Good morning, good afternoon, and good evening wherever you are in the world, welcome to EV News Daily, you trusted source of EV information. It’s Tuesday 9th August, it’s Martyn Lee here and I go through every EV story so you don’t have to.
BYD PLUG-IN CAR SALES SURGE TO OVER 162,000 IN JULY 2022
BYD highlights spectacular plug-in electric car production and sales results for the month of July, setting massive new records. According to the company’s report, in July, BYD plug-in car sales amounted to 162,216, which is 224% more than a year ago and a new monthly record. The previous one of 133,762, set in June, has been improved by almost 30,000
there are not that many manufacturers that even produce 30,000 plug-in cars a month, while here this is just the monthly difference. At the current rate, BYD is basically producing close to 2 million plug-in cars per year, becoming one of the largest car manufacturers overall.
BYD plug-in sales year-to-date: BEVs: 404,511
SAIC-GM-WULING POSTS RECORD NEW ENERGY VEHICLE SALES
SGMW, a joint venture between SAIC Motor, General Motors and Liuzhou Wuling Motors, registered NEV sales of 293,258 units from January to July this year, up 35 percent year on year. During the same period, the company had sold 270,732 units of Hongguang MINI EV, a NEV model, up 29 percent year on year. SGMW now produces NEV models including the Hongguang MINI EV, the Baojun KiWi EV, and the Wuling Nano EV.
KIA EV9 ELECTRIC SUV SPIED WITH LESS CAMO, WE FINALLY SEE ITS SHAPE
This new prototype, spotted by our spies around the Nurburgring in Germany, is wrapped in psychedelic camouflage, and we can also finally get a sense of how big it’s going to be and how bold some of the design details are.
Thanks to these new photos, we can for the first time see this vehicle will have very slim flush door handles that will most likely work the same way as those in the EV6. Also visible in some detail are part of the vertical strips of small projectors that make up the front light clusters.
the rear lights – they appear to wrap around the hatch and go up to the roof spoiler. With this choice of design, they emphasize both the height and the width of the EV9 back end, much like they do in the Volvo XC60
TESLA LAUNCHES NEW ‘OWNERSHIP LOYALTY PROGRAM’ WITH SOME SIGNIFICANT DISCOUNTS
Tesla has launched a new “Ownership Loyalty Program” with some significant discounts – something that CEO Elon Musk has said Tesla wouldn’t do. But the program is only in China for now.
Tesla is telling owners of all current models that if they decide to upgrade to a new vehicle, they will receive these three incentives:
Full Self-Driving (FSD) package at half price – save 32,000 yuan (equivalent to ~$4,750 USD)
15,000 km of free Supercharging
Home Charging Service Package – save 8,000 yuan (equivalent to ~$1,200 USD)
The FSD discount is also interesting because there’s an asterisk to it: To get the discount, the trade-in needs to have either Enhanced Autopilot or Full Self-Driving package.
Tesla owners have been asking for years to have their FSD package be transferable to a new purchase. While Tesla is not going as far as doing that here, it is the closest it has ever been.
STELLANTIS ENTERS JOINT VENTURES FOR MANUFACTURING IN FRANCE
Stellantis has invested in two joint ventures for manufacturing in the Lorraine region of France.
Emotors, a 50/50 joint venture with French motor manufacturer Nidec Leroy-Somer, will start production this year. The first product will be the M3, an e-motor that’s designed to operate at 400 volts and to deliver 115 kW of power, and is set to debut on a Stellantis BEV by the end of 2022.
Stellantis says it expects the capacity of the plant to reach more than 1 million motors per year beginning in 2024.
US SENATE REFORMS ELECTRIC CAR TAX CREDITS
The US Senate has passed the Inflation Reduction Act by a narrow majority, which also includes reform of the electric car tax credit. After the vote in the Senate, the legislative package will go to the House of Representatives this week, where the Democrats have a slim majority.
The law includes numerous climate protection expenditures such as the US production of solar modules and wind turbines (60 billion dollars), research in the field of clean tech (27 billion dollars) or the reduction of emissions in agriculture (20 billion dollars). But precisely also the tax credit for the purchase of an electric car will be continued in a modified form.
The maximum amount of 7,500 dollars per vehicle will remain
Essentially, the car must have been assembled in North America. There is a $3,750 tax credit if at least 40 per cent of the battery-critical minerals come from the United States or countries with a free trade agreement such as Canada and Mexico. The other $3,750 is available if at least 50 per cent of the vehicle’s battery components fulfil the same condition. Over the years, both percentages are to rise.
