Tesla is said to proceed with a plan to launch its Full Self-Driving (FSD) software in China. The EV company is on track to register the technology and aims to activate the service later this year.
Mitsubishi Electric, its subsidiary Mitsubishi Electric Mobility, and automotive components supplier Aisin recently announced they will establish a joint venture to make next-generation car parts. The move, which will accelerate R&D speed, is a response to the cost reduction trend driven by China's low-cost EVs.
As China's automotive market plunges into intense internal price competition, Brightek Optoelectronic Co. focuses on automotive LED products as the main driver of its operational growth.
Himax Technologies has made a strategic investment in Obsidian Sensors, a thermal imaging sensor maker based in San Diego, according to the Taiwan-based IC design house.
The US Biden administration will increase the tariffs on China-made EVs from 25% to 100% on August 1. China has vowed to retaliate and could raise tariffs on cars with engines larger than 2.5 liters from 15% to 25%.
Microcontroller manufacturer Nuvoton Technology held its shareholders' meeting on May 28. The company reported that the PC market performed better than initially expected, and MCU orders are gradually returning.
Car OEMs and tier-1 suppliers have adjusted their inventories since 2023, which affects most automotive suppliers' operations and deliveries. The adjustment is expected to be completed recently, offering companies a promising second half of 2024.
The competition of EUR20,000 (US$21,750) EV has mobilized the European automotive supply chain. Local automakers tend to collaborate with partners to gain a foothold in the sector. However, partnerships built across continents seem more promising than those formed within Europe.
Volkswagen said on May 28 that it plans to roll out a low-cost EV for the European market in 2027, a move that will help it counter Chinese rivals' offense. In addition, Magna Steyr confirmed that it has discussed EV production for China-based carmakers in Europe.
Foreign media reports indicate that China is considering imposing a 25% tariff on large-engine fuel vehicles imported from Europe, specifically targeting cars with engines larger than 2.5 liters.
Battery maker LG Energy Solution will enhance its plant in Michigan to strengthen the facility's role as the mother factory in North America. The South Korean company is building another plant with General Motors in the same US state. The industry has been paying attention to whether the project will delay volume production or have a different focus.
The economic conflict centering on EVs is heating up. Tesla CEO Elon Musk recently said he does not support the US tariff hike on China-made EVs. However, Tesla has rearranged its supply chain to avoid any impact from the trade war.
European, US, Japanese, and South Korean legacy automakers face challenges in developing Software-Defined Vehicles (SDV). Many have rebooted or given up their efforts.
The cutthroat price competition in China in the past year has pressured many local automakers, resulting in significant losses. Some companies might have accepted their falling EV sales and withdrawn from the price war, a strategy to improve their losses.
Tesla no longer emphasizes a sales target of 20 million vehicles by the end of this decade as the company accelerates the development of autonomous driving, its 2023 impact report showed.
The first group of China-made products that the US Biden administration targets will see their tariffs rise on August 1, 2024, according to an announcement from the Office of the US Trade Representative (USTR) on Wednesday. Some machinery for America's domestic manufacturing and solar production may be excluded temporarily.
NewLink Group, a Bain Capital-backed firm that provides software to sectors including the electric vehicle-related industry, is seeking as much as $100 million in private debt, according to a person familiar with the matter.
Cheap electric vehicles from China are already pushing into Europe, undercutting one of the region's biggest industries. BYD Co., which overtook Tesla Inc. last year to become the biggest global EV maker, is about to raise the stakes. The Chinese manufacturer last month announced plans to introduce its Seagull hatchback in Europe next year, which offers premium features like cruise control and wireless phone charging but sells for less than $10,000 in China. Even after tariffs and modifications to meet European standards, BYD executives have pledged to sell the Seagull for less than €20,000 ($21,500) on the continent.
Five years after commencing its automotive ambition, Huawei said the unit has come out of the red. Richard Yu, Huawei's chairman of the smart car solutions business unit, recently said the company's automotive business unit and the smart selection car segment have turned profitable in the first quarter of 2024.
The rivalry among China, Europe, and the US – the world's three largest EV markets – heats up as America and Europe are poised to raise tariffs on Chinese EVs. China has vowed to retaliate. The situation will likely impact Germany-based Volkswagen, BMW, and Mercedes-Benz the most.
