Short Torque

EU's plug-in hybrid sales led by brands from China

Chinese automakers sold more cars in Europe than Renault and Audi in August, helped by booming plug-in hybrid sales. Models from BYD, Jaecoo and MG are in the category's top-10 sellers, data from JATO Dynamics showed. Tesla's Model Y remained Europe's most popular battery-electric vehicle, but its sales dropped 37 percent from August 2024 despite growing BEV sales overall, data from the research firm showed. Chinese automakers have ramped up exports of plug-in hybrid and hybrid electric vehicles to Europe and plan to build more models locally, minimizing the effect of the European Union's tariffs on Chinese-made EVs. Chinese carmakers had a combined market share of 5.5 percent in August with over 43,500 sales, up 121 percent from August 2024, the data showed. That was higher than Audi's 41,300 and Renault's 37,800. PHEV sales in 28 European countries were up 59 percent in August to almost 84,000, with PHEVs of Chinese brands up 14-fold to 11,000.

Formal notice of US trade tariffs issued

The Trump administration issued a formal notice on Wednesday implementing the US trade agreement with the European Union, confirming that autos and auto parts imports will be subject to a 15 percent duty from Aug 1 and listing exemptions for certain pharmaceutical compounds, all aircraft and aircraft parts, and certain natural resources. In a Federal Register notice, the Commerce Department and the US Trade Representative's office said they have amended the US tariff schedule to implement the Framework Agreement reached with the EU in late July. It lowers President Donald Trump's tariffs to 15 percent on the vast majority of imports from the EU, including autos. The deal was subsequently modified to make the duty rate retroactive to Aug 1, but European automakers have been waiting for the formal notice.

FAW-Volkswagen cars set for Middle Eastern market

Chinese-German auto joint venture FAW-Volkswagen held a ceremony on Tuesday to mark its first batch of cars for export rolling off the assembly line in Changchun, capital of Northeast China's Jilin province. The joint venture between Volkswagen Group and FAW Group said that the batch of 554 Magotan and Sagitar sedans will be shipped to the Middle East as part of its broader push into overseas markets. Chen Bin, general manager of FAW-Volkswagen, said that the company views overseas expansion as a key growth driver and it aims to become a leading exporter among joint-venture auto brands. FAW-Volkswagen said that its Jetta brand will also target overseas markets, starting with Central Asia. Founded in 1991, the joint venture now produces Audi, Volkswagen and Jetta models, and has five production bases in Changchun, Foshan in Guangdong province, Chengdu in Sichuan province, Qingdao in Shandong province, and Tianjin.

Plans to pause production at many Stellantis plants

Stellantis, whose brands include Jeep, Peugeot and Fiat, plans to pause production at several European factories because of slowing sales, the company said on Wednesday. French business daily Les Echos reported the factories are in France, Germany, Italy, Poland and Spain. Stellantis said the move aims "to adapt the pace of production to a difficult European market, while managing stocks in the most efficient manner before the end of the year".Unions are concerned that the world's fourth-largest car company will close other factories in Europe due to pressure from US tariffs and competition from China. Stellantis is not the only European automaker facing difficulties: Volkswagen lowered its forecasts for this year as it prepares to cut 35,000 jobs in Germany. Meanwhile US carmaker Ford said it would cut another 1,000 jobs at its factory in the German city of Cologne.

European demand fuels S. Korean auto exports

South Korea's automotive exports grew for the third straight month due to solid demand from Europe, government data showed on Tuesday. Car shipments expanded 8.6 percent from a year earlier to $5.5 billion in August after going up in single digits in June and July, according to South Korea's Ministry of Trade, Industry and Energy. The consecutive growth was attributable to higher demand for eco-friendly vehicles as well as robust demand from Europe that offset lower US demand, caused by the country's tariffs. Auto exports to the United States dropped 15.2 percent to $2.1 billion, but those to the European Union and other countries in Europe spiked in double figures to $792 million and $547 million each. Shipments of eco-friendly sedans soared 29.3 percent to $2.17 billion in August compared to the same month of 2024. The number of exported vehicles stood at 200,317 in August, up 5.5 percent year-on-year. Auto parts shipment decreased 8.8 percent to $1.67 billion.

Motoring - Agencies