Affected by tariffs, Volvo is looking for a "backup" from CATL. | Overseas Daily

"Top 3 News"

Volvo's New EX90 Uses CATL Batteries in the US, but This May Soon Change

Key Points:

Volvo's EX90, as its first luxury electric seven-seat SUV, rolled off the production line at the factory outside Charleston, South Carolina last summer, and the first batch of customers will take delivery at the end of 2024. Although the vehicle is locally produced, the batteries are supplied by China's CATL. Due to the 25% tariff imposed by the US on Chinese imports, especially for electric vehicle batteries, the cost has increased. Volvo has raised the starting price of the EX90 by $3,300 from the initial $77,990 to $79,995, and the top-of-the-line six-seat high-performance Ultra model costs nearly $90,000.

Volvo EX90 (Source: Electrek)

Volvo CEO Jim Rowan said that the additional tariffs have reduced profit margins, and the company is looking for local battery manufacturers in the US to reduce costs. CATL is the world's largest manufacturer of electric vehicle batteries, with a global market share of 37.9% in 2024, while BYD ranked second with 17.2%. Volvo has several options for purchasing batteries in the US, such as South Korea's SK On, which has collaborated with Volkswagen, Ford, and Hyundai. Its factory in Commerce, Georgia, can supply batteries for about 300,000 electric vehicles per year.

Opinions:

From the perspective of market competition, Volvo's search for local battery suppliers in the US due to tariff issues is likely to change its supply chain layout and affect its cooperative relationship with CATL. Once a suitable US supplier is successfully found, it can not only reduce costs and enhance the price competitiveness of products, but also is expected to obtain more policy support in the local market, thereby enhancing its competitive advantage over other luxury electric SUV brands.

From the perspective of industry impact, Volvo's action fully reflects the current situation that the supply chain of the global electric vehicle industry is affected by policies. This may prompt other car companies to re-examine and adjust their own battery supply strategies, further promoting the development of the local battery industry in the US, and at the same time intensifying the competition among global battery manufacturers, inspiring the entire industry to continuously innovate in technology and cost control.

The Demand for Used Electric Vehicles in the UK Will Reach a Record Level in 2024

Key Points:

According to data released by the Society of Motor Manufacturers and Traders (SMMT) in the UK, the used car market in the UK performed well in 2024. The transaction volume increased by 5.5% to 7,643,180 transactions, with continuous growth for eight consecutive quarters. 400,488 more vehicles were sold than in 2023, and the monthly transaction volume continued to rise. The transaction volume in the fourth quarter increased by 4.0% to 1,746,051 vehicles, benefiting from the increased supply and more choices brought by the growth of the new car market. In terms of vehicle models, the three most popular body types have remained unchanged for many years. Supermini cars account for 32.3%, mid-size cars account for 27.1%, and multi-purpose vehicles account for 15.9%. Among them, the sales of multi-purpose vehicles have grown strongly by 10.7% and are the best-selling in the new car market, while the market share of luxury sedans is only 0.5%.

Nissan Leaf Electric Vehicle (Source: ElectricCarsReport)

In terms of color preference, black is favored by used car buyers, accounting for 21.3%, while gray and blue rank second and third respectively, and the three together account for 55.1% of the total sales. The sales of pink and turquoise-colored cars have increased significantly. In the field of new energy vehicles, the sales of used pure electric vehicles (BEV) increased by approximately 57.4% to 188,382 vehicles, and the market share increased from 1.7% in 2023 to 2.5%. The share in the fourth quarter was 2.7%, the same as the third quarter. The sales of plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV) also increased by 32.2% and 39.3% respectively. The total sales of used electric vehicles in 2024 increased by 43.3% compared to 2023, accounting for 7.7% of the total sales. However, from April, BEVs registered in the new car market will be subject to vehicle excise duty and luxury car surcharge (ECS), which will increase the vehicle use cost and may affect the used car market.

