Technology and philosophy: automotive industry

Showing posts with label automotive industry. Show all posts

Friday, July 24, 2026

Car Maker Ends Australian Shipments After Just 373 Sales

Citroën to cease vehicle sales in Australia
It follows a decline in sales

A major automotive company's distributor has announced it will stop delivering cars to Australia.

After nine years of supplying the cars, Inchcape Australasia will remove Peugeot from its range.

"As an integral part of Inchcape's usual method of managing its portfolio, we regularly assess our collaborations to make sure we maintain the appropriate collection of brands for our company, in line with our strategic expansion goals," a statement said.

Consequently, Inchcape Australia and Stellantis have reached a mutual decision to terminate their distribution agreement for Peugeot in Australia, with the exact termination date yet to be determined after a transitional phase.

Stellantis has announced that the Peugeot brand will remain active in Australia and will share details about its regional strategies at an appropriate time.

The statement follows several years of declining sales for French-produced products. vehicles that have nearly been reduced by half in Australia since 2019.

Peugeot managed to sell just 373 vehicles in Australia during the initial five months of this year – representing a 35 percent decrease compared to the lowest level recorded in 2025.

It is expected that sales will be below 1,000 in 2026, following the sale of only 1,350 units during the previous year.

This is nothing like the company's peak period in 2005, when it managed to sell over 7,000 cars.

The announcement follows two years after Inchcape Australia discontinued the sibling brand Citroen, which sold fewer than 1,000 vehicles annually since 2015, after reaching a high of 3,803 sales in 2007.

Nevertheless, Chinese imports have risen ten times over in recent years and are currently the leading supplier of vehicles to Australia, with over 220,000 units sold in 2025.

Stellantis states that it plans to collaborate with China's Dongfeng Motor Corporation to develop more affordable vehicles manufactured in China bearing Jeep and Peugeot branding.

Citroën has a significant presence in Australia, with vehicles being available for purchase in the country even before World War I.

At present, there are 29 Peugeot outlets across Australia, and within Inchcape's range, Subaru stands out as the top-performing brand.

Chinese Automakers Surpass Japan in Europe Sales

Chinese car manufacturers, previously regarded as "low-cost outsiders" in Europe—the origin of the automotive industry—are now transforming the marketplace. Equipped with cutting-edge technology and affordability, Chinese companies have outperformed Japanese automakers in sales for the first time in May throughout key European nations, despite significant import tariffs. With Europe speeding up its move toward environmentally friendly cars, Japanese makers—who have been slow to adopt electric vehicle technologies—have struggled, enabling Chinese brands to step in more quickly than expected.

As per the European Automobile Manufacturers' Association (ACEA), total sales of five Chinese car manufacturers — SAIC, BYD, Geely Group, Chery Automobile, and Li Auto — amounted to 138,410 vehicles across 31 key European markets during May. This represented a 12.0% presence in the market. Japanese companies came next with 130,424 units sold (11.3%), whereas South Korean makers had 80,644 units (7.5%). This represents the initial instance where Chinese brands surpassed Japanese counterparts in monthly vehicle sales in Europe, coming only slightly after domestic European brands—an impressive transformation over the past three to four years since they fully entered this region.

◇Chinese manufacturers surpass Japan and South Korea in the European new vehicle market

The rise in China's market presence is fueled by more Chinese car manufacturers formally launching their operations in Europe. The ACEA currently includes five Chinese brands, with Geely Group, Chery Automobile, and Li Auto joining SAIC and BYD from April onwards. Volvo, which was once listed individually, is now part of the Geely Group.

Despite considering this expansion, the growth of Chinese brands continues to be impressive. In May, Geely Group sold 38,145 vehicles, BYD sold 32,380, SAIC sold 30,527, Chery sold 27,412, and Li Auto sold 9,945. BYD and Chery achieved remarkable year-over-year increases of 136.6% and 244.1%, respectively. The success can be attributed to models like BYD's plug-in hybrid (PHEV) midsize SUV 'Seal U DM-i' and Chery's PHEV model 'Jaecoo 7', which have been referred to as the "Temu equivalent of the Range Rover" in the British market. BYD's sales volume has almost matched Hyundai's figure of 37,062 units.

