Latest news with #EVproduction
Yahoo
11-07-2025
- Automotive
- Yahoo
Volkswagen and Chinese partner SAIC to close Nanjing production plant
German car manufacturer Volkswagen and its Chinese partner SAIC will close their joint plant in Nanjing, eastern China. Production at the facility has now ceased, Volkswagen confirmed to Euronews, and the plant is expected to slowly close down over the second half of the year. First reports of the closure first surfaced late last year. This does not, however, spell the end for the partnership, as in 2024, the joint venture period of SAIC VOLKSWAGEN was extended until 2040, according to VW's website. The plant opened in 2008 and holds a production capacity of 360,000 vehicles per year. It has recently produced popular cars such as the VW Passat and the Skoda Superb. The production of the Passat will relocate to a plant 70km away in Yizheng, also in Jiangsu province. Related Car industry needs to 'shape up' to compete with Chinese EVs, says Volvo CEO Chipmaker Nvidia hits $4 trillion making it world's most valuable company Located not far from the centre of Nanjing, a huge city with a population of nine million, the densely populated setting limited the plant's ability to be extended and upgraded, sources close to the company told Euronews. As the industry focuses on a move to EV production, a transformation here would be too costly and inefficient. This approach seems to align with VW future plans, outlined on their website in February 2025: 'The Volkswagen Group is driving forward the digitalisation of its model portfolio 'in China, for China'. Starting in 2026, the 'China Electronic Architecture' (CEA) – a powerful zonal architecture, will be used in the locally produced fully electric vehicles of the Volkswagen brand.' EV capabilities will be developed at the new site in Yizheng and the site in Nanjing will be returned to the city. Volkswagen has been producing cars in China since 1985 and has become a leader in mobility in the country. According to their website, they produced 2.93 million vehicles in 2024 in China. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Automotive
- Yahoo
Analysis-China's intense EV rivalry tests Thailand's local production goals
By Chayut Setboonsarng and Thanadech Staporncharnchai BANGKOK (Reuters) -Hyper-competition in China's electric vehicle sector is spilling over to its biggest market in Asia, Thailand, as smaller players struggle to compete with dominant BYD, putting ambitious local production plans at risk. Neta, among the earliest Chinese EV brands to enter Thailand in 2022, is an example of a struggling automaker finding it difficult to meet the requirements of a demanding government incentive programme meant to boost Thai EV production. Under the scheme, carmakers are exempt from import duties, but were obligated to match import volumes with domestic production in 2024. Citing slowing sales and tightening credit conditions, carmakers asked the government to adjust the scheme and the 2024 production shortfall was rolled over into this year. Neta has said that it cannot produce the required number of cars locally and the government has withheld some payments to the EV maker, said Excise Department official Panupong Sriket, who received a complaint filed last month by 18 Neta dealers in Thailand seeking to recover over 200 million baht ($6.17 million) of allegedly unpaid debt. The complaint, a copy of which was reviewed by Reuters, also detailed missed payments by Neta related to promised support for building showrooms and after-sales service. "I stopped ordering more cars in September because I sensed something was wrong," said Neta dealership owner Saravut Khunpitiluck. "I'm currently suing them." Neta's parent company, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. Neta and its Chinese parent did not respond to Reuters' requests for comment. MARKET SHARE DECLINE Neta's share of Thailand's EV market peaked at around 12% of EV sales in 2023 when the industry was growing, according to Counterpoint Research data, with BYD having a 49% share that year. In Thailand, a regional auto production and export hub, Chinese brands dominate the EV market with a combined share of more than 70%. The number of Chinese EV brands has doubled in the last year to 18, placing pressure on those that lack the reach of BYD, which has taken over from Tesla as the world's biggest EV maker. In the first five months of this year, new registration of Neta cars - a proxy for sales - slumped 48.5% from the prior year and its share of EV registrations was down to 4%, according to government data. "Neta's downturn in Thailand reflects the fragility of second-tier Chinese EV brands both at home and abroad," said Abhik Mukherjee, an automotive analyst at Counterpoint Research. "Intense price competition and the scale advantages of dominant players have made survival increasingly difficult for smaller companies, particularly in export markets, where margins are slim and robust after-sales support is essential." In Thailand, Neta's biggest international market, it sells three models, with the cheapest Neta V-II Lite priced at 549,000 baht ($16,924) before discounts, compared to market leader BYD's entry-level Dolphin model that is priced at 569,900 baht. Thailand's domestic auto market has become increasingly competitive amid a sluggish economy. "Some Chinese brands have slashed prices by more than 20%,' said Rujipun Assarut, assistant managing director of KResearch, a unit of Thai lender Kasikornbank. "Pricing has become the main strategy to stimulate buying." China's EV overcapacity and price war have pushed automakers to expand abroad, but markets like Thailand are now mirroring the same hyper-competitive pressures, exposing smaller firms to similar risks. 