Opinions:

From the perspective of market trends, the UK used car market has continued to grow in recent years, and the new car market has played a significant driving role. Consumers have stable preferences in vehicle models and colors, and the demand for electric vehicles in the used car market is growing rapidly, indicating that the market's recognition of environmentally friendly vehicles is continuously improving. From the perspective of policy impact, the upcoming tax policy for electric vehicles may hinder the development of the used car market, especially having a greater impact on the sales of used electric vehicles. Canceling the ECS of BEV or raising its threshold is expected to eliminate consumers' concerns about purchasing new and used cars, promote the further development of electric vehicles in the used car market, and maintain the growth trend of the market.

Audi Launches Entry-Level Q4 e-tron

Key Points:

Audi has strengthened the Q4 e-tron series by adding a high-range entry-level model. This is a fully electric luxury vehicle with a rich standard configuration, equipped with a 63 kWh (net 59 kWh) battery. The regular version has a range of up to 412 kilometers, and the hatchback version is 423 kilometers. Its fast charging capability is excellent. Under ideal conditions, it only takes 24 minutes to charge from 10% to 80% using a fast charging station, and 10 minutes to charge 150 kilometers (155 kilometers for the hatchback version), with a maximum DC charging power of 165 kW. The vehicle is also equipped with manual battery pre-conditioning and predictive maintenance reminder functions, which greatly enhance the convenience of daily driving. Orders are accepted from this month. The Q4 40 e-tron can accelerate from 0 to 100 km/h in just 8.1 seconds, with a maximum speed of 160 km/h, and is powered by a permanent magnet synchronous motor with a power of 150 kW (204 horsepower) on the rear axle. The towing capacity of the two vehicle versions is 1000 kilograms on a 12% slope and 1200 kilograms on an 8% slope.

Audi Q4-etron (Source: ElectricCars Report)

Opinions:

From the perspective of market competition, Audi's launch of the high-range entry-level Q4 e-tron series enriches its own product line. With the two selling points of high range and convenient configuration, it can attract more consumers who pursue cost performance and daily use convenience, thereby enhancing its competitiveness in the electric SUV market. From the perspective of product positioning, this vehicle fills the gap in Audi's entry-level luxury electric SUV market segment with its practical range, good performance, and rich configuration, meeting the diverse needs of different consumers for luxury, practicality, and environmental protection, and further consolidating Audi's position in the new energy vehicle market.

"Big Events"

BYD's January Sales Show Electric Vehicles Continue to Dominate

In January 2025, BYD demonstrated a strong development momentum in the highly competitive market, with remarkable sales of plug-in vehicles, showing a continuous growth trend. In that month, the Chinese automotive giant sold a total of 300,538 plug-in vehicles, a significant increase of 47.5% compared to the same period last year. Although the January sales were lower than the records of over 500,000 vehicles in September, November, and December 2024, it is still a good start for this year.

The January sales data highlights the key trend of the increasing popularity of plug-in hybrid electric vehicles (PHEV). BYD sold 171,069 PHEVs, a significant jump of 78.7% compared to January 2024. Its sales accounted for 57.7% of BYD's total sales, an increase of 10.1 percentage points year-on-year. Although the sales of pure electric vehicles (BEV) still increased by 19.1% year-on-year, their proportion in the total sales dropped to 42.3%, a decrease of 9.9 percentage points compared to last year. A total of 125,377 BEVs were sold in January.

BYD Qin (Source: ElectricCarsReport)

In the total sales, 296,446 were passenger vehicles, and the remaining 4,092 were commercial vehicles and buses. BYD also reported that its vehicle production in January increased by 49.1% compared to last year, reaching 327,864 vehicles, and the battery installed capacity of its electric vehicles reached 15.511 GWh. Particularly worth noting is the significant growth in BYD's export volume. The export volume soared to 66,336 vehicles in January, an increase of 83.3% year-on-year, setting a new monthly record for the company. The January sales data cover all BYD brands, including Denza, Fangchengbao, Yangwang, and BYD brand vehicles.

