Key Developments

• Cox Automotive predicts U.S. new light-vehicle sales in the first half of 2024 will reach a SAAR of 15.6 million units, representing an increase of nearly 3% year-over-year. New-vehicle sales in June are projected to reach a SAAR near 16 million units.
• Product planning is expected to be “uncertain and volatile” over the next four years due to factors that include diverse electrification strategies, according to predictions in Bank of America’s annual Car Wars report. The report also indicates the Detroit Three automakers should consider exiting China and focus on their most profitable markets to support investments in EVs and connected and automated driving technologies.
• Automotive News released its annual ranking of top global parts suppliers.
• Multiple cyberattacks last week at a software provider widely used in the auto retail sales sector affected operations for a number of dealerships.
• Pitchbook analysis published on June 14 indicates global venture capital investment in mobility technology was “muted” in the first quarter of 2024, with 173 deals at an estimated value of $6 billion. Deal counts fell 24% from the previous quarter and 30% year-over-year, while deal value dropped 19% QoQ and rose 5.7% YoY.
• A McKinsey & Company survey of 30,000 consumers in 15 countries found 46% of U.S. EV owners would consider switching back to an internal combustion engine-powered vehicle due to issues that included inadequate charging infrastructure and a higher total cost of ownership for EVs. The survey also found a third of consumers would not purchase a vehicle without smartphone integration.
• In its annual Electric Vehicle Outlook, Bloomberg New Energy Finance predicts worldwide battery electric and plug-in hybrid electric vehicle sales will reach 30 million units by 2027, representing 33% of global passenger-vehicle sales. The report notes that while EV sales continue to rise globally, growth has slowed in the U.S. and parts of Europe due to regulatory and political headwinds. In addition, overcapacity will be a key issue for battery makers in the near-term, as planned lithium-ion cell manufacturing capacity by the end of 2025 is projected to be over five times global battery demand that year.
• Lithium spot prices recently fell to the lowest level in nearly three years, amid rising inventory and slowing EV demand in certain markets.
• Bloomberg reports Chinese EV maker BYD is approaching a decision to establish a factory in Mexico that could create up to 10,000 jobs. The automaker began construction on a manufacturing complex in Brazil earlier this year.
• Volkswagen will invest up to $5 billion into EV maker Rivian as part of a joint venture to develop electrical architecture and software technology.

OEMs/Suppliers

• North American revenue for Hyundai and its affiliate Kia has more than doubled in the last five years, according to a report in The Wall Street Journal.
• As part of an effort to reduce recalls, Ford plans to hold newly redesigned models for up to six weeks to perform additional quality checks. Ford has been the most recalled automaker in the U.S. since 2020.

Analysis by Julie Dautermann, Competitive Intelligence Analyst