Chinese smartphone maker Xiaomi has become the country's eighth-largest electric vehicle start-up after selling more than 7,000 units of its first model- the SU7 sedan, in April, according to industry data.

Xiaomi's entry into China's packed EV market is poised to further turn over the world's largest auto market, where companies are already locked in a fierce price war amid weakening demand.

The company is an established household name in China for its popular smartphones and home appliances.

It has now joined newcomers such as Nio and Xpeng as new automakers focused on EV production. The category excludes legacy brands like Volkswagen and established EV makers such as Tesla, BYD and Geely.

In its first month of sales since its late March launch, Xiaomi sold 7,058 SU7s. The company targets deliveries of over 100,000 units this year, attempting to achieve an average of 11,618 units per month for the rest of the year.

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Xiaomi's estimated monthly sales of more than 11,000 units for the remainder of the year, placed&nbsp;itself in a tight-knit competition with Volkswagen, which has fared better than most other foreign legacy auto brands in competing with Chinese EV players.

China’s local champion BYD topped the country’s EV sales rankings with 120,234 units last month. Sales were largely driven by affordable models much cheaper than the SU7.

U.S. giant Tesla netted 31,421 units in Model 3 and Y sales in April. Xiaomi's base model SU7 is about $4,000 cheaper than the base model of Tesla's Model 3 in China. As EV makers grapple with growing competition in the China market, many companies are now targeting overseas markets.

China's EV market is becoming crowded by an increasing number of start-ups that include pure EV manufacturers such as Nio and Xpeng; as well as EV sub-brands, from traditional automakers including GAC's Aion and Geely's Zeekr.

Huawei-backed Harmony Intelligent Mobility Alliance (HIMA) is also among the new upstarts. Some Huawei vehicles such as the Aito M5 and M9 come in both extended-range and pure EV variants and both versions are counted as EVs.

Chinese smartphone maker Xiaomi has become the country's eighth-largest electric vehicle start-up after selling more than 7,000 units of its first model- the SU7 sedan, in April, according to industry data.

Chinese smartphone maker Xiaomi has become the country's eighth-largest electric vehicle start-up after selling more than 7,000 units of its first model- the SU7 sedan, in April, according to industry data. Xiaomi's entry into China's packed EV market is poised to further turn over the world's largest auto market, where companies are already locked in a fierce price war amid weakening demand. The company is an established household name in China for its popular smartphones and home appliances. It has now joined newcomers such as Nio and Xpeng as new automakers focused on EV production. The category excludes legacy brands like Volkswagen and established EV makers such as Tesla, BYD and Geely. In its first month of sales since its late March launch, Xiaomi sold 7,058 SU7s. The company targets deliveries of over 100,000 units this year, attempting to achieve an average of 11,618 units per month for the rest of the year. Read More: Hero MotoCorp's market valuation surpasses INR 1 lakh crore as shares surge Xiaomi's estimated monthly sales of more than 11,000 units for the remainder of the year, placed itself in a tight-knit competition with Volkswagen, which has fared better than most other foreign legacy auto brands in competing with Chinese EV players. China’s local champion BYD topped the country’s EV sales rankings with 120,234 units last month. Sales were largely driven by affordable models much cheaper than the SU7. U.S. giant Tesla netted 31,421 units in Model 3 and Y sales in April. Xiaomi's base model SU7 is about $4,000 cheaper than the base model of Tesla's Model 3 in China. As EV makers grapple with growing competition in the China market, many companies are now targeting overseas markets. China's EV market is becoming crowded by an increasing number of start-ups that include pure EV manufacturers such as Nio and Xpeng; as well as EV sub-brands, from traditional automakers including GAC's Aion and Geely's Zeekr. Huawei-backed Harmony Intelligent Mobility Alliance (HIMA) is also among the new upstarts. Some Huawei vehicles such as the Aito M5 and M9 come in both extended-range and pure EV variants and both versions are counted as EVs.

Xiaomi secures 8th largest EV startup in China after SU7 launch

On Tuesday, U.S. President Joe Biden disclosed a high tariff increase on an array of Chinese imports including electric vehicles, computer chips and medical products, risking an election-year standoff with Beijing, seen as a move aimed to impress voters who are not&nbsp;fans of his economic policies.

According to the White House, this particular measure affects $18 billion in Chinese imported goods including steel and aluminium, semiconductors, batteries, critical minerals, solar cells and cranes.

In 2023, the United States imported $427 billion in goods from China and exported $148 billion to the world's second-largest economy, as reported by the U.S. Census Bureau.

"China's using the same playbook it has before to power its own growth at the expense of others by continuing to invest, despite excess Chinese capacity and flooding global markets with exports that are underpriced due to unfair practices," White House National Economic Adviser Lael Brainard said according to local media reports.

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The White House also criticised former President Trump's 2020 trade deal with China, which did not increase American exports or boost American manufacturing jobs, instead, the 10% across-the-board tariffs on goods from all points of origin that Trump has proposed would go on to agitate U.S. allies, and make them raise prices.

Trump has floated tariffs of 60% or higher on all Chinese goods.

Administration officials said their measures are "carefully targeted," combined with domestic investment, plotted with close allies and unlikely to worsen a bout of inflation that has already angered U.S. voters and imperilled Biden's re-election bid. They also downplayed the risk of retaliation from Beijing.

Despite low unemployment and above-average economic growth, Biden has struggled to convince voters of his economic policy's effectiveness.

Analysts have warned that a trade dispute could raise costs for EVs overall, and hurt Biden's climate goals, while also affecting his aim to create manufacturing jobs.

Biden has said he wants to win this era of competition with China but not to launch a trade war that could hurt the mutually dependent economies. He has worked in recent months to ease tensions in one-on-one talks with Chinese President Xi Jinping.

(With inputs from Reuters)

On Tuesday, U.S. President Joe Biden disclosed a high tariff increase on an array of Chinese imports including electric vehicles, computer chips and medical products, risking an election-year standoff with Beijing, seen as a move aimed to impress voters who are not fans of his economic policies.

