The Thai government explores a trade-in and scrapping program to revitalize its automotive industry enduring its most extreme economic downturn in decades according to both industry executives and sources. The proposed scheme seeks to solve three major automotive issues stemming from declining output, sluggish exports, and weakened domestic sales alongside both rising EV competition and tight credit conditions.
Discussions about the car trade-in and scrapping initiative are progressing at an initial level with Toyota and other automobile manufacturers and government organisations participating. The Thai unit of Toyota acknowledged its participation in talks to establish "End of Life Vehicle schemes" for removing older models with high emissions.
A trade-in system permits vehicle owners to replace their old cars for price reductions on buying new vehicles while the old vehicles get destroyed. Industry sector representatives propose that automobiles older than ten years should become eligible for scrapping.
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The Thai automotive industry comprising 10% of GDP has suffered a significant reduction in manufacturing output along with diminished market sales. Production reached its lowest level in four years last year and these declines extended into 2024. Chinese automotive manufacturers BYD and Great Wall Motors are expanding their investments throughout Thailand which leads to increased market competition.
The proposed trade-in plan addresses two objectives by boosting demand and safeguarding domestic automakers from their electric vehicle competitors. Car manufacturers support the plan to increase their sales figures.
Sompol Tanadumrongsak the president of the Thai Auto-Parts Manufacturers Association highlighted that automobile manufacturers aggressively advocate for this proposal to boost their car sales.
Government officials are working together to define rules that determine which vehicles need to be scrapped along with establishing their involvement in the process. This recycling scheme will establish fresh investment opportunities coupled with job creation within Thailand's current limited auto recycling sector.
While discussions are ongoing, key details regarding funding, recycling infrastructure, and management are still being finalized. The industry ministry and Toyota have held meetings to discuss ways to stimulate the sector, but the scrapping scheme has yet to be formally presented to the finance ministry.

Autonews | The Thai automotive industry comprising 10% of GDP has suffered a significant reduction in manufacturing output along with diminished market sales.

The Thai government explores a trade-in and scrapping program to revitalize its automotive industry enduring its most extreme economic downturn in decades according to both industry executives and sources. The proposed scheme seeks to solve three major automotive issues stemming from declining output, sluggish exports, and weakened domestic sales alongside both rising EV competition and tight credit conditions. Discussions about the car trade-in and scrapping initiative are progressing at an initial level with Toyota and other automobile manufacturers and government organisations participating. The Thai unit of Toyota acknowledged its participation in talks to establish "End of Life Vehicle schemes" for removing older models with high emissions. A trade-in system permits vehicle owners to replace their old cars for price reductions on buying new vehicles while the old vehicles get destroyed. Industry sector representatives propose that automobiles older than ten years should become eligible for scrapping. Also Read | Thailand kills power to Myanmar’s billion-dollar fraud networks The Thai automotive industry comprising 10% of GDP has suffered a significant reduction in manufacturing output along with diminished market sales. Production reached its lowest level in four years last year and these declines extended into 2024. Chinese automotive manufacturers BYD and Great Wall Motors are expanding their investments throughout Thailand which leads to increased market competition. The proposed trade-in plan addresses two objectives by boosting demand and safeguarding domestic automakers from their electric vehicle competitors. Car manufacturers support the plan to increase their sales figures. Sompol Tanadumrongsak the president of the Thai Auto-Parts Manufacturers Association highlighted that automobile manufacturers aggressively advocate for this proposal to boost their car sales. Government officials are working together to define rules that determine which vehicles need to be scrapped along with establishing their involvement in the process. This recycling scheme will establish fresh investment opportunities coupled with job creation within Thailand's current limited auto recycling sector. While discussions are ongoing, key details regarding funding, recycling infrastructure, and management are still being finalized. The industry ministry and Toyota have held meetings to discuss ways to stimulate the sector, but the scrapping scheme has yet to be formally presented to the finance ministry.

Thailand considers car trade-in scheme to revitalize struggling auto sector

The global auto industry is bracing for impact as the Trump administration rolls out steep tariffs. Automakers are already navigating economic uncertainty and now face billions in extra costs that could reshape car prices, production strategies, and consumer choices.

Car prices set to rise amid tariffs

The Indian automotive sector has achieved a significant milestone, surpassing the INR 20 lakh crore mark in revenue for the fiscal year 2024, as announced by Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), on Monday, September 9, 2024. This impressive figure translates to approximately USD 240 billion, highlighting the industry's substantial economic impact. The sector now accounts for 14-15 per cent of the total Goods and Services Tax (GST) collected in India, underscoring its pivotal role in the country's fiscal health.

&nbsp;

Aggarwal, speaking at the 64th annual session of the Automotive Component Manufacturers Association (ACMA), emphasized that the automotive industry's contribution extends beyond financial metrics. It plays a crucial role in generating both direct and indirect employment opportunities across the nation. Currently contributing around 6.8 per cent to India's Gross Domestic Product (GDP), Aggarwal expressed confidence that this percentage is set to increase in the coming years.

&nbsp;

The growth of the Indian automotive sector is not merely quantitative but also qualitative, with significant advancements in technology. On the global stage, India has solidified its position as a major player in the automotive market. It now ranks as the third-largest market for passenger vehicles, leads in two and three-wheeler sales, and holds the third position in the commercial vehicle segment. This progress aligns with India's vision of becoming a developed nation, or "Viksit Bharat," by 2047.

&nbsp;

Looking ahead, Aggarwal projects even faster growth for the automotive industry, anticipating it to be a key driver of India's economic development. In a strategic move to reduce import dependence, the industry has identified 50 critical components for local production. This initiative is part of a broader effort to enhance indigenous manufacturing capabilities.

&nbsp;

SIAM, in collaboration with ACMA, has set ambitious targets for increasing localization. The industry committed to reducing import content from 60 per cent to 20 per cent by 2025, using the 2019-20 levels as a baseline. This effort aims to decrease imports by INR 20,000 to INR 25,000 crore over five years. Aggarwal reported that the first phase of this import reduction plan has been successfully achieved, with a 5.8 per cent decrease in the first two years.

&nbsp;

The focus on local manufacturing extends to high-tech, critical components that have traditionally been imported. ACMA members are being encouraged to start producing these items in India, enabling vehicle Original Equipment Manufacturers (OEMs) to source them locally. Given that many of these components are electrical or electronic, there's a recognised need to develop specialized capabilities and capacities within India for these advanced items.

&nbsp;

The Indian automotive industry is not only excelling in conventional internal combustion engine technologies but is also making strides in alternative power trains. It has developed strong capabilities in multiple areas, including CNG, electric vehicles, and hybrids.

The industry is actively working on hydrogen and fuel cell-based technologies, demonstrating its commitment to innovation and sustainability.

