Tag Archives: China

News

Italy fined DR Automobiles with 6 million euros

In October 2023, the Italian government launched an investigation against DR Automobiles for misleading customers about the origin of its cars. Eight months later, the Italian government decided to fine the company with 6 million euros, although the company claims that the accusation is unfounded.

DR Automobiles have established a simple system of processing Chinese cars with refined Italian design and partly buying selected European technology. The result is affordable SUV models, and the slogan “Una storia Italiana” itself is part of finely packaged marketing combined with patriotism, trying to hide the origin of the vehicle. The regulator stated that the vehicles, which are sold under the brands DR and EVO, are promoted as Italian products, but are mostly of Chinese origin. Only a small part of assembly and finishing works is done in Italy. “This practice coincides with the period in which the company recorded a significant increase in sales of DR and EVO vehicles on the Italian market,” the statement said.

This decision comes at a time of increased tensions between the EU and China, all because of the privileged position of electric vehicles produced in China due to subsidies. The EU launched an investigation that showed that the Chinese government subsidized cars exported to Europe in various ways, and in response the EU is considering the introduction of additional tariffs (38%).

The EU is not the only one that has introduced additional tariffs on Chinese vehicles. Turkey did the same with additional tariffs of 40% on Chinese cars, and the United States did it before them. The United States raised the tariff rate on imported cars from China from 25% to 100%. Of course, such decisions were condemned by the Chinese authorities, who announced countermeasures to protect their interests.

Source: Reuters

News

Stellantis plans to invest 5.6 billion euros in South America

As part of the “Dare Forward 2030” strategic plan, Stellantis Group intends to invest over 50 billion euros worldwide in electric vehicles in the next 10 years, with the goal of achieving carbon neutrality by 2038. One of the markets that Stellantis is seriously counting on is South America, where it plans to invest 5.6 billion euros by the end of the decade.

In recent years, China has been a market where many global manufacturers have invested and opened facilities (independently or in partnership with domestic companies) for the production of electric vehicles. However, due to strained relations between Europe and China, regarding state subsidies for electric vehicles exported to Europe, European manufacturers are looking for other places for investment.

Stellanti has chosen South America as one of its most successful markets. This multinational automotive manufacturing corporation holds significant market shares on this continent (23.5 percent), and in Brazil alone they hold almost one third of the market (31.4 percent).

“The planned investments will support the launch of more than 40 new products in that period and the development of new biohybrid technologies, innovative decarbonization technologies in the supply chain of the automotive industry and new strategic business opportunities,” Stellantis announced.

The facility in the Brazilian city of Betim serves as the company’s global hub for bio-hybrid technology that combines electrification with hybrid engines that use biofuels such as ethanol. Expectations are that these technologies will be available by the end of 2024.

It should also be noted that at the end of 2023, Stellantis formed a joint venture with Leapmotor. Stellantis intends to invest €1.5 billion to acquire approximately 20% of Leapmotor. This will be a good financial injection for the Chinese company to improve its sales results in the domestic market but also to expand its business outside of China. The world’s largest conglomerate will have a 51 percent stake and will have the rights to export, sell and manufacture Leapmotor electric vehicles outside of China.

At a press conference in the Chinese city of Hangzhou, Stellantis CEO Carlos Tavares said: “We have not been so successful in China, so we prefer to rely on a Chinese partner. To win in China, it is better to win with a Chinese company.” This is a good strategic move for Stellantis, with which the group resets its strategy focused on electric vehicles after years of bad sales in China.

Source: Stellantis

News

BYD ordered 7 new cargo ships

The largest Chinese car manufacturer, BYD, became one of the top 10 largest manufacturers in the world last year with 3,024,417 vehicles produced. In an effort to expand its business outside of China, their first target is the European market, where they are lagging behind the competition. In order to meet the goals and the increasing demand, the speed of transporting cars to Europe is needed, and for this reason, BYD ordered 7 new cargo ships.

The development of the automobile industry in China is expanding, primarily fully electric vehicles, which are killing competition worldwide with low production costs and subsidies provided by the Chinese government. Thanks to that, in 2023 China became the world’s largest car exporter with 4.91 million vehicles. That is one million vehicles more than Japan, which was the world’s largest exporter for decades.

BYD currently owns one transport ship (BYD Explorer No.1) built by a local company, whose capacity is 7,000 cars. That is not enough, so the additional 7 ships will help this Chinese giant to transport its cars around the world faster. Currently, Chinese companies own less than 50 car cargo ships, and their combined capacity is less than 150,000 vehicles. In comparison, Japanese companies have ships that can transport 1.6 million vehicles.

How serious a player BYD is is also shown by the fact that it invests 14 billion dollars in the development of advanced technology, especially the ADAS system, which will make its cars safer on the road. The company also invests in marketing, thus becoming an official partner of UEFA Euro 2024, which will be held in Germany this summer.

Source: Reuters