As reported by Nikkei Chinese, Mitsubishi Motors from Japan has made the decision to halt car manufacturing operations in China. This move comes as Mitsubishi Motors engages in final discussions with its local joint venture partner, Guangzhou Automobile Group (GAC Motor).

In China, Mitsubishi Motors has been struggling with reduced sales due to the growing popularity of electric vehicles (EVs) and the increasing appeal of local brands. This strategic shift might have wider implications for other Japanese automakers. What lies ahead for the production facility originally situated in Changsha, Hunan?
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TrendForce reports that the global automotive market continues to blaze ahead in its vigorous expansion, with vehicle displays steering toward larger dimensions and tech-savvy cockpits. In this technological race, many panel makers are ramping up their visibility in the automotive supply chain, dreaming big to clinch a Tier 1 supplier status. Making its bold move in this dynamic landscape, AUO announced on October 2nd its complete acquisition of Germany’s Behr-Hella Thermocontrol GmbH (BHTC), epitomizing this forward-thinking trend.

Trendforce believes AUO’s acquisition of BHTC is poised to yield rich dividends in the medium to long term for AUO’s ongoing transformation. For starters, this deal serves as AUO’s golden ticket into BHTC’s client supply chain, amplifying and fortifying its presence in the automotive market. Moreover, BHTC, already a Tier 1 auto supplier, specializes in in-car climate control and human-machine interfaces, delivering seamless system integration. For AUO, traditionally a panel purist with limited system integration prowess, this union promises a quantum leap into the integration realm, bolstering their credibility with automakers.

Concurrently, BHTC boasts a strategic factory presence in major global regions, effectively truncating the lengthy process of obtaining automotive factory certifications. This not only accelerates collaborations with local automakers across these markets but also shifts the paradigm. Traditionally, panel makers, as Tier 2 suppliers, found it challenging to directly gauge the aspirations of automakers. However, with the resources of a Tier 1 supplier now in their arsenal, opportunities for direct engagements with automakers will multiply. This is especially pivotal in understanding their vision for vehicle models and specifications 5–7 years down the line, aiding in proactive resource planning and preparation for the current phase.

Since the advent of EVs, automotive electronic technology has gained significant attention, prompting traditional automakers to reevaluate and restructure their existing supply chains. This shift became particularly pronounced during the Covid pandemic, when the industry grappled with severe shortages of automotive semiconductors. Confronted with this challenge, traditional automakers have been increasingly keen on ensuring the stability of key technologies and components. This dynamic has opened up fresh opportunities for non-traditional Tier 1 suppliers. Riding this wave, display manufacturers are aggressively amplifying the significance of automotive display segments within vehicles and aspiring to transition into Tier 1 supplier roles. Notable moves in this direction include joint ventures like Tianma partnering with HAXC, BOE’s merger with Varitronix, and CarUX’s spin-off from Innolux.

TrendForce observed that the overall automotive display market reached a significant milestone of 200 million units in 2023 and is set to continue its growth trajectory. While, in the short term, the ambition of display manufacturers to transition into Tier 1 suppliers may not dramatically impact their existing automotive display shipments, in the medium to long term, forging robust partnerships with automakers can not only secure steady orders but also boost revenues through the integration of smart automotive display modules.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Grace Li from the Sales Department at graceli@trendforce.com

Source to China Times, despite the intense price wars engulfing the Chinese automotive market, domestic electric vehicle leader BYD is continuing to gain ground. In the third quarter of this year, BYD’s production volumes surpassed Tesla’s, making it the global leader in electric vehicle production. In terms of sales, BYD sold a total of 431,600 pure electric vehicles in the first three quarters of the year, just slightly behind Tesla, bringing it closer to the top spot in global electric vehicle sales.

According to reports from Chinese media on the 3rd of this month, BYD recently released its latest production and sales data. In September of this year, BYD produced approximately 280,000 new energy vehicles, representing a 36.6% increase compared to the same period last year.

TrendForce’s recent research showed that BYD surpassed Ford to become the fourth-largest global car brand in terms of car sales for August. Despite the weakening demand in the domestic car market, BYD was not significantly affected as all of its offerings are new energy vehicles. BYD saw a 5% increase in car sales compared with July and was just 0.1 percentage point behind Honda in market share, which held the third position.

It’s important to note that the term “new energy vehicles” in China includes plug-in hybrid vehicles and fully battery-electric vehicles. Regarding pure electric vehicles, BYD produced around 144,000 units in September, marking a 71% year-on-year increase. In the third quarter, BYD produced approximately 440,000 pure electric vehicles, which is a 67% increase compared to the previous year, establishing it as the largest manufacturer and seller of pure electric vehicles in China.

In contrast, Tesla, which exclusively produces pure electric vehicles, manufactured approximately 430,500 units in the third quarter of this year, marking an 18% year-on-year increase. Data indicates that in terms of production for that quarter, BYD has secured the title of the world’s largest electric vehicle manufacturer.

In terms of sales, BYD achieved a new record with 822,100 units of new energy vehicles sold in the third quarter of this year.

Specifically, BYD sold around 431,600 pure electric vehicles, representing a 23% increase from the second quarter, with 151,200 units sold in September, marking a 59% year-on-year increase. Tesla delivered 435,100 units in the third quarter, a decrease of more than 31,000 units compared to the previous quarter, marking its first decline since the second quarter of last year.