&nbsp;

Aggarwal emphasised the industry's future focus on cleaner and safer vehicles, aligning with the country's growing aspirations. He also expressed gratitude to the Ministry of Heavy Industries for initiating the development of the third Automotive Mission Plan, which will cover the period from 2024 to 2047. This plan will outline the industry's growth trajectory in three distinct phases: from now to 2030, 2030 to 2037, and finally, 2037 to 2047.

&nbsp;

The Automotive Mission Plan is expected to serve as a crucial guiding document for the entire automobile and auto component industry. It will assist in planning investments and act as a reference for various government ministries and state governments in formulating policies aligned with the auto sector's growth and research needs.

&nbsp;

ACMA President Shradha Suri Marwah, also speaking at the session, highlighted some of the challenges facing the industry. These include addressing the skill gap and maintaining international quality standards. Marwah stressed the importance of collaboration with educational institutions and investment in skill development to overcome these challenges. She also emphasized the need for industry collaboration, particularly in light of the growing demand for electronic components and semiconductor chips.

The Indian automotive sector has achieved a significant milestone, surpassing the INR 20 lakh crore mark in revenue for the fiscal year 2024, as announced by Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), on Monday, September 9, 2024.

The Indian automotive sector has achieved a significant milestone, surpassing the INR 20 lakh crore mark in revenue for the fiscal year 2024, as announced by Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), on Monday, September 9, 2024. This impressive figure translates to approximately USD 240 billion, highlighting the industry's substantial economic impact. The sector now accounts for 14-15 per cent of the total Goods and Services Tax (GST) collected in India, underscoring its pivotal role in the country's fiscal health. Aggarwal, speaking at the 64th annual session of the Automotive Component Manufacturers Association (ACMA), emphasized that the automotive industry's contribution extends beyond financial metrics. It plays a crucial role in generating both direct and indirect employment opportunities across the nation. Currently contributing around 6.8 per cent to India's Gross Domestic Product (GDP), Aggarwal expressed confidence that this percentage is set to increase in the coming years. The growth of the Indian automotive sector is not merely quantitative but also qualitative, with significant advancements in technology. On the global stage, India has solidified its position as a major player in the automotive market. It now ranks as the third-largest market for passenger vehicles, leads in two and three-wheeler sales, and holds the third position in the commercial vehicle segment. This progress aligns with India's vision of becoming a developed nation, or "Viksit Bharat," by 2047. Looking ahead, Aggarwal projects even faster growth for the automotive industry, anticipating it to be a key driver of India's economic development. In a strategic move to reduce import dependence, the industry has identified 50 critical components for local production. This initiative is part of a broader effort to enhance indigenous manufacturing capabilities. SIAM, in collaboration with ACMA, has set ambitious targets for increasing localization. The industry committed to reducing import content from 60 per cent to 20 per cent by 2025, using the 2019-20 levels as a baseline. This effort aims to decrease imports by INR 20,000 to INR 25,000 crore over five years. Aggarwal reported that the first phase of this import reduction plan has been successfully achieved, with a 5.8 per cent decrease in the first two years. The focus on local manufacturing extends to high-tech, critical components that have traditionally been imported. ACMA members are being encouraged to start producing these items in India, enabling vehicle Original Equipment Manufacturers (OEMs) to source them locally. Given that many of these components are electrical or electronic, there's a recognised need to develop specialized capabilities and capacities within India for these advanced items. The Indian automotive industry is not only excelling in conventional internal combustion engine technologies but is also making strides in alternative power trains. It has developed strong capabilities in multiple areas, including CNG, electric vehicles, and hybrids. The industry is actively working on hydrogen and fuel cell-based technologies, demonstrating its commitment to innovation and sustainability. Aggarwal emphasised the industry's future focus on cleaner and safer vehicles, aligning with the country's growing aspirations. He also expressed gratitude to the Ministry of Heavy Industries for initiating the development of the third Automotive Mission Plan, which will cover the period from 2024 to 2047. This plan will outline the industry's growth trajectory in three distinct phases: from now to 2030, 2030 to 2037, and finally, 2037 to 2047. The Automotive Mission Plan is expected to serve as a crucial guiding document for the entire automobile and auto component industry. It will assist in planning investments and act as a reference for various government ministries and state governments in formulating policies aligned with the auto sector's growth and research needs. ACMA President Shradha Suri Marwah, also speaking at the session, highlighted some of the challenges facing the industry. These include addressing the skill gap and maintaining international quality standards. Marwah stressed the importance of collaboration with educational institutions and investment in skill development to overcome these challenges. She also emphasized the need for industry collaboration, particularly in light of the growing demand for electronic components and semiconductor chips.

Auto sector contributes nearly 15 per cent to total GST, says SIAM president

Union Minister for Petroleum and Natural Gas, Hardeep Puri, has made a significant announcement regarding the stability of ethanol prices, providing reassurance to the industry. This declaration was made during his address at the IFGE's India Bio-Energy and Tech Expo held in New Delhi.&nbsp;

&nbsp;&nbsp;

Minister Puri highlighted&nbsp;the government's ongoing commitment to maintaining price stability and ensuring remunerative prices for ethanol suppliers. This policy has had a positive impact on sugarcane farmers, reducing their pending dues. Thereafter,&nbsp;he talked about the government's dedication to promoting alternative fuels, with a particular focus on ethanol, for future automotive applications.&nbsp;

&nbsp;&nbsp;

In line with the dual objectives of reducing pollution and enhancing energy security, the government has taken proactive steps by establishing Second Generation (2G) refineries. These facilities are designed to produce ethanol from alternative sources.

For instance, a refinery in Panipat, Haryana, utilises stubble (parali) as a feedstock, while another in Nomaligarh, Assam, employs bamboo. Minister Puri pointed out that these initiatives are not only addressing environmental concerns but also empowering farmers, transforming them from "Annadatas" (food providers) to "Urjadatas" (energy providers).&nbsp;

&nbsp;&nbsp;

The Minister went on to celebrate the remarkable success of India's energy blending program. He shared impressive statistics, noting that the ethanol blending percentage has seen a substantial increase from a mere 1.53 per cent in 2014 to an impressive 15 per cent in 2024. Encouraged by this achievement, the government has revised its timeline for reaching the 20 per cent ethanol blending target. Originally slated for 2030, this goal has been advanced by five years and is now expected to be achieved by October 2025. Minister Puri expressed confidence in meeting this accelerated timeline.&nbsp;

&nbsp;&nbsp;

Puri also elaborated on the multiple benefits that India's ethanol blending program has yielded over the past decade. The advantages&nbsp;he spoke of included:&nbsp;

1. Foreign exchange savings: From 2014 to July 14, 2024, the country has saved INR 99,014 crores in foreign exchange.&nbsp;

2. Environmental impact: Carbon dioxide emissions were reduced by 519 lakh metric tonnes during the same period.&nbsp;

3. Energy independence: Crude oil substitution reached 173 lakh metric tonnes.&nbsp;

4. Economic benefits: Ethanol Manufacturing Companies (EMCs) have paid INR 1,45,930 crores to distillers, while farmers have received INR 87,558 crores.&nbsp;

&nbsp;The Minister also commended the automobile industry for its support in facilitating the transition to alternative fuels. He praised manufacturers for producing new vehicles that are compatible with E20 fuel (20 per cent ethanol blend) and for developing retrofit kits to enable older vehicles to use these transition fuels.&nbsp;

This comprehensive update from Minister Puri underscores the government's multifaceted approach to promoting ethanol as a key component of India's energy strategy, addressing environmental concerns, supporting farmers, and fostering innovation in the automotive sector.&nbsp;

Union Minister for Petroleum and Natural Gas, Hardeep Puri, has made a significant announcement regarding the stability of ethanol prices, providing reassurance to the industry.

