By Reuters | Updated: October 2, 2023

SAN FRANCISCO, Oct 2 (Reuters) – Electric-vehicle maker Rivian Automotive (RIVN.O) on Monday reported third-quarter deliveries above analysts’ estimates, as it ramped up production to meet a sustained demand for its pickup trucks and sport-utility vehicles (SUVs).

The Irvine, California-based startup said it was on track to produce 52,000 vehicles in 2023 – a target it raised in August from 50,000 vehicles as supply-chain bottlenecks eased.

The stronger-than-expected numbers from Rivian come amid concerns of softening demand for electric vehicles in the U.S. due to higher borrowing costs, which has prompted price cuts and discounts by rivals including Tesla.

Rivian, which makes R1T pickup trucks and R1S SUVs, delivered 15,564 vehicles in the quarter ended Sept. 30, compared with Visible Alpha estimates of 14,740 vehicles and up 23% from the second quarter.

It produced 16,304 vehicles at its facility in Normal, Illinois, up from 13,992 in the second quarter. That means Rivian has to make just more than 12,300 vehicles in the current quarter to hit its full-year target.

Price cuts by Tesla to boost demand and responses from competitors have pushed average EV retail prices down to $53,376 in July 2023, from a high of nearly $70,000 a year ago, according to Cox Automotive.

Rivian has stayed away from cutting prices. Instead, it has been cutting cost and moved to building in-house Enduro powertrains to reduce its dependency on suppliers.

Despite a slowdown, there are positive signs of growth in the U.S. EV industry, which has become one of the fastest-growing EV markets, according to market research firm Canalys Research.

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By Reuters | Updated: 29 September 2023

Sept 29 (Reuters) – Volkswagen (VOWG_p.DE) plans to build its Trinity electric vehicles (EV) at its factory in Zwickau, the German daily Handelsblatt reported on Friday, citing several company sources.

The decision on the location for the prestige EV will be discussed at the Volkswagen supervisory board meeting on Friday, Handelsblatt reported.

A spokesperson for the German carmaker declined to comment on the report.

The Trinity electric car, which is to be based on the new SSP platform, was supposed to be launched in 2026.

However, shortly after taking office, Chief Executive Oliver Blume pushed the project back by two years in order to relieve pressure on the struggling software subsidiary Cariad.

Volkswagen had initially planned to build a new factory for the model, but due to delays in developing the brand, the German carmaker was also considering converting its Wolfsburg factory.

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By Reuters | Updated: 25 September 2023

BERLIN, Sept 25 (Reuters) – German Transport Minister Volker Wissing has rejected possible punitive tariffs as a result of the European Commission’s investigation into Chinese electric vehicle (EV) subsidies.

“In principle, I don’t think much of erecting market barriers,” Wissing told the Monday edition of the Augsburger Allgemeine newspaper.

Such isolationist politics could spark a chain reaction that would massively damage the German economy, said Wissing.

“Today cars are sealed off, tomorrow chemical products, and each individual step in itself makes the world poorer,” said Wissing, from the business-friendly Free Democrats (FDP).

“We have to make sure that we produce our electric vehicles competitively – for Germany and for the world markets,” he added.

European Commission President Ursula von der Leyen this month announced a probe into whether to impose punitive tariffs to protect EU automakers against China’s EV imports, which the commissions says are benefiting from excessive state subsidies.

China blasted the probe as protectionist and warned that it would damage economic relations, a concern shared by Germany’s car industry.

German Economy Minister Robert Habeck, by contrast, has welcomed the step, saying action must be taken if massive breaches of competition rules are found by the EU probe.

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By Reuters | Updated: 20 September 2023

India’s Ola Electric plans to file regulatory papers for its up to $700 million (roughly Rs. 5,815 crore) IPO before the end of October as the e-scooter maker fast-tracks its listing move, three people with direct knowledge said. Backed by investors including Singapore’s Temasek and Japan’s SoftBank, Ola Electric was valued at $5.4 billion (roughly Rs. 44,852 crore) in a recent fundraising.

In an email to its bankers and lawyers on Sunday, an Ola Electric executive asked external advisers on the IPO – including the investment banking units of India’s Kotak and ICICI, as well as foreign banks including Bank of America and Goldman Sachs – to give “utmost priority” to meet a five-week deadline, said the sources.

Ola Electric and Kotak did not respond to a request for comment while the other three banks declined to comment. The sources did not wish to be identified as the communication is internal.

India’s Ola Electric plans to file regulatory papers for its up to $700 million (roughly Rs. 5,815 crore) IPO before the end of October as the e-scooter maker fast-tracks its listing move, three people with direct knowledge said. Backed by investors including Singapore’s Temasek and Japan’s SoftBank, Ola Electric was valued at $5.4 billion (roughly Rs. 44,852 crore) in a recent fundraising.

