On July 4th, the EU announced a provisional anti-subsidy tariff on electric vehicles imported from China, with a final decision set for October 30th. On August 20th, the EU released a draft decision regarding the final anti-subsidy tariffs, adjusting the rates for different Chinese electric vehicle manufacturers based on the latest investigation progress.

Notably, as per a report from Commercial Times, the tariff on Tesla’s electric vehicles has been reduced from 20.8% in July to 9%. Tariffs on vehicles from BYD and Geely have also been slightly lowered.

On August 20th, the European Commission disclosed its draft decision on the final anti-subsidy investigation for electric vehicles imported from China, making slight adjustments to the proposed rates.

Tesla saw the most significant reduction, while BYD and Geely received minor cuts. Specifically, BYD’s tariff rate was reduced from 17.4% to 17%, and Geely’s from 19.9% to 19.3%.

Additionally, other companies that the EU deemed cooperative will face a tariff of 21.3%. Chinese automakers and SAIC Motor, which were assessed as not fully cooperating with the investigation, will have their tariffs adjusted from 37.6% to 36.3%.

The European Commission also decided not to retroactively impose the anti-subsidy tariffs, with the final decision expected by October 30th.

The EU maintains the opinion that Chinese electric vehicle production benefits from extensive government subsidies and thus proposes a final tariff of up to 36.3%, slightly lower than the provisional 37.6% tariff imposed on Chinese imports in early July.

In response, the China Chamber of Commerce to the EU expressed concerns, stating that both the development of the European automotive industry and reports from the EU itself show insufficient evidence that Chinese new energy vehicles have caused substantial harm to the EU market.

Source: China Chamber of Commerce

The Chamber criticized the EU’s decision to impose trade measures based on a perceived “threat of injury,” arguing that this approach contradicts WTO principles and is unacceptable to the industry.

The Chamber emphasized that the competitive edge of Chinese-made electric vehicles is not due to subsidies but rather stems from industrial scale, supply chain advantages, and intense market competition.

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(Photo credit: Pixabay)

Tesla, the electric vehicle giant, initially planned to establish a plant in Thailand, with an estimated investment exceeding USD 5 billion. However, according to a report from Thai media outlet The Nation, Tesla has decided to scrap the plans for the Thai plant after further evaluation, shifting its focus to expanding the local charging station network instead.

The report further cited sources, indicating that Tesla has re-evaluated its expansion plans in Asia and has decided to cancel all projects in the region. This includes not only the planned one in Thailand but also projects in Malaysia and Indonesia, leaving only the most economically viable production lines in China, the U.S., and Germany.

In September 2023, Thai Prime Minister Srettha Thavisin announced the successful attraction of Tesla to Thailand following a visit to the U.S. In November, Srettha met with Tesla executives and revealed that the company had begun site evaluation for a plant, with an investment exceeding USD 5 billion.

However, due to significant changes in the electric vehicle market impacting expected investment returns, Tesla has decided to postpone its global expansion plans.

Besides the aforementioned Asian locations, Tesla had also planned to build a plant in the Nuevo León industrial park in northeastern Mexico. However, Tesla reportedly confirmed in October 2023 that the plan is on hold due to economic concerns.

Thailand is reportedly the largest automotive producer in Southeast Asia. With the global trend shifting towards electric vehicles replacing traditional combustion engines, the Thai government is said to be promoting related policies to boost local EV production.

The goal, as per a report from Bloomberg, is expected to have electric vehicles make up 30% of the country’s total automotive production by 2030.

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(Photo credit: Tesla)

Apple’s latest technical document reveals that the two main AI models behind Apple Intelligence are trained using Google’s Tensor Processing Units (TPUs) instead of NVIDIA GPUs. According to a report from Commercial Times, this suggests that the demand for NVIDIA chips has outstripped supply, prompting some tech giants to seek alternatives.

Apple first introduced an AI technical document in June, briefly stating that its AI models were trained using TPUs. The latest technical document, which spans 47 pages, provides a detailed explanation of how Apple’s foundational models (AFM) and AFM servers are trained in Cloud TPU Clusters. This indicates that Apple rents cloud servers from cloud service providers to train its AI models.

In the document, Apple stated: “This system allows us to train the AFM models efficiently and scalably, including AFM-on-device, AFM-server, and larger models.”

Apple further mentioned that the on-device AFM models for iPhones and iPads are trained using a total of 2,048 TPUv5p chips, which are currently the most advanced TPU chips on the market. The AFM servers are trained using a total of 8,192 TPUv4 chips.