Union Minister for Petroleum and Natural Gas, Hardeep Puri, has made a significant announcement regarding the stability of ethanol prices, providing reassurance to the industry. This declaration was made during his address at the IFGE's India Bio-Energy and Tech Expo held in New Delhi. Minister Puri highlighted the government's ongoing commitment to maintaining price stability and ensuring remunerative prices for ethanol suppliers. This policy has had a positive impact on sugarcane farmers, reducing their pending dues. Thereafter, he talked about the government's dedication to promoting alternative fuels, with a particular focus on ethanol, for future automotive applications. In line with the dual objectives of reducing pollution and enhancing energy security, the government has taken proactive steps by establishing Second Generation (2G) refineries. These facilities are designed to produce ethanol from alternative sources. For instance, a refinery in Panipat, Haryana, utilises stubble (parali) as a feedstock, while another in Nomaligarh, Assam, employs bamboo. Minister Puri pointed out that these initiatives are not only addressing environmental concerns but also empowering farmers, transforming them from "Annadatas" (food providers) to "Urjadatas" (energy providers). The Minister went on to celebrate the remarkable success of India's energy blending program. He shared impressive statistics, noting that the ethanol blending percentage has seen a substantial increase from a mere 1.53 per cent in 2014 to an impressive 15 per cent in 2024. Encouraged by this achievement, the government has revised its timeline for reaching the 20 per cent ethanol blending target. Originally slated for 2030, this goal has been advanced by five years and is now expected to be achieved by October 2025. Minister Puri expressed confidence in meeting this accelerated timeline. Puri also elaborated on the multiple benefits that India's ethanol blending program has yielded over the past decade. The advantages he spoke of included: 1. Foreign exchange savings: From 2014 to July 14, 2024, the country has saved INR 99,014 crores in foreign exchange. 2. Environmental impact: Carbon dioxide emissions were reduced by 519 lakh metric tonnes during the same period. 3. Energy independence: Crude oil substitution reached 173 lakh metric tonnes. 4. Economic benefits: Ethanol Manufacturing Companies (EMCs) have paid INR 1,45,930 crores to distillers, while farmers have received INR 87,558 crores. The Minister also commended the automobile industry for its support in facilitating the transition to alternative fuels. He praised manufacturers for producing new vehicles that are compatible with E20 fuel (20 per cent ethanol blend) and for developing retrofit kits to enable older vehicles to use these transition fuels. This comprehensive update from Minister Puri underscores the government's multifaceted approach to promoting ethanol as a key component of India's energy strategy, addressing environmental concerns, supporting farmers, and fostering innovation in the automotive sector.

Union Minister Hardeep Puri guarantees price stability of ethanol to industry

Toyota, despite its cautious approach to fully electric vehicles, appears to be adapting to the changing automotive landscape. The company has announced that it will open Lexus charging stations to other electric vehicle (EV) brands in Japan, a strategy reminiscent of Tesla's approach in the United States and globally.

Lexus, Toyota's luxury brand, launched its first "rapid charging station" in Tokyo Midtown Hibiya in June 2023 as part of the Lexus Electrified Program. The initiative expanded with a second station at Karuiza Common Grounds in December 2023. These Lexus charging stations feature quick chargers capable of delivering up to 150 kW maximum power, allowing for rapid recharging similar to Tesla's Supercharger network.

For comparison, Tesla's Superchargers can provide up to 250 kW peak charging rates. Tesla has also confirmed that its upcoming V4 Supercharger will support up to 350 kW output, although it's currently capped at 250 kW.

Initially, Lexus charging stations were exclusive to Lexus owners, who could reserve charging spots up to 60 days in advance through the My Lexus app. The system offered a seamless payment experience similar to Tesla's Superchargers. Additionally, Lexus provided extra amenities such as complimentary drinks, workspaces, and discounts on nearby services.

However, Toyota has now decided to open these Lexus charging stations to all EV owners, regardless of brand. This move mirrors Tesla's strategy of opening its Supercharger network to other EV manufacturers.&nbsp;

In May 2023, Ford became the first automaker to announce plans to adopt Tesla's North American Charging Standard (NACS) adapter, with nearly all other car manufacturers, including Toyota and Lexus, following suit to gain access to Tesla's extensive Supercharger network in the United States.

It's worth noting the significant difference in scale between the two networks. Tesla boasts over 15,000 Superchargers in the US and Canada, and more than 50,000 globally. In contrast, Lexus aims to have approximately 100 charging stations in Japan by 2030.

Despite this move towards more open charging infrastructure, Toyota and Lexus continue to lag behind in the industry-wide shift to electric vehicles. In the first four months of 2024, Toyota, including its Lexus brand, sold 46,033 EVs globally. This figure represents only 3.4 per cent of Toyota's total car sales of 1.3 million during the same period, highlighting the company's continued reliance on traditional powertrains and hybrid technology.

This development suggests that while Toyota is taking steps to adapt to the growing EV market, it still has a considerable journey ahead to catch up with competitors who have more aggressively embraced full electrification.&nbsp;

Toyota, despite its cautious approach to fully electric vehicles, appears to be adapting to the changing automotive landscape. The company has announced that it will open Lexus charging stations to other electric vehicle (EV) brands in Japan, a strategy reminiscent of Tesla's approach in the United States and globally.

