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Yahoo
8 hours ago
- Automotive
- Yahoo
Why India's Budding EV Sector Has Opened Its Doors To China
For decades, China has driven the lion's share of oil demand growth thanks to its remarkable economic boom and large population. However, China is now losing its prominence in global oil markets due to a dramatic slowdown in its economy coupled with the country's ongoing electric vehicle revolution. Last year, nearly half of all new cars sold in China were electric vehicles, including both battery-electric and plug-in hybrid electric vehicles. Indeed, China's rapid adoption of EVs, as well as rapid growth of high-speed rail and natural gas trucks, is displacing traditional fossil fuel demand, with the International Energy Agency (IEA) predicting that China's oil demand will peak as early as 2027. Ironically, the country that is taking over China's mantle in world oil markets is also aspiring to follow in its EV footsteps: India. Unlike China, India's EV sector is still at its infancy, with electric vehicles accounting for just 2.5% of all cars sold in the country in 2024. However, India has big EV ambitions, with the Indian government having set a target for EVs to make up 30% of total passenger vehicle sales by 2030. To accomplish this, India's EV sector is forging close ties with Chinese EV manufacturers at a time when Washington has been keeping Chinese EV giants at bay. India is relying on Chinese EV tech to bridge the gap until the domestic sector is ready to compete on the global stage. Industry analysts note that without access to Chinese technologies—including batteries, drivetrain components, and EV software—India would likely face slower product rollouts, limited model variety, and higher costs during its growth phase. This marks a clear pivot from just a few years ago, when India restricted the operations of firms like BYD and banned popular Chinese apps such as TikTok and Shein after deadly clashes at the New Delhi appears to be taking a more calculated stance. In March, the government reduced tariffs on over 35 EV components, many of which are imported from China, making it easier for automakers to source critical parts. A few weeks later, India's Ministry of Heavy Industries unveiled a new EV policy slashing import duties on fully built EVs from 110% to 15%, provided manufacturers invest and set up local production. This dual-pronged approach aims to attract international players while building out domestic supply chains. Experts view these shifts as pragmatic. Leading Indian EV makers—such as Tata Motors, Ola Electric, and Mahindra & Mahindra—continue to depend on Chinese vendors for components like battery cells, power control units, and electric motors, even though assembly is carried out in India. 'The aim is to build a resilient domestic ecosystem, not to isolate it, unlike the more aggressive decoupling seen in the U.S. with China,' said Shubham Munde, senior analyst at intelligence firm Market Research Future. Yet this growing alignment between Indian and Chinese EV sectors is creating both opportunity and competition. MG Motor—a joint venture between India's JSW Group and China's state-owned automaker SAIC—has managed to double its market share over the past year, putting pressure on homegrown giants like Tata Motors. Its model, the MG Windsor, is now India's top-selling electric car, highlighting how joint ventures are gaining traction. At the same time, India's EV landscape remains deeply fragmented. According to Bernstein Research, just four legacy automakers dominate 80% of the electric mobility market, leaving over 150 EV startups struggling to establish a foothold in an increasingly competitive space. Government policy appears to be playing an outsized role in the EV trajectories of different countries. In its 2025 Electric Vehicles Outlook, Bloomberg New Energy Finance (BNEF) cut both its near-term and long-term passenger EV adoption outlook in the United States for the first time ever, citing key policy changes including rollback of national fuel-economy targets as well as the removal of supportive elements of the Inflation Reduction Act (IRA) by the Trump administration. In contrast, S&P Global Mobility has forecast strong growth for India's nascent EV sector, projecting that production of battery-electric passenger vehicles will increase by 140% year-over-year in 2025 to roughly 301,400 units. That would represent about 6% of the estimated 5.16 million passenger vehicles expected to be built in India that year. Still, the road to India's 2030 goal may be steep. According to S&P, India would need to boost EV adoption by approximately 380 basis points annually to reach 30% market share—nearly double the current growth rate of around 200 basis points per year since 2021. Compounding the challenge is the lack of a unified long-term roadmap and the pending expiration of several state-level EV incentive programs. By Alex Kimani for More Top Reads From this article on Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
01-06-2025
- Automotive
- Yahoo
Donald Trump revokes EV policies with speed - and uncertain legal standing