This narrows the gap between Tesla and BYD to 3,456 units, the closest it has been in their ongoing competition. Analysts point out that over the past year, BYD has aggressively expanded into new overseas markets such as Southeast Asia, Japan, the Middle East, Europe, and Latin America, leading to a continuous increase in deliveries. In contrast, Tesla faced production line adjustments and factory shutdowns, resulting in its first-quarter decline in deliveries in over a year, further closing the sales gap.

In recent years, with the Chinese government’s support and encouragement of car purchases, China has become the world’s largest market for pure electric vehicles, accounting for about 33% of global sales, and the market demand remains strong. Given BYD’s competitive advantage in the Chinese market, surpassing Tesla in both production and sales is not an impossible feat.

On the other hand, Tesla, despite initiating a price war successfully earlier this year in China, sacrificed its previously leading profit margins and now faces fierce competition not only from BYD but also from other peers like NIO in an increasingly competitive market. Even in its home market in the United States, Tesla must contend with competition from established automakers such as Ford, General Motors, Hyundai, and Volkswagen.

(Source: https://www.ctee.com.tw/news/20231004700119-439901)

Source to Blue Solutions, Blue Solutions has signed a memorandum of understanding with Foxconn and its subsidiary, SolidEdge Solution Inc., to jointly develop a solid-state battery ecosystem for the electric two-wheeler market.

Blue Solutions is a Bolloré Group entity and global industrial-scale designer and manufacturer of solid-state batteries, which have been marketed since 2011. The company has signed a memorandum of understanding (M.O.U.) with Foxconn – the world’s largest electronics manufacturing services provider – and its subsidiary SolidEdge Solution Inc., which designs battery materials. The aim of the agreement is to jointly develop a solid-state battery ecosystem.

The partners have agreed to combine their expertise, technologies, and resources to develop and produce batteries for two-wheeled vehicles. The partners’ objective is to co-develop batteries using Blue Solutions’ exclusive solid-state cell technology. Specifically, they will use Blue Solutions’ innovative Gen4 technology and SolidEdge Solution’s materials to equip two-wheeled vehicles to serve the target markets. According to the terms of the agreement, variants of these battery systems may also be adapted for other electric vehicles.

The cooperation between Blue Solutions and Foxconn will initially target the Indonesian market. According to McKinsey’s estimates, the global two-wheeled vehicle market will be worth about $218 billion by 2029, with a CAGR of 8.7% and the main growth momentum will come from electric motorcycles. The country’s ultimate goal is to have the number of electric motorcycles reach 13 million by 2030, a fraction of what it is now.

As a pioneer, Blue Solutions has an extensive background in solid-state batteries with research going back to the 1980s. It is the sole producer in the world, and since 2011, of solid-state cells, modules, and packs with production lines located both in France and in Canada. At this date Bolloré group has already invested €3 Billion in Blue Solutions and its activities, leading to more than 3 million cells delivered to the market.

Foxconn’s subsidiary, SolidEdge Solution, was founded in 2021 and is a pioneer in the development of battery materials in Taiwan. The goal of this innovative work is to develop common materials for each of the main components of a battery cell.

According to the latest data from TrendForce, car sales across 37 regional markets (as indicated in the notes under the table above) in August totaled 5.55 million vehicles, representing an increase of nearly 1% compared with July. This modest growth can be attributed to the upcoming launch of new vehicle models by automakers for the fall season. Some consumers were anticipating price reductions on existing models, while others were waiting for the release of new ones. Therefore, it is expected that car sales will be concentrated in the month of September.

The rankings of the top 10 car brands for August remained the same compared with July. The top three brands, in order, were Toyota, Volkswagen, and Honda. In August, the Japanese car market experienced a seasonal slowdown, leading to a drop in sales for most Japanese automakers. Compared with the previous month, Toyota posted a decline of 2.6%, whereas Honda posted a slight increase of 0.8%.

Chinese automaker BYD surpassed Ford to become the fourth-largest global car brand in terms of car sales for August. Despite the weakening demand in the domestic car market, BYD was not significantly affected as all of its offerings are new energy vehicles. BYD saw a 5% increase in car sales compared with July and was just 0.1 percentage point behind Honda in market share, which held the third position. Japanese automakers can still rely on demand from regional markets such as Southeast Asia to drive their vehicle sales. Therefore, accelerating the pace of overseas expansion is a key challenge for BYD if it seeks to surpass Honda on a global scale.

As for Ford, its performance in August showed a contraction in sales in Europe and the US. With a decline of 6.7% compared with the previous month, Ford dropped to sixth place.

While the launch of new vehicle models this fall is expected to boost new car sales, several factors continue to influence regional markets. These factors include the ongoing strike by the United Auto Workers in the US and Russia’s announcement on September 21st regarding restrictions on the exportation of gasoline and diesel. Russia’s actions could once again impact Europe’s energy supply and lead to a surge in oil prices. Such development could also disrupt governments’ efforts to ease inflation. If inflation heats up again, the consumer market might weaken further, and central banks could be compelled to raise interest rates once more.

China is currently stimulating domestic demand through various policies, but abnormal weather conditions in various parts of the country since the summer have affected local sales. In general, TrendForce believes that as the fourth quarter approaches, automakers will do their utmost to ensure smooth production, meet orders promptly, and spur sales during the year-end holiday season. They will strive to minimize the impact of the reduction in demand visibility caused by the latest economic turbulence.