Toyota, despite its cautious approach to fully electric vehicles, appears to be adapting to the changing automotive landscape. The company has announced that it will open Lexus charging stations to other electric vehicle (EV) brands in Japan, a strategy reminiscent of Tesla's approach in the United States and globally. Lexus, Toyota's luxury brand, launched its first "rapid charging station" in Tokyo Midtown Hibiya in June 2023 as part of the Lexus Electrified Program. The initiative expanded with a second station at Karuiza Common Grounds in December 2023. These Lexus charging stations feature quick chargers capable of delivering up to 150 kW maximum power, allowing for rapid recharging similar to Tesla's Supercharger network. For comparison, Tesla's Superchargers can provide up to 250 kW peak charging rates. Tesla has also confirmed that its upcoming V4 Supercharger will support up to 350 kW output, although it's currently capped at 250 kW. Initially, Lexus charging stations were exclusive to Lexus owners, who could reserve charging spots up to 60 days in advance through the My Lexus app. The system offered a seamless payment experience similar to Tesla's Superchargers. Additionally, Lexus provided extra amenities such as complimentary drinks, workspaces, and discounts on nearby services. However, Toyota has now decided to open these Lexus charging stations to all EV owners, regardless of brand. This move mirrors Tesla's strategy of opening its Supercharger network to other EV manufacturers. In May 2023, Ford became the first automaker to announce plans to adopt Tesla's North American Charging Standard (NACS) adapter, with nearly all other car manufacturers, including Toyota and Lexus, following suit to gain access to Tesla's extensive Supercharger network in the United States. It's worth noting the significant difference in scale between the two networks. Tesla boasts over 15,000 Superchargers in the US and Canada, and more than 50,000 globally. In contrast, Lexus aims to have approximately 100 charging stations in Japan by 2030. Despite this move towards more open charging infrastructure, Toyota and Lexus continue to lag behind in the industry-wide shift to electric vehicles. In the first four months of 2024, Toyota, including its Lexus brand, sold 46,033 EVs globally. This figure represents only 3.4 per cent of Toyota's total car sales of 1.3 million during the same period, highlighting the company's continued reliance on traditional powertrains and hybrid technology. This development suggests that while Toyota is taking steps to adapt to the growing EV market, it still has a considerable journey ahead to catch up with competitors who have more aggressively embraced full electrification.

After Tesla, Toyota opens Lexus charging stations to other EVs

Industry leaders in the automotive sector have recently voiced apprehension regarding the feasibility of their proposed electric vehicle (EV) plans.&nbsp;

According to a Business Insider report, these executives have acknowledged the challenges that lie ahead and the obstacles that must be overcome to bring their ambitious projects to fruition.

During the recent third-quarter earnings call of General Motors (GM), the company's CEO, Mary Barra, who is known for her optimism regarding electric vehicles, admitted uncertainties in achieving the production goals of 100,000 EVs in the latter half of this year and an additional 400,000 by the first six months of 2024. Barra acknowledged that the transition to EVs is proving to be a bit bumpy.

Many are sceptical about the future of EVs, not just GM. Even Elon Musk, the CEO of Tesla, has expressed concerns about economic issues affecting vehicle demand. Mercedes-Benz has had to offer substantial discounts on their EVs to boost sales, which indicates the harsh reality of the EV market. Business Insider quoted CFO Harald Wilhelm as saying, "This is a pretty brutal space."

Executives across the industry have noticed an increase in inventory and have found it challenging to sell EVs, even with significant price reductions and incentives.

The trend of price reductions in the EV market is becoming more common, with nearly all current EV models selling below their original sticker price. Some companies are even offering manufacturers incentives of up to 10 per cent.

The reason for this decrease in sales can be attributed to several factors, including cost considerations, infrastructure challenges, and lifestyle barriers that potential buyers face when considering the adoption of EVs.

Automakers are responding to the challenges posed by the EV market.

Considering slowing EV demand, Ford has extended its deadline to achieve annual EV production targets and abandoned its future goal of producing 2 million EVs. Business Insider cited Honda's CEO, Toshihiro Mibe, who acknowledged the difficulty in gauging the shifting EV environment, leading the company to halt the development of an affordable EV.

In a recent statement, Akio Toyoda, Chairman of Toyota Motor, emphasised the industry's current awareness of the challenges that come with EVs. Toyoda, who was previously sceptical of the industry's focus on pure electric blueprints, acknowledged that "people are finally seeing reality."&nbsp;

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Industry leaders in the automotive sector have recently voiced apprehension regarding the feasibility of their proposed electric vehicle (EV) plans. According to a Business Insider report, these executives have acknowledged the challenges that lie ahead and the obstacles that must be overcome to bring their ambitious projects to fruition.

Industry leaders in the automotive sector have recently voiced apprehension regarding the feasibility of their proposed electric vehicle (EV) plans. According to a Business Insider report, these executives have acknowledged the challenges that lie ahead and the obstacles that must be overcome to bring their ambitious projects to fruition. During the recent third-quarter earnings call of General Motors (GM), the company's CEO, Mary Barra, who is known for her optimism regarding electric vehicles, admitted uncertainties in achieving the production goals of 100,000 EVs in the latter half of this year and an additional 400,000 by the first six months of 2024. Barra acknowledged that the transition to EVs is proving to be a bit bumpy. Many are sceptical about the future of EVs, not just GM. Even Elon Musk, the CEO of Tesla, has expressed concerns about economic issues affecting vehicle demand. Mercedes-Benz has had to offer substantial discounts on their EVs to boost sales, which indicates the harsh reality of the EV market. Business Insider quoted CFO Harald Wilhelm as saying, "This is a pretty brutal space." Executives across the industry have noticed an increase in inventory and have found it challenging to sell EVs, even with significant price reductions and incentives. The trend of price reductions in the EV market is becoming more common, with nearly all current EV models selling below their original sticker price. Some companies are even offering manufacturers incentives of up to 10 per cent. The reason for this decrease in sales can be attributed to several factors, including cost considerations, infrastructure challenges, and lifestyle barriers that potential buyers face when considering the adoption of EVs. Automakers are responding to the challenges posed by the EV market. Considering slowing EV demand, Ford has extended its deadline to achieve annual EV production targets and abandoned its future goal of producing 2 million EVs. Business Insider cited Honda's CEO, Toshihiro Mibe, who acknowledged the difficulty in gauging the shifting EV environment, leading the company to halt the development of an affordable EV. In a recent statement, Akio Toyoda, Chairman of Toyota Motor, emphasised the industry's current awareness of the challenges that come with EVs. Toyoda, who was previously sceptical of the industry's focus on pure electric blueprints, acknowledged that "people are finally seeing reality." WATCH WION LIVE HERE

Auto industry executives acknowledge Electric Vehicle market challenges 

Pakistan's Suzuki Motor Company (PSMC) on Monday announced that its production plants in the country will be closed completely between January 2 and 6. Reportedly this is because of an inventory shortage following a restriction on the import of auto parts.

Geo News reports that the PSMC in a notice sent to the Pakistan Stock Exchange (PSX) said that the State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under "HS code 8703 category (including completely knocked down - CKDs) vide circular No.09 of 2022 dated May 20, 2022."

Watch |&nbsp;WION Climate Tracker | Pakistan: Citizens cycle around Lahore to spread awareness against pollution

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The company which is engaged in the assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts said that "Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels." &nbsp;

PMSC added that "therefore, due to shortage of inventory level, the management of the company has decided to shut down its plant for automobile as well as motorcycle for period from January 02, 2023 to January 06, 2023."

