Join each day information updates from CleanTechnica on e-mail. Or observe us on Google Information!
The brand new AlixPartners report 2024 International Automotive Outlook has stimulated various ideas and suggestions. Steve Hanley kicked issues off along with his abstract of the findings. Studying via that, I couldn’t assist chiming in by pulling out a few key highlights and expounding on them. In between, although, a reader contributed what is perhaps essentially the most attention-grabbing remark of all. Writing the remark underneath Steve’s article, “UjiBebek” contributes the next:
Throughout a latest journey to Thailand I seen a major variety of Chinese language EVs on the roads. Based on information revealed just lately, EVs gross sales within the first 5 months of 2024 elevated by 31% to 43k models, whereas whole autos gross sales dropped by 24%, right down to 260k models.
I mentioned this subject with an area buddy, and I discovered attention-grabbing the affect EVs are having on the automotive market general. The provision of low cost imports from China has triggered a generalized discount within the costs of automobiles within the Kingdom.
New automobiles costs dropped considerably, with worth reductions of as much as 20% utilized by sellers on the MSRP of some autos, particularly these that are in direct competitors towards the Chinese language imports. And consequently, Suzuki and Subaru introduced their intention to shut store and exit the native market by the top of 2024.
However the place the decrement is especially evident, is within the worth of used automobiles. Depreciation of used automobiles in Thailand has all the time been restricted (when in comparison with developed nations akin to Japan, Singapore, the USA, and so forth.), serving to prospects who wished to improve their each day drive to a newer car. At current, nonetheless, the residual values of used autos are normally decrease than the excellent money owed owed to the banks.
That is forcing prospects, who would have in any other case modified their car with a brand new one, to stay to their present one until the finance contract terminates (usually 60 or 72 months). And it’s severely limiting their choices when the time comes to change to a brand new car.
Attention-grabbing!
So, to begin with, let’s take these EV gross sales figures a step additional. 31% gross sales development within the midst of a broader 24% drop in gross sales within the general auto market is big. Meaning EVs rose from about 12.5% to about 16.5% market share. Thailand ought to quickly be at round one out of each 5 new automobiles bought being electrical, then one out of each 4 new automobiles bought being electrical, then. …
However exponential development is one factor. Disrupting pricing within the auto market and basically chasing some corporations out of it within the course of is one thing else.
Low cost electrical automobiles from China appear to be doing one thing particular in Thailand. I’m very curious to discover in additional element with native information sources, and much more than that, I’m curious to see if these sorts of issues are taking place in different less-talked-about nations in Asia, Africa, and the Americas.
Pictures from BYD Thailand.
Have a tip for CleanTechnica? Need to promote? Need to recommend a visitor for our CleanTech Speak podcast? Contact us right here.
Newest CleanTechnica.TV Movies
CleanTechnica makes use of affiliate hyperlinks. See our coverage right here.