Google initially launched TPUs in 2015 for internal training use only and started offering TPU rental services to external clients in 2017. These TPUs are currently the most mature custom chips used for AI training. According to Google’s official website, the rental cost of their most advanced TPUs is approximately USD 2 per hour based on a three-year contract.

Though NVIDIA’s GPUs are currently dominating the high-end AI chip market, the enormous number of chips required for AI model training has led to a severe shortage. This is because major tech companies like OpenAI, Microsoft, Google, Meta, Oracle, and Tesla all use NVIDIA chips to develop their AI technologies.

Since the rise of ChatGPT at the end of 2022, which spurred the generative AI market, Silicon Valley tech giants have been racing to invest in AI research and development. In contrast, Apple has lagged behind its competitors and now has to intensify its efforts to bolster Apple Intelligence. On July 29th, Apple released a preview version of Apple Intelligence for certain devices.

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(Photo credit: NVIDIA)

Due to the EU’s announcement of increased tariffs on Chinese-made electric vehicles, Tesla has announced that it will raise the price of the Model 3 in the European market starting in July, though the extent of the price increase has not been specified.

According to a report from CNBC, Tesla CEO Elon Musk stated on June 13th that the Model 3 price in the European market will be adjusted starting July 1st due to the EU tariffs, without revealing the specific increase.

Per a report from Reuters, the European Commission has announced that, starting July 4th, it will impose tariffs ranging from 17.4% to 38.1% on electric vehicles imported from China. The tariff rates will vary depending on the extent of government subsidies received by each automaker. This measure aims to prevent Chinese manufacturers benefiting from government subsidies from undercutting the market with cheap electric vehicles, thereby harming the EU automotive industry.

It is unclear how much of a tariff will be imposed on Tesla’s Chinese-made electric vehicles. The European Commission stated that Tesla will be subject to an individually calculated tariff rate. Whether Tesla cooperates with the EU authorities’ anti-subsidy investigation will also influence the final tariff rate applied.

Although the EU has decided to impose high tariffs on Chinese electric vehicles, there are still differing opinions among various parties. The German government and automotive industry have reacted most strongly, fearing it could ignite a China-EU trade war.

Per a report from Xinhua citing sources, Tesla’s Shanghai plant is the U.S. car manufacturer’s first gigafactory outside the US, delivered 947,000 vehicles in 2023.

As per a previous report from Barron’s, German Transport Minister Volker Wissing stated that, “The European Commission’s punitive tariffs hit German companies and their top products. Cars must become cheaper through more competition, open markets and significantly better business conditions in the EU, not through trade war and market isolation.”

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(Photo credit: Tesla)

Cars are becoming smarter, introducing a new dimension to the world of “mobility.” However, amidst a plethora of fancy terms, what exactly is the future mode of mobility? What problems does it aim to solve? It is something worth delving into further.

When we discuss “future mobility,” do images of KITT, the AI sidekick from the TV show Knight Rider, or the autonomous vehicles from the movie Minority Report come to mind? While humanity is slowly turning science fiction scenarios into reality, the challenges in the real world are far from simple. First and foremost, we must understand why there is a need for new modes of mobility.

Human Driving Is Risky: Navigating the Path Forward for Autonomous Driving

The continuous evolution of automotive technology is primarily driven by the fact that human driving is too dangerous. According to the World Health Organization, approximately 1.19 million lives are lost to car accidents globally each year. Moreover, in most countries, the economic loss caused by traffic accidents amounts to about 3% of the national GDP. To reduce fatal accidents, automotive technologies keep advancing. The ultimate goal is to achieve fully autonomous driving so as to eliminate deadly traffic incidents caused by drunk driving, fatigue, distraction, or unfamiliarity with road conditions.

The discussion about the future of mobility inevitably begins with autonomous driving. As of 2024, global research and development in autonomous driving can be broadly divided into two camps: the “LiDAR and HD maps” faction, led by technology giants and established automakers, and the “vision-based” faction, represented by Tesla and an increasing number of Chinese automakers.

“Chinese automakers and automotive technology developers have recently shown a trend of moving away from the dependence on HD maps,” said TrendForce analyst Caroline Chen. “These companies include Huawei, XPeng, Li Auto, and Pony.ai, all of which have launched urban driving assistance systems that do not require HD maps.”

Chen pointed out that the high cost of HD maps, which have an error margin of less than one centimeter and a production cost of more than TWD 1,000 per kilometer, is the main reason automakers are gradually leaving this technology and searching for better alternatives.

The vision-based faction, led by Tesla, believes that increasing computing power and advances in software can synergize with sensors that are equal to or better than human vision. When this is achieved, computers can have the same driving ability as humans without being affected by physiological factors, thereby significantly reducing the risk of accidents.

