VW Urges EU Emissions Target Review As EV Demand Slows; Xiaomi, India Make Moves

Volkswagen Urges EU to Reconsider Emissions Targets Amid Declining EV Demand

Volkswagen (VW) is calling on European regulators to reassess the emissions targets set for 2025 as electric vehicle (EV) demand in Europe slows down. VW CEO Oliver Blume stated that CO2 targets should be adjusted based on market conditions, as it doesn't make sense for the industry to pay penalties when the framework for EV ramp-up isn't in place. Carmakers are struggling to offer affordable EVs due to high production costs, and consumers are holding back amid high interest rates and a sluggish economy.

In Germany, Europe's biggest market, battery car sales have plummeted after the government cut subsidies. While Europe's EV sales are still rising, the trajectory has veered off course, causing uncertainty for buyers and the industry. Citigroup downgraded expectations for the EU, forecasting EVs to make up 15.5% of sales in 2024, down from 18%. The EU plans to phase out new sales of fuel-burning cars by 2035, with some exceptions for synthetic fuels.

Xiaomi to Start Delivering First EV This Month in China

Chinese technology company Xiaomi is set to start delivering its first electric vehicle (EV) this month, marking its entry into China's competitive automotive industry. The company aims to become one of the top five car makers globally and plans to invest $10 billion in its vehicles business over the next decade. The SU7 features "super electric motor" technology and will be produced by a unit of state-owned car manufacturer BAIC Group. Xiaomi's launch comes amid an intensifying price war in China's EV market.

India Lowers Import Taxes on EVs to Attract Investment

India has announced a policy shift to lower import taxes on electric vehicles (EVs) for companies investing at least $500 million and setting up local manufacturing within three years. Companies must invest a minimum of $500 million, establish local EV manufacturing with at least 25% domestic components, and will be allowed to import 8,000 EVs annually at a reduced 15% import duty on cars costing $35,000 and above. The new policy aims to provide access to the latest technology, boost the local economy, and reduce air pollution. Tesla is expected to enter India by importing its EVs from China's Shanghai and may use the country as a manufacturing base to export vehicles to Southeast Asia.