On Tuesday, U.S. President Joe Biden disclosed a high tariff increase on an array of Chinese imports including electric vehicles, computer chips and medical products, risking an election-year standoff with Beijing, seen as a move aimed to impress voters who are not fans of his economic policies. According to the White House, this particular measure affects $18 billion in Chinese imported goods including steel and aluminium, semiconductors, batteries, critical minerals, solar cells and cranes. In 2023, the United States imported $427 billion in goods from China and exported $148 billion to the world's second-largest economy, as reported by the U.S. Census Bureau. "China's using the same playbook it has before to power its own growth at the expense of others by continuing to invest, despite excess Chinese capacity and flooding global markets with exports that are underpriced due to unfair practices," White House National Economic Adviser Lael Brainard said according to local media reports. Read More: Protestors try to attack German Tesla factory, clash with police The White House also criticised former President Trump's 2020 trade deal with China, which did not increase American exports or boost American manufacturing jobs, instead, the 10% across-the-board tariffs on goods from all points of origin that Trump has proposed would go on to agitate U.S. allies, and make them raise prices. Trump has floated tariffs of 60% or higher on all Chinese goods. Administration officials said their measures are "carefully targeted," combined with domestic investment, plotted with close allies and unlikely to worsen a bout of inflation that has already angered U.S. voters and imperilled Biden's re-election bid. They also downplayed the risk of retaliation from Beijing. Despite low unemployment and above-average economic growth, Biden has struggled to convince voters of his economic policy's effectiveness. Analysts have warned that a trade dispute could raise costs for EVs overall, and hurt Biden's climate goals, while also affecting his aim to create manufacturing jobs. Biden has said he wants to win this era of competition with China but not to launch a trade war that could hurt the mutually dependent economies. He has worked in recent months to ease tensions in one-on-one talks with Chinese President Xi Jinping. (With inputs from Reuters)

Biden government imposes tariffs on Chinese EVs and computer chips

U. S. President Joe Biden is getting ready to announce a new package of tariffs on Chinese imports, which will be concentrated in strategic industries, such as electric vehicles (EVs), according to media reports.

Tariffs on key sectors

The impending announcement, expected to be made public next Tuesday, will uphold the existing tariffs on numerous Chinese goods implemented by former President Donald Trump. However, it will also introduce new tariffs on semiconductors, solar equipment, and EVs. In addition, the Chinese-made medical supplies such as syringes and personal protective equipment are going to be subject to more tariffs.

Strategic competitiveness and national security

The Biden administration's revisions to the "Section 301 tariffs" address the critical sectors that matter for strategic competitiveness and national security according to sources familiar with the matter.

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Push for Higher EV tariffs

Lawmakers have been pushing for substantial increases in tariffs on imported Chinese light-duty vehicles, even though this segment of vehicles from China only makes up a small part of the current volume of imported vehicles. In the new scheme, the existing tariffs on Chinese EVs will become four times higher than the previous tariffs. The Senate Banking Committee Chairman Sherrod Brown calls for a permanent structuring of the plan due to data security risks.

Delays and internal discussions

The office of the U. S. Trade Representative has already given recommendations to the White House but the final announcement has been delayed because of internal discussions. Some sources suggest that the announcement might not occur on Tuesday, as initially anticipated.

Contrasting approaches

Biden's approach to tariffs contrasts with Trump's proposal of blanket tariffs, which the current administration perceives as overly broad and likely to fuel inflation. Trump had advocated for tariffs of 60% or higher on all Chinese imports.

Potential retaliation and trade war concerns

The introduction of new tariffs could cause China's counter attacks, thus leading to the escalation of the already existing tensions between the two largest economies in the world. Trump's previous tariff policies initiated a trade war between the U.S. and China.

Departure from free-trade consensus

Both Biden and Trump have departed significantly from the previous free-trade consensus in Washington. Biden started a review of Trump-era policies in 2022, especially the ones that were made under Section 301 of U. S. trade law, to be more in line with a tough stance on trade with China.

Investigation and pressure on Mexico

Biden's administration has undertaken a review across several sectors, including shipbuilding, maritime, and logistics, that could provide them with leeway for more tariffs to be applied. Additionally, there have been efforts to pressure Mexico to prevent China from indirectly selling metal products to the U.S.

China has criticised the tariff measures, viewing them as counterproductive and harmful to both the U.S. and global economies.

(Inputs from Reuters)

U. S. President Joe Biden is getting ready to announce a new package of tariffs on Chinese imports, which will be concentrated in strategic industries, such as electric vehicles (EVs), according to media reports.

U. S. President Joe Biden is getting ready to announce a new package of tariffs on Chinese imports, which will be concentrated in strategic industries, such as electric vehicles (EVs), according to media reports. Tariffs on key sectors The impending announcement, expected to be made public next Tuesday, will uphold the existing tariffs on numerous Chinese goods implemented by former President Donald Trump. However, it will also introduce new tariffs on semiconductors, solar equipment, and EVs. In addition, the Chinese-made medical supplies such as syringes and personal protective equipment are going to be subject to more tariffs. Strategic competitiveness and national security The Biden administration's revisions to the "Section 301 tariffs" address the critical sectors that matter for strategic competitiveness and national security according to sources familiar with the matter. Also Read: Hyundai, Kia accused of illegally repossessing service members' vehicles Push for Higher EV tariffs Lawmakers have been pushing for substantial increases in tariffs on imported Chinese light-duty vehicles, even though this segment of vehicles from China only makes up a small part of the current volume of imported vehicles. In the new scheme, the existing tariffs on Chinese EVs will become four times higher than the previous tariffs. The Senate Banking Committee Chairman Sherrod Brown calls for a permanent structuring of the plan due to data security risks. Delays and internal discussions The office of the U. S. Trade Representative has already given recommendations to the White House but the final announcement has been delayed because of internal discussions. Some sources suggest that the announcement might not occur on Tuesday, as initially anticipated. Contrasting approaches Biden's approach to tariffs contrasts with Trump's proposal of blanket tariffs, which the current administration perceives as overly broad and likely to fuel inflation. Trump had advocated for tariffs of 60% or higher on all Chinese imports. Potential retaliation and trade war concerns The introduction of new tariffs could cause China's counter attacks, thus leading to the escalation of the already existing tensions between the two largest economies in the world. Trump's previous tariff policies initiated a trade war between the U.S. and China. Departure from free-trade consensus Both Biden and Trump have departed significantly from the previous free-trade consensus in Washington. Biden started a review of Trump-era policies in 2022, especially the ones that were made under Section 301 of U. S. trade law, to be more in line with a tough stance on trade with China. Investigation and pressure on Mexico Biden's administration has undertaken a review across several sectors, including shipbuilding, maritime, and logistics, that could provide them with leeway for more tariffs to be applied. Additionally, there have been efforts to pressure Mexico to prevent China from indirectly selling metal products to the U.S. China has criticised the tariff measures, viewing them as counterproductive and harmful to both the U.S. and global economies. (Inputs from Reuters)

Biden plans new China tariffs, targets EVs

Many protesters expressed dismay to the expansion of a Tesla plant in Grünheide, near Berlin, clashed with police last week when some of them attempted to barge in the electric vehicle manufacturing facility.

Approximately 800 people were part of the protest; according to the organising group Disrupt Tesla. The group also claims the expansion would damage the environment.

