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China's NEV penetration to hit 40pc in 2024: CAAM

  • Spanish Market: Battery materials, Metals
  • 05/06/24

China's new energy vehicle (NEVs) penetration will likely rise to 40pc by the end of 2024, according to the China Association of Automobile Manufacturers (CAAM).

The number of users that intend to buy an NEV is already on par with those that want to purchase internal combustion engine (ICE) vehicles, CAAM said.

Nearly 30pc of users, surveyed by CAAM and domestic automotive information service DCar, intend to trade in their old vehicles for a NEV in a year. And over 60pc of car users deem it "very necessary" to trade in their old vehicles for NEVs, CAAM added.

China's NEV penetration has been increasing in the past few years, driven by the country's decarbonisation plans and supportive policies to accelerate EV development. These measures, such as boosting EV production and spurring battery technological innovations, are regarded as China's efforts to catch up with foreign competitors in the global automotive industry given its slowing development in ICE vehicles, according to industry participants.

China's NEV penetration reached 26pc of the country's total automotive sales in 2022, rising to 31.6pc in 2023, 32.8pc in March, 36pc in April and 32.4pc over January-April. It aims to raise the share of NEV in its total vehicle sales to 45pc by 2027, according to a plan issued by the government earlier this year.

But the industry is facing a slowdown in sales growth because of some challenges. CAAM estimates the country's NEV sales will rise to 11.5mn units in 2024, up by 21pc from 9.495mn in 2023. This growth is slower than the 38pc rise from 2022 to 2023.

One of the main reasons why many potential buyers have not opted to buy an NEV is because of its shorter driving range compared with gasoline cars. CAAM expects that more than 40pc of potential NEV buyers prefer to buy a hybrid car, compared with 31pc for battery EVs. Over 60pc of potential battery EV buyers want a car with more than 500km of driving range, including 20pc of buyers requiring 700-1,000km.

CAAM's report also shows that most consumers can afford and favour NEVs priced in the 100,000-200,000 yuan ($13,801-27,603) range. How to provide competitively-priced vehicles is a subject that requires long-term research from EV manufacturers, CAAM said.

China has introduced a series of new supportive measures recently to drive its NEV sales growth, including a plan to remove purchase restrictions during 2024-25. But some industry participants are not sure that this plan is applicable in major cities particularly Beijing, which has severe traffic congestion. Beijing has the largest number of motor vehicles in China, with a vehicle population of nearly 7.6mn units as of the end of 2023.

China's BEV and PHEV sales during 2022-24

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23/07/24

US House passes waterways bill

US House passes waterways bill

Houston, 23 July (Argus) — The US House of Representatives overwhelmingly approved a bill on Monday authorizing the US Army Corps of Engineers (Corps) to tackle a dozen port, inland waterway and other water infrastructure projects. The Republican-led House voted 359-13 to pass the Waterways Resources Development Act (WRDA), which authorizes the Corps to proceed with plans to upgrade the Seagirt Loop Channel near Baltimore Harbor in Maryland. The bill also will enable the Corps to move forward with 160 feasibility studies, including a $314mn resiliency study of the Gulf Intracoastal Waterway, which connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. Water project authorization bills typically are passed every two years and generally garner strong bipartisan support because they affect numerous congressional districts. The Senate Environment and Public Works Committee unanimously passed its own version of the bill on 22 May. That bill does not include an adjustment to the cost-sharing structure for lock and dam construction and other rehabilitation projects. The Senate's version is expected to reach the floor before 2 August, before lawmakers break for their August recess. The Senate is not scheduled to reconvene until 9 September. If the Senate does not pass an identical version of the bill, lawmakers will have to meet in a conference committee to work out the differences. WRDA is "our legislative commitment to investing in and protecting our communities from flooding and droughts, restoring our environment and ecosystems and keeping our nation's competitiveness by supporting out ports and harbors", representative Grace Napolitano (D-California) said. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

LME fob China HRC volumes hit multi-year high


23/07/24
23/07/24

LME fob China HRC volumes hit multi-year high

London, 23 July (Argus) — Ongoing weakness in Chinese hot-rolled coil (HRC) prices has sparked a flurry of trading on the London Metal Exchange's (LME) fob China HRC contract this month. More than 100,000t will trade this month for the first time since summer 2020, according to exchange data. Physical Chinese prices have been plumbing new lows recently amid tepid domestic and export demand. Argus ' fob China HRC index, cash-settlement basis for the LME contract, dropped by $3/t today to $497/t, its lowest since August 2020. Asian export offers also appear to have dropped, with a Vietnamese quote tabled around $20/t lower today into the UK. A 5,000t trade went through on the LME today at $498/t for August, following softening physical and raw material costs — the blast furnace raw material basket has dropped by around $25/t over the course of July, and in a buyers' market sellers are expected to pass this reduction off. There is increased talk that China will look to clamp down on steel exports where value-added tax (VAT) has not been paid, but market participants note the last attempt fell flat, and volumes have not reduced much. During January-June this year the world's largest producer exported 15.6mn t of HRC, compared with 10.4mn t over the first six months of last year, and a record 23.9mn t over the year as a whole. "In line with the growth in Chinese steel exports, in recent months we have seen renewed activity in the LME steel fob China HRC ( Argus ) futures contract from across the global value chain," LME product specialist steel and nickel Alberto Xodo told Argus . Interest has stemmed from major Chinese exporters, steel merchants in Europe and Singapore, as well as industrial groups in southeast Asia and the Middle East, he added. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India 2024-25 budget waives duties on critical minerals


