Nissan and Honda's official announcement of the merger has been terminated, and the discount range of Tesla Cybertruck continues to increase due to inventory backlog. | Overseas Daily
"Top 3 News"
BYD May Make New Progress in Brazil's Lithium Mine Field
Key Points:
BYD, the world's largest electric vehicle (EV) manufacturer, shows no signs of slowing down its development in the short term. Newly discovered documents indicate that BYD may take new actions in the mining rights of the "Brazilian Lithium Valley", which could be its largest move outside China in the process of expanding to the Western market.
BYD Shark Pickup (Source: Electrek)
BYD is famous for its electric vehicles such as Seagull, Dolphin, and Yuan PLUS. It started as a battery manufacturer in the 1990s. In 1998, BYD became the world's second-largest rechargeable battery manufacturer and entered the automotive industry in 2003. Since then, BYD has stopped producing fuel vehicles and focused on electric vehicles and plug-in hybrid (PHEV) vehicles, which has achieved remarkable results. In 2023, BYD surpassed Volkswagen to become the largest automaker in China, and in October last year, it surpassed SAIC to become the largest automotive group in China.
According to documents seen by Reuters, BYD has the mining rights of two mines in Brazil. Its Brazilian subsidiary, "Brazilian Mineral Exploration Company", obtained these mineral rights at the end of 2023. The subsidiary was established in the same year and is still in the "research stage with no capital flow and operating income". Although BYD has shares in several mining companies in China, this is its first move in Brazil, which is BYD's largest market outside China. This is also a strategic move for it to mine key electric vehicle minerals including lithium in the Western Hemisphere.
Opinions:
From the perspective of market competition, BYD's acquisition of mining rights in Brazil helps ensure the supply of key raw materials, reduce costs, and enhance its competitiveness in the global electric vehicle market. Especially in the international market, compared with other automakers that rely on external lithium supply, BYD will have a stronger cost advantage and supply stability, thereby seizing more market share. From the perspective of industry development, this move promotes the vertical integration of the electric vehicle industry chain, prompts more automakers to attach importance to the raw material supply link, and promotes the entire industry to make progress in resource integration and sustainable development, which is conducive to the healthy development of the global electric vehicle industry.
Tesla Offers Up to $6,000 Discount on Cybertruck Due to Inventory Backlog
Key Points:
Tesla is increasing the discount on its electric pickup Cybertruck due to inventory backlog caused by demand problems. 2024 is the first full year of Cybertruck mass production, and Tesla has encountered many difficulties in selling this vehicle this year. Reports say that Tesla even grinds off the "Foundations Series" badges on some Cybertrucks and sells them as ordinary, lower-priced models. It also certifies the US-made Cybertruck and puts it on the Canadian market to promote sales.
Tesla CyberTruck (Source: Electrek)
Now, the inventory of Cybertruck in Canada and the United States is increasing, and a strange situation has also occurred in Tesla's domestic market. The 2025 new Cybertruck is eligible for a $7,500 federal electric vehicle tax credit, but Tesla still has 2024 models in stock that are not eligible. Therefore, Tesla offers a maximum discount of $4,000 for the 2024 ordinary Cybertruck and a $6,000 discount for the "Foundations Series" version. It is estimated that Tesla currently has thousands of Cybertruck inventories, and the new discount this time is twice that of last month.
Opinions:
From the perspective of market competition, the sales difficulties of Cybertruck highlight that Tesla faces fierce competition in the electric pickup market segment. Problems such as insufficient demand and inventory backlog have affected its market share and brand image. Although increasing discounts can stimulate consumption to a certain extent, it is difficult to fundamentally solve the competitive pressure.
From the perspective of product development, as an important product of Tesla, the sales setbacks of Cybertruck may prompt Tesla to re-evaluate the product positioning and market strategy. For example, it may optimize the product configuration or launch a new version according to consumer needs to enhance product competitiveness and meet market demand.
Volkswagen Confirms the New ID.2X Priced at £25,000 Will Be Launched Next Year as a Replacement for the Electric T-Cross
Key Points:
Information about ID.2X: In September this year, Volkswagen will launch the electric version of T-Cross at the IAA Mobility in Germany, named ID.2X. CEO Thomas Schäfer confirmed the name on Thursday, and it is expected to be listed in 2026 with a starting price of approximately £25,000 ($31,000). We first saw this vehicle after Volkswagen released the teaser image in December 2023. It is the "slightly larger" brother model of ID.2, which is a low-cost electric version of the Polo replacement model. ID.2X will be the electric replacement model of the VW T-Cross.
Volkswagen ID 2 Concept Car (Source: Electrek)
Schäfer confirmed in a LinkedIn post that it is the "last model in the product line" after CURPA Raval and ID.2. It is built based on the same entry-level MEB platform as ID.2, equipped with a single front-mounted motor (front-wheel drive), and has two battery options of 38 kWh or 58 kWh, with a maximum range of approximately 280 miles (450 kilometers, WLTP condition). The interior adopts a new design with a 12.9-inch infotainment screen and a 10.9-inch driver display, and the driver display also has interesting driving modes such as "classic" and "retro". Price and listing time: ID.2 is planned to be listed at approximately £22,000 ($27,500), and the price of ID.2X is slightly higher. Rehák said that ID.2X will be listed after ID.2 in 2026.
Earlier this week, Volkswagen previewed the smaller entry-level electric vehicle ID.EVERY1. Schäfer said that its show car will be unveiled on March 5, and it will be the first to specifically preview the new electric vehicle with a price of approximately €20,000. Schäfer also said that with the launch of ID.2X and three other affordable electric vehicles, "the core of the brand group is truly showing its strength on the road", "We are on the right track, and now we need to speed up".