The Alliance for Automotive Innovation, which represents carmakers such as General Motors, Toyota and Volkswagen, complains that the new regulations on the tax credit for e-cars mean that most models no longer qualify for the subsidy.
THE MARKET’S BIGGEST WINNERS AND LOSERS IN THE INFLATION REDUCTION ACT
Automakers are winners in the Inflation Reduction Act, but maybe not as much as you think, and maybe not Tesla.
The Senate on Sunday passed the bill that’s designed to fight climate change, make significant tax changes, trim the federal deficit, cut drug prices for Medicare recipients and extend expanded health insurance subsidies under the Affordable Care Act. As it moves to the House of Representatives, the roster of the winners and losers under the bill is coming into sharper focus even before it goes to President Joe Biden.
A report by the Center for American Progress says 19 companies in the Fortune 100 alone paid little or no tax in 2021. Among companies that paid 6% or less, as calculated by the liberal-leaning think tank: Amazon, Exxon Mobil, AT&T, Bank of America, and both Ford and General Motors. All of them will likely be paying more.
The other big headlines on the “spending” side of the bill are the extension of the $7,500 consumer income tax credit for the purchase of new electric vehicles, and the addition of a new, $4,000 credit for buying a used EV
First, the bill caps the price of eligible new cars at $55,000, excluding the most popular version of Tesla’s Model 3 (as well as all Model S and X vehicles). Trucks and vans can get the credit if they cost less than $80,000.
More crucially, the bill includes requirements for domestic manufacturing of EVs and their battery components to qualify for the extended credit. As written, the law requires that 40% of battery components be sourced from factories in the U.S. or its free trade agreement partners; that batteries be U.S. made by 2029; and that Chinese components and minerals be phased out beginning in 2024.
HOW THESE TOP-SELLING ELECTRIC CARS COULD BE AFFECTED BY NEW TAX CREDIT
“There are 72 EV models currently available for purchase in the United States including battery, plug-in hybrid and fuel cell electric vehicles, says John Bozzella, CEO of the Alliance for Automotive Innovation, a trade group that counts General Motors, Toyota, and Ford as members in a statement. “Seventy percent of those EVs would immediately become ineligible when the bill passes, and none would qualify for the full credit when additional sourcing requirements go into effect. Zero.”
The final component of battery sourcing, coming in less than two years time, means no EVs will qualify for the credit, according to Bozzella. Note that these are just requirements on the automaker end; the bill adds income requirements on the consumer that will make many high-earning Americans and joint filers ineligible for the tax breaks.
Tesla Model 3 and Model Y
Ford Mustang Mach-E
Jeep Wrangler 4xE
The first plug-in hybrid on the list, the Wrangler 4xE, sold 10,861 units last quarter. With it most likely to be categorized as an SUV, and with a starting MSRP of $54,595, it would qualify for the tax break because the Wrangler is made at Jeep’s plant in Toledo, Ohio.
Hyundai IONIQ 5 and Kia EV6
The first non-U.S. brand on the list, the all-electric Hyundai IONIQ 5, which sold 7,448 units in the second quarter, and its sister brand Kia’s EV6 EV sold 7,287 cars. Though the Korean automaker does build cars in the U.S. at a plant in Alabama, the IONIQ 5 and Kia EV 6 are built in South Korea so they would not qualify for the tax credit.
Chevrolet Bolt EV and EUV
GM’s entries on the top-sellers list, the Chevrolet Bolt EV and Bolt EUV, sold 6,945 units last quarter. With a starting price of $25,600, the Bolt is the cheapest pure electric vehicle on the market, and with final assembly taking place at GM’s Orion plant in Michigan, the Bolt will qualify for the federal tax credit.
U.S. ELECTRIC VEHICLE SUBSIDY MAY BE GOLDEN TICKET FOR KOREAN BATTERY MAKERS
The U.S. government’s “Made-in-America” electric vehicle (EV) subsidy may be the golden ticket for Korean battery makers as the western country tries to rule China out in the global race.
But the subsidy program is divided into two parts with their own conditions: Starting in 2024, $3,750 of the EV tax credit will only be available when at least 40 percent of the critical minerals contained in the EV batteries have been “extracted or processed in any country with which the United States has a free trade agreement,” or “recycled in North America.”
The remaining subsidy will be available when at least 50 percent of the battery’s components are manufactured or assembled in North America.
“The key point of the bill is the U.S. attempt to reduce its dependence on China,” said Kang Dong-jin, an analyst at Hyundai Motor Securities. “Korean battery makers will receive more partnership requests from global automakers, with LG Energy Solution being the largest beneficiary as it supplies batteries to Tesla and General Motors, as well as constructing plants with local carmakers.”