 
Tesla has intrigued fierce backlash since the company opened the factory in March 2022, and announced plans to expand into a nearby forest to increase its production capability.

 
In February, the town where the factory is situated opposed the proposals in a non-legally binding referendum. Following this, demonstrators have maintained an encampment nearby as a form of protest.

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In a video, many people were seen wearing blue caps and masks coming from a nearby wooded area, attempted to storm the company’s premises while the police officers were trying to prevent them. At least one protester was detained.

 
The same facility was completely shut for a week in March after suspected arson disabled its power. A separate protest collective called Volcano Group took responsibility for the fire, calling for the “complete destruction of the gigafactory”.

 
According to Ole Becker, a spokesperson for Disrupt Tesla, the group aims to draw attention to the environmental harm caused by lithium mining in countries like Argentina or Bolivia. This mineral is crucial for manufacturing electric vehicle batteries.

 
“Why do the police let the leftwing protestors off so easily?” the Tesla CEO, Elon Musk, wrote on his social medial platform X, adding that the demonstrators could not through. Tesla, which dissolved its press department in 2020, did not respond to request for comment.

 
The police confirmed that the protesters tried to enter the plant’s premises, but were stopped, with several people taken into custody, and that it received a few reports of injuries.

 
“We protect the freedom of assembly,” said a Brandenburg police spokesperson, Mario Heinemann, “but we are also responsible for public order and safety. That means we will also intervene when necessary.”

 
The police spokesperson added that some demonstrators also damaged a few Tesla cars using pyrotechnics and paint at a nearby car storage site.

Earlier this week Tesla mentioned that it would shut the factory for one day on Friday, without specifying a reason.&nbsp;

(With inputs from Reuters)

Many protesters expressed dismay to the expansion of a Tesla plant in Grünheide, near Berlin, clashed with police last week when some of them attempted to barge in the electric vehicle manufacturing facility.

Many protesters expressed dismay to the expansion of a Tesla plant in Grünheide, near Berlin, clashed with police last week when some of them attempted to barge in the electric vehicle manufacturing facility. Approximately 800 people were part of the protest; according to the organising group Disrupt Tesla. The group also claims the expansion would damage the environment. Tesla has intrigued fierce backlash since the company opened the factory in March 2022, and announced plans to expand into a nearby forest to increase its production capability. In February, the town where the factory is situated opposed the proposals in a non-legally binding referendum. Following this, demonstrators have maintained an encampment nearby as a form of protest. Read More: France secures major investments and jobs from Amazon, Pfizer, and Morgan Stanley In a video, many people were seen wearing blue caps and masks coming from a nearby wooded area, attempted to storm the company’s premises while the police officers were trying to prevent them. At least one protester was detained. The same facility was completely shut for a week in March after suspected arson disabled its power. A separate protest collective called Volcano Group took responsibility for the fire, calling for the “complete destruction of the gigafactory”. According to Ole Becker, a spokesperson for Disrupt Tesla, the group aims to draw attention to the environmental harm caused by lithium mining in countries like Argentina or Bolivia. This mineral is crucial for manufacturing electric vehicle batteries. “Why do the police let the leftwing protestors off so easily?” the Tesla CEO, Elon Musk, wrote on his social medial platform X, adding that the demonstrators could not through. Tesla, which dissolved its press department in 2020, did not respond to request for comment. The police confirmed that the protesters tried to enter the plant’s premises, but were stopped, with several people taken into custody, and that it received a few reports of injuries. “We protect the freedom of assembly,” said a Brandenburg police spokesperson, Mario Heinemann, “but we are also responsible for public order and safety. That means we will also intervene when necessary.” The police spokesperson added that some demonstrators also damaged a few Tesla cars using pyrotechnics and paint at a nearby car storage site. Earlier this week Tesla mentioned that it would shut the factory for one day on Friday, without specifying a reason. (With inputs from Reuters)

Protestors try to attack German Tesla factory, clash with police

Former US President Donald Trump promised to reverse dozens of the Biden administration's environmental rules and policies at a meeting with top U.S. oil executives. In the same meeting, he also asked the attendees to raise $1 billion for his presidential campaign on Thursday, according to media reports.

 
Citing anonymous sources who know well about the Florida meeting last month, The Post stated that Republican Presidential candidate Trump told the chief executives that giving $ 1 billion would be a "deal" for them, according to the report.

The guestlist included the CEOs of Venture Global, Cheniere Energy as well as representatives from Chevron , Continental Resources, Exxon and Occidental Petroleum, it said.&nbsp;Representatives for Trump's campaign did not respond to a request for comment.&nbsp;

 
However, representatives for Exxon said they had no details to share, while representatives for the other companies did not respond to requests for comments at all.

 
Trump, gearing up for a rematch with Biden in the upcoming presidential election on Nov. 5, has pledged to roll back many of the measures implemented by the Democratic president to combat climate change.

&nbsp; 
During a meeting at Trump's exclusive club, the Republican presidential candidate outlined plans to expand oil drilling leases in the Gulf of Mexico and lift drilling restrictions in the Alaskan Arctic, as reported by the Post. He also reiterated his grievances regarding wind power.&nbsp;

 
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Biden, on the other hand, has highlighted his administration's climate initiatives, including regulations on vehicle emissions, emphasising their dual benefits for the environment and the economy, a key point in his bid for re-election.

 
The United States had it’s highest oil production ever, reaching an average of almost thirteen million barrels every single day last year, despite grievances from the oil industry concerning Mr. Biden’s policies.

During that period ExxonMobil and Chevron — two of America’s main players in the energy sector — made more money than they have been able to over the past ten years.

However, Big Oil is looking forward to recording bigger earnings should Trump stage a return to the White House considering his promises to “return”.&nbsp;

 
(With inputs from Reuters) 
&nbsp;

Former US President Donald Trump promised to reverse dozens of the Biden administration's environmental rules and policies at a meeting with top U.S. oil executives.

