The new bonuses criteria for the purchase of NEV, in China for the period 2020-2022

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The new bonuses criteria for the purchase of NEV, in China for the period 2020-2022
- The purchase bonus system put in place by Beijing from 2015 resulted to a rapid growth in sales of electric and hybrid cars (known as NEV for New Energy Vehicles) which went from 352,000 units in 2016 to 600,000 in 2017 and then to 1,102,000 in 2018. The objective, as for each subsidies, is to support the growth of a new market. However, since 2019, the government had announced the gradual end of this purchase bonus system, in order both to transfer the budget dedicated to bonuses in favour of recharging infrastructures, but also in order to "clear-out" the market, by keeping only viable carmakers and eliminating small ones who live only on subsidies.

- In mid-2019, the Chinese government announced a reduction by half of these bonuses. The subsidy which was 6,600 euros per car has dropped to 3,300 euros. As a result, in 2019, sales stagnated at 1,177,000 units.

- For the period 2020 - 2022, the Chinese government has announced that it will reduce these subsidies again by 10% (but initially cancelled). The bonuses will therefore amount to 3,000 euros per vehicle. They will be further reduced by 20% in 2021 and by 30% in 2022. In addition, the conditions to get access to theses bonuses have been restrictive: to qualify, a vehicle must have a range of at least 250 km, against only 150 km previously, which eliminates a number of models that were previously proposed by Chinese carmakers. In addition, eligible vehicles must cost less than CNY 300,000 (approximately € 36,500). These measures aim, according to the Chinese government, to force Chinese carmakers to be more innovative and competitive in this emerging segment, but at the same time not favouring the more expensive foreign vehicles. Also, regional and provincial governments have been pushed to also cease their own subsidies for electric vehicles, to focus instead on financing recharging infrastructure.

- Combined consequences of the new bonus politic and the COVID-19 crisis, in the first half of 2020, 360,000 NEVs found customers, i.e. a potential of around 800,000 units over the whole year, which is equivalent to a decrease of 30% compared to 2019.


    
 

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The new BMW iX3 will compete with Audi E-Tron and Mercedes EQC

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The new BMW iX3 will compete with Audi E-Tron and Mercedes EQC
- One year after presenting its first BEV - SUV, BMW has started production of its iX3, which is a direct rival to the Audi E-Tron and Mercedes EQC. BMW is therefore applying the same strategy as its German competitors, meaning by attacking the electric market by the top and outside sedans, the D-segment SUV category in this case.

- However, SUVs from the D-segment such as the Audi E-Tron and Mercedes EQC recorded only low sales volumes (17,592 units and 4,279 units respectively in the first half of 2020), while Tesla sold 142,346 Model 3 sedans (D segment) over the same period, Renault 37,154 Zoé sedans (B segment) and Nissan 23,867 Leaf sedans (C segment).

- The price quoted by BMW for an iX3 is equivalent to an X3M (sportier version) or an E-segment X5. The price difference compared to an entry-level X3 is still very significant (around 20,000 Euros of difference). BMW is therefore still targeting a niche within its customers, as it had done with the i3 (B-segment).

- The future of the electric car (in Europe) is more in the B and C segments, those which are more intended for urban and peri-urban journeys, and if the cost of acquisition remains reasonable. This is the VW approach with the ID3, Nissan with the Leaf and recently the Ariya or Renault with the Zoe.

- The production volume of the BMW iX3 could reach 15,000 units annually, coming from the Chinese plant in Shenyang (Liaoning province).


    
 

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Inovev forecasts 40,000 units per year of the new BMW 2 Series coupe

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Inovev forecasts 40,000 units per year of the new BMW 2 Series coupe

- After the recent renewal of the 8 Series and 4 Series coupes (the 6 Series having become a large five-door sedan), BMW is renewing the 2 Series coupe, which however looks a lot like the old one.


- Within the Series 2 range, the coupe (and the future convertible) remains the only one to adopt rear-wheel drive, since the Gran Coupé (which is in fact a five-door sedan) as well as the Active Tourer and Gran Tourer minivans adopted traction technology.