◇ Competitive pricing even with tariffs as high as 45%

The emergence of Chinese automobiles aligns with Europe's elevated fuel costs and evolving financial incentive strategies. In May, sales of fully electric vehicles (EVs) across Europe hit 1,247,545 units, reflecting an increase of 31.2% compared to the previous year, whereas plug-in hybrid electric vehicles (PHEVs) saw a growth of 25.0%, reaching 594,439 units. With Germany reintroducing electric vehicle incentives and Italy broadening assistance despite economic slowdowns, Chinese car manufacturers—who excel in transitioning to electric power—gained advantages.

Even though the EU has imposed tariffs as high as 45.3% on Chinese electric vehicles, their affordability remains strong. For example, BYD's compact EV "Dolphin Surf Boost," which faces a 27% duty, sells for €26,990 in Germany but is promoted at €15,940 (about 28 million South Korean won)—under half the price of France's Renault 5 E-Tech, priced at €28,000.

The smart utilization of PHEVs, which encounter reduced duties, has proven beneficial as well. Chery's 'Jaecoo 7 PHEV', available for £35,000 in the United Kingdom, is about £4,000 (7 million South Korean won) cheaper than Kia's Sportage PHEV.

A representative from the sector stated, "Chinese car manufacturers are purchasing underperforming European plants owned by Renault and Nissan to avoid electric vehicle taxes. Rivalry against Chinese companies in international markets is expected to grow even stronger."

Wednesday, July 15, 2026

EU Auto Sector Feuds Over Strategy to Counter Chinese Rivals

European automotive suppliers and producers hold differing opinions about Brussels' "Made in Europe" initiative, which aims to protect the European market from Chinese competition.

The European automotive sector is encountering intense rivalry from Chinese manufacturers, putting millions of jobs within the union at risk. In response, the EU is developing what is known as the Industrial Acceleration Act, aimed at promoting electric vehicles predominantly made using European parts through government contracts and financial assistance programs.

Nevertheless, automotive suppliers and makers within the EU differ in their opinions about the upcoming legislation, now being discussed among EU nations and the European Parliament, which establishes a 70% domestic component requirement for electric vehicles.

As stated by the European Association of Automotive Suppliers (CLEPA), the Commission's suggestion represents progress in the correct direction. According to a report obtained by Euronews from management consulting firm Roland Berger, plug-in hybrid electric vehicles and battery-powered cars produced in Europe currently have between 80% and 90% locally sourced parts.

Therefore, it views the Commission's 70 percent benchmark as attainable.

However, the European Automobile Manufacturers' Association (ACEA) is advocating for an alternative approach, where authorities would evaluate completed vehicles rather than the locally sourced parts within them.

"A car represents much more than just its individual components. Its worth is also derived from research and development, cutting-edge engineering, and the expertise of its dedicated team," stated ACEA in a policy document released on July 1st.

CLEPA stated that according to this approach, a completed vehicle would need just 50 percent European-manufactured parts and components, with the rest 20 percent originating from research, development, and other processes.

A 20 percentage-point reduction in the mandate for EU-produced components "might lead to the loss of 350,000 jobs," CLEPA cautioned, adding that the Commission's method focused on individual components would "protect the current production infrastructure."

"Currently, we're witnessing strong competition from low-cost nations, and the major issue everyone is aware of is China," said Benjamin Krieger, Secretary General of CLEPA, during an interview with Euronews.

“A 'Made in Europe' limit that overlooks where the real components are manufactured is a designation that disregards the European employee," he stated.

Tuesday, June 30, 2026

BYD Surpasses Geely Amid Global EV Surge Following Oil Shock

High international interest in electric vehicles enabled BYD to overcome a poor start to the year and regain top ranking.

The worldwide energy shortage has boosted BYD's return to the top of China's car industry, enabling it to catch up with... Geely Auto with increasing global interest in electric vehicles.

A Chinese electric vehicle (EV) company based in Shenzhen had relinquished its position as the country's top automaker in the first quarter of 2026 but experienced a significant recovery over the next two months due to rising fuel costs caused by the conflict between the United States, Israel, and Iran. During this time, its international shipments increased by 76 percent compared to the previous year, reaching almost 300,000 vehicles.

The revival has strengthened founder and chairman Wang Chuanfu's vision of making BYD the biggest automobile manufacturer globally by 2030, supported by progress in advanced battery systems and self-driving technologies.

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According to company data, BYD delivered 1.41 million cars worldwide from January to May, representing an increase of 19 percent compared to Geely's 1.18 million units.