Former US President Donald Trump promised to reverse dozens of the Biden administration's environmental rules and policies at a meeting with top U.S. oil executives. In the same meeting, he also asked the attendees to raise $1 billion for his presidential campaign on Thursday, according to media reports. Citing anonymous sources who know well about the Florida meeting last month, The Post stated that Republican Presidential candidate Trump told the chief executives that giving $ 1 billion would be a "deal" for them, according to the report. The guestlist included the CEOs of Venture Global, Cheniere Energy as well as representatives from Chevron , Continental Resources, Exxon and Occidental Petroleum, it said. Representatives for Trump's campaign did not respond to a request for comment. However, representatives for Exxon said they had no details to share, while representatives for the other companies did not respond to requests for comments at all. Trump, gearing up for a rematch with Biden in the upcoming presidential election on Nov. 5, has pledged to roll back many of the measures implemented by the Democratic president to combat climate change. During a meeting at Trump's exclusive club, the Republican presidential candidate outlined plans to expand oil drilling leases in the Gulf of Mexico and lift drilling restrictions in the Alaskan Arctic, as reported by the Post. He also reiterated his grievances regarding wind power. Read More: Ford planning to offer combustion-engine, hybrid vehicles in Europe beyond 2030 Biden, on the other hand, has highlighted his administration's climate initiatives, including regulations on vehicle emissions, emphasising their dual benefits for the environment and the economy, a key point in his bid for re-election. The United States had it’s highest oil production ever, reaching an average of almost thirteen million barrels every single day last year, despite grievances from the oil industry concerning Mr. Biden’s policies. During that period ExxonMobil and Chevron — two of America’s main players in the energy sector — made more money than they have been able to over the past ten years. However, Big Oil is looking forward to recording bigger earnings should Trump stage a return to the White House considering his promises to “return”. (With inputs from Reuters)

Donald Trump pledges to target EVs, LNG exports in meeting with oil CEOs, seeks $ 1 billion as 'deal'

On Wednesday, top executives at BMW and Volkswagen alerted against imposing EU import duties on electric vehicles from Chinese automakers, stating it could tip over the bloc's Green Deal plan and harm automakers that import cars made in China.

 
The European Commission, responsible for overseeing trade policy in the 27-nation European Union, launched an investigation in October into whether fully-electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.

 
BMW imports the made in China Mini EVs and the iX3 into Europe.

Europe's biggest carmaker Volkswagen which also heavily relies on China, warned that potential duties generally carried a certain risk.

Like its German rivals Volkswagen and Mercedes-Benz, BMW is also heavily reliant on revenues from its Chinese business. China represents BMW's second-largest market after Europe, accounting for nearly 32% of sales in the first quarter.

In March, the Commission began registering Chinese EV imports for customs, implying that they could face tariffs if the trade investigation concludes they are unfairly subsidised.&nbsp;

 
November will see the end of the investigation although we might have some interim duties imposed by July. Thus, a summary of proposed provisional duties is expected to be published by Brussels on June 5&nbsp;and implementation should take place by July 4.

The President of European Commission Ursula von der Leyen, highlighted in Berlin&nbsp;that it was important to avoid China flooding the region market with subsidised electric vehicles.

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On Monday, French President Emmanuel Macron and von der Leyen asked Chinese President Xi Jinping to seek for more equal trade relations between his country and Europe.

Imposing tariffs could have unintended consequences especially as new EU CO2 emission standards with an increase in EVs reliant on Chinese battery materials become effective next year. This would jeopardise their industrial strategy for leading in carbon emissions cuts as well as technology development.

This situation highlights the challenges that the policymakers and industry stakeholders are facing while attempting to balance trade interests, sustainability goals, and industrial competitiveness in the global automotive sector.

To reach upon a conclusion that addresses these concerns while also promoting fair competition and bearing in mind the environmental sustainability will be crucial moving forward.

&nbsp;

(With inputs from Reuters)

On Wednesday, top executives at BMW and Volkswagen alerted against imposing EU import duties on electric vehicles from Chinese automakers, stating it could tip over the bloc's Green Deal plan and harm automakers that import cars made in China.

On Wednesday, top executives at BMW and Volkswagen alerted against imposing EU import duties on electric vehicles from Chinese automakers, stating it could tip over the bloc's Green Deal plan and harm automakers that import cars made in China. The European Commission, responsible for overseeing trade policy in the 27-nation European Union, launched an investigation in October into whether fully-electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs. BMW imports the made in China Mini EVs and the iX3 into Europe. Europe's biggest carmaker Volkswagen which also heavily relies on China, warned that potential duties generally carried a certain risk. Like its German rivals Volkswagen and Mercedes-Benz, BMW is also heavily reliant on revenues from its Chinese business. China represents BMW's second-largest market after Europe, accounting for nearly 32% of sales in the first quarter. In March, the Commission began registering Chinese EV imports for customs, implying that they could face tariffs if the trade investigation concludes they are unfairly subsidised. November will see the end of the investigation although we might have some interim duties imposed by July. Thus, a summary of proposed provisional duties is expected to be published by Brussels on June 5 and implementation should take place by July 4. The President of European Commission Ursula von der Leyen, highlighted in Berlin that it was important to avoid China flooding the region market with subsidised electric vehicles. Read More: U.S. mulls ban on Chinese connected vehicles amid national security fears On Monday, French President Emmanuel Macron and von der Leyen asked Chinese President Xi Jinping to seek for more equal trade relations between his country and Europe. Imposing tariffs could have unintended consequences especially as new EU CO2 emission standards with an increase in EVs reliant on Chinese battery materials become effective next year. This would jeopardise their industrial strategy for leading in carbon emissions cuts as well as technology development. This situation highlights the challenges that the policymakers and industry stakeholders are facing while attempting to balance trade interests, sustainability goals, and industrial competitiveness in the global automotive sector. To reach upon a conclusion that addresses these concerns while also promoting fair competition and bearing in mind the environmental sustainability will be crucial moving forward. (With inputs from Reuters)

German carmakers warn EU tariffs on Chinese EVs may backlash

Ride-hailing company Lyft estimated higher-than-expected gross bookings and core profit for the current quarter on Tuesday, driven by robust demand for its services and benefits from new user and driver features.

 
It also reported first-quarter revenue and profit above expectations, sending its share up 5 percent in extended trading.

Since CEO David Risher took charge last April, the company has cut hundreds of jobs, reduced the firm's losses, and managed to keep fare increases in check.

 
Lyft has been winning over consumers with shortened wait times for a few pre-scheduled rides, and drivers with minimum wage guarantees while trimming costs in order to boost profitability.

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Lyft reduced&nbsp;costs by 13 per cent and narrowed its net loss by 78 percent in 2023. The company's shares rose 36 percent over the last year. The company estimated gross bookings, representing the total value of transactions on its platform, to range from $4.0 billion to $4.1 billion in the current quarter ending June, compared to estimates of $3.96 billion, per LSEG data.

 
Lyft forecast adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) between $95 million and $100 million, surpassing analysts' average expectations of $81.1 million. 
The company’s primary competitor, Uber Technologies, is scheduled to release its quarterly earnings before the market opens on Wednesday.

 
For the quarter ending March 31, Lyft's revenue increased 28 percent to $1.28 billion, outperforming analysts' expectations of $1.16 billion. It earned 15 cents per share on an adjusted basis, higher than a 3 cent per share estimate.