'NO CONFIDENCE' Three years ago, Thailand unveiled an ambitious plan to transform its car industry, long dominated by Japanese majors like Toyota and Honda, to ensure at least 30% of its total auto production was EVs by 2030. The country, which exports about half of its auto output, has drawn more than $3 billion in investments from a clutch of Chinese EV makers, including Neta, who were partly lured to Southeast Asia's second-largest economy by the government incentive scheme. "Neta's case should give the Thai policymakers pause," said Ben Kiatkwankul, partner at Bangkok-based government affairs advisory firm, Maverick Consulting Group. Last December, after a sharp sales contraction, Thailand's Board of Investment gave EV makers an extension to the initial local production timeline to avoid oversupply and a worsening price war. Under the original scheme, local EV production in 2024 was required to match each vehicle imported between February 2022 to December 2023 or the automaker would incur hefty fines. Car manufacturers avoided those fines with the extension carrying over unmet production into this year, but at a higher ratio of 1.5 times imports. Thailand's Board of Investment did not respond to a Reuters request for comment. Siamnat Panassorn, vice president of the Electric Vehicle Association of Thailand, said Neta's issues were company-specific and did not reflect flaws in Thai policies or the market. But external shocks, including geopolitical tensions and the spectre of higher tariffs, have added to the pressure felt by the sector, he said. For Thai Neta dealers like Chatdanai Komrutai, the crisis is deepening. The brand's car owners have taken to social media in droves to share maintenance issues and limited after-sales support and a consumer watchdog agency is inspecting some of those complaints. "Selling cars is difficult right now," Chatdanai said. "There's no confidence." ($1 = 32.4100 baht) (Additional reporting by Panarat Thepgumpanat; Graphics by Pasit Kongkunakornkul; Editing by Devjyot Ghoshal and Jamie Freed) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Automotive
- Yahoo
Analysis-China's intense EV rivalry tests Thailand's local production goals
By Chayut Setboonsarng and Thanadech Staporncharnchai BANGKOK (Reuters) -Hyper-competition in China's electric vehicle sector is spilling over to its biggest market in Asia, Thailand, as smaller players struggle to compete with dominant BYD, putting ambitious local production plans at risk. Neta, among the earliest Chinese EV brands to enter Thailand in 2022, is an example of a struggling automaker finding it difficult to meet the requirements of a demanding government incentive programme meant to boost Thai EV production. Under the scheme, carmakers are exempt from import duties, but were obligated to match import volumes with domestic production in 2024. Citing slowing sales and tightening credit conditions, carmakers asked the government to adjust the scheme and the 2024 production shortfall was rolled over into this year. Neta has said that it cannot produce the required number of cars locally and the government has withheld some payments to the EV maker, said Excise Department official Panupong Sriket, who received a complaint filed last month by 18 Neta dealers in Thailand seeking to recover over 200 million baht ($6.17 million) of allegedly unpaid debt. The complaint, a copy of which was reviewed by Reuters, also detailed missed payments by Neta related to promised support for building showrooms and after-sales service. "I stopped ordering more cars in September because I sensed something was wrong," said Neta dealership owner Saravut Khunpitiluck. "I'm currently suing them." Neta's parent company, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. Neta and its Chinese parent did not respond to Reuters' requests for comment. MARKET SHARE DECLINE Neta's share of Thailand's EV market peaked at around 12% of EV sales in 2023 when the industry was growing, according to Counterpoint Research data, with BYD having a 49% share that year. In Thailand, a regional auto production and export hub, Chinese brands dominate the EV market with a combined share of more than 70%. The number of Chinese EV brands has doubled in the last year to 18, placing pressure on those that lack the reach of BYD, which has taken over from Tesla as the world's biggest EV maker. In the first five months of this year, new registration of Neta cars - a proxy for sales - slumped 48.5% from the prior year and its share of EV registrations was down to 4%, according to government data. "Neta's downturn in Thailand reflects the fragility of second-tier Chinese EV brands both at home and abroad," said Abhik Mukherjee, an automotive analyst at Counterpoint Research. "Intense price competition and the scale advantages of dominant players have made survival increasingly difficult for smaller companies, particularly in export markets, where margins are slim and robust after-sales support is essential." In Thailand, Neta's biggest international market, it sells three models, with the cheapest Neta V-II Lite priced at 549,000 baht ($16,924) before discounts, compared to market leader BYD's entry-level Dolphin model that is priced at 569,900 baht. Thailand's domestic auto market has become increasingly competitive amid a sluggish economy. "Some Chinese brands have slashed prices by more than 20%,' said Rujipun Assarut, assistant managing director of KResearch, a unit of Thai lender Kasikornbank. "Pricing has become the main strategy to stimulate buying." China's EV overcapacity and price war have pushed automakers to expand abroad, but markets like Thailand are now mirroring the same hyper-competitive pressures, exposing smaller firms to similar risks. 