On the Move, April 15-21, 2024

Elon Musk set to boost Tesla and India with upcoming visit

Elon Musk is scheduled to visit India next week, a trip that includes a meeting with Prime Minister Narendra Modi and is expected to confirm plans for a Tesla factory. This visit aligns with India's recent electoral process and Modi's ambitions to enhance the country's manufacturing capabilities. Musk's planned investment of $2 billion to $3 billion aims to position India as a key player in global EV production, tapping into its manufacturing potential amid diversifying global supply chains. The move comes as Tesla seeks new growth venues, with EV sales slowing in established markets like the US and China. Tesla's push into India represents a strategic expansion into one of the world's fastest-growing major economies, promising a substantial impact on both Tesla's future and India's economic trajectory.

Inchcape divests UK dealerships for ￡346 million amid sector consolidation

Inchcape plc the UK’s largest automotive distributor, has agreed to sell its British dealership operations to US-based Group 1 Automotive for ￡346 million, concluding a strategic review aimed at streamlining the company. This sale transfers more than 80 forecourts to Group 1 Automotive, enhancing Inchcape's focus on its more profitable international car distribution business. The deal reflects broader consolidation trends within the UK motor retail sector and comes at a time when US firms find UK assets appealing due to a strong dollar. Inchcape plans to use part of the proceeds for a share buyback, and anticipates the transaction will complete in the third quarter of 2024. The sale is seen as a move to simplify Inchcape’s complex corporate structure and improve profitability.

BMW UK and BCA extend remarketing partnership for five more years

BMW Group UK has renewed its substantial remarketing and de-fleeting contract with BCA for another five years, continuing one of the largest partnerships in BCA's history. Under this agreement, BCA will manage a range of services for BMW and its leasing arm Alphabet, including vehicle inspection, collection, and the remarketing of end-of-contract vehicles. The deal also includes logistics coordination and customer support services at Vehicle Distribution Centres, as well as managing the Customer Experience Programme fleet services. This collaboration is expected to reduce CO2 emissions, with an estimated saving of 425 tons of CO2e over the contract’s duration, thanks to BCA's integrated network solution and online auction model.

Nissan gears up for next-gen EV batteries by 2029

Nissan has announced plans to mass produce electric vehicles equipped with advanced solid-state batteries by early 2029. This development comes as part of their strategy to regain a competitive edge in the electric vehicle market, currently dominated by companies like Tesla and BYD. Nissan's new battery technology, which uses solid metals instead of corrosive liquids, is expected to be cheaper, more powerful, safer, and quicker to charge than today’s lithium-ion batteries. The pilot production line for these batteries is set to begin in March 2025, with commercial production starting by March 2029. Nissan's move reflects a broader industry trend, with other major automakers like Volkswagen and Toyota also racing to develop solid-state batteries.

Tesla slashes 10% of its workforce amid global EV downturn

Tesla is set to cut over 10% of its global workforce, equating to at least 14,000 jobs, in response to a slowdown in the electric vehicle market and an ongoing price war. The American carmaker, which exclusively produces EVs, faces unique vulnerabilities due to the industry-wide downturn. This has led to a sharp decline in Tesla's stock, contrasting sharply with gains made by traditional carmakers like Toyota. The cuts are part of a broader adjustment within the global automotive industry, with numerous companies reducing costs. Particularly affected is China, a critical market for Tesla, where it has lost market share amid fierce competition. This restructuring is seen by Tesla's CEO, Elon Musk, as essential for maintaining the company's agility and drive for innovation during challenging times.

Calls for early diesel ban as London sees major fuel sales drop

Diesel sales in London have plummeted by almost 40% in the past four years following the introduction of the ultra-low emission zone (ULEZ), outpacing the 20% reduction observed in other UK regions. In response, the environmental group T&E is advocating for the advancement of the diesel car sale ban, currently set for 2035, and the implementation of zero-emission mandates for heavy goods vehicles. T&E suggests that similar clean air zones across the UK could enhance national energy security and reduce reliance on diesel imports from countries with questionable human rights records. The group emphasises the health benefits and trade advantages of transitioning to cleaner energy sources, urging other cities to adopt London's proactive measures.

UK launches Massdrive project to ensure safety of self-driving cars

The University of Surrey has initiated the Massdrive project to develop safe self-driving car technologies. This collaborative effort involves car manufacturers, regulators, academics, and the public to establish robust methods for the approval and certification of autonomous vehicles. Funded by Innovate UK, the project also includes the University of the West of England and the University of Bristol. Massdrive aims to facilitate regular discussions and workshops that focus on ensuring the AI used in these vehicles is reliable and trustworthy. This initiative aligns with government plans to introduce legislation for automated driving on UK roads, which will require comprehensive safety testing of all self-driving vehicles.

UK leads Europe in readiness for EV fleet adoption, study reveals

According to a report by Geotab, the UK is the prime candidate in Europe for the mass adoption of electric vehicles, particularly within business fleets. The study, which analysed 1.3 million vehicles across seven countries, found that 66% of combustion engine fleet vehicles in the UK could be replaced with EVs without affecting their daily operation. This potential switch could save businesses significant amounts in running costs. The findings highlight that UK fleet vehicles typically travel an average of 52 miles per day, a distance well within the range capabilities of current EV technology, indicating that the UK's infrastructure and usage patterns are ideally suited for transitioning to electric fleets.