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/troubled-by-home-grown-monster-ttp-pakistan-govt-mulls-military-offensive-reports-546449">Troubled by home-grown monster TTP, Pakistan govt mulls military offensive: Reports</a>

This announcement as per ANI comes just weeks after Toyota's Pakistan assembler Indus Motor Company (IMC) announced that it will be completely shutting down its production plant between December 20 and 30. The company blamed delays pertaining to approval for imports for the move. In November, during a corporate briefing session, the company said that the country's central bank imposed import restrictions and the ongoing currency&nbsp;depreciation are denting Pakistan's auto sector.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pak-taliban-kills-six-security-personnel-in-multiple-attacks-in-balochistan-546507">Pakistani Taliban kill six security personnel in multiple attacks in Balochistan</a>

As per the report, Pakistan's auto industry is heavily dependent on imports and is caught up in the midst of an exchange-rate crisis. On top of that restrictions on the opening of Letters of Credit (LCs) imposed by the State Bank of Pakistan (SBP) have added to the crisis.

Other companies like Baluchistan Wheels Limited (BWHL) have also announced that it will prolong its closure of production activities till December 30. Millat Tractors Limited too announced the closure of its production on Fridays citing a decline in demand for tractors in the country.

(With inputs from agencies)

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Pakistan's Suzuki Motor Company (PSMC) on Monday announced that its production plants in the country will be closed completely between January 2 and 6. Reportedly this is because of an inventory shortage following a restriction on the import of auto parts.

Pakistan's Suzuki Motor Company (PSMC) on Monday announced that its production plants in the country will be closed completely between January 2 and 6. Reportedly this is because of an inventory shortage following a restriction on the import of auto parts. Geo News reports that the PSMC in a notice sent to the Pakistan Stock Exchange (PSX) said that the State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under "HS code 8703 category (including completely knocked down - CKDs) vide circular No.09 of 2022 dated May 20, 2022." Watch | WION Climate Tracker | Pakistan: Citizens cycle around Lahore to spread awareness against pollution The company which is engaged in the assembling, progressive manufacturing and marketing of Suzuki cars, pickups, vans, 4x4s and motorcycles and related spare parts said that "Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels." PMSC added that "therefore, due to shortage of inventory level, the management of the company has decided to shut down its plant for automobile as well as motorcycle for period from January 02, 2023 to January 06, 2023." Also read | Troubled by home-grown monster TTP, Pakistan govt mulls military offensive: Reports This announcement as per ANI comes just weeks after Toyota's Pakistan assembler Indus Motor Company (IMC) announced that it will be completely shutting down its production plant between December 20 and 30. The company blamed delays pertaining to approval for imports for the move. In November, during a corporate briefing session, the company said that the country's central bank imposed import restrictions and the ongoing currency depreciation are denting Pakistan's auto sector. Also read | Pakistani Taliban kill six security personnel in multiple attacks in Balochistan As per the report, Pakistan's auto industry is heavily dependent on imports and is caught up in the midst of an exchange-rate crisis. On top of that restrictions on the opening of Letters of Credit (LCs) imposed by the State Bank of Pakistan (SBP) have added to the crisis. Other companies like Baluchistan Wheels Limited (BWHL) have also announced that it will prolong its closure of production activities till December 30. Millat Tractors Limited too announced the closure of its production on Fridays citing a decline in demand for tractors in the country. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Pakistan | After Toyota, Suzuki announces production plant closure

The Indian auto industry has managed to make a recovery in May of this year. It has registered healthy growth in terms of vehicle sales as compared to same period last year. WION's Business Editor Sumit Chaturvedi speaks to Shashank Srivastava, Senior ED, Maruti Suzuki.

Indian auto industry manage to make a recovery in May 2022

Year 2021-22 was a mixed bag for Indian auto industry. Though they were on the path to recovery, they had to face challenges like chip shortage, a new wave of COVID-19 as well. How was the year 2021 for the auto industry and how is the year ahead to talk all that and much more today we're joined by Shashank Srivastava, senior ED, Maruti Suzuki.

How was the year 2021 for auto industry?: Shashank Srivastava, senior ED, Maruti Suzuki

Blaring horns, impassable streets and distressed citizens all of this is the work of a movement that calls itself the freedom convoy. Truck drivers in Canada are demanding an end to covid-19 vaccine mandates, it has disrupted major cities clogging all key US-Canada border crossings and in the latest, the truck blockade is tightening the screws on the auto industry.

Canada's truckers protest is tightening screws on auto industry

Tesla has surpassed $1 trillion in market value after a deal with rental car company Hertz, which reinforced the electric car leader's ambitions to top the entire auto industry in sales over the next decade.

Tesla goes past $1 trillion market value for first time ever

They say one must adapt to changing times. And that is what our leading car-makers are doing. Amid mounting concerns over emissions- cars are going electric. WION tells you more.

Cars to go electric amid emission concerns; top auto firms bet on UK startup

A US auto industry group urged the government to help as it warned the global semiconductor shortage could result in 1.28 million fewer vehicles built this year and disrupt production for another six months.

World Business Watch: US auto group warns of impact of chip shortage, writes to govt for help

Tesla Inc chief executive Elon Musk indicated on Friday that the U.S. electric carmaker will make a foray into India in 2021.

"Next year for sure," Musk said on Twitter in reply to a post with a photograph of a T-shirt with the message: "India wants Tesla".

"Thanks for waiting," Musk said.

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Next year for sure
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Tesla`s entry could come at a time when Prime Minister Narendra Modi is increasingly becoming focussed on promoting the use and manufacture of electric vehicles.

India`s auto sector, already reeling from a slowdown in demand last year, has been further hit by the novel coronavirus pandemic and carmakers are seeking government support to push sales.

Musk commented last year about coming to India, in response to someone on Twitter who asked "What about India sir?".

"Would love to be there this year. If not, definitely next!" he said in March 2019.

Tesla Inc chief executive Elon Musk indicated on Friday that the U.S. electric carmaker will make a foray into India in 2021. "Next year for sure," Musk said on Twitter in reply to a post with a photograph of a T-shirt with the message: "India wants Tesla".

Tesla Inc chief executive Elon Musk indicated on Friday that the U.S. electric carmaker will make a foray into India in 2021. "Next year for sure," Musk said on Twitter in reply to a post with a photograph of a T-shirt with the message: "India wants Tesla". "Thanks for waiting," Musk said. Next year for sure — Elon Musk (@elonmusk) October 2, 2020 × Tesla`s entry could come at a time when Prime Minister Narendra Modi is increasingly becoming focussed on promoting the use and manufacture of electric vehicles. India`s auto sector, already reeling from a slowdown in demand last year, has been further hit by the novel coronavirus pandemic and carmakers are seeking government support to push sales. Musk commented last year about coming to India, in response to someone on Twitter who asked "What about India sir?". "Would love to be there this year. If not, definitely next!" he said in March 2019.

