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Free Malaysia Today
5 hours ago
- Automotive
- Free Malaysia Today
EVs boost German auto sales, Tesla falls again
Tesla, which has suffered across Europe due to anger that Elon Musk played a role as a key advisor to US President Donald Trump, saw its sales slide by 36%. (AP pic) FRANKFURT : A jump in electric car sales helped give a slight boost to Germany's troubled auto market last month, official data showed today, although Elon Musk's Tesla fared poorly again. A total of 239,297 new vehicles were registered in May in Europe's top car market, 1.2% more than the same month last year, the KBA federal transport authority said. The number of electric vehicles (EVs) registered jumped 45%, as the segment continues a tentative recovery following a downturn last year triggered by the removal of government subsidies. This offset declines for petrol and diesel vehicle sales. However, electric car maker Tesla, which has suffered across Europe due to anger that Musk played a role as a key advisor to US President Donald Trump, saw its sales slide again, this time by 36%. The US billionaire has faced particular hostility in Germany for backing the far-right Alternative for Germany (AfD) before February's general election. Musk left his role as an advisor to Trump last week, although it is not yet clear what impact this could have on Tesla's fortunes. Registrations of BYD cars jumped more than 800% from a year earlier, to nearly 1,860 vehicles, although the Chinese EV giant is just beginning to make inroads in Germany. EY analyst Constantin Gall said many EV manufacturers had 'significantly reduced the price difference between combustion engines and comparable EVs, and are also offering very attractive financing or leasing conditions for electric cars'. The German auto market has performed weakly in recent years, and is still about 28% below pre-pandemic levels, according to EY. 'The market is moving sideways and not advancing – neither in Germany nor in Europe,' said Gall.
Free Malaysia Today
23-05-2025
- Automotive
- Free Malaysia Today
BYD dealership closures reveal financial pain in China's auto market
Adjustments in BYD's dealer policy over the past years, combined with tightened bank lending, have put pressure on dealership cash flow. (EPA Images pic) SHANGHAI : Car dealership groups in two provinces have gone out of business since last month in China, both of them BYD Co retailers, evidence of the tough competition in the nation's auto market and proof that not even selling the country's No 1 brand can shield businesses from financial difficulties. Xingqi Group outlets in Liaoning province have stopped delivering new cars or providing service for more than 60 customers, according to Liaoning Radio and Television Station, while more than 500 people have formed online consumer rights groups to demand action from Qiancheng Holdings, which operated about 20 showrooms in Shandong province. Its stores also appear to have now closed, Chinese media outlet Autodealer reported May 6. Car dealerships in China are facing a profound shift brought about by the transition to electric vehicles and a slowdown in consumer spending that's left yards stuffed with stock. Most EV manufacturers now have a direct-to-consumer model, while the reduced servicing required by EVs and hybrids is also hitting dealerships' bottom lines. Stock levels in April reached 3.5 million cars, or 57 inventory days, the highest since December 2023, according to data shared earlier this week by Cui Dongshu, the secretary general for the China Passenger Car Association. Qiancheng Holdings said that adjustments in BYD's dealer policy over the past two years has put tremendous pressure on its cash flow. And due to other dealerships in Shandong province going under, local banks have tightened lending, adding to the pain, it said in an April 17 letter circulating on social media. Calls to Qiancheng Holdings and Xingqi Group weren't answered. Representatives for BYD didn't respond to requests for comment. One customer based in Jinan, the capital city of Shandong, told Bloomberg that she purchased a BYD Seagull hatchback at one of Qiancheng's stores last June. The dealer gave her lifetime servicing and also sold her an insurance package for 10,500 yuan (US$1,500). When she went back to the showroom earlier this year to renew her insurance, she found it had shut. She called BYD's official hotline but wasn't offered any solution, she said, declining to be identified for privacy reasons. Many BYD dealerships have excess stock after the company launched a new advanced driver assistance technology called God's Eye in February that will be installed in most of its models. That meant BYD dealers had to get rid of older stock quickly. Inventory levels at its outlets were the third highest of all brands in January, according to a China Automobile Dealers Association analysis. Under pressure to sell the cars, many dealerships resorted to slashing prices by thousands of yuan.
Yahoo
07-05-2025
- Automotive
- Yahoo
UK new car market impacted by tax changes in April
The UK's new car market saw a 10.4% decline in April, with 120,331 units registered, as per the Society of Motor Manufacturers and Traders (SMMT). This marks the sixth decline in seven months, reflecting economic challenges and reduced consumer confidence. Registrations were 13,943 less than the previous year and 25.3% below April 2019 levels. It was also impacted by the late timing of Easter, resulting in fewer working days. Additionally, changes to vehicle excise duty (VED), including the expensive car supplement affecting many new electric vehicles (EVs) from 1 April, led to a surge in March transactions as buyers anticipated tax increases. Sales registrations dropped in all categories, with private sales down by 7.9%, fleet by 11.9%, and business by 10.9%. Fleet buyers drove activity, accounting for six in ten registrations. Hybrid electric vehicles (HEVs) saw a 2.9% decline, while petrol and diesel registrations fell 22.0% and 26.2% respectively. However, plug-in hybrids (PHEVs) rose 34.1%, and battery electric vehicles (BEVs) increased 8.1% to 24,558 units, capturing 20.4% of the market. The market now offers over 130 BEV models, including more affordable options, due to significant manufacturer investment. Year-to-date, the new car market is up 3.1%, with BEV registrations up 35.2%, pushing market share to 20.7%. Despite this growth, BEVs remain below the 28% target required by market regulations. Government incentives are crucial to boost volumes. Measures such as halving VAT on new EV purchases, amending the VED expensive car supplement (ECS), and equalising VAT on public and home charging could encourage hesitant buyers to opt for electric vehicles. SMMT chief executive Mike Hawes said: 'April's performance is disappointing but expected after March's surge. Another month of growth for electric vehicle registrations is good news, however, even if demand remains well below ambition. "Recent government adjustments to flexibilities and compliance within the ZEV Mandate are welcome and an important first step in relieving some of the pressure on the market and manufacturers. However, EV uptake is still being heavily and unsustainably subsidised by the industry which is why a compelling package of measures from government is essential if consumers are going to make the switch.' The latest market outlook revises 2025 new car registrations to 1.964m units but 2026 expectations remain below two million for the seventh consecutive year. Market share expectations for new BEV registrations remain steady, with a slight downward revision from January's view by 0.2% points to 23.5% for this year and 0.3% points to 28% next year, compared to the Zero Emission Vehicle Mandate targets of 28% and 33% respectively.
