhi: The impact of Operation Sindoor extended far beyond the battlefield as aerial battles continued in the stock markets. After India carried out precision strikes on nine terror camps in Pakistan and Pakistan-occupied Kashmir in the early hours of 7 May, global defence markets reacted with notable fluctuations, reflecting investor sensitivity to regional tensions. ThePrint examines how the 88-hour India-Pakistan standoff sent ripples through global defence markets, impacting the stock prices of the Aviation Industry Corporation of China (AVIC) and its subsidiaries, as well as Lockheed Martin and Dassault Aviation. Stock prices are compared from the day Operation Sindoor began through to the closing figures on Thursday, with all values converted to INR using the prevailing exchange rates at the time of reporting. Also read: Defence stocks surge continues amid escalating India-Pakistan tensions since Pahalgam attack Pakistan's propaganda of multiple Rafale jets being shot fuelled Chinese defence stocks China's state-owned Aviation Industry Corporation of China (AVIC), particularly its Chengdu Aircraft division, saw one of the sharpest stock moves. AVIC Chengdu, which designs and manufactures the JF-17 and J-10C fighter jets used by the Pakistan Air Force, surged from Rs 828 on 7 May to Rs 1,145 by 12 May, witnessing a massive 38 percent jump in five days. Although the stock had cooled to Rs 939 by Thursday, it retained a net gain of 13 percent since the launch of Op Sindoor. Furthermore, another subsidiary of the state-owned AVIC group—AVIC Airborne Systems—which supplies precision avionics and weapons for the J-series jets operated by Pakistan, also saw a modest rise. Its stock climbed from Rs 136 to Rs 144 between 7 May and 12 May, marking a 5.9% increase that reflected growing investor confidence in China's deepening role in Pakistan's defence supply chain. By Thursday, however, the stock had eased slightly to Rs 138. Other than the speculation of these Chinese origin fighters performing exceedingly well, these spikes are also driven by investor belief that Pakistan might accelerate fighter acquisitions to strengthen its aerial capabilities following Operation Sindoor. Reports indicate that Pakistan could take delivery of the fifth generation FC-31 stealth fighter, the export version of China's J-35A, later this year. According to the latest Stockholm International Peace Research Institute (SIPRI) report, Chinese equipment accounted for 81 percent of Pakistan's major arms imports over the past five years. Subsequently, during last month's hostilities, Pakistan fielded a range of Chinese-origin platforms, including JF-17 and J-10C fighter jets, HQ-9B long range air defence systems, HQ-16 medium range air defence systems, PL-15E beyond visual range air-to-air missiles (BVRAAM) and Chinese unmanned aerial vehicles (UAVs). Beyond the loss of a couple of PAF aircrafts, several Chinese-supplied HQ-9B long-range and HQ-16 medium-range air defence systems were taken out by Harpy and Harop loitering munitions sourced from Israel. Additionally, the recovery of debris of a PL-15E beyond-visual-range air-to-air missile (BVRAAM) was confirmed by DG Air Operations (DGAO) Air Marshal A.K. Bharti in a press briefing. It was learnt that the much-discussed Chinese PL-15E missile failed to register a single hit during the conflict. Also read: Pakistan to go in for J-31 Chinese stealth fighters. What this could mean for balance of air power Western defence giants and market sentiment Western defence companies, from France's Dassault Aviation to the U.S.-based Lockheed Martin, experienced divergent market responses, shaped as much by battlefield developments, speculative reports and domestic developments. Dassault Aviation, the manufacturer of India's Rafale jets, recorded a 6.4 percent decline between 7 and 12 May, with its stock falling from Rs 31,406 to a low of Rs 29,405. However, it had rebounded back to Rs 31,367 on Thursday, nearly regaining its pre-drop value. Incidentally, while Dassault Aviation hit its lowest point on 12 May, China's AVIC Chengdu registered its highest stock price during the same period, highlighting the contrasting market sentiments around the two defence suppliers amid the conflict. The initial dip may have been driven by concerns over possible losses, as the Indian Air Force did suffer setbacks during the operation, first hinted at by Air Marshal A.K. Bharti during the tri-services briefing held on 11 May and later confirmed by Chief of Defence Staff General Anil Chauhan in a Saturday interview with Bloomberg TV. Yet the Rafale jets, armed with SCALP cruise missiles and AASM Hammer glide bombs, carried out precision strikes on multiple targets across Pakistan and Pakistan-occupied Kashmir. The subsequent rebound in Dassault's stock suggests renewed investor confidence in the aircraft's combat effectiveness