Escalent study reveals one in three car buyers regards Tesla brand as mainstream rather than premiumChinese car brands enjoy growing consumer trust, confidence and interest LONDON, Dec. 02, 2025 (GLOBE NEWSWIRE) -- New findings from data analytics and advisory firm Escalent reveal that Tesla, once a symbol of market disruption and battery electric vehicle (BEV) innovation, is losing its appeal among new-car buyers in Europe as a wave of Chinese entrants reshapes the car market. While Tesla’s advanced techno ...

The Thai government has approved changes to its battery electric vehicle (BEV) incentive programme to encourage greater exports, with the industry fearing a domestic supply glut following the significant investments in production capacity in the last few years – mainly by Chinese brands, according to local reports citing a statement by the Board of Investment (BOI). The BOI said it has approved adjustments to its current EV3.0 and EV3.5 incentive programmes, allowing for every BEV produced for export to c ...

Market Overview - U.S. equity markets are expected to open strongly due to improved investor sentiment following a bipartisan deal in the Senate to end the government shutdown [1][3] - Major index futures are showing gains, with S&P 500 futures up approximately 0.7% to 0.9%, Nasdaq 100 futures up 1.2% to 1.5%, and Dow Jones futures up 0.1% to 0.4% [2][4] Economic Impact - The government shutdown, lasting 40 days, has created significant economic uncertainty, delaying crucial data releases and impacting various sectors [3] - The resolution of the shutdown is anticipated to lead to the release of delayed economic reports, including the Consumer Price Index (CPI), initial jobless claims, retail sales, and Producer Price Index (PPI) for October [5] Company Developments - Nvidia (NVDA) saw a 7% stock decline last week but is expected to recover as optimism returns to the tech sector, with CEO Jensen Huang requesting TSMC to increase chip supplies for AI technology [7] - Apple (AAPL) recently surpassed a $4 trillion market value, indicating the strength of major tech players [11] - Pfizer (PFE) has agreed to acquire Metsera for up to $10 billion, winning a bidding war against Novo Nordisk [11] - CoreWeave ([CRWV]) is set to release earnings today, with shares having more than doubled since going public, driven by deals with Nvidia and Meta [11] - Toyota Motor Corporation (TM) unveiled a new Battery Electric Vehicle (BEV) model, part of its strategy for carbon neutrality [11] - Visa (V) and Mastercard (MA) are nearing a deal with merchants that could reshape the credit card rewards landscape [11] - UPS (UPS) and FedEx (FDX) may face operational impacts due to the FAA grounding MD-11 planes following a recent crash [11] - Diageo (DEO) appointed former Tesco boss Dave Lewis as its new chief [11] - Nomad Foods (NOMD) reported lower revenue and earnings in Q3 2025, citing ongoing market headwinds [11] Upcoming Events - The week includes important economic updates, such as the German Harmonized Index of Consumer Prices (HICP) and Eurozone's Q3 GDP [6] - High-profile earnings reports are expected from companies like Cisco (CSCO), Applied Materials (AMAT), Walt Disney (DIS), and others [8]

Market Overview - The UK new car market showed stability in October with a 0.5% increase in registrations, totaling 144,948 units [1] Electrified Vehicles Performance - Electrified vehicles were the only powertrain technologies to experience growth, with battery electric vehicle (BEV) registrations rising by 23.6%, adding 7,028 units, resulting in a 25.4% market share, the second highest this year [2] - Plug-in hybrid vehicle (PHEV) registrations increased by 27.2%, accounting for 12.1% of the market, while hybrid electric vehicles (HEV) grew by 2.1%, claiming a 13.3% share [2] - Combined, electrified vehicles represented 50.8% of new car registrations for the second consecutive month [2] Year-to-Date Performance - Year-to-date, the BEV market has grown by 28.9%, with 386,244 units registered, surpassing the total for the entire year of 2024 with two months remaining [3] - BEVs now constitute 22.4% of all new sales, driven by significant manufacturer investment and government support through the Electric Car Grant (ECG) [3] Future Market Risks - The SMMT warns that future market growth may be jeopardized by government plans to end Employee Car Ownership Schemes (ECOS), which are crucial for attracting talent in the UK automotive sector [4] - The proposed taxation on ECOS vehicles could lead to the closure of these schemes, limiting access to new zero-emission vehicles for many workers [4] Economic Impact of ECOS Changes - Approximately 100,000 cars are supplied via ECOS annually, representing about 5% of the new car market; changes could depress growth and negatively affect nearly-new and used markets [5] - The SMMT estimates that over £1 billion in revenue could be lost to the industry, risking 5,000 manufacturing jobs, while the Treasury could face a £0.5 billion loss from VAT and Vehicle Excise Duty receipts [5] Market Forecast - GlobalData projects the UK car market to reach around 2 million units by 2025, although this forecast is subject to risks [6] - The outlook for the UK car market remains challenging, with cautious sentiment due to tightening fiscal policies and weak immediate growth prospects for the UK economy [7]

Core Insights - New vehicle sales in Indonesia fell by 15% in September 2025, totaling 62,071 units compared to 73,108 units in September 2024 [1] - The overall vehicle market shrank by over 11% year-on-year in the first nine months of 2025, with light passenger vehicle sales down by 13% and commercial vehicle sales down by 7% [3] - Japanese automakers are facing increased competition from Chinese brands, particularly in the battery electric vehicle (BEV) segment, which saw sales double to 54,593 units in the first nine months of 2025 [5] Market Performance - The Indonesian vehicle market experienced a decline in sales, with a total of 561,819 units sold in the first nine months of 2025, down from 633,660 units in the same period last year [3] - Sales of small passenger cars under the government's 'affordable energy saving car' program dropped significantly by 34% to 89,051 units [4] - Overall vehicle production decreased by 3.4% year-to-date, totaling 854,952 units, although exports of fully-assembled vehicles rose by 11% to 382,374 units [6] Manufacturer Performance - Toyota's sales fell by 13% to 181,817 units, while Daihatsu's sales dropped by 24% to 95,307 units [4] - Other manufacturers also reported declines: Mitsubishi down 10% to 48,944 units, Honda down 33% to 46,623 units, and Suzuki down 10% to 44,253 units [4] - The presence of Chinese brands, such as BYD and its Denza brand, has significantly impacted the market, with BYD accounting for 26,852 units sold [5]