Lyft will host its first-ever investor day event on June 6.

 
The San Francisco, California-based firm said it had benefited from increased&nbsp;demand during morning work commutes and weekend evening trips. It also gained from further expanding its service in Canada and growth in its advertising business.

 
In March, Uber and Lyft announced that they would discontinue their services in Minneapolis, U.S. effective from May 1 as the city council voted to enforce a minimum wage of $15.57 per hour for rideshare drivers. The council's 10-3 vote created controversy, with the companies claiming that it will lead to several job losses and leave people stranded.&nbsp;

The new law came into effect on May 1, and it requires rideshare companies to pay drivers a minimum of $1.40 per mile and 51 cents per minute while transporting a rider or $5 per ride, whichever is greater, excluding tips.

 
The decision was taken after a state-commissioned study by the Minnesota Department of Labor and Industry, which found that drivers could earn the equivalent of minimum wage with lower rates, even after accounting for benefits such as health insurance and paid time off.&nbsp;

(With inputs from Reuters)

Ride-hailing company Lyft estimated higher-than-expected gross bookings and core profit for the current quarter on Tuesday, driven by robust demand for its services and benefits from new user and driver features.

Ride-hailing company Lyft estimated higher-than-expected gross bookings and core profit for the current quarter on Tuesday, driven by robust demand for its services and benefits from new user and driver features. It also reported first-quarter revenue and profit above expectations, sending its share up 5 percent in extended trading. Since CEO David Risher took charge last April, the company has cut hundreds of jobs, reduced the firm's losses, and managed to keep fare increases in check. Lyft has been winning over consumers with shortened wait times for a few pre-scheduled rides, and drivers with minimum wage guarantees while trimming costs in order to boost profitability. Read More: Amazon unveils Volvo electric trucks for port operations in Southern California Lyft reduced costs by 13 per cent and narrowed its net loss by 78 percent in 2023. The company's shares rose 36 percent over the last year. The company estimated gross bookings, representing the total value of transactions on its platform, to range from $4.0 billion to $4.1 billion in the current quarter ending June, compared to estimates of $3.96 billion, per LSEG data. Lyft forecast adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) between $95 million and $100 million, surpassing analysts' average expectations of $81.1 million. The company’s primary competitor, Uber Technologies, is scheduled to release its quarterly earnings before the market opens on Wednesday. For the quarter ending March 31, Lyft's revenue increased 28 percent to $1.28 billion, outperforming analysts' expectations of $1.16 billion. It earned 15 cents per share on an adjusted basis, higher than a 3 cent per share estimate. Lyft will host its first-ever investor day event on June 6. The San Francisco, California-based firm said it had benefited from increased demand during morning work commutes and weekend evening trips. It also gained from further expanding its service in Canada and growth in its advertising business. In March, Uber and Lyft announced that they would discontinue their services in Minneapolis, U.S. effective from May 1 as the city council voted to enforce a minimum wage of $15.57 per hour for rideshare drivers. The council's 10-3 vote created controversy, with the companies claiming that it will lead to several job losses and leave people stranded. The new law came into effect on May 1, and it requires rideshare companies to pay drivers a minimum of $1.40 per mile and 51 cents per minute while transporting a rider or $5 per ride, whichever is greater, excluding tips. The decision was taken after a state-commissioned study by the Minnesota Department of Labor and Industry, which found that drivers could earn the equivalent of minimum wage with lower rates, even after accounting for benefits such as health insurance and paid time off. (With inputs from Reuters)

Lyft estimates positive earnings as ride-hailing demand rises

Toyota Motor is expected to get increased demand for hybrids when it reports annual earnings on Wednesday, showing how the top-selling automaker is set to benefit as the hype around battery electric vehicles cools.

This is due to a boost from the weak yen currency debunking the challenges it faces in the critical markets. Whereas in China, it faces pressure because of an aggressive price war, and in the U.S. its due to the fallout from consumers struggling with higher borrowing costs.

Worldwide, Toyota has felt slight competition from Chinese rivals constantly expanding production of low-priced vehicles.

 
The group’s reputation for quality and safety was threatened, while the sales were also affected due to a safety test scandal at its Daihatsu compact car unit in Japan.

Toyota's China sales were down 1.6% over the first quarter of the 2024 calendar year, better than sharper declines of Japanese rivals Nissan and Honda, however worse than a 12.5% rise in passenger vehicle sales sector-wide, according to data from an auto industry association.

As global demand for battery-powered EVs has slowed, Toyota has made money by selling more hybrids, which come with relatively higher margins than regular gasoline cars.

Read More:&nbsp;<a href="https://www.wionews.com/business-economy/lucids-annual-vehicle-production-forecast-for-2024-less-than-estimates-718931">Lucid’s annual vehicle production forecast for 2024 less than estimates</a>

Toyota pioneered hybrids more than a quarter of a century ago with the Prius. They made up more than a third of the 10.3 million cars it sold in the financial year just ended, including the Lexus luxury brand.

While strong in hybrids, Toyota remains a laggard when it comes to EVs, behind rivals such as Tesla and European and Chinese automakers.

 
Battery EVs made up just 1% of global sales in the year just ended, or about 116,500 vehicles, well below a previously announced target of 202,000 vehicles.

 
In February, the Japanese automaker raised its operating profit forecast for the financial year ended March 31 to 4.9 trillion yen ($31.87 billion), a result that would mark a record profit and an 80% increase on the previous year.

For the fourth quarter, Toyota is expected to deliver an operating profit of 747 billion yen, according to the average of nine analysts polled by LSEG.&nbsp;

(With inputs From Reuters)

Toyota Motor is expected to get increased demand for hybrids when it reports annual earnings on Wednesday, showing how the top-selling automaker is set to benefit as the hype around battery electric vehicles cools.

