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Business Times
26-05-2025
- Automotive
- Business Times
Chinese EV stocks tumble after BYD slashes prices as much as 34%
[HONG KONG] BYD led Chinese electric vehicle stocks lower in Hong Kong on Monday (May 26), as investors digested the auto giant's sweeping price cuts of as much as 34 per cent late last week. Shares of China's No 1 selling car brand tumbled as much as 8.3 per cent, while peers Li Auto, Great Wall Motor and Geely Automobile Holdings dropped more than 5 per cent amid investor concern about intensifying competition in the sector. BYD offered discounts on 22 of its electric and plug-in hybrid models that it sells in China until the end of June, fanning the flames of a renewed sector-wide price war. While EV sales have overall reached new annual highs, growth has been decelerating. To kickstart sluggish consumer demand – made worse by China's broader economic malaise – automakers in the world's biggest car market have slashed sticker prices. Even so, stock levels at dealerships last month reached 3.5 million cars, or 57 inventory days, the highest since December 2023, according to data shared last week by the China Passenger Car Association. Revisions by BYD include paring the price of its Seagull hatchback to 55,800 yuan (S$9,971), a 20 per cent reduction to a model that was already the carmaker's cheapest and one that had garnered global attention for its sub-US$10,000 price tag. The Seal dual-motor hybrid sedan saw the biggest price cut at 34 per cent, or by 53,000 yuan to 102,800 yuan. In recent months, BYD has attempted to clear inventory of older models, including ones without the new driver assist features – which the automaker announced in February would be added to its models for free. The pivot hasn't been without problems, further hurting the struggling dealerships it does business with. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'While some of these discounts have been in place since April, the official announcement sends a strong signal of how tough the end market is,' Morgan Stanley analysts including Tim Hsiao wrote in a note. BYD's latest cuts are expected to have a knock-on effect, as rival automakers further trim their prices, slicing deeper into already thin margins. The intense pricing pressure is straining many carmakers' bottom lines, leading to mounting financial losses and industry consolidation. 'We anticipate peers to follow BYD's price cut,' analysts at Citi Research wrote, noting that Chongqing Changan Automobile announced a cash discount of 25,000 yuan for its Deepal S07 model over the weekend while Zhejiang Leapmotor Technologies adjusted prices for its C16 full-size crossover sport utility vehicle and mid-sized SUV C11. Citi estimated that after the weekend's discounts, BYD dealership traffic may have surged between 30 to 40 per cent week-on-week. Should that foot traffic translate into sales, BYD's May volumes could keep their upward trajectory. The Shenzhen-based group posted its best month of sales yet for 2025 in April, a further sign that despite the broader industry pain, it's on track to hit its full-year target of 5.5 million deliveries. BYD is also gaining ground overseas. It sold more EVs in Europe than Tesla for the first time last month, overtaking the American brand that long led the continent's EV segment. Thanks to BYD's vertically integrated supply chain – it makes its own batteries and many of its own semiconductors – and domestic scale, which helps reduce production costs, the impact of China's car price wars on its balance sheet is more muted than for some other automakers. Its gross margin for the quarter ended Mar 31 was around 20 per cent versus about 16 per cent for Tesla, for example. And BYD's net income in the first quarter jumped to 9.15 billion yuan, overtaking Tesla on another key metric. BLOOMBERG
Time of India
13-05-2025
- Business
- Time of India
iPhone 16 drives Apple to 23% growth in Q1, leads India's premium smartphone market
HighlightsApple registered a remarkable growth of 23 percent among the top five smartphone brands in India for the January-March quarter, shipping a record three million units, as reported by International Data Corporation. The average selling price of smartphones reached a record high of $274 in the first quarter of 2025, with the premium segment experiencing the highest growth of 78.6 percent. Approximately 29 million 5G smartphones were shipped in the quarter, with the share of 5G smartphone shipments increasing to 88 percent, driven by affordable new launches in the market. Apple registered the highest growth of 23 per cent among the top five brands in India in the January-March quarter, shipping a first-quarter record of three million units, an IDC report said on Monday. In the March quarter, iPhone 16 was the highest shipped model, accounting for 4 per cent of overall India shipments during Q1 2025. The first two months of the year saw fewer launches with brands focusing on offering retail support, discounts and price drops on older models to clear inventory. 'However, new launches picked up in March across price segments with enhanced marketing activities to drive demand,' said Aditya Rampal, senior market analyst, Devices Research, IDC Asia Pacific. ASPs (average selling price) reached a record of $274 in Q1 2025, growing by 4 per cent (on-year). The premium segment ($600- $800) registered the highest growth of 78.6 per cent, with share up from 2 per cent to 4 per cent. iPhone 16 alone accounted for 32% of the shipments in this segment. The mid-premium segment ($400-$600) also saw strong growth of 74 per cent, with share reaching 6 per cent from 3 per cent. Apple and Samsung's share increased in this segment, led by iPhone 13 and Galaxy A56, according to the report. Around 29 million 5G smartphones were shipped in the quarter. The share of 5G smartphone shipments increased to 88 per cent, up from 69 per cent in Q1 2024, with ASPs declining by 11 per cent YoY to $300. Within 5G, the share of the low-end (sub-US$100) segment reached 7 per cent led by affordable new launches, while 45 per cent of the shipments were still within the mass budget segment of ($100-$200). Qualcomm-based shipments grew by 40.8 per cent on-year, at 31.8 per cent share, led by affordable offerings like Xiaomi's Redmi 14C, while MediaTek's share declined to 43.6 per cent from 55.3 per cent on a shipment decline of 25.5 per cent YoY in Q1 2025, the report mentioned. IDC estimates a low single-digit growth in 2025 in terms of shipments, as ASPs continue to rise, leading to a mid-single digit value growth annually.
