TOP EV NEWS #1 – USA EV Sales up 43% Y-t-D
EV sales in the USA are up 43% Year-to-Date after sales in May resulted in it being the second best month for electric cars for the year so far. May 2017 sales outperformed May 2016 with a 46% increase. The tussle between BEVs and PHEVs is to close to call as pure electric vehicles continue giving ground on the lead at had over PHEVs, with PHEVs outselling BEVs in May with 8,325 units vs. 8,243 pure electric vehicles which include the BMW i3 REx.
The best performing electric vehicle for the month was the Toyota Prius, dethroning the Chevrolet Bolt for the first time this year. The Tesla Model S also dropped out of the top 3, a rare occurrence, making way for its sibling, the Tesla Model X. The Hyundai Ionic and Chrysler Pacifica both climbed five or more positions for the year, with the Chevrolet Bolt increased its units sold with 21% on April but remaining in the 5th place overall for the year. The big losers for May 2017 were the Mercedes C350e, Audi A3 e-tron, and Ford Focus Electric.
The Top 3 brands remained the same as this time last year with Tesla, Chevrolet and Ford taking the top three positions. The rest of the brands had to make way for the rise of Toyota, taking the 4th place. Volvo gave up the most ground, falling from 9th to 12th spot.
TOP EV NEWS #2 – Toyota confirms it sold its historical Tesla stake
Toyota confirmed this weekend that it divested from Tesla as it exited the co-operating agreement the companies had on electric vehicle technology. Toyota acquired 3.15% in Tesla in 2010 for $40.5 million, a stake which would have been worth $1.75 billion at Friday’s close. According to the Japan Times Toyota announced that the sale of the stake, which happened in trances between October 2014 and the end of 2016, is “a part of a regular review of business alliances.” The partnership resulted in the development of an electric Toyota RAV 4, which was abandoned as the company changed course away from EVs to hydrogen fuel cell technologies.
TOP EV NEWS #3 – INDIA targets 6 million plug-in vehicles by 2020
The Indian Government’s Department of Energy posted a blog in which it reiterates its ambition to only sell EVs by 2030 through its National Electric Mobility Mission Plan on which we reported on in Week 17. The Government’s plan set a target of between 6 and 7 million units by 2020 already, which seems overly ambitious as EV sales have yet to pick-up in the country. One if its largest automakers Mahindra and Mahindra last week announced that it only now plans to increase its battery production capacity from 500 units to 5,000 a month, a far cry from what should be needed if it wants to produce its fair share of 6 million units. The blog sees that EVs will reach parity with ICE vehicles by 2022. Bloomberg New Energy Finance in a report last week saw this only happening in 2025. Automakers such as Mahindra is reluctant to overly invest in EV manufacturing infrastructure while the prices of ICE cars remain cheaper than EVs in a country where the consumer is very price sensitive. The Indian Government is yet to definitively announce what financial contribution it will make towards achieving the goals, other than saying it acknowledges that it will need to carry the industry for the first three years.
TOP EV NEWS #4 – CHINA delays EV quota by a year
Chinese Premier, Li Keqiang, and German Chancellor, Angela Merkel met on Thursday to discuss various trade issues between the two countries, amongst others the impact of the China’s ZEV-like quota on German automaker’s expansion plans in the Asian country. The Chinese Government proposed that car manufacturer had to achieve a level of 8% EV sales by 2018. Although not confirmed Reuters on Friday reported that the Chinese Government agreed to delay the quota to 2019 for German companies but that they should ramp up EV deliveries at a later date.
TOP EV NEWS #5 – RUSSIAN Oil denounces EVs and Tesla
As the electric vehicle sales in neighboring Norway climbed 30% year-on-year for the month of May the CEO of Russia’s largest oil company, Rosneft PJSC, Igor Sechin denounced EVs as overrated. Mr. Sechin was quoted by Bloomberg during a speech at the St.Petersburg International Economic Forum saying Tesla is overvalued and EVs are “not as popular as had been expected” in Europe’s biggest economies. Mr. Sechin went further saying “The market’s assessment of the prospects of electric car producers, in our view, is significantly overestimated,” and that “Until the electric transport industry becomes as user-friendly and attractive for consumers as the cars with internal combustion engines, the prospects for electric vehicles remain largely uncertain.” Rosneft that had 2015 revenues of nearly $100 billion market value was clipped by that of Tesla at the end of May 2017. Tesla shares were up nearly 60% for the year while Rosneft was down 20%.
We acknowledge Donald Trump leaving the Paris Climate Pact but took a decision to rather report on other EV related stories of the week.
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