👑 January 16: Hybrid Records, Toyota Reigns, and Companies Consider Closing Factories

The Gist

• 📊 EVs on the Rise: Electrified vehicles hit 20% of U.S. sales in 2024, with 3.2M units sold. Tesla still leads but lost some ground, as Hyundai, GM, and Ford ramp up competition. 2025 could see one in four vehicles electrified.

• ❓ Tesla Cybertruck Drama: Tesla claims Cybertruck as the “best-selling electric pickup” of 2024, despite murky sales data and full inventories. Discounts and free perks hint at demand struggles.

• 🚗 Android Automotive Boom: Google’s “Car Ready Mobile Apps Program” launches in February, bringing a surge of entertainment apps to Android Automotive. Expect streaming and gaming on your dashboard soon.

• 📈 Toyota’s Crown: Toyota tops global automakers for the 5th year, selling 9.8M vehicles. Its secret? A lineup for everyone, from compact cars to SUVs, while rivals VW and Hyundai trail behind.

• ⚓️ Polestar is navigating choppy waters: U.S. regulatory bans on Chinese-connected software threaten its sales, forcing a pivot to Europe, particularly France. Despite an 8% sales drop and a $323M Q3 loss, Polestar is betting on the Polestar 7 SUV and long-term efficiency to drive profitability by 2025.

• 🔍 Factory Closures Loom: Overcapacity, tariffs, and EV transitions could shutter factories in Europe and North America. Chinese automakers may seize the opportunity to expand into Europe.

• 🚐 Rivian’s Big Van Win: Rivian’s electric van outsold Ford and Mercedes, thanks to Amazon orders. A $6.6B loan will fund its second factory in Georgia, doubling production by 2028.

• 🛑 Nissan in Crisis: Nissan’s profits plummeted 90% in 2024. Desperate cost-cutting measures and a potential Honda merger might be its only way out.

• 🌍 India’s EV Growth: EV sales in India rose 20% in 2024. New models with 400+ km range and faster charging aim to push adoption toward the government’s 30% target by 2030.

Fuel for Thought

• 📊 Record-Breaking EV and Hybrid Sales in 2024

  • The Competitors

  • What’s Next?

• ❓ Are Tesla's Cybertruck Sales a Triumph or Troubl …

• 🚗 Your Android-Powered Car is About to Get Smarte …

• 📈 Toyota Reigns Supreme Again

  • Dominant Sales Figures

  • Toyota's Secret Sauce

  • Hyundai Holds Third Place

• 🛠️ Polestar’s Big EV Ambitions Amid Challenges

• 🔍 Car Plants Facing Closures in 2025

• 🚐 Rivian Leads the Electric Van Market

  • Expanding production

• 🌍 India’s EV Market Grows, Slowly but Surely

• 🛑 Nissan’s 90% Profit Drop

  • A Potential Lifeline

📊 Record-Breaking EV and Hybrid Sales in 2024

Electrified vehicles hit a milestone last year, accounting for 20% of U.S. vehicle sales. While progress is evident, challenges like infrastructure gaps and affordability keep widespread adoption at bay.

• 3.2 Million Units Sold: Of the total electrified sales, 1.9M were hybrids (including plug-ins) and 1.3M were all-electric vehicles (EVs). Hybrids remain popular for their blend of fuel savings and range reliability, while EVs continue to build market share.

• Tesla's Dual Role: As the leader in EV sales, Tesla’s Model Y and Model 3 dominated the segment. However, the company’s market share fell from 55% to 49%, showing the impact of intensifying competition.

The Competitors

Hyundai, General Motors, and Ford are gaining ground, thanks to expanded EV lineups and improved affordability. Of the 68 mainstream EV models on the market, 24 saw year-over-year growth, reflecting heightened interest in diverse offerings.

What’s Next?

2025 promises another leap forward, with one in four vehicles expected to be electrified. As automakers fine-tune battery technology and improve infrastructure, the green vehicle revolution is set to accelerate.

❓ Are Tesla's Cybertruck Sales a Triumph or Trouble?

Tesla claims the Cybertruck is the “best-selling electric pickup” in the U.S. for 2024—but where’s the proof?

• Why the claim? Tesla estimates ~40,000 global Cybertruck deliveries in 2024, edging out Ford’s F-150 Lightning’s 33,510 units.

• What’s the issue? Tesla’s bundled sales reporting lacks transparency. Plus, Cybertruck demand seems weaker than expected—inventory is full, discounts are increasing, and free lifetime Supercharging is on the table.

• What's next? A cheaper, single-motor version could boost demand, but ramping up production to 100,000 units may remain challenging.