CNA
02-05-2025
- Business
- CNA
China low-value package tariff exemption ends but questions remain over US collections
WASHINGTON: The Trump administration ended United States duty-free access for low-value shipments from China and Hong Kong on Friday (May 2), removing the "de minimis" exemptions availed of by Shein, Temu and other e-commerce firms as well as traffickers of fentanyl and other illicit goods. The action restores an executive order from President Donald Trump in February that was quickly suspended due to a lack of screening procedures for sub-US$800 shipments that sparked chaos at airports and caused millions of packages to pile up. US Customs and Border Protection (CBP) has "a massive task at hand" but is ready to handle the enforcement and collection of Trump's tariffs on small Chinese shipments, a spokesperson for the agency said. "We are prepared and equipped to carry out enhanced package screening and enforce orders effectively as outlined" in Trump's executive order ending de minimis treatment for China, the spokesperson added. The new procedures should not affect passenger wait times at airports and ports of entry, the spokesperson said. The packages are handled in the cargo section of airports, even when they arrive in the bellies of passenger planes. Under CBP's latest guidance, shipments from China and Hong Kong, regardless of size, will now be subject to Trump's new tariffs of 145 per cent plus any prior duties, except for products such as smartphones, which were excluded last month. These will largely be handled by express shippers such as FedEx, United Parcel Service or DHL, which have their own cargo handling facilities. Items valued at up to US$800 and sent from China via postal services are treated differently. They are now subject to a tax of 120 per cent of the package's value or a flat fee of US$100 per package - an amount that rises to US$200 in June. COLLECTIONS AT TAKE-OFF The US Postal Service (USPS) said it would not be involved in any duty collections. Instead, a USPS spokesperson said airlines and vessel operators would need to work with shippers and Chinese postal authorities to pay the import taxes and show proof before the goods are transported out of China or Hong Kong. Although de minimis is a Latin term referring to matters of little importance, low-value shipments from China to the US reached an estimated US$5.1 billion in 2024, according to US Census Bureau data. That made it the seventh-largest US import category from China, behind video game consoles, but just ahead of computer monitors. Shippers were bracing for more package chaos, and some questioned whether airlines were prepared to handle duty collection from China Post and Hongkong Post. "We have the same worry about bottlenecks," said Kate Muth, executive director of the International Mailers Advisory Group (IMAG), whose members include eBay and divisions of United Parcel Service, FedEx and DHL. "I don't think we're ready for the change because we're still awaiting some clarification around the rules," including how to define Chinese origin for goods that are shipped from other countries, Muth said. The end of de minimis and high US tariffs on Chinese goods are likely to dent international air cargo traffic, which had been surging as US shoppers bought more from platforms like Shein and Temu. International air cargo traffic grew by 12.3 per cent last year but that growth rate will likely collapse to between -0.1 per cent and 0.7 per cent this year, according to Frederic Horst, managing director of Sydney-based consultancy Trade and Transport Group, as fewer products get shipped by air from China to the US and the global economy weakens. "It's a big problem for those carriers that are operating on those markets, and from carriers that I've talked to recently there's a lot of cancellations that are happening right now for the next one or two weeks," Horst said. De minimis packages account for around one-third of the total air cargo tonnes coming to the US from Asia, and that trade volume could drop by 75 per cent this year, Trade and Transport Group estimates. FORMAL ENTRY SHIFT A late change in the CBP's guidance took away a major complication for shippers, but created a potential new hurdle to enforcement as CBP temporarily suspended a rule that would have required formal customs entry for all shipments valued at over US$250 containing goods that are also subject to punitive tariffs. Formal customs entry, normally associated with larger, containerised cargo, requires full 10-digit tariff codes for all items, advance electronic transmission of entry data and a bond to cover customs liability. It would have applied to many other countries now subject to US tariffs imposed by Trump, creating a potential new crush of administrative paperwork for shippers. Instead, the suspension allows the use of informal entry procedures for shipments from China and Hong Kong valued at up to US$800 and up to US$2,500 from elsewhere, requiring no tariff codes and a less detailed contents description. Lori Wallach, director of Rethink Trade, which has advocated an end to the de minimis exemption, said the use of informal entry would make it harder to screen packages. "Without it being electronic or having an HTS code, the whole system that's used to inspect and to prioritise things that should be pulled for inspection doesn't work," Wallach said.