and strategic value. Furthermore, on Thursday, it was announced that the Rafale fighter aircraft fuselage will now be manufactured domestically by Tata Advanced Systems, strengthening its position as a strong contender for the Multi-role Fighter Aircraft (MRFA) programme. In contrast, Lockheed Martin, whose F-16 fighters once formed the backbone of the Pakistan Air Force, registered only a modest 1.34 percent gain during the same period, with its stock rising from Rs 40,449 on the day Operation Sindoor was launched to Rs 40,990 by Thursday. The limited uptick can be attributed to heightened interest in the American aerospace giant's F-21, an advanced 4.5-generation fighter pitched as a potential contender for India, especially after unverified reports of Rafale being downed during Operation Sindoor drew the attention of investors and defence analysts. Lockheed Martin's uptick movement in stocks may also be linked to U.S. President Donald Trump's announcement on 15 May for the development of an upgraded 'F-22 Super' and a twin-engine variant of the F-35, provisionally dubbed the F-55. How speculation, politics and perception shape market swings Analysts also point out that stock movements observed since 7 May were driven not just by battlefield results but by narrative, politics and investor psychology. 'From a market perspective, defence procurement is a massive business. During events like Operation Sindoor, exaggerated speculation and misinformation are to be expected, especially when they serve the interests of those looking to profit,' Dr Vikas Gupta, CEO and smallcase manager at OmniScience Capital, told ThePrint. Big-ticket defence exports such as fighter jets are typically sealed through government-to-government agreements that generate employment and strategic influence for the given party, he added. 'At times, even governments may quietly encourage certain narratives if they align with their economic interests.' Dr Gupta also pointed out how China's market mechanics differ from the West. 'In China's case, there's an added layer of complexity. Beijing can directly intervene in markets, banning short selling, for instance, to stabilise or boost the performance of AVIC subsidiaries. That kind of intervention isn't feasible in countries like France, where the government usually avoids market interference.' Ultimately, the swings observed in the wake of Operation Sindoor reinforce a perceived reality of defence stocks remaining highly reactive to geopolitical flashpoints, with prices shaped as much by perception, speculation, politics and investor psychology as by actual battlefield performance. (Edited by Viny Mishra) Also read: Operation Sindoor signals a real paradigm shift, says ex-IAF chief. 'We hit where it hurts the most'
Mint
an hour ago
- Mint
Critical minerals will remain a problem in US-China talks. These industries are at risk.
Critical minerals will likely remain a source of leverage for Beijing in trade talks with the U.S., even if President Donald Trump's Thursday call with Xi Jinping speeds up the flow of rare earths to feed auto, industrial and other supply chains. The issue dates back to early April, when China imposed restrictions on exports of the metals as part of its retaliation against Trump's imposition of tariffs of up to 145% on its exports to the U.S. In mid May, after negotiators met in Geneva, the U.S. said China had agreed to lift the restrictions as the countries agreed to a 90-day pause on levies that were choking off trade between them. The problem is that while China is allowing exports of rare earths, used in magnets that go into automobiles, for example, companies that want to export them need licenses. Companies say they aren't easy to get, though Reuters reported on Friday that Beijing had granted temporary licenses to suppliers of the big three U.S. auto makers. Its report cited people familiar with the matter. A spokesperson from the Chinese embassy said he wasn't aware of the situation specifically related to the licensing, reiterating that the export control measures are in line with international common practices, nondiscriminatory, and not targeted at specific countries. While only a fraction of the members of the American Chamber of Commerce in China—mostly technology and industrial companies—were affected by rare-earth export restrictions, three-quarters of those said their supplies would run out within three months, according to a survey from the trade group. While the survey found that Chinese suppliers to U.S. companies had recently been granted six-month export licenses, they noted continued uncertainty because there is a large backlog of license applications. Gracelin Baskaran, a mining economist and director of the Critical Minerals Security Program at the Center for Strategic and International Studies, said about 25% of licenses applied for have been given out, but that they aren't being processed fast enough. Part of that is due to the administrative task. China is the source of 100% of the rare-earth processing capability in the world, so it is issuing licenses for exports not just to the U.S., but for many other countries. But it could also be part of the negotiations. 