Tesla CEO Elon Musk suggests India entry in 2021

India’s auto sector will take 3-4 years to recover from this current situation. Cars and Suv's sales slumped in june due to the poor demand in market. Two wheeler sales goes down by 39 percent due to Coronavirus pandemic

Cars, Suv's sales slumped in june due to poor demands in market

The nationwide lockdown in India may or may not be extended beyond May 3, but companies and the manufacturing sector have already prepared their plans. As the priority will be to avoid coronavirus cases at all costs, companies will likely resume only 50 per cent of the work, keeping precautions in mind.&nbsp;

Contributing to around 7.5 per cent of India's GDP and employing over 35 million workers, the auto industry is preparing for big changes. &nbsp;

" We will be taking precautions at all the places, ranging from company buses for employees to canteens where capacity could be reduced to maintain social distancing norms. Production may come down initially but lower initial demand and some stock already lying with us could balance this reduction in production", said Raju B Ketkale, Deputy MD, Toyata Kirloskar Motor.

It's not only the production, but the sales process at dealerships and showrooms of the companies will also be impacted.

"There will be thermal checking and sanitisation points set-up at all the entry and exit points, workstations and the premises of the dealerships and showrooms. A product demonstration will also see a change as a whole new disinfection process will be implemented before every demo, to assure customer safety", said Shashank Srivastava, Executive Director, Maruti Suzuki India

"The concern in all of the manufacturing industries is of the people gathering anywhere in the plant or in the offices. Restrictions will be there to stop the second wave of Coronavirus from occurring", said Ashim Sharma, Partner, NRI Consulting &amp; Solutions.

The service sector is also planning to handle the post-COVID-19 lockdown situation in a different way. Here, the 'work from home' concept is not going to fade away anytime soon.&nbsp;

"Businesses have found out that 'work from home' concept is very suitable for them. As a result of more people working from their place of dwelling, some areas have seen internet and voice traffic surge. Now we are planning for long term viability of these services spread across wide areas. Telecom network has to be firmed up now", said Rajan Mathews, Director-General, Cellular Operators Association of India

Post COVID-19 scenario will be also suitable for further growth of co-working business in India. Co-working workspace provides work stations and workplaces with shared resources including premises, high-speed broadband, electricity, pantry services etc. Those who are not comfortable working from home can use shared spaces at these locations.&nbsp;

"In our business also social distancing norms will change significantly. As a business model co-working will do better. We have seen 50-60 per cent jump in a number of enquiries", said Neetish Sarda, founder Smartworks, a shared office space provider as the company is betting on demand increasing post-COVID-19 lockdown is lifted.

The nationwide lockdown in India may or may not be extended beyond May 3, but companies and the manufacturing sector have already prepared their plans. As the priority will be to avoid coronavirus cases at all costs, companies will likely resume only 50 per cent of the work, keeping precautions in mind.

The nationwide lockdown in India may or may not be extended beyond May 3, but companies and the manufacturing sector have already prepared their plans. As the priority will be to avoid coronavirus cases at all costs, companies will likely resume only 50 per cent of the work, keeping precautions in mind. Contributing to around 7.5 per cent of India's GDP and employing over 35 million workers, the auto industry is preparing for big changes. " We will be taking precautions at all the places, ranging from company buses for employees to canteens where capacity could be reduced to maintain social distancing norms. Production may come down initially but lower initial demand and some stock already lying with us could balance this reduction in production", said Raju B Ketkale, Deputy MD, Toyata Kirloskar Motor. It's not only the production, but the sales process at dealerships and showrooms of the companies will also be impacted. "There will be thermal checking and sanitisation points set-up at all the entry and exit points, workstations and the premises of the dealerships and showrooms. A product demonstration will also see a change as a whole new disinfection process will be implemented before every demo, to assure customer safety", said Shashank Srivastava, Executive Director, Maruti Suzuki India "The concern in all of the manufacturing industries is of the people gathering anywhere in the plant or in the offices. Restrictions will be there to stop the second wave of Coronavirus from occurring", said Ashim Sharma, Partner, NRI Consulting & Solutions. The service sector is also planning to handle the post-COVID-19 lockdown situation in a different way. Here, the 'work from home' concept is not going to fade away anytime soon. "Businesses have found out that 'work from home' concept is very suitable for them. As a result of more people working from their place of dwelling, some areas have seen internet and voice traffic surge. Now we are planning for long term viability of these services spread across wide areas. Telecom network has to be firmed up now", said Rajan Mathews, Director-General, Cellular Operators Association of India Post COVID-19 scenario will be also suitable for further growth of co-working business in India. Co-working workspace provides work stations and workplaces with shared resources including premises, high-speed broadband, electricity, pantry services etc. Those who are not comfortable working from home can use shared spaces at these locations. "In our business also social distancing norms will change significantly. As a business model co-working will do better. We have seen 50-60 per cent jump in a number of enquiries", said Neetish Sarda, founder Smartworks, a shared office space provider as the company is betting on demand increasing post-COVID-19 lockdown is lifted.

Explained: Post-lockdown strategy of manufacturing and service sector

When Karl Benz received a patent of what is known as the first practical automobile in 1886, few would have known that his three-wheeled Motorwagen has given birth to an industry.

Benz's work is the foundation of the modern-day car and the internal combustion engine is still in use today.

But, the auto industry is on the cusp of disruption. Cars running on fuel are making way for the battery. Everyone wants to jump in on this hot trend. Smaller companies with fewer resources are challenging the giants and when it's all said and done, only a few might survive. There will be wins and losses on both sides.

First, let's look at the most critical component of an electronic vehicle - the battery.

All of them use what is called lithium-ion batteries which are made up of metals lithium, cobalt, nickel and manganese.

Only a few countries have strong reserves of these metals. China has brought many mines in Congo, Bolivia, Chile and Australia. And it controls half of the cobalt mines in Congo.

China wants to become a global hub for batteries&nbsp;and electric vehicles, and it already controls more than 60 per cent of the global market share in batteries.&nbsp;

In 2018, China was the largest producer of electric vehicles. According to a report, China has 99 per cent of the world's 250 million electric two-wheelers. It's now applying the same technology to churn out more electric four-wheelers. Reports say China has more than 100 electric car makers already.

However, the adoption of e-vehicles is still a distant dream in India. Electric scooters are a common sight in major cities now. Some electric cars have been launched, but mass adoption is still a few years away.

For now, there is over-dependence on China for supplies of parts. Reportedly, India imports 90 per cent of electric scooter components from China.

Three years back, the Indian government had sent an ambitious target, it wanted all cars on the streets to go electric by 2030. But a pushback by the industry and fears of job losses led to a rethink.&nbsp;

India just doesn't need electric vehicles, it needs an entire ecosystem to support this shift. According to a survey in 2019, 90 per cent of car owners are ready to make the switch to e-vehicles, provided the right infrastructure is in place.