In an email to its bankers and lawyers on Sunday, an Ola Electric executive asked external advisers on the IPO – including the investment banking units of India’s Kotak and ICICI, as well as foreign banks including Bank of America and Goldman Sachs – to give “utmost priority” to meet a five-week deadline, said the sources.

Ola Electric and Kotak did not respond to a request for comment while the other three banks declined to comment. The sources did not wish to be identified as the communication is internal.

Ola Electric is targeting IPO roadshows for early January or February, said one of the sources.

The company, India’s market leader in e-scooters with a 30 percent share, was founded by Bhavish Aggarwal and has seen its popularity surge as the country promotes the use of electric cars and scooters.

He has said his affordable e-scooters, which start retailing at $1,080 (roughly Rs. 89,700), are for the masses, and in an interview this year said “Tesla is for the West, Ola is for the rest.”

Ola Electric, though, still makes losses. It recorded an operating loss of $136 million (roughly Rs. 1,129 crore) on revenue of $335 million (roughly Rs. 2,782 crore) in the fiscal year ending March 2023, Reuters has reported.

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By Reuters | Updated: 18 September 2023

Indian electric scooter maker Ather Energy will accelerate new model launches at home and test export markets, its chief executive told Reuters, raising new money to boost growth after the government lowered subsidies for the vehicles.

India’s electric scooter market is small but growing, with e-models accounting for 5 percent of total scooter and motorcycle sales in the last fiscal year against a government target of 70 percent by 2030.

But in a surprise move in May, the government, without explanation, slashed cash incentives on the vehicles to a maximum of 15 percent of the price before taxes from 40 percent earlier. The next month total e-scooter sales more than halved.

Ather’s sales also dropped but are rapidly picking up. CEO Tarun Mehta said in an interview that the company is now working on two new models, one of which will be launched six months earlier than originally planned.

“The transition to electric vehicles could have been faster if not for the (subsidy) change but even then, there will be no major impact in the mid to long term,” he said.

“This shift means we are having to fast track product launches and invest more in product development,” he added.

As part of a long-term growth strategy, Ather is aiming for more than 50 percent of its sales to come from global markets by the end of the century, Mehta said.

Ather, India’s third-largest e-scooter maker after Softbank Group-backed Ola Electric and local TVS Motor, plans to add a scooter designed for use by different members of a family to its current two-model lineup aimed at individual riders, Mehta said.

Valued at around $750 million (nearly Rs. 6,250 crore), Ather will raise more money before the end of 2023 to back its growth plans, he said, without giving more details.

A source with direct knowledge of Ather’s plans said the company is looking to raise an amount similar to the $108 million (nearly Rs. 900 crore) garnered from existing shareholders Hero MotoCorp and Singapore’s sovereign wealth fund GIC in a recent rights issue.

Ather will also pilot sales in one Asian export market in a couple of months.

“India will not only be the largest market in the world for electric two-wheelers but also the largest exporter,” he said.

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By Press Trust of India | Updated: 16 September 2023

German luxury car maker Mercedes-Benz India on Friday announced the extension of its electric vehicle charging network to the customers of other brands as it looks to accelerate faster adoption of electric vehicles in the country. The carmaker also launched the top-end EQE 500 4MATIC electric SUV at an introductory price of Rs 1.39 crore (all India ex-showroom) and a new ‘Customer Experience Centre’ at Chakan, in Pune.

Mercedes-Benz is also supporting the EV (Electric Vehicle) transition in India by democratising the ultra-fast charging network. All EV customers in India across brands, can now enjoy the luxurious Mercedes-Benz experience while using the company’s charging network, Santosh Iyer, Managing Director and Chief Executive Officer of Mercedes-Benz India (MBI), said.

The company said it has the largest charging network within the luxury car space with 140 chargers at different points. Of these, 40 chargers are in the 180 kilowatts and the 60 kilowatt area, which means fast chargers, said.

“…we will be extending this entire charging facility, not only for Mercedes customers but for all brands, luxury, and mass, so that they can come in and charge their cars at a faster pace at our fast charging network,” Iyer said.

The move will help in further accelerating the adoption of electric vehicles in India, he added.

Moreover, MBI has also developed an app along with Bengaluru-based Mercedes-Benz Research and Development India (MBRDI), which enables EV customers to get access to an additional 150 superchargers, Iyer said.

The app can be downloaded by any customer — of Mercedes or non-Mercedes — and it gives access to a fast charging network across India and can help in day-to-day commute or their interested commute, Iyer added.

On the launch, he said, “We are strengthening our BEV portfolio by launching the EQE 500 4MATIC SUV. This is an important addition to our BEV portfolio offering segment-leading luxury appointments, technology and connectivity, among others.” The EQE 500 4MATIC SUV comes with a segment-best, 10-year battery warranty, and a service interval of once in two years, the company said.

The one-of-its-kind Customer Experience Centre in the country will serve a diverse purpose, spanning from curated private consultation, and personalised deliveries of cars to hosting top-end customers’ own corporate events, he said.