Geely, which offers both gasoline and electric cars through brands such as Zeekr, Lynk, and Galaxy, took the lead in the initial quarter, producing 709,538 units versus BYD's 700,463.

Increasing electric vehicle adoption worldwide during April and May benefited BYD, even though the local market was underwhelming," stated Phate Zhang, founder of Shanghai-based data firm CnEVPost. "Strong sales beyond China proved to be the primary factor driving growth for the EV manufacturer.

In the initial five months of this year, BYD delivered 616,907 cars abroad, marking an increase of 65 percent compared to the previous year, which made up 44 percent of overall shipments.

The firm aims to achieve 1.3 million international sales in 2026, representing a roughly 24 percent increase compared to 2025, as stated by Li Yunfei, BYD’s head of brand management and communications, citing factors such as upcoming vehicle releases and a broader distribution system.

Tensions in the Middle East and the short-term shutdown of the Strait of Hormuz—where approximately one-fifth of global oil and natural gas shipments travel—caused Brent crude prices to rise over 60 percent from February 28 to April 29. Since then, prices have decreased by 11 percent, reaching roughly $85 per barrel on Wednesday.

With rising fuel prices, people across the globe have started to favor electric cars as a way to cut down on operating costs.

As the leading global electric vehicle producer, BYD intends to sell over 10 million cars each year by 2030, which would be twice its 2025 output of 4.6 million units. During a shareholder gathering on Tuesday, Wang detailed strategies to surpass Toyota and emerge as the top automaker worldwide.

Towards the end of May, BYD revealed that its The "God's Eye" next-generation driver assistance system will cost only 12,000 yuan (US$1,772), aiming to ultimately reduce traffic collisions once the system is activated.

The action highlighted the firm's commitment to establish itself as a top player in the evolving transportation landscape by developing smarter cars at reduced expenses.

Having secured the second spot behind BYD in vehicle shipments during the previous year, Geely stated in February that it plans to concentrate on increasing driving distance and enhancing charge rates instead of reducing costs to reinforce its standing within China, the globe's biggest automobile marketplace.

During December, the firm established a 2-billion-yuan safety evaluation center in Ningbo, which serves as an industrial key area located in eastern Zhejiang Province.

The holding company of Geely Auto, known as Zhejiang Geiley Holding Group, additionally has ownership of Volvo Cars and maintains an investment in the Mercedes-Benz Group.

Sales of Geely outside China — covering both gasoline and electric cars — increased by 158 percent compared to the same period last year, reaching 371,354 units during the first five months of 2026, which accounted for 31.5 percent of overall shipments.

Chinese automakers, including BYD and Leapmotor supported by Stellantis, are projected to sell 2.5 million cars to consumers in Western Europe by 2028, capturing around 20 percent of the market mainly because of their benefits in manufacturing and innovation merits of industrial processes and technical advancements positive aspects of creation and technological progress advantages related to fabrication and scientific development gains from production methods and tech improvements , as stated by Nick Lai, the head of Asian-Pacific automotive research at JPMorgan.

Chinese manufacturers sold approximately 1 million cars in Western Europe during 2025, covering key regions like Germany, France, Italy, and the UK.

Friday, June 19, 2026

Hyundai Chairman's Bold U.S. Plant Bet Pays Off

The discussion carried on regarding the reason for Hyundai Motor Group CEO Chung Mong-gu's rise from beyond the world's top 10 to fourth position throughout his leadership period.

- What was the second key factor in Chairman Chung's effort to turn Hyundai Motor Group into an international company? - What was the second hidden element that contributed to Chairman Chung's success in making Hyundai Motor Group a worldwide business? - What played a crucial role as the second secret in Chairman Chung's strategy for expanding Hyundai Motor Group globally? - What was the second critical reason behind Chairman Chung's achievement in transforming Hyundai Motor Group into a multinational corporation? - Which was the second essential component in Chairman Chung's plan to elevate Hyundai Motor Group onto the world stage?

“Strategic selection and focus.”

—Could you provide an example?

To reach the ambitious objective of becoming a top-tier international corporation, many obstacles needed to be anticipated and overcome. Chairman Chung methodically handled each challenge individually. The initial action focused on quality control. Ensuring high standards is essential for any worldwide automobile manufacturer. In 1999, we launched a quality improvement campaign and set up a specialized Quality Division to start addressing quality problems seriously.

