Canada has announced that it will impose new tariffs on Chinese-made EVs, aluminium and steel. The government is set to announce a 100% levy on electric cars and 25% on steel and aluminium. The EVs that will be potentially hit by this range from certain hybrid passenger automobiles, trucks, buses and delivery vans. This surtax on EVs is pencilled in to take effect from the 1st of October and will be added to an existing 6.1% tariff that applies to Chinese EVs. This regrettable news is not a total surprise, as there has been a political breakdown between China and Canada, in the last few years. Furthermore, Canada is an export-driven economy that relies heavily on trade with America. Thus, it has mirrored/taken inspiration from many of President Biden’s policies towards China. The levies on aluminium and steel will come into place on the 15th of October and the government released an initial list of goods that the public can comment on.
Carbon Footprint, an environmental consultancy firm, has verified 3 of First Bus’s depots as net zero. The 3 depots are in Leicester, York and Norwich (Roundtree Way) and this verification stems from having a battery-electric operation alongside implementing carbon reduction measures such as the replacement of gas heating with electric, the use of solar panels, and the adoption of energy efficiency measures. Interestingly, this accreditation was achieved by reducing Scope 1 direct emissions and Scope 2 indirect emissions by more than 90% compared to an FY20 baseline at the locations, while residual emissions (less than 10%) have been offset through supporting Verified Carbon Standard carbon removal projects. This is a significant achievement as it shows that First Bus now have a net-zero blueprint which can be applied to the wider business, in due time.
European EV Sales data in July shows that BMW, for the first time, led European EV sales. BMW recorded sales of 14,869 units compared to Tesla’s 14,561 units. Although Tesla leads YTD European sales with 178,700 vs BMW’s 97,525 however Tesla is down 12% YoY whereas BMW is 49% up YoY. BMW’s i4 and iX1 models performed very well in July and we believe these models will continue to perform strongly for the remainder of the year. BMW has quietly been increasing its EV market share and should continue (especially in the short term) as Chinese EV OEMs are hit by tariffs and its European peers (such as Volkswagen AG) are still trying to figure out their EV strategy.
BYD has announced it is going to buy its German distributor Hedin Electric Mobility. This is a bold move by the company, as it will allow BYD to have greater control of its (European) strategy, thus resulting in it becoming a major EV player in Europe. Once the sale is complete, BYD Automotive GmbH will be responsible for the sales activities of BYD vehicles and parts in the German market, alongside the management of its stores in Stuttgart and Frankfurt. This move by BYD makes sense as the implementation of EU tariffs has slowed, even the mighty, BYD’s expansion into Europe. Bear in mind, that BYD out of all the Chinese EV OEMs can swallow the EU tariffs and still carry on making a small profit (or break even at worst) on their models. However, the one aspect of the tariffs that no one can quantify (as of yet) is how European consumers will (re)act, will they be loyal to domestic (/European) brands or will the competitively priced Chinese EVs sway consumers? We will have to wait and see how this plays out in the coming months. However, BYD continues to position itself well and based on historic success, we wouldn’t bet against them. The transaction is pencilled in to close in Q4 24.
Daimler Buses and ChargePoint have announced they are partnering to integrate ChargePoint’s telematics and charge management systems into certain Daimler assets. This collaboration means all Mercedes-Benz and Setra buses will be kitted out with the aforementioned telematics and management systems. This partnership will streamline the use of real-time data for fleet efficiency, enhance the electrification process, and simplify onboarding without additional telematics hardware. It benefits both ChargePoint’s customers who operate Mercedes-Benz and Setra buses and Daimler Buses customers who want to use ChargePoint’s software.
In the latest Cox Automotive Insight Quarterly (Q3), Mr Edwards (of Grant Thronton) wrote a fascinating piece on how the UK is set to become a key battleground for Chinese EV OEMs due to EU tariffs. He expostulates that the UK market is the 2nd largest new car market in Europe and the UK government has not yet revealed its stance on import tariffs for Chinese BEVs, thus it would be a fertile market for Chinese EV OEMs. It is important to remember that Chinese EV OEMs are still striving to expand their footprint in continental Europe however the tariffs have impacted the pace of expansion. In July, Chinese EV registrations, in Europe, fell by 45% compared to June, however, it is important to highlight that Chinese OEMs aggressively pushed their inventory in June due to the EU tariffs coming into full effect in July.
Lotus Technology has significantly reduced its global sales targets due to increased tariffs in key markets for its China-built electric cars. The luxury brand, owned by Geely, now expects to sell 12,000 cars in 2024, down 78% from its previous target of 55,500. The 100% import tariff imposed by the US on Chinese-built EVs has severely impacted forecasts, according to CEO Qingfeng Feng. The company plans to recalibrate its product strategy, cut staff, and streamline operations as part of its Win26 strategy to achieve profitability within 2 years.
Deals
Rosh.Ai, an Indian autonomous solutions startup, has announced it has raised $1m in a Seed round, led by Ev2 Ventures and Caret Capital. The startup focuses on developing vehicle-agnostic autonomy solutions that target companies that are in the mining, seaport and automotive sectors. Rosh.Ai’s platform accelerates the development of autonomous vehicle prototypes and ADAS test platforms, thus resulting in expediting the testing and deployment of autonomous driving systems.
WATTALPS, a French-based lithium-ion battery startup, has successfully raised €11m in a Series A funding round. Investors such as Supernova Invest, Move Energy, and Ring Capital participated in this round. Interestingly, this startup focuses on the immersion cooling system within the lithium-ion battery process. Their patented immersion cooling system solution results in enhanced battery performance, longevity, and safety. The capital raised will be used to expand its product, increase its footprint in Europe (& beyond), help improve costs and productivity.