Support of state government and local authorities will be critical to make the transition. The need of the hour is a common framework and clear policy which assures a smooth transition.&nbsp;

Auto is one of the biggest industries in India, it employs around 35 million people and contributes more than 7 per cent to the GDP. A sudden shift to electric will trigger a backlash.&nbsp;

The government of India must roll out policies to encourage on the job training programmes, something that would prepare the workforce for the big change. 
 
(Disclaimer: WION Edit is the channel's take on the big events of the world) 
 
&nbsp;

When Karl Benz received a patent of what is known as the first practical automobile in 1886, few would have known that his three-wheeled Motorwagen has given birth to an industry.

When Karl Benz received a patent of what is known as the first practical automobile in 1886, few would have known that his three-wheeled Motorwagen has given birth to an industry. Benz's work is the foundation of the modern-day car and the internal combustion engine is still in use today. But, the auto industry is on the cusp of disruption. Cars running on fuel are making way for the battery. Everyone wants to jump in on this hot trend. Smaller companies with fewer resources are challenging the giants and when it's all said and done, only a few might survive. There will be wins and losses on both sides. First, let's look at the most critical component of an electronic vehicle - the battery. All of them use what is called lithium-ion batteries which are made up of metals lithium, cobalt, nickel and manganese. Only a few countries have strong reserves of these metals. China has brought many mines in Congo, Bolivia, Chile and Australia. And it controls half of the cobalt mines in Congo. China wants to become a global hub for batteries and electric vehicles, and it already controls more than 60 per cent of the global market share in batteries. In 2018, China was the largest producer of electric vehicles. According to a report, China has 99 per cent of the world's 250 million electric two-wheelers. It's now applying the same technology to churn out more electric four-wheelers. Reports say China has more than 100 electric car makers already. However, the adoption of e-vehicles is still a distant dream in India. Electric scooters are a common sight in major cities now. Some electric cars have been launched, but mass adoption is still a few years away. For now, there is over-dependence on China for supplies of parts. Reportedly, India imports 90 per cent of electric scooter components from China. Three years back, the Indian government had sent an ambitious target, it wanted all cars on the streets to go electric by 2030. But a pushback by the industry and fears of job losses led to a rethink. India just doesn't need electric vehicles, it needs an entire ecosystem to support this shift. According to a survey in 2019, 90 per cent of car owners are ready to make the switch to e-vehicles, provided the right infrastructure is in place. Support of state government and local authorities will be critical to make the transition. The need of the hour is a common framework and clear policy which assures a smooth transition. Auto is one of the biggest industries in India, it employs around 35 million people and contributes more than 7 per cent to the GDP. A sudden shift to electric will trigger a backlash. The government of India must roll out policies to encourage on the job training programmes, something that would prepare the workforce for the big change. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: China set to gain from disruption in auto industry

More than 400 thousand jobs in Germany's auto sector are at risk. The sector is undergoing a difficult transition phase and the government is contemplating wage subsidies for automakers and their suppliers to prevent possible job losses if the downturn continues.

Main Cause

The prime reason is the growing popularity of electric vehicles which run on batteries and are made of fewer parts. They require less maintenance, moreover, they need fewer workers to build them.

The economic slowdown has coincided with the with a transition to electric cars. Advisers in the German government fear that in the engines and transmissions alone - around 88,000 jobs are at risk.&nbsp;

It's not just Germans, major car companies around the world could shelve workers to build electric vehicles.&nbsp;

A new era of automobiles is upon us and the signs of which are already showing. Earlier this month, Sony shocked the world by building a car.

Sony is known for its televisions and gaming consoles, but the digital revolution has enabled Sony's entry into the automotive space.

Automobiles are no longer just machines and they are the new electronic products. This is especially true for e-vehicles which are the new rage in the 21st century.

What Next

The arrival of electric vehicles is perhaps the biggest development in the automotive sector in decades. According to a report, building an electric car requires 30 per cent less labour.

With rising competition, global car markets too don't want to be left behind. They are switching to electric too, but at the same time -- they are laying off workers.

Reports say carmakers could eliminate more than 80 thousand jobs around the world in the coming years. Those who have a job have no option but to adapt, but, the redundant workforce has no support from their own industry.

 
&nbsp;

More than 400 thousand jobs in Germany's auto sector are at risk. The sector is undergoing a difficult transition phase and the government is contemplating wage subsidies for automakers and their suppliers to prevent possible job losses if the downturn continues.

More than 400 thousand jobs in Germany's auto sector are at risk. The sector is undergoing a difficult transition phase and the government is contemplating wage subsidies for automakers and their suppliers to prevent possible job losses if the downturn continues. Main Cause The prime reason is the growing popularity of electric vehicles which run on batteries and are made of fewer parts. They require less maintenance, moreover, they need fewer workers to build them. The economic slowdown has coincided with the with a transition to electric cars. Advisers in the German government fear that in the engines and transmissions alone - around 88,000 jobs are at risk. It's not just Germans, major car companies around the world could shelve workers to build electric vehicles. A new era of automobiles is upon us and the signs of which are already showing. Earlier this month, Sony shocked the world by building a car. Sony is known for its televisions and gaming consoles, but the digital revolution has enabled Sony's entry into the automotive space. Automobiles are no longer just machines and they are the new electronic products. This is especially true for e-vehicles which are the new rage in the 21st century. What Next The arrival of electric vehicles is perhaps the biggest development in the automotive sector in decades. According to a report, building an electric car requires 30 per cent less labour. With rising competition, global car markets too don't want to be left behind. They are switching to electric too, but at the same time -- they are laying off workers. Reports say carmakers could eliminate more than 80 thousand jobs around the world in the coming years. Those who have a job have no option but to adapt, but, the redundant workforce has no support from their own industry.

Explained: Why the auto industry is struggling

The Indian auto industry is still not out of the woods yet. According to a report submitted by Society of Indian Automobile manufacturers, the domestic auto industry saw a drop of 16% in sales from April to November.

Indian Auto Industry saw 16% drop in sales from April to November

Two- and three-wheeler manufacturer Bajaj Auto on Friday said that it sold 4.63 lakh vehicles in October, down 9 per cent in the year-ago period.

In October 2018, it had sold 5.06 lakh units, it said in a statement.

Domestic sales of motorcycles fell by 14 per cent to 2.42 lakh units from 2.81 lakh in October last year. But exports rose by 3 per cent to 1.56 lakh units from 1.51 lakh.

For the April to October period, motorcycle sales work out to 13.74 lakh units in the domestic market, down 12 per cent from 15.68 lakh units, and 10.9 lakh units in export markets, up 7 per cent from 10.2 lakh units year-on-year.