Toyota Motor is expected to get increased demand for hybrids when it reports annual earnings on Wednesday, showing how the top-selling automaker is set to benefit as the hype around battery electric vehicles cools. This is due to a boost from the weak yen currency debunking the challenges it faces in the critical markets. Whereas in China, it faces pressure because of an aggressive price war, and in the U.S. its due to the fallout from consumers struggling with higher borrowing costs. Worldwide, Toyota has felt slight competition from Chinese rivals constantly expanding production of low-priced vehicles. The group’s reputation for quality and safety was threatened, while the sales were also affected due to a safety test scandal at its Daihatsu compact car unit in Japan. Toyota's China sales were down 1.6% over the first quarter of the 2024 calendar year, better than sharper declines of Japanese rivals Nissan and Honda, however worse than a 12.5% rise in passenger vehicle sales sector-wide, according to data from an auto industry association. As global demand for battery-powered EVs has slowed, Toyota has made money by selling more hybrids, which come with relatively higher margins than regular gasoline cars. Read More: Lucid’s annual vehicle production forecast for 2024 less than estimates Toyota pioneered hybrids more than a quarter of a century ago with the Prius. They made up more than a third of the 10.3 million cars it sold in the financial year just ended, including the Lexus luxury brand. While strong in hybrids, Toyota remains a laggard when it comes to EVs, behind rivals such as Tesla and European and Chinese automakers. Battery EVs made up just 1% of global sales in the year just ended, or about 116,500 vehicles, well below a previously announced target of 202,000 vehicles. In February, the Japanese automaker raised its operating profit forecast for the financial year ended March 31 to 4.9 trillion yen ($31.87 billion), a result that would mark a record profit and an 80% increase on the previous year. For the fourth quarter, Toyota is expected to deliver an operating profit of 747 billion yen, according to the average of nine analysts polled by LSEG. (With inputs From Reuters)

Toyota to gain upper-hand as EV market slumps

The Centre has certified over 20 vehicle OEMs to participate in the short-term Electric Mobility Promotion Scheme (EMPS).

The EMPS, which is valid for only four months from April to July 2024 with an outlay of INR 500 crore, aims to subsidise electric two-wheeler, three-wheeler, and e-rickshaw purchases by consumers.

It may be replaced or extended, depending on the new central government expected to be formed in June 2024.

The 20 companies include all the major two and three-wheeler manufacturers that can now avail the given incentives under the scheme.

The new scheme’s primary objective is to support the adoption of over 3,30,000 e-two-wheelers, over 40,000 smaller e-three-wheelers (e-rickshaws or e-carts), and over 25,000 large e-three-wheelers (L5 category).

As such, the maximum incentive per electric two-wheeler has been rounded off at INR 10,000, for e-rickshaws or e-carts at INR 25,000, and for L5 vehicles, it has been kept at INR 50,000 per vehicle.

Before EMPS, the Faster Adoption and Manufacturing of (Hybrid &amp;) Electric Vehicles in India (FAME-II) provided an incentive push to electric vehicle (EV) sales by offering subsidies. The FAME-II ended on March 31, 2024, as the central government made a decision not to come out with a new variant of it in the form of the FAME-III.

As its replacement, the Ministry had to provide fresh registration under the new scheme to re-validate products and deter FAME-II defaulters from entering EMPS.

Read More:&nbsp;<a href="https://www.wionews.com/business-economy/bmw-motorrad-introduces-automated-shift-assistant-for-ease-of-riding-718399">BMW Motorrad introduces Automated Shift Assistant for ease of riding</a>

The Electric Mobility Promotion Scheme 2024<a href="https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2014366"> (EMPS 2024)</a>&nbsp;scheme was introduced by the Ministry of Heavy Industries, Government of India with the approval of the Department of Expenditure, Ministry of Finance to further accelerate the adoption of EVs in the country.

This is a fund-limited scheme with a total outlay of INR 500 crore for 4 months, 1 April 2024 till 31 July 2024, for faster adoption of electric two-wheeler (e-2W) and three-wheeler (e-3W) to provide further impetus to the green mobility and development of electric vehicle (EV) manufacturing eco-system in the country.&nbsp;

The Scheme aims to promote an efficient, competitive and resilient EV manufacturing industry in the country thereby promoting the Prime Minister’s vision of Aatma-Nirbhar Bharat.

For this purpose, the Phased Manufacturing Programme (PMP) has been adopted which encourages domestic manufacturing and strengthening off EV supply chain. This shall also create significant employment opportunities along the value chain.

The Centre has certified over 20 vehicle OEMs to participate in the short-term Electric Mobility Promotion Scheme (EMPS). The EMPS, which is valid for only four months from April to July 2024 with an outlay of INR 500 crore, aims to subsidise electric two-wheeler, three-wheeler, and e-rickshaw purchases by consumers.

The Centre has certified over 20 vehicle OEMs to participate in the short-term Electric Mobility Promotion Scheme (EMPS). The EMPS, which is valid for only four months from April to July 2024 with an outlay of INR 500 crore, aims to subsidise electric two-wheeler, three-wheeler, and e-rickshaw purchases by consumers. It may be replaced or extended, depending on the new central government expected to be formed in June 2024. The 20 companies include all the major two and three-wheeler manufacturers that can now avail the given incentives under the scheme. The new scheme’s primary objective is to support the adoption of over 3,30,000 e-two-wheelers, over 40,000 smaller e-three-wheelers (e-rickshaws or e-carts), and over 25,000 large e-three-wheelers (L5 category). As such, the maximum incentive per electric two-wheeler has been rounded off at INR 10,000, for e-rickshaws or e-carts at INR 25,000, and for L5 vehicles, it has been kept at INR 50,000 per vehicle. Before EMPS, the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) provided an incentive push to electric vehicle (EV) sales by offering subsidies. The FAME-II ended on March 31, 2024, as the central government made a decision not to come out with a new variant of it in the form of the FAME-III. As its replacement, the Ministry had to provide fresh registration under the new scheme to re-validate products and deter FAME-II defaulters from entering EMPS. Read More: BMW Motorrad introduces Automated Shift Assistant for ease of riding The Electric Mobility Promotion Scheme 2024 (EMPS 2024) scheme was introduced by the Ministry of Heavy Industries, Government of India with the approval of the Department of Expenditure, Ministry of Finance to further accelerate the adoption of EVs in the country. This is a fund-limited scheme with a total outlay of INR 500 crore for 4 months, 1 April 2024 till 31 July 2024, for faster adoption of electric two-wheeler (e-2W) and three-wheeler (e-3W) to provide further impetus to the green mobility and development of electric vehicle (EV) manufacturing eco-system in the country. The Scheme aims to promote an efficient, competitive and resilient EV manufacturing industry in the country thereby promoting the Prime Minister’s vision of Aatma-Nirbhar Bharat. For this purpose, the Phased Manufacturing Programme (PMP) has been adopted which encourages domestic manufacturing and strengthening off EV supply chain. This shall also create significant employment opportunities along the value chain.

20 firms narrowed down under new EV subsidy scheme

China Ocean Shipping Company (COSCO), a state-owned Multinational conglomerate located in Shanghai has launched a river-to-sea electric container ship that the company claims to be the “world’s largest”. Established as a subsidiary in 2016 after an approved merger between COSCO and China Shipping, the company specialises in marine transport.

The Green Water 01 is a massive 10,000-ton+ fully electric vessel that is now a benchmark in sustainability in the marine logistics industry, and the services have already begun in China. As for now, regular operations are set to take place between Shanghai and Nanjing. The route covers close to 1,000 kilometres without needing recharge anywhere in the middle, along the Yangtze River.