23/07/24
23/07/24

India 2024-25 budget waives duties on critical minerals

Mumbai, 23 July (Argus) — India will reduce or remove custom duties for 25 critical minerals and blister copper but the government is maintaining its tax on copper scrap. A full list of the 25 critical minerals was not announced but India's finance minister Nirmala Sitharaman said in her 2024-25 fiscal year budget speech today that lithium, copper, cobalt and rare earths are crucial for sectors like nuclear energy, renewable energy, space, defence, telecommunications and high-tech electronics. Out of the 25 critical minerals to be exempt from the custom duties, 23 will be fully exempt and two will have their duty cut. The Indian government is also launching a critical mineral mission aimed at strengthening the supply chain for essential minerals. This is to encourage the private and public sectors to boost their long-term competitiveness. Customs duties on precious metals like gold and silver have been reduced to 6pc, while platinum is cut to 6.4pc. India has waived the 2.5pc basic customs duty on ferro-nickel to enhance the domestic production cost efficiency of stainless steel, with it currently import dependent to meet domestic demand. The concessional customs duty on copper scrap remains at 2.5pc, while the duty on blister copper has been reduced to zero from its previous 2.5pc. This adjustment aims to support the copper industry by reducing imports. The government has continued the zero custom duty on ferrous scrap and nickel cathode in a bid to support to achieving net-zero carbon emissions. A carbon market will be set up for India's hard-to-abate steel and cement sector, Sitharaman said. The government is working towards launching a domestic compliance carbon market by the end of this year to ensure firms keep to their greenhouse emissions intensity targets, the Carbon Markets Association of India told Argus in May. By Deepika Singh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US House to vote on waterways bill


22/07/24
22/07/24

US House to vote on waterways bill

Houston, 22 July (Argus) — The US House of Representatives is expected to vote on 22 July on a waterways bill that would authorize new infrastructure projects across ports and rivers. The Water Resources Development Act (WRDA) is renewed typically every two years to authorize projects for the US Army Corps of Engineers (Corps). The bipartisan bill is sponsored by representative Rick Larsen (D-Washington) and committee chairman Sam Graves (R-Missouri). The full committee markup occurred 26 June, where amendments were added, and the bill was passed to the full House . A conference committee will need to be called to resolve the different versions of the bill. The major difference between the bills is that the House bill does not include an adjustment to the cost-sharing structure for the lock and dam construction and other rehabilitation projects. The Senate Committee on Environment Public Works passed its own version of the bill on 22 May, with all members in favor of the bill. The House version of the bill approves modifications to the Seagirt Loop Channel near the Baltimore Harbor in Maryland, along with 11 other projects and 160 feasibility studies. One of these studies is a $314.25mn resiliency study of the Gulf Intracoastal Waterway, which connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Trump vows to target 'green' spending, EV rules


19/07/24
19/07/24

Trump vows to target 'green' spending, EV rules

Washington, 19 July (Argus) — Former president Donald Trump promised to redirect US green energy spending to other projects, throw out electric vehicle (EV) rules and increase drilling, in a speech Thursday night formally accepting the Republican presidential nomination. Trump's acceptance speech, delivered at the Republican National Convention, offered the clearest hints yet at his potential plans for dismantling the Inflation Reduction Act and the 2021 bipartisan infrastructure law. Without explicitly naming the two laws, Trump said he would claw back unspent funds for the "Green New Scam," a shorthand he has used in the past to criticize spending on wind, solar, EVs, energy infrastructure and climate resilience. "All of the trillions of dollars that are sitting there not yet spent, we will redirect that money for important projects like roads, bridges, dams, and we will not allow it to be spent on the meaningless Green New Scam ideas," Trump said during the final night of the convention in Milwaukee, Wisconsin. Trump and his campaign have yet to clearly detail their plans for the two laws, which collectively provide hundreds of billions of dollars worth of federal tax credits and direct spending for renewable energy, EVs, clean hydrogen, carbon capture, sustainable aviation fuel, biofuels, nuclear and advanced manufacturing. Repealing those programs outright could be politically difficult because a majority of spending from the two laws have flowed to districts represented by Republican lawmakers. The speech was Trump's first public remarks since he was grazed by a bullet in an assassination attempt on 13 July. Trump used the shooting to call for the country to unite, but he repeatedly slipped back into the divisive rhetoric of his campaign and his grievances against President Joe Biden, who he claimed was the worst president in US history. Trump vowed to "end the electric vehicle mandate" on the first day of his administration, in an apparent reference to tailpipe rules that are expected to result in about 54pc of new cars and trucks sales being battery-only EVs by model year 2032. Trump also said that unless automakers put their manufacturing facilities in the US, he would put tariffs of 100-200pc on imported vehicles. To tackle inflation, Trump said he would bring down interest rates, which are controlled by the US Federal Reserve, an agency that historically acts independently from the White House. Trump also said he would bring down prices for energy through a policy of "drill, baby, drill" and cutting regulations. Trump also vowed to pursue tax cuts, tariffs and the "largest deportation in history," all of which independent economists say would add to inflation. The Republican convention unfolded as Biden, who is isolating after testing positive for Covid-19, faces a growing chorus of top Democratic lawmakers pressuring him to drop out of the presidential race. Democrats plan to select their presidential nominee during an early virtual roll-call vote or at the Democratic National Convention on 19-22 August. By Chris Knigh t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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