Japanese automaker Honda announced on Thursday that it will significantly increase its investment in electric vehicle (EV) development, aiming to double its funding to a staggering $65 billion by 2030. This represents a substantial increase from the previous allocation of 5 trillion yen earmarked for EV technology during the same period. Honda’s decision underscores its commitment to shaping the future of mobility and capturing a significant share of the rapidly growing EV market.
Maserati’s first GranCabrio convertible since 2019 will be available in the U.S. this summer. Meanwhile, Stellantis, the global automaker that owns Maserati, reported a 12% revenue decline in the first quarter due to lower sales and foreign exchange effects. Despite the decline, Stellantis plans to launch 25 new models this year, including 18 battery-electric vehicles. The company expects improved growth and profitability in the second half of the year as they introduce new products.
Tesla is cutting over 10% of its workforce, or about 14,000 jobs, due to slowing demand and falling margins. The United States has seen the most layoffs, with over 6,000 positions eliminated in California and Texas. In Germany, Tesla’s Giga Berlin plant is reducing its workforce by 400 jobs. China, with a workforce of approximately 20,000, is expected to see the most layoffs, with an estimated 7,600 jobs to be cut.
Honda is building an electric vehicle battery plant in Alliston, Ontario as part of a $15-billion investment that includes retooling its assembly plant in Alliston to produce fully electric vehicles. The project also includes two key battery parts facilities located elsewhere in Ontario. There will likely be some capital investment from at least one level of government, but the deal does not involve production subsidies. Instead, the federal government has proposed in its recent budget a 10 per cent Electric Vehicle Supply Chain investment tax credit, which Honda could claim on top of an existing 30 per cent Clean Technology Manufacturing Investment tax credit.
Hyundai Motor Co. has warned of heightened competition and uncertain global economic conditions after reporting a 2.4% decline in quarterly profit. The South Korean automaker’s cautious outlook and weak performance contrast with the bullish forecasts from its U.S. rivals, General Motors and Ford Motor Co., who reported strong profit growth this week. Hyundai is facing headwinds from shrinking exposure to China and faltering demand in South Korea. The company expects challenging business conditions to continue and plans to expand its electrified model lineups globally. Hyundai’s net profit fell to 3.2 trillion won ($2.32 billion) for January-March, down from 3.3 trillion won a year earlier but ahead of analysts’ average forecast.
The Beijing International Automotive Exhibition showcased the rapid transformation of China’s automotive industry towards digitalization and new-energy vehicles. Major global automakers and EV startups unveiled their latest models and concept cars, indicating China’s growing importance as a market and production base. BYD, the leading Chinese EV maker, presented two plug-in hybrids alongside a luxury off-road SUV, reflecting the growing popularity of both electric and hybrid vehicles in the country. The show also highlighted the expansion of Chinese automakers overseas, with BYD making significant strides in Latin America and Europe. Foreign players emphasized the need to accelerate their development of electric car models to remain competitive in China’s rapidly evolving market.
In a strategic move to diversify its product offerings and address market dynamics, Ford Motor Company is prioritizing hybrid vehicles. The company’s first-quarter earnings call revealed a 36% year-on-year growth in global hybrid sales, prompting Ford to set ambitious targets for 2024. The U.S. hybrid market is highly competitive, with foreign players such as Toyota and Honda dominating the landscape. Despite this, Ford is confident in its ability to carve out a share of the market, particularly in the truck segment. The automaker plans to expand its hybrid offerings across its lineup, leveraging existing powertrain technologies and focusing on capacity investments. While Ford remains optimistic about the hybrid market, industry leaders like Tesla and General Motors have expressed different strategies. Tesla believes in the dominance of electric vehicles, while GM plans to introduce plug-in hybrid technology in select models.
UK car production experienced a decline last month, dropping 27% compared to the same period last year. However, this dip is attributed to the industry’s transition to next-generation electric vehicle production. Despite the decrease, over one-third of vehicles manufactured in March were eco-friendly petrol alternatives. International exports accounted for more than six out of ten cars manufactured, with European Union countries receiving the majority of shipments. Despite the monthly decline, Q1 production remained positive with a 1.1% increase compared to the previous year.
Despite a challenging year for the Indian IT sector, auto companies are emerging as a strong growth driver for FY24. Automotive firms are increasingly outsourcing software development and engineering services to IT companies to support their transformation to electric and autonomous vehicles. This trend has contributed to a significant increase in revenue from automotive clients for IT services companies, particularly in manufacturing and engineering, research and development (ER&D) segments.
Tencent and China’s automotive industry are collaborating to explore AI, cloud computing, and online mapping technologies to enhance supply chains and improve smart cockpit experiences. Large Language Models (LLMs) are expected to play a significant role in various aspects of the industry, including research, production, marketing, and customer service. Over 48% of new vehicles sold in China since 2021 have smart cockpit configurations, and this number is projected to reach 75% by 2025.
