Auto updates - Oct 2024

Its November 8 2024 and few more weeks before 2024 is done. We are looking at 2025 at our doorstep and planning horizon is talking about 2028-30.

The global auto industry is in the midst of a multiple transformation — digital, supply chain, design, engine and so on. Eecent events underscore the challenges and opportunities at hand in the automobile world.

Donald Trump is back again in USA and this is going to shake the global market since USA is main consumer in automobile sector. Shares in leading German carmakers tumbled 4-6% this week, fueled by concerns that Donald Trump's election victory could bring tariffs targeting European auto exports to the U.S. market. Such tariffs could significantly impact Germany’s auto giants, putting further strain on the industry as it manages its shift to electrification and digitalization.

Meanwhile, Tesla is riding high with a 12% surge in shares. Elon Musk’s support for Trump, coupled with potential tariffs on Chinese electric vehicles, positions Tesla as a prime beneficiary in the U.S. market. Yet, this focus on localized production isn’t without cost. Since most of the EV component - raw materials are controlled by Chinese companies, its interesting to see how USA will work around tariffs and sanctions.

Globally, automakers like Nissan and Audi are announcing job cuts, with Nissan aiming to reduce 9,000 jobs as part of a $2.6 billion cost-saving initiative.

In China, BYD reported an 11.5% profit rise in Q3, showcasing its resilience and strong EV demand. The contrasting fortunes of these automakers signal a complex future, where adaptability and strategic alignment to regional policies will define success.

India completed the Deepavali season. The year to date sales were highest in the month of October but inventory is still a concern. Will there be more discounts in December or March? Consumers are waiting for price drop while car markers are preparing for new launches.

What else is going on in the automobile world? Leave a comment.