 
Greenwater 01 is 120 metres long and 24 metres wide, with a battery capacity of 50,000 kWh, which can be expanded up to 80,000 kWh if need be. This is also the reason why the batteries are placed in particular containers that can be charged in the harbour or exchanged by cranes.

 
Given the battery-electric drive, the container ship is expected to save 3,900 kilograms of fuel per 100 nautical miles (185.2 kilometres) and reduce CO2 emissions by 12.4 tonnes. The cargo&nbsp;capacity of the Greenwater 01 is 700 TEU, with one TEU corresponding to a 20-foot standard container.

 
The COSCO Group is the largest liner carrier in China, transporting container vessels on daily basis, while also providing ships to Chinese automakers in order to help them export their electric vehicles to new markets overseas.

 
According to Cosco, the Greenwater 01 not only sets world record for its length, width and load capacity of a battery-electric ship, but also for container capacity.

 
“The 700 TEU electric container ship is the world’s first large all-battery container ship for long-distance transport,” Cosco Shipping stated in March 2023. Adding, “After construction, this series of ships will be put into operation on the Yangtze River. It will realise the green modernisation of the golden waterway and provide the experience and solutions of key state-owned enterprises for China’s inland and coastal shipping industry to reduce emissions.”

 
According to the group, this project will serve as a benchmark model for future environmentally friendly shipping projects. The company has also been working on building a second electric container ship since May 2023. 
&nbsp;

China Ocean Shipping Company (COSCO), a state-owned Multinational conglomerate located in Shanghai has launched a river-to-sea electric container ship that the company claims to be the “world’s largest”.

China Ocean Shipping Company (COSCO), a state-owned Multinational conglomerate located in Shanghai has launched a river-to-sea electric container ship that the company claims to be the “world’s largest”. Established as a subsidiary in 2016 after an approved merger between COSCO and China Shipping, the company specialises in marine transport. The Green Water 01 is a massive 10,000-ton+ fully electric vessel that is now a benchmark in sustainability in the marine logistics industry, and the services have already begun in China. As for now, regular operations are set to take place between Shanghai and Nanjing. The route covers close to 1,000 kilometres without needing recharge anywhere in the middle, along the Yangtze River. Greenwater 01 is 120 metres long and 24 metres wide, with a battery capacity of 50,000 kWh, which can be expanded up to 80,000 kWh if need be. This is also the reason why the batteries are placed in particular containers that can be charged in the harbour or exchanged by cranes. Given the battery-electric drive, the container ship is expected to save 3,900 kilograms of fuel per 100 nautical miles (185.2 kilometres) and reduce CO2 emissions by 12.4 tonnes. The cargo capacity of the Greenwater 01 is 700 TEU, with one TEU corresponding to a 20-foot standard container. The COSCO Group is the largest liner carrier in China, transporting container vessels on daily basis, while also providing ships to Chinese automakers in order to help them export their electric vehicles to new markets overseas. According to Cosco, the Greenwater 01 not only sets world record for its length, width and load capacity of a battery-electric ship, but also for container capacity. “The 700 TEU electric container ship is the world’s first large all-battery container ship for long-distance transport,” Cosco Shipping stated in March 2023. Adding, “After construction, this series of ships will be put into operation on the Yangtze River. It will realise the green modernisation of the golden waterway and provide the experience and solutions of key state-owned enterprises for China’s inland and coastal shipping industry to reduce emissions.” According to the group, this project will serve as a benchmark model for future environmentally friendly shipping projects. The company has also been working on building a second electric container ship since May 2023.

China launches 'world's largest' electric container ship with 50,000 kWh battery capacity

Wayne Burgess, Vice President, Design of Ola Electric has stepped down after three years of contributing to the company. He was involved in multiple projects with the company that has been known&nbsp;for its technology and design.

In the past three decades, Burgess has worked with premium car manufacturers, such as Rolls Royce, Bentley in his early career, Aston Martin and Jaguar Land Rover, and more recently with Lotus Cars. With his expertise in vehicle design, He joined Ola in April 2021, with an intensive body of work, drawing expertise in vehicle design from some of the most renowned car manufacturers.&nbsp;

In the very first six months of this tenure, Burgess’s contribution to Ola Electric incorporated construction of FutureFactory which was built in Tamil Nadu, and it is also the world’s largest two-wheeler factory, as Ola claims.&nbsp;

Read More:&nbsp;<a href="https://www.wionews.com/business-economy/used-car-seller-carvanas-shares-surge-beyond-expectations-717372">Used-car seller Carvana’s shares surge beyond expectations</a>

Burgess shared a post on his LinkedIn account, acknowledging the company and his team stating, “I feel we’ve built a great design team across the two studios, and am confident I’m leaving a design organisation capable of producing world-class designs, equipped and ready to envision whatever products come next in the Ola Electric story.”

He further added, “I would like to wish the team every success, thank them for the friendships we’ve forged along the way and look forward to continuing to follow and support their journey as India’s number one EV manufacturer and mobility platform in the future”.

Burgess also established a technology- led design process leveraging virtual reality and contributed to setting up of the UK studio and commissioning of the E-Zone studio in Bengaluru. The design expert was also a part of launching the S1 scooter and creating motorcycle concepts such as ‘Diamondhead’.

 
On the other hand, Bhavish Aggarwal, CEO of Ola Cabs announced on Wednesday that the company has captured over 52 percent market share in the electric vehicle (EV) two-wheeler segment, as of April 2024.&nbsp;According to the government's VAHAN Portal, the company recorded 34,000 registrations during April, and registered a year-on-year growth of 54 percent over the corresponding month in 2023.

 
Ola Electric also made its entry in the mass-market segment, and announced new prices for its S1 X portfolio. It is available in three battery configurations (2 kWh, 3 kWh, and 4 kWh). The scooter is currently priced at 69,999 INR (introductory price), 84,999 INR, and 99,999 INR respectively.

Wayne Burgess, Vice President, Design of Ola Electric has stepped down after three years of contributing to the company. He was involved in multiple projects with the company that has been known for its technology and design.