Among them, the high-end brand Yangwang sold 286 vehicles, Fangchengbao and Denza sold 6,219 and 11,720 vehicles respectively. The most robust performance is BYD brand vehicles (Dynasty and Ocean series), which sold 278,221 vehicles, an increase of 50.3% year-on-year. BYD has cumulatively sold an astonishing 10.9 million plug-in vehicles. From the market perspective, BYD has further consolidated its market position in the fierce competition in the new energy vehicle market with its diversified product layout and strong sales growth. In particular, the hot sales of PHEV reflect that its product strategy meets the market demand. From the perspective of product development, the different performances of various brands and models provide a direction for BYD's subsequent product optimization and market expansion. The significant growth in export volume also indicates the good prospects of its globalization strategy.

After BYD, Nissan Also Applies DeepSeek Technology to Its New N7 EV

Nissan has become the latest automaker to apply DeepSeek technology to its new electric vehicle N7 in China. The N7 will be the first joint-venture brand electric vehicle to be equipped with DeepSeek R1. Currently, the Japanese automaker is striving to reverse the situation in the world's largest electric vehicle market. Dongfeng Nissan, Nissan's joint venture in China, has high hopes for its new N7 electric sedan, expecting it to inject vitality into the brand.

Nissan N7 (Source: Electrek)

On Wednesday, the company announced that the new N7 electric vehicle is "the first real vehicle of a joint-venture automaker to access the DeepSeek R1 deep reasoning model". Zhou Feng, vice president of Dongfeng Nissan, said that the company has been "striving to provide the best intelligent experience" and added that before the Lantern Festival, Nissan completed the connection of the N7 real vehicle with DeepSeek at the "fastest speed". This move comes as Nissan is trying to keep up with Chinese electric vehicle leaders such as BYD, who also revealed this week their plans to integrate DeepSeek into their electric vehicle models.

Nissan launched the N7 electric sedan at the Guangzhou Auto Show, and it is widely regarded as a response to Tesla Model 3. From the perspective of market competition, Nissan is enhancing the competitiveness of the N7 by adopting DeepSeek technology, aiming to compete for market share with rivals such as BYD and Tesla and enrich its product layout in the electric vehicle market. From the perspective of industry impact, this cooperation indicates that vehicle intelligence is the industry development trend. Automakers are introducing advanced technologies to enhance the intelligent experience of products, which may prompt more automakers to follow suit and promote the development of the entire electric vehicle industry in the field of intelligence.

Rizon Delivers the First Batch of Electric Trucks to Canadian Customers

The new all-electric brand RIZON under Daimler Trucks announced its first official delivery in Canada. An e18L with a total weight of 18,850 pounds and an equipped dump truck body was delivered to Villamar Construction Company in Victoria, British Columbia. The vehicle will be used in custom home construction projects. In the coming weeks, another 18 vehicles with different bodies (such as dry cargo bodies, service bodies, and landscape dump bodies) will be delivered to customers in British Columbia and Quebec, including municipal authorities, rental suppliers, and freight and logistics companies. RIZON's current dealer network in Canada includes nine locations in British Columbia, Ontario, and Quebec, and plans to expand to other regions in the near future.

Rizon Truck (Source: ElectricCarsReport)

RIZON trucks were launched in Canada in 2024 to meet the country's demand for zero-emission vehicles. The Canadian government aims to achieve net zero emissions by 2050 and has established an incentive program to encourage fleet electrification, prompting enterprises and municipal authorities to seek sustainable fleet options to improve environmental performance and operational efficiency.

These vehicles are in line with the Medium and Heavy-Duty Zero-Emission Vehicle Incentive Program (iMHZEV) that came into effect in Canada in 2022. According to this program, a RIZON truck can receive a subsidy of approximately $75,000 at the time of sale, and in British Columbia, an additional provincial subsidy of up to $75,00