Opinions:
From the perspective of market competition, Volkswagen's launch of affordable electric vehicles such as ID.2X and ID.EVERY1, with price advantages and brand awareness, is expected to gain a foothold in the mid-to-low-end electric vehicle market and compete with other brands' models of the same price range, such as BYD Dolphin. From the perspective of brand development, these models enrich Volkswagen's electric product line, help accelerate the brand's electrification transformation, meet the needs of different consumers, enhance the brand's influence and market share in the new energy vehicle field, and consolidate Volkswagen's position in the automotive industry.
"Big Events"
Electric Vehicles Are the Future of the United States, but Policies Will Determine the Pace
Despite the uncertainty of the future of federal tax incentive policies, the US electric vehicle market still performed well in 2024. The sales volume in the fourth quarter reached 365,824 units, and the annual sales volume was 1.3 million units, increasing by 15.2% and 7% respectively compared with the previous quarter and 2023, highlighting the growing interest of consumers in electric transportation. Leasing has become the main way to popularize electric vehicles due to the limited purchase incentive policies. The leasing rate has increased significantly in recent months due to various preferential policies. The current federal tax structure is conducive to the launch of electric vehicles.
Honda Electric SUV (Source: Electrek)
Tesla Model 3 and Model Y led the sales, and new models such as Honda Prologue, Chevrolet Equinox, and Blazer EVs also promoted sales growth. However, price is still the biggest obstacle to popularization. With the launch of low-priced models, it is expected to maintain the upward sales momentum. If the Trump administration cancels the $7,500 federal electric vehicle tax credit, many states may use subsidies to fill the gap, but it is affected by the budget and clean energy goals; the cancellation of the credit may also make the investment in electric vehicle manufacturing underutilized and slow down the market development speed.
In 2025 and beyond, although the Trump administration lacks policy support, the short-term outlook is still optimistic. It is expected that the market share will be about 10% by 2025, but the growth may slow down. Although the United States lags behind countries such as China, the global electrification trend is unstoppable. Electric vehicles will become an important part of the US automotive field. The speed of achieving electrification depends on various factors such as incentive measures, state actions, and industry innovation. New models, infrastructure, and financing options will promote electric vehicles to the mainstream, and the realization time depends on the decisions of policymakers.
Toyota Develops a New Fuel Cell System to Improve Fuel Efficiency
Toyota's Third-Generation Fuel Cell (Source: ElectricCarsReport)
Toyota's newly developed third-generation fuel cell (FC) system is designed to meet the specific needs of the commercial field, and its durability is comparable to that of traditional diesel engines. In addition, the system has a significant improvement in performance, including improved fuel efficiency, and a significant reduction in cost compared to the previous version. In addition to passenger cars, the third-generation fuel cell system will also be extended to heavy commercial vehicles, and it is planned to be launched in major markets such as Japan, Europe, North America, and China after 2026 at the earliest.
The third-generation fuel cell system will make its debut at the H2 & FC EXPO (International Hydrogen and Fuel Cell Expo) in Tokyo, Japan on Wednesday, February 19.
Toyota regards hydrogen as an important fuel in the pursuit of carbon neutrality and actively cooperates with partners from various industries. In the research and development activities, Toyota has been promoting various initiatives in the fields of "manufacturing, transporting, storing, and using" hydrogen. In order to further accelerate the expansion and promotion of the application scenarios of fuel cell technology to achieve a hydrogen society, the continuous evolution of fuel cell technology is necessary, and this third-generation fuel cell system represents a major change.
Honda and Nissan Officially End Merger Negotiations
Japanese automakers Honda and Nissan reached an agreement today to terminate the memorandum of understanding signed on December 23 last year regarding the consideration of business integration between the companies. Nissan CEO Makoto Uchida revealed that the initial merger negotiations with Honda changed from the establishment of a joint holding company to Honda's proposal that Nissan become its subsidiary. Uchida explained that such a structure cannot allow Nissan to fully realize its potential, so he rejected this proposal.
Nissan and Honda (Source: ElectricCarsReport)
Honda CEO Toshihiro Mibe confirmed that they had proposed a share swap to simplify the decision-making process. Mibe expressed disappointment, acknowledging the potential of the merger, but emphasizing that the steps required to achieve the merger are "painful".
The two companies announced last December that they were exploring the establishment of a joint holding company, and Mitsubishi had also considered participating.
"Since the signing of the memorandum of understanding, the management teams of the two companies, including the CEOs, have discussed and considered the surrounding market environment, the goals of business integration, and the integrated management strategy and structure. In addition, considering the importance of business integration, the two companies have also carefully discussed with various stakeholders.
During the discussions between the two sides, various options for the structure of business integration were considered. Honda proposed to change the structure from the establishment of a joint holding company through the joint share transfer by Honda appointing the majority of directors and the CEO as outlined in the initial memorandum of understanding to making Honda the parent company and Nissan the subsidiary through a share swap.
After these discussions, the two companies concluded that in the context of the changing market environment towards the electrification era, in order to prioritize the speed of decision-making and the implementation of management measures, it is most appropriate to stop the discussions and terminate the memorandum of understanding." The two companies said in a joint statement.
XPeng Officially Enters the UK Market
XPeng UK (Source: ElectricCarsReport)
Chinese electric vehicle manufacturer XPeng announced its official entry into the UK market and the pre-sale of its first right-hand drive model. This ultra-intelligent all-electric medium-sized coupe SUV - XPeng G6 - marks a new milestone in one of the world's largest automotive and electric vehicle markets. The UK is a key step in XPeng's internationalization strategy. It not only became the largest electric vehicle market in Europe in 2024 but also is one of the most important right-hand drive vehicle markets in the world.
XPeng's official dealer in the UK, I