'China has made it very clear it's not satisfied with the 90-day tariff pause and looking for a more durable solution to the tariff conundrum," said Baskaran, noting the deflationary impact of the tariffs on China's economy. 'It's not in their incentive to give out licenses quickly as their economy is in a downward spiral. These licenses are their leverage." The U.S. had been the dominant rare-earth producer until the 1990s, but China steadily took market share, ramping up production to levels that made it unprofitable for others, forcing them out, Baskaran said. A similar phenomenon is currently under way in nickel, she U.S. has been producing rare earths in California and is building out separation and processing capabilities, with companies like MP Materials boosting their refining abilities. 'It's a perfectly solvable problem and one the U.S. is working at warp speed to address," Baskaran said. 'It's not a forever problem." That said, it could continue be a source of pain, leaving the U.S. vulnerable in talks with China. An array of industries reliant on these critical minerals, from autos to electronics, semiconductors, and defense, are likely to suffer. Write to Reshma Kapadia at
Mint
an hour ago
- Mint
US investment firm Artisan Partners to liquidate China portfolio by end-June
Firm says liquidation comes amid uncertain geopolitical environment Spokesperson says Hong Kong office will remain operational US has heightened scrutiny of American capital flowing into China By Kane Wu and Summer Zhen HONG KONG, - U.S.-based investment firm Artisan Partners is liquidating a China-focused investment portfolio by the end of June, a company spokesperson said on Saturday. "This decision comes amid an increasingly uncertain geopolitical environment and a persistently challenging economic and market backdrop, which have put significant pressure on flows across dedicated China strategies," the Artisan spokesperson said. The spokesperson said its Hong Kong office will remain operational, housing investment and trading professionals. Two sources with knowledge of the matter told Reuters on Friday that the firm was disbanding the Hong Kong-based team responsible for its Greater China strategy. One said the decision was partly due to concerns about escalating Sino-U.S. trade and geopolitical tensions that have made investments in the world's second-largest economy riskier. The sources declined to be named as the information was not public. Reuters could not immediately ascertain how many people would be affected by the decision. The firm's China post-venture strategy, a fund that focuses on Chinese small- and mid-cap public and private companies, had $113 million of assets under management at the end of April, according to the firm's monthly update. In the same update, Artisan said the China-focused portfolio was in the process of winding down, without giving details. The firm's retreat from China-focused investments comes amid the U.S. government's tightened scrutiny of American investments in China and an ongoing trade war that has clouded the business outlook of many export-heavy companies from China. The U.S. government restricts U.S. investments in certain sensitive technology sectors in China, such as semiconductors, artificial intelligence and quantum computing. U.S. investors are also restricted from investing in companies that are on the U.S. sanctioned entity list that comprise a growing number of those from China. U.S. onshore investors were not able to buy shares of Chinese battery giant CATL in its $4.6 billion Hong Kong listing last month due to the structure of the deal, CATL's filings showed. CATL was placed on a U.S. Defense Department list in January of Chinese companies it says work with China's military. By March 2025, Artisan's China post-venture strategy posted a net loss of 10.4% since its inception in March 2021. "The largest risks for investing in China will continue to be geopolitics and domestic policy overshoots," Tiffany Hsiao, the strategy's portfolio manager, said in a client letter on the firm's website in April. Outside the U.S., Artisan also has offices in London, Dublin, Singapore and Sydney, according to its website. The move follows the exit or downsizing of several North American asset managers and international law firms from Hong Kong over the past few years. Ontario Teachers' Pension Plan, Canada's third-largest pension fund, announced the closure of its Hong Kong office in March. This article was generated from an automated news agency feed without modifications to text.