🚗 Your Android-Powered Car is About to Get Smarter

Google’s "Car Ready Mobile Apps Program" is set to launch in February, bringing a flood of new apps to vehicles running Android Automotive. Unlike Android Auto, which mirrors your phone’s interface on your car’s screen, Android Automotive is a full-fledged operating system built into the car itself.

This program will allow developers to easily adapt their mobile apps for the unique environment of a car's dashboard, starting with entertainment apps like streaming services and games. Compatibility challenges? Google’s got it covered with a compatibility mode for x86 processors, ensuring broader app functionality with minimal hassle.

With this update, your car’s infotainment system might finally live up to its potential—putting everything from Angry Birds to your favorite shows at your fingertips. Buckle up, because the app ecosystem in your vehicle is about to get a whole lot bigger.

📈 Toyota Reigns Supreme Again

For the fifth consecutive year, Toyota claimed the title of the world’s largest automaker, leveraging its unmatched global strategy to stay ahead despite an evolving market.

Dominant Sales Figures

Through November 2024, Toyota sold 9.8M vehicles worldwide, including units from its Lexus, Daihatsu, and Hino brands. While this marked a 3.6% decline, it still kept Toyota well ahead of Volkswagen (9.2M, -2.3%).

Toyota's Secret Sauce

The Japanese giant’s extensive lineup—spanning everything from compact kei cars to rugged SUVs—positions it to serve diverse markets. Unlike VW, which leans heavily on EVs, Toyota's focus on hybrid options and combustion engines ensures adaptability to consumer demand.

Hyundai Holds Third Place

Hyundai Motor Group, which includes Kia and Genesis, sold 7.2M vehicles (-1%). The group’s balanced approach, combining EV innovation and traditional models, has helped it maintain relevance across global markets.

🛠️ Polestar’s Big EV Ambitions Amid Challenges

Polestar announced its Polestar 7 SUV despite facing regulatory hurdles in the U.S.

• Regulatory trouble: New bans on connected vehicle software from China may prohibit Polestar’s U.S. sales.

• Pivot to Europe: The company shifts focus to France and other growing EV markets.

• Financial woes: Polestar reported a $323M net loss in Q3 2024, with an 8% drop in vehicle sales.

🔍 Car Plants Facing Closures in 2025

As automakers confront overcapacity, escalating tariffs, and EV-driven transitions, several factories in Europe and North America are on the chopping block.

• What’s Driving This? Emissions, regulations, and tariffs are pressuring automakers to streamline operations. Plants in high-cost regions are especially vulnerable as companies shift production to lower-cost markets like Morocco, Turkey, and Eastern Europe.

• China's Opportunity: Chinese automakers, already dominating EV software and electrification, are eyeing these shuttered facilities to bypass trade barriers and build a stronger foothold in Europe. With EU tariffs on Chinese EVs looming, acquiring these plants could be a cost-effective strategy.

• Bright Side for EVs: EV production is projected to grow 17% in 2025 despite factory closures. Analysts expect over 50% of vehicle models marketed by automakers to be electric by 2030, underscoring the industry’s shifting priorities.

🚐 Rivian Leads the Electric Van Market

Rivian's Commercial Van outsold Ford's E-Transit and Mercedes' eSprinter combined in 2024.

• 13,423 vans sold: A 66% increase from 2023.

• Amazon partnership: Roughly 8,400 units delivered to Amazon, with 5,000 sold to other clients.

Expanding production

A $6.6B DOE loan will help build Rivian’s second plant in Georgia, expected to produce 400,000 vehicles annually by 2028.

🌍 India’s EV Market Grows, Slowly but Surely

Automakers in India plan to launch a dozen new EV models in 2025, targeting the premium segment.

• 2024 growth: EV sales grew by 20%, outpacing the overall market’s 5% growth.

• Range upgrade: New models offer 400–600 km ranges and faster charging, addressing early adoption challenges.

• Government goal: India aims for 30% EV penetration by 2030.

🛑 Nissan’s 90% Profit Drop

Nissan is in survival mode after a disastrous 2024, with operating profits plunging 90% and net income down 94%. The company’s troubles highlight both internal missteps and external challenges.

• The Downfall: Stiff competition from Chinese automakers, a lack of innovation in EVs, and a series of U.S. market misfires have eroded Nissan’s position. Even its once-dominant EV, the Leaf, has struggled to keep pace with newer rivals.

• Desperate Measures: Nissan has slashed 9,000 jobs, cut production by 20%, and imposed executive pay cuts. CEO Makoto Uchida reduced his own salary by 50% as part of an attempt to stabilize the company.

A Potential Lifeline

Analysts believe a merger with Honda could save Nissan. Combining resources could address their shared EV challenges and create synergies in the value and premium segments, offering a path back to profitability.

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