In commercial vehicles, domestic sales slipped by 5 per cent to 36,260 units last month from 38,360 in October last year.

Exports too fell by 21 per cent to 28,035 units from 35,354 units.

For the April to October period, domestic sales totalled 2.3 lakh units, down 6 per cent from 2.4 lakh units, while exports dropped by 21 per cent to 1.87 lakh units from 2.38 lakh units year-on-year.

Two- and three-wheeler manufacturer Bajaj Auto on Friday said that it sold 4.63 lakh vehicles in October, down 9 per cent in the year-ago period. In October 2018, it had sold 5.

Two- and three-wheeler manufacturer Bajaj Auto on Friday said that it sold 4.63 lakh vehicles in October, down 9 per cent in the year-ago period. In October 2018, it had sold 5.06 lakh units, it said in a statement. Domestic sales of motorcycles fell by 14 per cent to 2.42 lakh units from 2.81 lakh in October last year. But exports rose by 3 per cent to 1.56 lakh units from 1.51 lakh. For the April to October period, motorcycle sales work out to 13.74 lakh units in the domestic market, down 12 per cent from 15.68 lakh units, and 10.9 lakh units in export markets, up 7 per cent from 10.2 lakh units year-on-year. In commercial vehicles, domestic sales slipped by 5 per cent to 36,260 units last month from 38,360 in October last year. Exports too fell by 21 per cent to 28,035 units from 35,354 units. For the April to October period, domestic sales totalled 2.3 lakh units, down 6 per cent from 2.4 lakh units, while exports dropped by 21 per cent to 1.87 lakh units from 2.38 lakh units year-on-year.

Bajaj Auto reports 9% fall in vehicle sales during October

The European auto industry on Monday warned of catastrophic effects of a no-deal Brexit saying it would have a "seismic" impact on car-making. &nbsp;

In a rare joint statement, chiefs from 23 auto business associations across Europe joined forces to caution against a brutal exit from the bloc by Britain, where giants BMW, Peugeot PSA, and Japan's Nissan have factories.

"Brexit is not just a British problem, we are all concerned in the European automotive industry, and even further," said Christian Peugeot, head of French automotive industry association CCFA in the statement.

Thanks to the EU's single market, automakers have supply chains that criss-cross the Channel and Britain is the destination of around 10 percent of vehicles assembled on the continent, according to industry data.

British Prime Minister Boris Johnson has rattled nerves with his vow to leave the European Union on October 31 come what may -- with or without a trade deal with Brussels.

"The UK's departure from the EU without a deal would trigger a seismic shift in trading conditions, with billions of euros of tariffs threatening to impact consumer choice and affordability on both sides of the Channel," the joint statement said.

A chaotic Brexit would land a "severe" blow against the industry's just-in-time supply chains that stretch across international borders and depend on zero administrative hassle, the associations warned.

"The EU and UK automotive industries need frictionless trade and would be harmed significantly by additional duties and administrative burden on automotive parts and vehicles," said Bernhard &nbsp;Mattes, the head of German auto lobby VDA.&nbsp;

"Consequently, the UK and the EU should undertake all necessary steps to avoid a no-deal Brexit," he said.

Britain's largely foreign-owned car sector is already reeling from Brexit shocks, with French manufacturer PSA warning in July that it could shut down a key plant in northwest England if it becomes unprofitable.

Carmakers are also slamming the brakes on investment in Britain, which fell 70 percent to £90 million ($109 million, 98 million euros) in the six months to June, the UK's Society of Motor Manufacturers and Traders said in July.

The SMMT has also warned that the cost to auto companies of one minute of stopped production time in Britain would amount to 54,700 euros (£50,000).

A spokesman for the UK government's Department for Business told AFP the government was still working hard towards a deal and was aiding businesses.&nbsp;

"We have turbocharged preparations for Brexit across all sectors, including automotive, with £108 million of funding to promote and support businesses," the government spokesman said.

This would, he said, "ensure they are ready for Brexit and can take advantage of the opportunities of our future outside of the EU."

The European auto industry on Monday warned of catastrophic effects of a no-deal Brexit saying it would have a "seismic" impact on car-making. In a rare joint statement, chiefs from 23 auto business associations across Europe joined forces to caution against a brutal exit from the bloc by Britain, where giants BMW, Peugeot PSA, and Japan's Nissan have factories.

The European auto industry on Monday warned of catastrophic effects of a no-deal Brexit saying it would have a "seismic" impact on car-making. In a rare joint statement, chiefs from 23 auto business associations across Europe joined forces to caution against a brutal exit from the bloc by Britain, where giants BMW, Peugeot PSA, and Japan's Nissan have factories. "Brexit is not just a British problem, we are all concerned in the European automotive industry, and even further," said Christian Peugeot, head of French automotive industry association CCFA in the statement. Thanks to the EU's single market, automakers have supply chains that criss-cross the Channel and Britain is the destination of around 10 percent of vehicles assembled on the continent, according to industry data. British Prime Minister Boris Johnson has rattled nerves with his vow to leave the European Union on October 31 come what may -- with or without a trade deal with Brussels. "The UK's departure from the EU without a deal would trigger a seismic shift in trading conditions, with billions of euros of tariffs threatening to impact consumer choice and affordability on both sides of the Channel," the joint statement said. A chaotic Brexit would land a "severe" blow against the industry's just-in-time supply chains that stretch across international borders and depend on zero administrative hassle, the associations warned. "The EU and UK automotive industries need frictionless trade and would be harmed significantly by additional duties and administrative burden on automotive parts and vehicles," said Bernhard Mattes, the head of German auto lobby VDA. "Consequently, the UK and the EU should undertake all necessary steps to avoid a no-deal Brexit," he said. Britain's largely foreign-owned car sector is already reeling from Brexit shocks, with French manufacturer PSA warning in July that it could shut down a key plant in northwest England if it becomes unprofitable. Carmakers are also slamming the brakes on investment in Britain, which fell 70 percent to £90 million ($109 million, 98 million euros) in the six months to June, the UK's Society of Motor Manufacturers and Traders said in July. The SMMT has also warned that the cost to auto companies of one minute of stopped production time in Britain would amount to 54,700 euros (£50,000). A spokesman for the UK government's Department for Business told AFP the government was still working hard towards a deal and was aiding businesses. "We have turbocharged preparations for Brexit across all sectors, including automotive, with £108 million of funding to promote and support businesses," the government spokesman said. This would, he said, "ensure they are ready for Brexit and can take advantage of the opportunities of our future outside of the EU."

Auto industry warns of 'seismic' no-deal Brexit shock

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Volkswagen and Fiat Chrysler could face penalties of up to 1.83 billion euros and 746 million euros respectively, if they fail to meet the European Union's emissions targets set for 2021, according to a study.

Volkswagen, Fiat Chrysler could face 2021 EU emissions fines: Study

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