Looking at the HD maps faction, Waymo, which is supported by Google, is its leader as it has made impressive achievements with this technology. Waymo’s autonomous taxi fleets are already operational in several US cities, including Phoenix, San Francisco, and Los Angeles. They have performed well with an extremely low number of accidents. However, this success story has been overshadowed by the issues that GM is facing in the development of its Cruise series of autonomous vehicles. Cruise, which also uses HD maps, has been suspended from road testing due to the frequent accidents it caused in San Francisco.

Key Components for Mobility of the Future

Although Taiwan does not have any major automakers leading the development of autonomous driving technologies, there are opportunities for local companies in the related supply chain. Autonomous driving essentially comprises the following three things: software, sensors, and electronic control components. Numerous Taiwan-based companies specialize in the development and provision of the latter two.

“Within a few years, autonomous driving software will grow rapidly, and the number of vehicles capable of reaching Level 3 to 4 autonomy will significantly increase,” Chen said. Although automakers have yet to achieve the higher levels of autonomous driving, they are quietly engaging in a competition to secure greater computing power. This strategy aims to prevent a potential scenario where hardware capabilities cannot keep up with the pace of software development. In fact, automakers are equipping their new vehicles with as much computing power as possible, even if it is not required at the moment. By doing so, they can later enhance the functions and features of their vehicles through over-the-air (OTA) software updates, thereby ensuring the market competitiveness of their products.

Despite the recent surge in demand for automotive components, analysts have pointed out that in the evolving industry ecosystem, which is leaning towards software-driven vehicle development, the demand for standardized components is gradually shrinking. Conversely, there has been significant growth in demand for customized components and parts. If Taiwan-based suppliers can leverage their flexibility and speed, they will be able to enter the supply chains of major automotive companies during this latest transition.

It is also worth noting that while the ultimate goal of fully autonomous driving has yet to be achieved, automakers have already recognized changes in the industry ecosystem. The traditional product development cycle of “minor modifications every three years and a major overhaul every eight years” is no longer suitable as vehicles need to be upgraded at a much faster pace to keep up with the latest technology trends. Moreover, as the computing power of onboard processors increases, the functionality of vehicles also expands. This has prompted automakers to shift their focus towards software as a source of profit.

Many automakers are now planning to offer subscription-based services, encouraging vehicle owners or operators to pay to unlock a variety of functions and features. For example, Kia’s EV9 comes with the option to purchase special patterns/animations for the headlights and displays. Mercedes-Benz and Porsche are working to develop a market for third-party automotive apps, thus replicating the existing ecosystem for mobile/smartphone apps. BMW came under the spotlight recently for locking certain features behind a paywall, such as heated seats and steering wheels. However, the company has since reverted the decision to make certain features a paid subscription service due to market feedback.

As established automakers explore ways to monetize automotive software, Tesla, which is leading the trend of software-based cars, offers “Full Self-Driving” (FSD) software for a price in excess of TWD 220,000. Tesla also provides a “Premium Connectivity Service” that enables its vehicles to access 4G networks, although the company has yet to start charging for this service.

Technologies and Business Models Fuel New Imaginations about Mobility

Aside from automakers exploring new avenues for revenue and profit, car owners also have opportunities to benefit economically from the latest technological advancements. Even though Uber’s business model for car sharing has been constrained by regulations and is gradually transforming into a ride-hailing service, these mobile service platforms have introduced a new strategy known as “shared car rentals.” Under this model, car owners can rent out their vehicles to others when they are not using them. After all, when car owners are working in office buildings or sleeping in their homes, their vehicles are idle assets that depreciate over time. By leveraging software, the internet, and smart vehicle unlocking technology, they can turn their vehicles into a source of passive income.

This idea can be taken further, leading to the creation of an “autonomous taxi fleet” that individual vehicles can join when their owners are not driving them. Computers will drive the vehicles to pick up passengers for a period, and then return to the owners’ homes or workplaces to pick them up when needed. Car owners will not only save on parking fees but also receive a portion of the taxi fare earned by their vehicles. At the same time, fleet operators save on the cost of purchasing vehicles, thereby creating a win-win situation.

Forty years ago, humanity envisioned future cars as companions that could pick up their owners on their own. Today, autonomous vehicle fleets are capable of doing just that. However, vehicles of the future are expected to do much more than simply transport people from one place to another. They are evolving into hubs for entertainment, work, and personal assistance. But before we reach that stage, is there a possibility that we could first eliminate the nightmare of highway congestion? Perhaps that day is closer than we think.

(Photo credit: Tesla)