Free Malaysia Today
02-05-2025
- Business
- Free Malaysia Today
China's low-value package tariff exemption ends
Low-value shipments from China to the US reached an estimated US$5.1 billion in 2024, according to US Census Bureau data. (EPA Images pic) WASHINGTON : The Trump administration ended US duty-free access for low-value shipments from China and Hong Kong today removing the 'de minimis' exemptions availed of by Shein, Temu and other e-commerce firms as well as traffickers of fentanyl and other illicit goods. The action restores an executive order from President Donald Trump in February that was quickly suspended due to a lack of screening procedures for sub-US$800 shipments that sparked chaos at airports and caused millions of packages to pile up. 'US customs and border protection (CBP) has 'a massive task at hand' but is ready to handle the enforcement and collection of Trump's tariffs on small Chinese shipments,' a spokesman for the agency said. 'We are prepared and equipped to carry out enhanced package screening and enforce orders effectively as outlined' in Trump's executive order ending de minimis treatment for China, the spokesman added. 'The new procedures should not affect passenger wait times at airports and ports of entry,' the spokesman said. The packages are handled in the cargo section of airports, even when they arrive in the bellies of passenger planes. Under CBP's latest guidance, shipments from China and Hong Kong regardless of size will now be subject to Trump's new tariffs of 145% plus any prior duties, except for products such as smartphones which were excluded last month. These will largely be handled by express shippers such as FedEx, United Parcel Service or DHL, which have their own cargo handling facilities. Items valued at up to US$800 and sent from China via postal services are treated differently. They are now subject to a tax of 120% of the package's value or a flat fee of US$100 per package – an amount that rises to US$200 in June. Collections at take-off The US Postal Service (USPS) said it would not be involved in any duty collections. Instead, a USPS spokesman said, airlines and vessel operators would need to work with shippers and Chinese postal authorities to pay the import taxes and show proof before the goods are transported out of China or Hong Kong. Although de minimis is a Latin term referring to matters of little importance, low-value shipments from China to the US reached an estimated US$5.1 billion in 2024, according to US Census Bureau data. That made it the seventh-largest US import category from China, behind video game consoles, but just ahead of computer monitors. Shippers were bracing for more package chaos, and some questioned whether airlines were prepared to handle duty collection from China Post and Hongkong Post. 'We have the same worry about bottlenecks,' said Kate Muth, executive director of the International Mailers Advisory Group (IMAG), whose members include eBay and divisions of United Parcel Service, FedEx and DHL. 'I don't think we're ready for the change because we're still awaiting some clarification around the rules,' including how to define Chinese origin for goods that are shipped from other countries,' Muth said. Formal entry shift A late change in the CBP's guidance took away a major complication for shippers, but created a potential new hurdle to enforcement as CBP temporarily suspended a rule that would have required formal customs entry for all shipments valued at over US$250 containing goods that are also subject to punitive tariffs. Formal customs entry, normally associated with larger, containerised cargo, requires full 10-digit tariff codes for all items, advance electronic transmission of entry data and a bond to cover for customs liability. It would have applied to many other countries now subject to US tariffs imposed by Trump, creating a potential new crush of administrative paperwork for shippers. Instead, the suspension allows the use of informal entry procedures for shipments from China and Hong Kong valued at up to US$800 and up to US$2,500 from elsewhere, requiring no tariff codes and a less detailed contents description. Lori Wallach, director of Rethink Trade, which has advocated an end to the de minimis exemption, said the use of informal entry would make it harder to screen packages. 'Without it being electronic or having an HTS code, the whole system that's used to inspect and to prioritise things that should be pulled for inspection doesn't work,' Wallach said. Trump ended the de minimis exemption for China largely because it was being used for largely unscreened low-value shipments containing fentanyl precursor chemicals into the US, a phenomenon documented in a Reuters series about fentanyl.