President Donald Trump is slated to sign a bill blocking California's emissions regulations as the administration and Republicans in Congress move rapidly to unwind policies that support the electric vehicle transition. The rollback of Biden-era EV policies is the latest move by the government to unravel federal support for the vehicles, some of which are on shaky legal ground, according to a government watchdog. Only five months into a second presidential term, Trump and his allies are poised to strip California of its waivers and have already withheld congressionally allocated funds for a national charging network, two actions that may break the law. Congress is also slated to eliminate the $7,500 individual EV tax credit, impose a new fee for EV owners and end incentives for battery manufacturing. Industry groups and manufacturers have cheered some administration moves, saying they reduce pressure on the industry and prioritize consumer choice. Still, analysts told Automotive News that Trump's decision does not predict the future. 'These things go in cycles,' said Chris Pierce, a senior analyst at Needham and Co. 'What happens if the Democrats win the midterm elections and all of a sudden it's 2027 and Rivian has the R2 out there and GM and Ford have pulled back on EVs?' Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. The federal government for decades has granted California waivers to write its own stricter vehicle emissions. That authority, meant to protect residents from air pollution, was originally offered by the 1967 Air Quality Act and later enshrined in the Clean Air Act of 1970. The Biden administration granted California waivers that allowed for stringent requirements starting with the 2026 model year. Many stakeholders said the requirements were unrealistic. 'There was every expectation that regardless of which political party was in the White House, this was going to have to change,' said Stephanie Brinley, an associate director of research and analysis at S&P Global Mobility. However, Congress used a contested method, the Congressional Review Act, to revoke the California waivers. That mechanism is meant to disapprove agency rules. For example, in 2017, Congress passed a Congressional Review Act joint resolution to disapprove a rule enacted by the Consumer Finance Protection Bureau that would have limited clauses preventing people from suing their banks. In March, the Government Accountability Office affirmed a decision that said the California waivers are not 'rules' subject to Congressional disapproval. The California waivers are instead akin to adjudicatory orders because they are 'a case-specific, individual determination,' rather than 'a broad application of general principles.' The Senate parliamentarian, a nonpartisan chamber adviser, concurred with the GAO in April. California officials have said the state plans to sue. If the use of the Congressional Review Act for this purpose stands, it will open up agency notices, orders, declarations, licensing and statutory interpretations to congressional review, said John Miller, managing director at TD Cowen. The act allows resolutions to avoid the filibuster. 'We're in this place now where the White House can deem anything a rule, and have that agency submit it to Congress and the Senate can move under fast-track procedures,' Miller said. The National Electric Vehicle Infrastructure Formula Program authorized funding to states to deploy a charging network through the Infrastructure Investment and Jobs Act under the Biden administration. Congress appropriated $5 billion to the Department of Transportation's Federal Highway Administration over five years. States submit plans, enter into project agreements with the Federal Highway Administration and the Department of Transportation records a funding obligation. In February, the highway administration said it would review the implementation of the program, rescind previous guidance and suspend approvals for states. It said no new funds would be issued, but existing obligations would be reimbursed. As of Feb. 6, the department had obligated about $527 million of the remaining $3.3 billion. The GAO issued a decision May 22 that said 'DOT violated the recording statute' because it 'treated signed project agreements as the point of obligation' rather than the time that the Infrastructure Investment and Jobs Act made appropriations. The GAO said the department must release funds appropriated by Congress, which has the power of the purse, according to the Constitution. Or, it must 'propose funds for rescission or otherwise propose legislation to make changes to the law for consideration by Congress,' the GAO said. House Republicans passed a budget bill May 22 that reduces federal incentives for battery manufacturing and other clean energy projects. The bill, if approved by the Senate, would cut Section 30D, which provides the $7,500 individual EV tax credit. The bill includes an exception for manufacturers who have not sold 200,000 qualifying vehicles. The bill would also phase out Section 45X, which supports battery manufacturing, by 2028 and it adds restrictions on components associated with certain countries. The bill also institutes a new tax of $250 for EV owners and $100 for hybrid owners. The tax is designed to contribute to the Highway Trust Fund, which supports transportation infrastructure such as highways. Drivers of combustion-engine vehicles pay into the fund via taxes on gasoline. For all the shifts at the federal level, analysts say the impact will be mixed. Changes may slow the EV transition, but it is still happening. EV registrations grew 16 percent to 307,696 vehicles in the first quarter, according to S&P Global Mobility. Share rose to 7.7 percent from 6.9 percent a year earlier. 'EV demand was strong in the first quarter because there was a pull forward, because people were worried about the tax credit going away,' Pierce said. 'We'll see what happens, but there's going to be a subset of people that are going to want EVs.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Associated Press