Wayne Burgess, Vice President, Design of Ola Electric has stepped down after three years of contributing to the company. He was involved in multiple projects with the company that has been known for its technology and design. In the past three decades, Burgess has worked with premium car manufacturers, such as Rolls Royce, Bentley in his early career, Aston Martin and Jaguar Land Rover, and more recently with Lotus Cars. With his expertise in vehicle design, He joined Ola in April 2021, with an intensive body of work, drawing expertise in vehicle design from some of the most renowned car manufacturers. In the very first six months of this tenure, Burgess’s contribution to Ola Electric incorporated construction of FutureFactory which was built in Tamil Nadu, and it is also the world’s largest two-wheeler factory, as Ola claims. Read More: Used-car seller Carvana’s shares surge beyond expectations Burgess shared a post on his LinkedIn account, acknowledging the company and his team stating, “I feel we’ve built a great design team across the two studios, and am confident I’m leaving a design organisation capable of producing world-class designs, equipped and ready to envision whatever products come next in the Ola Electric story.” He further added, “I would like to wish the team every success, thank them for the friendships we’ve forged along the way and look forward to continuing to follow and support their journey as India’s number one EV manufacturer and mobility platform in the future”. Burgess also established a technology- led design process leveraging virtual reality and contributed to setting up of the UK studio and commissioning of the E-Zone studio in Bengaluru. The design expert was also a part of launching the S1 scooter and creating motorcycle concepts such as ‘Diamondhead’. On the other hand, Bhavish Aggarwal, CEO of Ola Cabs announced on Wednesday that the company has captured over 52 percent market share in the electric vehicle (EV) two-wheeler segment, as of April 2024. According to the government's VAHAN Portal, the company recorded 34,000 registrations during April, and registered a year-on-year growth of 54 percent over the corresponding month in 2023. Ola Electric also made its entry in the mass-market segment, and announced new prices for its S1 X portfolio. It is available in three battery configurations (2 kWh, 3 kWh, and 4 kWh). The scooter is currently priced at 69,999 INR (introductory price), 84,999 INR, and 99,999 INR respectively.

Design director Wayne Burgess resigns from Ola Electric after three years

Volkswagen, Europe’s ace automaker&nbsp;on Tuesday restated its revenue and margin targets for 2024 after posting a 20% drop in first-quarter operating profit hit by lower sales and higher costs, as it prepares to launch a variety of new models.

&nbsp;

The German automaker's luxury brand Porsche specifically reported&nbsp;a 14.8% operating margin decline on higher model revamp investments and decreased demand for premium cars in China. Delivery delays at its luxury Audi brand contributed to decreasing company earnings.

&nbsp;

According to media reports, Volkswagen said it aims to keep its Chinese market share roughly stable until 2030, investing largely to support sales despite a raging price war with local electric vehicle rivals.

&nbsp;

Adding to it, the automaker stated that its order book remains stable compared to the end of 2023; while orders for fully electric vehicles more than doubled in the first quarter compared to the same period last year.

&nbsp;

CFO and COO of the Volkswagen Group Arno Antlitz stated, “As expected, our first quarter results show a slow start to the year. We remain confident of achieving our financial targets for 2024. A strong March, the solid order bank and the improving order intake in the past months are encouraging and should already have a positive impact in the second quarter. We expect additional momentum over the course of the year from the launch of more than 30 new models across all brands”.

&nbsp;

He added, “At the same time the effects (of) our efficiency programs will gradually unfold as the year progresses. In this context, it will be particularly important to vigorously counteract the increase in fixed costs and exercise investment discipline.”

&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/hyundai-motor-group-shifts-strategy-hybrid-cars-for-india-by-2026-716692">Hyundai Motor Group shifts strategy: hybrid cars for India by 2026</a>

&nbsp;

The company expects 2024 sales revenue to increase up to 5% along with a full-year operating profit margin of between 7% and 7.5%.&nbsp;With increases in Asia-Pacific and South America offset by declines in Europe and North America, the company’s sales fell two percent in the first quarter.

&nbsp;

Deliveries of its less expensive, but also less profitable- Volkswagen, Skoda and Seat cars increased. However, deliveries of pricier Porsche and Audi models fell.

Rising fixed costs also weighed on the carmaker.&nbsp;The German auto giant made a net profit of 3.7 billion euros from January to March on sales of 75.5 billion euros.

The company’s shares were down two percent on the Frankfurt Stock Exchange after the results.&nbsp;US-European rival Stellantis, whose 15 brands include Fiat, Jeep and Peugeot, also reported a heavy drop in first-quarter sales on Tuesday, stating they fell 12 percent to 41.7 billion euros.

&nbsp;

(With inputs from Reuters)

Volkswagen, Europe’s ace automaker on Tuesday restated its revenue and margin targets for 2024 after posting a 20% drop in first-quarter operating profit hit by lower sales and higher costs, as it prepares to launch a variety of new models.

Volkswagen, Europe’s ace automaker on Tuesday restated its revenue and margin targets for 2024 after posting a 20% drop in first-quarter operating profit hit by lower sales and higher costs, as it prepares to launch a variety of new models. The German automaker's luxury brand Porsche specifically reported a 14.8% operating margin decline on higher model revamp investments and decreased demand for premium cars in China. Delivery delays at its luxury Audi brand contributed to decreasing company earnings. According to media reports, Volkswagen said it aims to keep its Chinese market share roughly stable until 2030, investing largely to support sales despite a raging price war with local electric vehicle rivals. Adding to it, the automaker stated that its order book remains stable compared to the end of 2023; while orders for fully electric vehicles more than doubled in the first quarter compared to the same period last year. CFO and COO of the Volkswagen Group Arno Antlitz stated, “As expected, our first quarter results show a slow start to the year. We remain confident of achieving our financial targets for 2024. A strong March, the solid order bank and the improving order intake in the past months are encouraging and should already have a positive impact in the second quarter. We expect additional momentum over the course of the year from the launch of more than 30 new models across all brands”. He added, “At the same time the effects (of) our efficiency programs will gradually unfold as the year progresses. In this context, it will be particularly important to vigorously counteract the increase in fixed costs and exercise investment discipline.” Also read: Hyundai Motor Group shifts strategy: hybrid cars for India by 2026 The company expects 2024 sales revenue to increase up to 5% along with a full-year operating profit margin of between 7% and 7.5%. With increases in Asia-Pacific and South America offset by declines in Europe and North America, the company’s sales fell two percent in the first quarter. Deliveries of its less expensive, but also less profitable- Volkswagen, Skoda and Seat cars increased. However, deliveries of pricier Porsche and Audi models fell. Rising fixed costs also weighed on the carmaker. The German auto giant made a net profit of 3.7 billion euros from January to March on sales of 75.5 billion euros. The company’s shares were down two percent on the Frankfurt Stock Exchange after the results. US-European rival Stellantis, whose 15 brands include Fiat, Jeep and Peugeot, also reported a heavy drop in first-quarter sales on Tuesday, stating they fell 12 percent to 41.7 billion euros. (With inputs from Reuters)

Volkswagen maintains 2024 targets despite profit decline in first quarter

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