LG Energy Solution currently runs a battery plant in Michigan. Ultium Cells, its 50:50 joint venture with General Motors, plans to build three more plants, one each in Ohio, Tennessee and Michigan. The Ohio plant is expected to start mass production in the second half of the year. The company is also expected to break ground on a factory in Ontario, Canada, which will be constructed jointly with Stellantis.
SK On also joined forces with Ford to build three plants in the United States: one in Tennessee and two in Kentucky. It owns two independent plants in the state of Georgia, with one having already started mass production early this year, and another set to start next year. Samsung SDI is building a plant with Stellantis in Kokomo, Indiana. Chinese battery makers, on the other hand, have no plants in the United States, make most of their batteries in China, and use mostly materials produced in China.
But analysts say the subsidy policy is not entirely good news for Korean companies, as they are still highly dependent on China for raw materials used in EV batteries such as nickel, cobalt and manganese. The three are key ingredients to making cathodes, which account for 40 percent of the production cost of an EV battery.
CLASSIC BRANDS LEFT BEHIND BY NEW PLAYERS
Smart functions, ranging from digital keys to gesture control, are becoming increasingly important factors for car buyers in China, according to a J.D. Power China survey.
The finding helps explain the surging popularity of local Chinese electric car startups, which are quicker to introduce new technologies into their models.
This helps explain why such startup electric vehicle brands are often the first choice among Chinese car buyers.
A separate J.D. Power China study, which was released last week, shows that Chinese startups are making better quality vehicles than established carmakers locally and internationally.
BRISBANE CONFIRMS ORDER FOR 60 ALL-ELECTRIC “TRACKLESS TRAMS” WITH FLASH CHARGING
Following extensive on-road testing, Brisbane City Council’s ‘Brisbane Metro’ project has officially placed an order with Swiss manufacturer Hess for 60 high-capacity battery electric “trackless trams”.
In 2019, Brisbane Council announced its plans to order 60 all-electric and high-capacity public transport vehicles from Swiss vehicle maker Hess AG, and has now confirmed the order after a successful trial of the first of these bi-articulated and battery-powered trackless trams that arrived in April.
The trackless trams are basically a very long bus with three carriages connected by two articulation segments. They measure 24.5 metres in length and will be used on Brisbane’s existing busway system.
The 60 lighTram 25 trackless trams will be powered by Australia’s first ever flash charging system which can charge the vehicle in under six minutes using an overhead pantograph infrastructure.
15 of the 600kW flash chargers will be set up at ‘end of route’ locations while another 60 50kW slow chargers will be deployed at the Metro depot.
QUESTION OF THE WEEK
QOTW is taking a break for a while.
Email your answers to: email@example.com
It would mean a lot if you could take 2mins to leave a quick review on whichever platform you download the podcast.
PHIL ROBERTS / ELECTRIC FUTURE
PORSCHE OF THE VILLAGE CINCINNATI
AUDI CINCINNATI EAST
VOLVO CARS CINCINNATI EAST
NATIONAL CAR CHARGING ON THE US MAINLAND AND ALOHA CHARGE IN HAWAII
DEREK REILLY FROM THE EV REVIEW IRELAND YOUTUBE CHANNEL
RICHARD AT RSEV.CO.UK – FOR BUYING AND SELLING EVS IN THE UK
OCTOPUS ELECTRIC JUICE – MAKING PUBLIC CHARGING SIMPLE WITH ONE CARD, ONE MAP AND ONE APP
MILLBROOKCOTTAGE S.CO.UK – 5* LUXURY COTTAGES IN DEVON, JUMP IN THE HOT TUB WHILST YOUR EV CHARGES
DAVID AND LISA ALLEN
JUKKA KUKKONEN FROM WWW.SHIFT2ELECTRIC.COM
BATTERY REPORTS FOR EVS AT RECURRENTAUTO.COM
ALEXANDER FRANK @ https://www.youtube.com/c/alexsuniverse42
ANDY NANCARROW AND LILIAN KASS
COLIN HENNESSY AND CAMBSEV
IAN (WATTIE) WATKINS
JAVIER CARMELO DÍAZ PÉREZ
JOHN VAN DEVOORT
JON AKA BEARDY MCBEARDFACE FROM KENT EVS
LAURENCE D ALLEN
NEIL E ROBERTS FROM SUSSEX EVS
PETER & DEE ROBERTS
REALTORS CHOICE PHOTOGRAPHY
ROB FROM THE RSTHINKS EV CHANNEL ON YOUTUBE
THE PLUGSEEKER’S EV YOUTUBE CHANNEL
THOMAS J. THIAS