06-05-2025
- Automotive
- Associated Press
Oliver Wyman Unveils Comprehensive Labor Cost Per Vehicle Analysis Amidst Changing Automotive Landscape
NEW YORK--(BUSINESS WIRE)--May 6, 2025-- Oliver Wyman, a global leader in management consulting and a business of Marsh McLennan (NYSE:MMC) today launches its latest Labor Cost per Vehicle analysis. As the automotive industry faces economic headwinds, shifting global production landscapes, and rising geopolitical tensions, this comparative analysis examines the labor cost per vehicle (LCPV), a critical metric that influences automaker profitability and competitiveness. Getting Under the Hood of Automotive Labor Cost Per Vehicle, analyzes more than 250 vehicle assembly plants worldwide, revealing an average labor cost gap of nearly $1,700 per vehicle between premium European brands and Chinese manufacturers. The report identifies four groupings of car companies with similar labor-cost-per-vehicle attributes but often with very different challenges beyond labor cost, ranked from highest to lowest: Euro Premiums: This group includes high-end European manufacturers characterized by elevated labor costs averaging $2,232 per vehicle. These automakers face challenges such as strong labor unions, stringent regulations, and complex manufacturing processes, which contribute to their high production costs. To remain competitive, they must consider restructuring their operations and optimizing their product portfolios. EV-Only Manufacturers: This category consists of companies focused exclusively on electric vehicles, averaging $1,660 in labor costs per vehicle. Low production rates contribute to this group's relatively high production and labor costs. Further, low volumes make competitive labor productivity challenging, even with non-union wage rates. Mainstream Model Manufacturers: Comprising traditional automakers from the U.S., Europe and Asia, this group averages a labor cost of $880 per vehicle. They benefit from diversified manufacturing networks and decreased production costs due to older factories and lower depreciation rates. Chinese Car Manufacturers: This group has achieved significant efficiencies, with labor costs averaging $585 per vehicle. Chinese automakers have reduced engineered hours per vehicle and benefit from newer manufacturing facilities. Their strategy of producing fewer model variants allows for greater flexibility and lower overall production costs, positioning them favorably in the global market. 'Labor cost per vehicle has emerged as the new gold standard for evaluating manufacturing performance in the automotive industry,' said Jim Schmidt, vice president in Oliver Wyman's Automotive and Manufacturing Industries practice. 'In most mature auto-producing countries, labor costs comprise 65 to 70% of total manufacturing costs, providing insight into overall cost competitiveness.' The leading automotive manufacturing countries, due to their scale and prominence within the industry, largely account for the categorized evaluation of automaker types. While countries that are not of relative scale, such as Morocco, Romania, or Mexico, are not as easily classified into one of the four groups, their low wages and rising production volumes rank them as top contenders of manufacturing-nations with lowest labor cost per vehicle. The competitive advantages of these production centers have attracted offshoring, especially from manufacturers in the mainstream model category. Morocco has become the low-cost production center for French manufacturers, and Mexico is positioned similarly for U.S., German, Japanese, and South Korean automotive manufacturers. 'As we see significant differences in labor costs across regions, manufacturers must strategically assess their operations and consider how these disparities can affect their market positioning, said Daniel Hirsch, Automotive and Manufacturing Industries practice partner. 'The ability to adapt and optimize in response to these variations will be key to sustaining profitability and competitiveness in the evolving automotive industry.' Looking ahead, we plan future releases and analyses over the next months on other critical industry topics, including tariffs, sourcing, battery electric vehicle demand, and Chinese expansion in the automotive sector. About Oliver Wyman Oliver Wyman, a business of Marsh McLennan (NYSE: MMC), is a management consulting firm combining deep industry knowledge with specialized expertise to help clients optimize their business, improve operations and accelerate performance. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit follow us on LinkedIn and X. View source version on CONTACT: Ava Braccia 1 (929) 215 8732 [email protected] KEYWORD: UNITED STATES NORTH AMERICA NEW YORK INDUSTRY KEYWORD: PROFESSIONAL SERVICES AUTOMOTIVE AUTOMOTIVE MANUFACTURING EV/ELECTRIC VEHICLES MANUFACTURING CONSULTING SOURCE: Oliver Wyman Copyright Business Wire 2025. PUB: 05/06/2025 10:30 AM/DISC: 05/06/2025 10:32 AM