Core Insights - Chinese automakers reported a total of 1.395 million new energy vehicle (NEV) sales in August 2025, marking a 27% increase year-on-year, although growth has slowed significantly in the domestic market recently [1][2] Industry Performance - The NEV segment, which includes plug-in hybrid vehicles and zero-emission vehicles, has experienced a slowdown in growth despite government incentives and discounts from manufacturers [2][7] - In 2024, global NEV sales surged over 35% to 12.9 million units, with exports rising by 7% to 1.28 million units, accounting for approximately 41% of total vehicle output in China [2][5] - NEV sales in the first eight months of 2025 increased by 37% year-on-year to 9.622 million units, representing over 45% of global deliveries from Chinese automakers [5] Key Players - Major players driving growth in the NEV market include BYD and Geely, along with numerous startups like Leapmotor, Li Auto, and Xpeng, which have established significant operations in the last decade [3] - BYD has seen a remarkable 41% increase in global sales to 4.3 million units in 2024, surpassing SAIC Motor as the largest vehicle manufacturer in China [4] - Geely's NEV sales nearly doubled to over 1 million units in the first eight months of 2025 [4] Domestic Market Trends - Domestic NEV sales, excluding exports, rose by 31% to 8.091 million units, but growth has sharply slowed in recent months, with August sales growing by only 18% to 1.171 million units [6] - Retail data indicates that passenger NEV sales increased by just 7.5% to 1.1 million units in August, with BEV sales up by 17% to 686,000 units, while passenger PHEV sales declined by nearly 7% to 414,000 units, suggesting market saturation [7]

Core Viewpoint - Berkshire Hathaway has fully exited its stake in BYD, marking the end of a 17-year investment relationship, which has raised concerns about BYD's future growth prospects in the competitive EV market [1][2][3]. Company Summary - BYD's shares fell over 3% following the news of Berkshire Hathaway's complete divestment [2]. - Berkshire Hathaway initially invested in BYD in September 2008, purchasing 225 million shares for approximately $230 million, which later appreciated to a value of around $7.7 billion before the sell-off began in 2022 [3]. - A BYD executive expressed gratitude towards Berkshire Hathaway for their long-term support and investment [2]. Industry Summary - Despite BYD's battery electric vehicle (BEV) registrations surpassing those of Tesla in Europe for the first time in May, the company's overall growth appears to be slowing [5]. - Recent reports indicate that BYD has reduced its 2025 sales target in China by up to 16% to 4.6 million vehicles, which would represent the slowest annual growth rate in five years [6]. - The competitive landscape in China's EV market, along with potential product oversaturation, is contributing to the challenges faced by BYD [6].

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Global Automobiles** industry, particularly the **Electric Vehicle (EV)** sector and the impact of changing environmental regulations in the US and Europe on traditional automakers [1][2][15]. Core Insights and Arguments 1. **Decline in Global BEV Penetration**: Global Battery Electric Vehicle (BEV) penetration rates are expected to decline outside of specific regions like China, with estimates lowered to 25% for 2030 and 52% for 2040 [3][37]. 2. **Easing of Environmental Regulations**: US and European regulations are shifting towards easing, which will allow traditional automakers to maximize profits by selling a balanced mix of gasoline-powered vehicles and hybrid vehicles (HEVs) [2][15]. 3. **Margin Improvement in North America**: North American margins could improve by 2-3 percentage points, translating to an EBIT upside of US$15-22 billion, significantly impacting the combined estimated operating profits of highlighted stocks [2][23]. 4. **Structural Shift to HEVs**: The shift towards HEVs in the US is deemed structural, driven by updated product plans from OEMs, particularly from Japan and Korea, indicating a long-term trend rather than a temporary adjustment [10][48]. 5. **Stock Recommendations**: Companies such as Ford, GM, Toyota, Honda, Subaru, Hyundai, and Kia are expected to benefit from the easing regulations and the shift towards HEVs [11][13]. Additional Important Insights 1. **Impact of the Beautiful Bill**: The Beautiful Bill has eliminated civil penalties for non-compliance with federal fuel economy standards, providing automakers with more flexibility in their vehicle mix [16][21]. 2. **Environmental Credit Impairment Risks**: Traditional automakers may face potential impairment of environmental credits due to non-compliance with CO2 regulations, with Subaru already booking US$760 million in provisions related to environmental regulations [28][32]. 3. **Consumer Preferences**: Despite low gasoline prices, consumers are showing a preference for HEVs due to their fuel efficiency and performance, indicating a shift in consumer behavior [10][48]. 4. **Regional Sales Trends**: BEV sales are polarized, with significant growth in China (37% YoY) while the US and Europe are experiencing declines [54]. HEV sales in the US are strong, rising 24% YoY in June and 22% in July [57]. Conclusion The conference call highlights a significant transition in the automotive industry, driven by regulatory changes and shifting consumer preferences. Traditional automakers are poised to benefit from these changes, particularly through increased sales of HEVs, while BEV sales face challenges in certain markets. The insights provided suggest a cautious yet optimistic outlook for the industry moving forward.