German automaker Volkswagen, having invested heavily in India, is exploring selling its stake in the Indian market due to low sales and competition. The company’s expensive European cars have failed to capture significant market share. Volkswagen is now focusing on developing affordable cars and advocating for lower taxes on hybrid vehicles in India.
A group of hackers has demanded millions of dollars in ransom to end a cyberattack on CDK’s software systems, disrupting operations at auto dealerships across the United States. CDK, a major provider of software to car dealerships, has reportedly decided to pay the ransom. The attack, which has caused a three-day outage, has impacted several major auto retailers, including Sonic Automotive, Penske Automotive, and Ford dealerships.
Tata Motors, India’s leading automaker by revenue, will increase the prices of its commercial vehicles by up to 2% from July 1. This price hike aims to offset the impact of rising commodity prices. The increase will apply to all models and variants of commercial vehicles, with specific percentage adjustments varying depending on the model.
Nissan Motor has unveiled four new electric vehicle (EV) models at China’s largest auto show, Auto China, showcasing its commitment to the Chinese market. Despite intense competition and a price war, Nissan plans to introduce eight new models by 2026 through its joint venture with Dongfeng Motor. The company aims to expand its product lineup with more EV and hybrid cars, targeting sales of over 1 million units in China by 2026. Nissan also announced plans to start exporting vehicles produced in China next year, including 100,000 units in the initial phase.
Within a month of its launch in late March, Chinese smartphone giant Xiaomi has secured over 75,000 orders for its SU7 electric sedan. The company’s founder, Lei Jun, announced the milestone during the Beijing auto show, setting a record for electric vehicle (EV) startups. Xiaomi aims to deliver over 10,000 units in June and targets more than 100,000 deliveries for the SU7 in 2024. To meet the demand, the company has brought forward deliveries of different SU7 models. The SU7’s competitive pricing, inspired by Porsche styling and undercutting Tesla’s Model 3, has sparked an EV price war in China. Xiaomi’s auto team of 6,000 is actively recruiting global talent to support its ambitious car-making plans.
Chinese electric car brand Zeekr, owned by Geely, is outperforming Tesla in certain regions of China and plans to expand into Europe and Latin America this year. Despite Tesla reporting its largest global quarterly revenue drop since 2012, Zeekr has seen a surge in sales. According to Zeekr’s data, it outsold Tesla in the provinces of Zhejiang, Anhui, and Guangxi during the first three weeks of April. While Tesla’s Model Y remains the bestseller in China for battery-powered electric cars priced above 200,000 yuan, Zeekr’s 001 and 007 models rank among the top sellers in their respective price categories. Zeekr’s CEO, Andy An, declined to comment on the recent launch of Xiaomi’s electric sedan but highlighted the differences in strategy and resources between the two companies. At the Beijing auto show, Zeekr unveiled a new car structure that offers more interior space. An emphasized the company’s focus on creating a smart mobility experience, with future vehicles designed to accommodate activities such as gaming and dining. Zeekr expects overseas sales to boost revenue this year, with plans to enter six to eight additional countries in Europe and expand into Latin America. The company is also developing right-hand drive cars for markets like Hong Kong, Macao, and Singapore. An confirmed that Zeekr is exploring the possibility of building factories overseas but provided no specific details. Long-term support from its parent company Geely, which owns Volvo, provides Zeekr with access to resources and expertise. An emphasized the importance of combining talent, technology, and capital for long-term success in the automotive industry. Zeekr has filed for an IPO on the New York Stock Exchange but has not yet announced a listing date.
General Motors (GM) exceeded expectations in its Q1 earnings report, leading to positive analyst sentiment and increased price targets. The automaker raised its profit guidance for FY24 and provided a more disciplined EV rollout plan. UBS, Mizuho, and Wedbush Securities reiterated their Buy ratings for GM, citing its strong performance and potential for consistent buyback activity.
Despite the push towards electric vehicles, hybrid cars are experiencing a resurgence in popularity as a practical and cost-effective alternative to both conventional gas-powered vehicles and EVs. With their extended driving range, faster refuelling options, and increased reliability, hybrids offer several advantages that appeal to budget-conscious and convenience-minded consumers.
Tesla is set to lay off 3,332 workers across four cities in California in June, according to Worker Adjustment and Retraining Notification Act (WARN) filings. The job cuts will primarily affect Tesla’s Fremont locations, with 2,267 layoffs planned at a dozen job sites, including the car factory at 45500 Fremont Blvd. Other locations affected include Lathrop, Palo Alto, and Burbank. The company’s main headquarters in Austin, Texas, will also see significant layoffs, with approximately 2,700 job cuts expected. Tesla had previously announced plans to reduce its workforce by more than 10% globally, citing a review of the organization. Despite the layoffs, Musk emphasized that Tesla has created 30,000 manufacturing jobs in California.
Kia and Genesis are offering generous discounts on their electric vehicle (EV) models. Genesis is providing a $7,500 rebate on select EVs, while Kia is offering a $7,500 rebate on the EV9 SUV and a substantial discount on the 2024 G80 Electrified sedan. These incentives are part of a broader trend in the auto industry, with other manufacturers slashing prices on EVs to stimulate sales.
