Latest news with #R139
TimesLIVE
28-05-2025
- Automotive
- TimesLIVE
China car market price war stokes fears of industry shake-out
An intensifying auto industry price war in China has stoked fears of a long-anticipated shake-out in the world's largest car market. Shares of China's largest carmakers sank Monday after Chinese electric vehicle giant BYD offered fresh discounts across more than a dozen models, and an executive at another car company fretted openly about the country's deepening price war. BYD's moves cut the starting price of its cheapest model, the battery-powered Seagull hatchback, to 55,800 yuan (R139,596), from nearly $10,000 (R179,779). The BYD price cuts, along with other developments, signal a potential tipping point, where weaker players can no longer sustain deepening losses from the downward spiral on prices, said Tu Le, MD of Sino Auto Insights, an advisory firm. 'This points to a bloodbath later this year,' he said. 'This could be the first domino that would finally put pressure on weaker players, startups such as Neta and Polestar, that have been teetering.' On Friday, the chair of Great Wall Motors, Wei Jianjun, warned that China's car sector was in an unhealthy state, with pricing pressure hammering the bottom lines of car companies and suppliers. He drew a parallel to Evergrande, the Chinese property developer that was liquidated last year after a major debt crisis. " Evergrande in the automobile industry exists, but it has not collapsed," he told Sina Finance in an interview. In another sign of stress in the market, Reuters reported Chinese commerce regulators are examining a growing phenomenon that has also strained the industry: sales of 'used cars' that are essentially new cars with zero miles. The tactic is seen as a way for carmakers and dealers to hit aggressive sales targets, a person familiar with the matter told Reuters. The Hong Kong-listed shares of BYD closed 8.6% lower on Monday, while Geely Auto fell 9.5%. Others, such as Nio and Leapmotor, closed between 3% and 8.5% lower. A slew of startup companies have piled into China's car market over the past decade, drawn by the burgeoning electric vehicle sector. The market has grown crowded with cut-throat price competition and most companies sustaining heavy losses. Of the 169 carmakers operating in China today, more than half have less than 0.1% market share, according to data from research firm Jato Dynamics. The crowded field is reminiscent of the US car sector in the early 20th century, when more than 100 companies vied with big players such as Ford before the industry consolidated. Le said the price war has lasted roughly three years. Car makers once enjoyed a premium for advanced features such as driver-assistance systems that take control of steering and braking in certain situations, but more have been offering these as part of the sticker price. Last week, China's state planner cautioned that competition in some industries was getting too heated, with some companies selling their cars below cost, disrupting fair competition. On Friday, Wei warned the prolonged price war was harming the automotive supply chain. Some suppliers are at risk of going under because of pressure from car companies to lower their prices, he said. "Some products have been reduced from 220,000 yuan (R548,805) to 120,000 yuan (R299,449) in the past few years,' he said, without naming companies. 'What kind of industrial products can be reduced by 100,000 yuan (R249,541) and have quality assurance?' Predictions of consolidation in China's car market have gone on for years, but the field has only grown, said Michael Dunne, a consultant who closely follows the China car industry. 'BYD's price cuts will drive out some of the weaker players,' he said.
TimesLIVE
15-05-2025
- TimesLIVE
Tiny creatures are big business: Smuggled ants worth R4,163 each on black market
While much of the world's attention is focused on the poaching of charismatic megafauna like elephants, pangolins and rhinos, a quieter, less visible crisis is unfolding beneath our feet, one involving some of the smallest animals on the planet — invertebrates. Earlier this year, two Belgian teenagers were apprehended in Kenya with 5,000 ants in their possession. They were given a choice of paying a fine of $7,700 (R139,372) or serving a minimum 12-month prison sentence under Kenya's wildlife conservation laws. Senior lecturer in invertebrate biology at the University of KwaZulu-Natal Caswell Munyai said the global trafficking of ants, spiders, scorpions and other invertebrates, or smuggling, is complex and diverse. 'Besides being traded for food, most invertebrates are targeted for their use in traditional medicine. Also there has been a growing demand for trading arthropods targeted for the pet trade,' said Munyai. According to Ant Authority, queen ants can cost between $20 (R362) and $60 (R1,086), depending on species and season. Rare species like the jumper jack or bull ant queens go for up to $230 (R4,163) and $120 (R2 172) respectively. Though common pavement ants might only sell for about $27 (R489), the more exotic species, especially those from the Global South, are a hot commodity on online marketplaces, which is often illegal. 'Some of the most trafficked or well-known invertebrates involved in trading between global markets are those in the phylum mollusca, which includes snails, mussels, octopus and arthropods, such as insects, spiders,' said Munyai. 'For mollusca, they are heavily trafficked due to the high demand for seafood and their shells, which are probably used in jewellery and decorative items.' Munyai said when it comes to arthropods, ants, spiders, stick insects and scorpions are particularly targeted. 'There has been a spike in the past decade or two, particularly involving arthropods being trafficked from countries in the Global South and sold in developed countries.' While the motivations are diverse, some are collected for use in exotic food dishes or traditional medicine while others are sold in pet shops or online and destined for formicariums in homes far removed from their native habitats, he said. Beyond the legal and ethical concerns, the ecological consequences of invertebrate trafficking are immense. 'Despite the obvious impact related to the disruption of the natural balance of the ecosystem where these species occur, the trade has cascading negative effects. It affects food chains, species interactions and even ecosystem service provisioning and functioning,' said Munyai. A recent case that illustrates the problem starkly is that of an attempt to smuggle the African Harvester Ant out of Kenya last month. Munyai said this species plays a critical role in seed dispersal, helping maintain the health of native ecosystems, and that removing such a species disrupts not only plant regeneration but also the food web. 'Spiders and scorpions that are being trafficked out of their native ecosystems have important predatory roles. They help manage pest populations which, if left unmanaged, pose serious problems to agriculture and ecosystems.' Munyai said there can be consequences long after these creatures are sold. 'Some of these, unfortunately, become serious pests (alien invasive species). This happens when the owners or those who initially bought them no longer want them, or when they escape into the wild.' Munyai says enforcement remains patchy. 'On paper, there are good wildlife protection laws here in South Africa and globally. But on the ground, quite a lot is happening unchecked. Most conservation attention still goes to 'charismatic' wildlife. Very few cases are reported for things like ants. That's why the Kenyan case caught so much attention — people were shocked,' Munyai said. Despite comprising 95-97% of all known animal species, invertebrates remain vastly understudied and underfunded in conservation. 'These little things run the world. They are everywhere, from our intestines to our houses, and our fields, playing roles in pollination, pest control and nutrient cycling. Yet very little to nothing is known about the distribution patterns of our invertebrate biodiversity,' said Munyai. According to Munyai, funding for invertebrate research pales in comparison to that for vertebrates. Conservation planning often prioritises larger animals, leaving invertebrates as an afterthought. 'We need more studies on the distribution and ecology of invertebrates. We need to increase public awareness and interest in these animals, which I hope will increase the general concern for their conservation,' said Munyai. The recent spike in attention to the trafficking of invertebrates may be the start of a turning point. But Munyai is cautious. 'This is happening under our noses. If you look at some of our pet shops, you will know. We really need to look into what is leaving through our ports — by sea, land, or air,' he warned. 'By the time we realise this, it may be too late.'