—Had quality checks been implemented prior to that?

Throughout the time when former Chairman Chung Se-young led, emphasis was placed on quality. Yet, outcomes were restricted, and quality problems continued to be Hyundai Motor Company's weak point.

―What followed quality management?

We focused on implementing modular design within our vehicles. At that time, development of cockpit units, front-end components, and suspension systems started gaining momentum. Although modularization first emerged from German firms, Hyundai Motor Company swiftly embraced this method. The main objective behind modularization was to cut costs. In order for Hyundai to evolve into an international company, it required both high-quality standards and significant pricing strength. Therefore, modularization was strongly promoted as part of the strategy led by Chairman Chung.

―What came after modularization?

The establishment of a local factory in the U.S. market—specifically the Alabama facility. Nevertheless, this represented a significant risk. The U.S. market was extremely competitive, with car manufacturers from around the world competing intensely for control.

It seemed logical to begin with markets that had lower competition. Nevertheless, Chairman Chung opted for an assertive method: directly entering the U.S. marketplace. Even though several executives raised doubts, he remained determined to establish a local factory. Back then, some worried that such a bold tactic could result in the firm's downfall. Many senior officials disagreed with the proposal. Nonetheless, constructing the plant in Alabama was a deliberate business move made by Chairman Chung. In the end, his choice turned out to be right. Now, it is commonly seen as a key element behind Hyundai's expansion into a worldwide corporation."

- What was his next area of concentration? - What did he turn his attention to afterward? - What became his new focus? - What was his subsequent emphasis? - What did he concentrate on after that?

We initiated work on automotive platforms. A platform signifies the core framework of a vehicle. In order to create high-performing automobiles, advanced platforms needed to be developed first. The process of building these platforms commenced approximately between 2003 and 2004. At that time, Chairman Chung visited the Research and Development Headquarters every week to monitor advancements and motivate the team.

The head of platform development was Director Lee Eon-gu. Each time Chairman Chung came to the R&D facility, he held meetings with Lee to encourage him. In the end, the platform development proved successful. Consequently, Hyundai vehicles started being appreciated not only for their cost-effectiveness but also for their quality, matching up against any major car manufacturer worldwide.

―What followed platform development?

Following early achievements via effective management practices, the U.S. facility, modular design, and platform advancements, Chairman Chung shifted his focus toward labor matters—the weak point of Hyundai. Around 2005, he began addressing these workforce-related problems. The initial move involved launching comprehensive training initiatives for every employee. The tailored textbooks and educational strategies discussed previously were developed as part of this effort.

- How might you describe Chairman Chung's approach to selecting and concentrating efforts? - In what way can you encapsulate Chairman Chung's method for choosing and prioritizing? - Could you provide an overview of Chairman Chung's plan regarding selection and emphasis? - What is your interpretation of Chairman Chung's strategy related to choice and concentration?

Chairman Chung didn’t only introduce an ambitious plan; he carefully carried out tactics to bring it to life. The way things were done wasn’t random but came from detailed planning. He recognized the obstacles that had to be overcome to reach the goal, figured out how they connected, and tackled them in a planned order. Throughout every phase, he focused the firm's efforts on one main objective.

- In what way did Chairman Chung implement these tactics? - Could you explain how Chairman Chung executed these plans? - What was the method used by Chairman Chung to handle these strategies? - How did Chairman Chung go about managing these approaches? - Can you detail the process through which Chairman Chung managed these strategies?

He stood at the heart of all major innovations. He assigned leaders to each project, inspired them, held regular meetings, tracked development, and created resolutions—everything done directly under his supervision. For instance, during the building of the Alabama facility, the local U.S. manager provided updates daily, with top executives frequently called into the chairman’s office to review tactics and responses. Chairman Chung would work late into the night and then share his proposed solutions.

—Do other businesses also implement managerial changes in this manner?

No. It is unusual for a CEO to be actively involved at the frontline, whether in South Korea or elsewhere. For example, Lee Kun-hee of Samsung was said to have entrusted key innovations to his executives. Abroad, senior leaders typically do not adopt such an active role. Implementing strategic innovations step-by-step—addressing one issue after another—is also rare.

Chairman Chung implemented this strategy since Hyundai did not have the ability to engage in several innovations at once during that period. His process of choosing priorities enabled the company to effectively address its major obstacles.