'NO CONFIDENCE' Three years ago, Thailand unveiled an ambitious plan to transform its car industry, long dominated by Japanese majors like Toyota and Honda, to ensure at least 30% of its total auto production was EVs by 2030. The country, which exports about half of its auto output, has drawn more than $3 billion in investments from a clutch of Chinese EV makers, including Neta, who were partly lured to Southeast Asia's second-largest economy by the government incentive scheme. "Neta's case should give the Thai policymakers pause," said Ben Kiatkwankul, partner at Bangkok-based government affairs advisory firm, Maverick Consulting Group. Last December, after a sharp sales contraction, Thailand's Board of Investment gave EV makers an extension to the initial local production timeline to avoid oversupply and a worsening price war. Under the original scheme, local EV production in 2024 was required to match each vehicle imported between February 2022 to December 2023 or the automaker would incur hefty fines. Car manufacturers avoided those fines with the extension carrying over unmet production into this year, but at a higher ratio of 1.5 times imports. Thailand's Board of Investment did not respond to a Reuters request for comment. Siamnat Panassorn, vice president of the Electric Vehicle Association of Thailand, said Neta's issues were company-specific and did not reflect flaws in Thai policies or the market. But external shocks, including geopolitical tensions and the spectre of higher tariffs, have added to the pressure felt by the sector, he said. For Thai Neta dealers like Chatdanai Komrutai, the crisis is deepening. The brand's car owners have taken to social media in droves to share maintenance issues and limited after-sales support and a consumer watchdog agency is inspecting some of those complaints. "Selling cars is difficult right now," Chatdanai said. "There's no confidence." ($1 = 32.4100 baht) (Additional reporting by Panarat Thepgumpanat; Graphics by Pasit Kongkunakornkul; Editing by Devjyot Ghoshal and Jamie Freed)
Yahoo
30-06-2025
- Automotive
- Yahoo
VinFast opens EV manufacturing plant in Vietnam
Vingroup subsidiary VinFast has opened its new electric vehicle (EV) manufacturing plant in Hà Tĩnh, Vietnam. Located in the Vũng Áng Economic Zone, the facility spans 360,000m2 and is designed to produce 200,000 vehicles annually. This is the company's second EV production site in operation and its fifth manufacturing facility globally. The Hà Tĩnh plant is said to feature highly automated production lines with technology from partners such as DÜRR, ABB, FANUC, and SIEMENS. It includes a body welding shop, general assembly shop, painting shop, logistics warehouse, and quality control centre. An auxiliary cluster of 240,000m2 is also being constructed, with plans for future expansion. Initially, the plant claims to produce 35 vehicles per hour, focusing on compact urban EV models like the VF 3, EC Van, Minio Green, and other models in development. These vehicles will cater to both domestic and international markets. Additionally, the plant is set to generate around 6,000 direct employment opportunities initially, with the potential to increase the workforce to 15,000. The VinFast Hà Tĩnh aims to attract auxiliary partners to the industrial zone, generating a synchronised supply chain and progressing more than 80% localisation target in EV production by 2026. Vingroup CEO and vice chairman Nguyễn Việt Quang said: "The inauguration of the VinFast Hà Tĩnh plant marks a significant milestone in VinFast's long-term development strategy and its global production expansion. 'Once operational, this facility will help VinFast move closer to its goal of producing one million vehicles per year to meet growing demand in both domestic and international markets. It also demonstrates our technological capability, production autonomy, and pioneering vision in promoting sustainable mobility in Vietnam and around the world'. The company's global footprint includes five facilities under development in Vietnam, India, Indonesia, and the US. The upcoming plants in India and Indonesia are anticipated to support the company's international market demands. Earlier this month, the company signed its first authorised dealership in California, US, marking a milestone in its US expansion strategy. "VinFast opens EV manufacturing plant in Vietnam" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Automotive
- Yahoo
New Nissan Leaf unveiled
Nissan has shown its new Leaf electric car that's set to roll off the production line in Sunderland - the UK's biggest car plant. It is the first model to be launched under Nissan's EV36Zero blueprint for the future of EV production and will be built in the North East by the plant's team of 6,000 people. Nissan says the new third generation Leaf has been engineered and fine-tuned to suit the needs of European customers at Nissan's UK research and development centre, NTCE, in Cranfield, UK. It will be powered by batteries from AESC which is situated next to the Nissan plant. The Sunderland plant will also build the next generation Nissan Qashqai e-POWER (which will arrive this year), followed next year by an all-new fully electric Juke. Alan Johnson, Senior Vice President of Manufacturing & Supply Chain Management at Nissan Motor Manufacturing, said: 'It's with immense pride that we unveil the third generation of our pioneering electric Leaf, twelve years after we brought EV and battery manufacturing to the UK. 'It's a testament to the skill of our world-class team that we can bring into mass production a vehicle with such advanced technology and aerodynamic design. We can't wait to see it on the roads.' The new Leaf will be able to travel up to 375 miles on a single charge and will be available for customers to order later this year. James Taylor, managing director of Nissan GB, said: 'We're really excited about the launch of the all-new Leaf later this year. It builds on the success of the previous two generations, which have found homes with more than 70,000 UK customers. 'Leaf is a pioneering electric vehicle that has encouraged thousands to make the switch to electric motoring – and best of all, it's built here in Britain.' A new fully-electric Micra, designed in London, will also go on sale later this year, and Nissan says it will also launch a smaller city car in 2026. "New Nissan Leaf unveiled" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
