Global automotive industry faces deepening concerns as Nissan's profits plummet, Stellantis, including Citroën and Peugeot brands, reports worse than expected earnings. The downturn affects not only the carmakers but also ripples across the market with significant drops in share values for both Stellantis and Nissan.
Stellantis, which owns renowned names like Alfa Romeo, Dodge, Maserati, among others, announced a nearly halved net profit of €5.6bn (£4.72bn) over the first half year. Sales also decreased by 14% to €85bn due primarily to market conditions in Europe and North America.
Nissan reported an unprecedented collapse in operating profit, falling drastically by 99% to €5.03m for the three months ending June 2024, with a stagnant global sales figure of just under 800,000 units. Renault's shares took a hit more than 10%, even though the company maintains a shareholding in Nissan and cited increased competition as a cause for concern.
Carlos Tavares, CEO of Stellantis, acknowledged that performance fell short of expectations during the first half of this year. Renault's ongoing efforts to reduce electric vehicle costs were highlighted by its recent deal in Slovenia to manufacture an affordable low-cost EV model.
Production statistics from SMMT reported a 7.6% decline for both traditional and electric vehicles produced within the UK, with Mike Hawes urging the government to reduce VAT on new battery EVs as well as eliminate additional levies on high-end luxury cars to encourage electric vehicle adoption.
The industry's future is uncertain as it navigates the transition from internal combustion engines to electric vehicles, with affordability and consumer hesitation posing challenges for widespread EV uptake. The Chinese automotive sector has been noted for its early advances in battery technology due to strategic government policies that have given them a competitive edge globally.
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