Short Torque

Negotiations to start on replacing EU tariffs

The European Union and China have agreed to look into setting minimum prices for Chinese-made electric vehicles instead of tariffs imposed by the EU in 2024, a European Commission spokesperson said on Thursday. EU trade commissioner Maros Sefcovic spoke with Chinese Commerce Minister Wang Wentao and both sides agreed to look into setting minimum prices, the EU spokesperson said. China's Ministry of Commerce said in a statement that negotiations were set to start immediately. Sefcovic has previously said any minimum prices would need to be as effective and enforceable as the EU tariffs. Previous minimum price deals agreed by the EU have been for homogenous commodities, rather than complex products such as cars. The commission has said it believes a single minimum price would not be adequate to counter injury caused by subsidies.

Leapmotor T03 assembly in Poland put to a halt

Stellantis has stopped making its Chinese partner Leapmotor's T03 small electric car in Poland and is assessing alternative production options, the European automaker said on Tuesday. The group "is no longer assembling Leapmotor's T03 model at the Tychy plant in Poland since March 30", it said in a statement. "While the company remains fully engaged in the launch of Leapmotor vehicles in Europe, at the moment it is evaluating different production options," Stellantis said. Stellantis did not say what caused the decision to stop T03 assembly. A person with knowledge of the matter said Stellantis and Leapmotor were not planning for now to resume T03 production in Europe. They are looking to upgrade the T03 to A-series models that will be produced outside China from 2026.

Battery giant in line for Hong Kong listing

Chinese battery maker CATL on Thursday received approval from the Hong Kong Stock Exchange for its listing to raise at least $5 billion, according to two sources with direct knowledge of the matter. CATL's listing is set to happen in the second quarter, according to two separate sources. The exact timing of the share sale launch is still to be decided in light of the global financial market volatility caused by US tariffs hikes. The battery giant's listing would be the largest in Hong Kong in four years since Kuaishou Technology raised $6.2 billion in an initial public offering. In late March, CATL said the China Securities Regulatory Commission had approved the planned share sale. In an earlier regulatory filing, CATL said part of the funds raised will be used to build a 7.3 billion-euro ($7.53 billion) battery plant in Hungary.

Foreign marques struggle during Q1 sales in China

BMW's first-quarter sales were down by 17.2 percent in China, where foreign premium carmakers have struggled to boost sales amid competition from cheaper domestic rivals. Porsche, Mercedes-Benz and the Volkswagen Group also reported a slump in their China sales. Battery-electric car sales rose by 32 percent globally and 64 percent in Europe, as demand for EVs in the region picks up in response to new models rolled out ahead of tightening EU carbon emissions targets. The exception is Tesla, whose market share has shrunk despite the boom in EV demand as controversy over CEO Elon Musk's political leanings and an aging lineup has prompted customers to buy other brands.

Self-developed electric vehicle aim by Toyota

Toyota aims to have about 15 electric vehicles developed on its own by 2027 and is targeting production of about 1 million cars a year by then, the Nikkei newspaper reported last week. Toyota has five EV models developed in-house, manufacturing them only in Japan and China, the paper said. Expanding production to the United States, Thailand and Argentina can help hedge against tariff and foreign exchange risks and cut delivery times, it added. The 15 EV models include some under its Lexus luxury brand. Toyota now expects to produce about 800,000 units in 2026, effectively down nearly 50 percent from its original plan, the paper added. Toyota has previously said it intended to sell 1.5 million EVs per year by 2026 and 3.5 million by 2030.

Motoring - Agencies