- BMW wanted to designed all of its coupes with propulsion, but it should be remembered that all 3 Series, 5 Series and 7 Series are also rear-wheel drive. The 2 Series Coupe uses a modified version of the platform “CLAR” also mounted on the 3 Series and 4 Series Coupe.


- The previous generation of the 2 Series coupe saw sales fall between 2017 and 2019, dropping from 62,000 units to 26,000 during this period. The new generation marketed from 2021 will therefore have to do a lot to boost sales of the model. Inovev is expecting a volume of 40,000 units per year (production in Leipzig) because the current trend is not to sporty coupes. It is indeed rather on SUVs, which account for almost half of sales, and of electric sedans, which will multiply over the next ten years.


- The new 2 Series Coupe will be powered by the 1,500 3-cylinder petrol, 2,000 4-cylinder petrol, 3,000 6-cylinder petrol and 2,000 4-cylinder diesel, i.e. the engines already fitted to the previous generation.



    
 

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Honda could withdraw from European market as Mitsubishi did

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Honda could withdraw from European market as Mitsubishi did
- Honda entered the European market in the 60s, and the Japanese brand immediately stood out for its attractive and dynamic small cars. The biggest success of the 70s was undoubtedly the Civic (C-segment) which continued to sell well in Europe until the 1990s. The peak of Civic sales was reached in 1997 with a volume of 145,000 sales in the year.

- Then the rise of SUVs such as the CRV and HRV affected Civic sales. The Accord (D-segment) and Jazz (B-segment) sedans have attempted to represent the brand at both ends of the range, but with very relative success.

- Honda's sales peak in Europe was reached in 2007, with 335,000 units divided into 135,000 Civic, 80,000 CRV, 70,000 Jazz, 30,000 Accord, 13,000 FRV and 7,000 HRV. The following years were disastrous as Honda sales in Europe continued to decline, dropping to 150,000 units in 2011, representing a drop of 55% in four years. Between 2011 and 2019, sales fell a further 33,000 units to 117,000 units, representing a further drop of 22% in eight years.

- For the past ten years, Honda has more focused its effort on the Chinese market (1,585,000 sales in 2019 against 1,000,000 in 2015) and the American one (1,610,000 sales in 2019 against 1,370,000 in 2015) than the European market. The Civic and CRV have no specific bodies for Europe anymore. The two Honda plants located in Europe will close in 2021. Honda's sales in Europe in 2019 are now lower than those of Mitsubishi, which has just decided to withdraw from the European market. Honda could therefore follow Mitsubishi's path and withdraw from the European market.


    
 

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PSA unveils a new platform for its C and D segment vehicles

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PSA unveils a new platform for its C and D segment vehicles
- The PSA group has unveiled its new eVMP platform, intended for models in the C and D segments, such as the Peugeot 308, Peugeot 3008, Peugeot 5008, Citroën C5 Aircross, Opel Astra, Opel Grandland, etc ... This platform is larger than the eCMP platform which is used on B segment models, such as the Peugeot 208, Peugeot 2008, Opel Corsa, Opel Mokka, etc. It is derived from the current EMP2 platform which it will gradually replace. Note that the new Citroën C4 (C-segment) presented in recent weeks, uses this eCMP platform and not the new eVMP platform because it was not ready during the development of the C4.

- These platforms, whether eCMP or eVMP, make it possible to equip all models with 100% electric engines, which goes in the direction of the announced generalization of electric motors in cars of all segments.

- The first models equipped with the new eVMP platform will be the future Peugeot 308 (2021), Opel Astra (2021), Citroën C5 (2021) and Peugeot 3008 (2023). The French group intends to offer, by 2025, a 100% electric version of all its models in all segments. This is the first time that the electric powertrain will appear at PSA in the C and D segments. It is an obvious answer to Volkswagen's electric models in the C-segment, such as the VWs ID3, ID4 and their equivalent from Seat and Skoda.

- PSA announces a range of 400 to 650 km (WLTP cycle) according to the models that will be equipped with the eVMP platform. Initially, PSA will be equipped with batteries supplied by CATL. In the future, the French group will source its batteries from Automotive Cell Company, a company created with Saft, a subsidiary of Total. The Douvrin plant could also switch to battery production.


    
 

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