The Week in Automotive: March 2-8

Tesla and Polestar exit the FCAI over CO2 targets, Rivian reveals its future by reinventing the AMC Gremlin, Dodge reinvents the V8 muscle car for a new era, Aussie new car sales stay at record levels, and BYD hits a new low... on pricing. It's a $15k EV!

Just in time for the hot weekend (39 degrees in Melbourne!) it's another The Week in Automotive, a brief run around the grounds looking at a handful of stories from the past seven days.

And by 'automotive', more often than not I mean the world of EVs, from product reveals to legislative issues to the occasional opinion. I'm no longer a car journalist, but old habits die hard.

Feedback welcome!

Drama for the Federal Chamber:

Tesla and Polestar have both exited the Federal Chamber of Automotive Industries (FCAI) lobby that is supposed to represent all carmakers.?

It’s an escalation in tensions across the industry during the process of finalising and ultimately legislating a New Vehicle Efficiency Standard for all light duty vehicles.?

Tesla then Polestar contended the FCAI misled customers with its critique of the NVES as it currently looks, and says it doesn't speak for them.

These moves follow Hyundai and Volkswagen distancing themselves without taking the same drastic course. VW is however considering exiting the FCAI as covered by Reuters.

Rivian reveals a new phase:

Not one, but two new models from North America's other EV upstart, which currently sells a large electric SUV called R1S, a pickup called R1T, and a delivery van for the likes of Amazon.

The Rivian R2 is a mid-sized SUV with five seats that keeps the same rugged design language as its big sibling and is designed to kick off at $45,000 ($68,000 AUD).

Meanwhile the smaller and cheaper Rivian R3 has real O.G VW Golf and AMC Gremlin vibes, but leverages a version of the same EV platform as the R2.

The issue? Neither are hitting the market until 2026, with these early reveals designed to attract deposits and generate hype to tide the company over until it can start turning profits. Fingers crossed!

Another new vehicle sales record tumbles...

February 2024 was another monthly record for the Australian new vehicle market with sales hitting 105,023 units, up 20.9% over February 2023. Two months into the year and sales are up 13.4% over last year’s all-time record.

Electric vehicles recorded 9.4% market share led by Tesla and BYD, with hybrid cars and PHEVs taking a further 11.9%. Petrol-only vehicles took 44% share and diesels grabbed 34.2%.

In terms of buyer types the standout was the government fleet sector, where sales grew 37% YoY as departments turned over their vehicles after COVID-era shortages. The private sector accounted for 53% of all sales and grew some 22.7% YoY, similar to business fleets which expanded 21.1%.

See my video explainer here for more.

Dodge plugs in the muscle car

As I said earlier in the week, you can dictate people rid themselves of big SUVs, pickups and muscle cars. Or you can offer people a range of EVs that fit their needs and desires.

Stellantis chooses method two for the Dodge Charger Daytona, and it’s resulted in this bloody excellent-looking electric muscle car (future) icon. They key stats are as follows:

Debuts STLA EV-only platform; battery holds 100.5kWh of energy; front- and rear axle drive motors, the latter with a mechanical LSD; power of 370kW or 500kW based on grade, 0-96km/h as low as 3.3sec; and a 'Fratzonic Chambered Exhaust' generates fake V8 noise, apes Hellcat

There is one glaring issue though: The thing reportedly tips the scales at 2648kg! That's obese. Regardless, what a cool halo car.

Chinese EVs hit new lows... on price!

As per Automotive News China, BYD on Wednesday "added fuel to the flames of a brutal price war in China" by cutting the price of its cheapest car, the Seagull, by 5% to 69,800 yuan, or $14,700 AUD!

BYD is likely to offer more discounts through 2024, said Shi Ji, a Hong Kong-based analyst with China Merchants Bank International, adding it will pressure the brand's gross margin but the pain could be offset by supplier cost cuts.

Gross profit margins for the Warren Buffett-backed automaker have to date held up well. It logged a 22% margin in the third quarter, up from 18.7% in the second quarter, according to Reuters calculations.

The story also notes the rapid growth of BYD in markets like Australia.

Stay tuned and follow me for the latest car industry insights, both my personal views and my day job with Cox Automotive Australia .