Latest news with #JapaneseAutomakers
Bloomberg
12 hours ago
- Automotive
- Bloomberg
Foreign Automakers' Share in China Is Only Set to Dwindle
The picture for foreign automakers in China doesn't get any rosier with new research from consultant AlixPartners showing local brands' dominance will climb to as high as 76% by 2030 as the market share of Japanese, European and US companies dwindles. And despite persistent competitive pressures, the nation's aggressive car price war is expected to evolve, rather than abate.
Entrepreneur
28-05-2025
- Automotive
- Entrepreneur
India's Car Sales to Grow 3.5% Annually Till 2030: Moody's
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. India is set to remain a critical pillar of global automakers' strategies over the next decade, powered by a youthful workforce and growing income levels, according to a report released Tuesday by Moody's. The global credit agency underscored that while India's transition to electric vehicles (EVs) is underway, the shift will be gradual due to infrastructure shortcomings and supply chain constraints. "India's car sales are expected to grow at a compound annual growth rate of 3.5 per cent—the highest in Asia—reaching around 5.1 million units by 2030," the report stated. A key factor driving this growth is India's relatively low vehicle penetration: just 44 cars per 1,000 people. Despite that, India already ranks as the third-largest auto market in the world by unit sales. The competitive landscape in India remains intense. While homegrown manufacturers account for about a quarter of total car sales, more than 70 per cent of the market is dominated by Japanese, Korean, and Chinese automakers, many operating through joint ventures or subsidiaries. These players benefit from their extensive global product portfolios and established manufacturing capabilities. Trade dynamics are also shifting. Moody's noted that India's ongoing trade talks and its recent agreement with the UK signal mounting pressure to liberalize a market long shielded by steep import tariffs. This could open new opportunities, and challenges, for both domestic and international players. On the electrification front, progress is steady but far from rapid. Tata Motors and Hyundai are prioritizing battery electric vehicles, while Honda plans to ease in with plug-in hybrids. Automakers are expected to invest over $10 billion through 2030 to secure a competitive edge in the EV sector. However, these capital commitments are likely to strain their cash flows. "The pace of battery electric vehicle adoption hinges on the development of a robust ecosystem, including nationwide charging infrastructure and reliable domestic battery supply chains," Moody's emphasized. Even as global carmakers accelerate EV rollouts in China, Europe, and the US to meet emission targets, India's conventional vehicle market remains indispensable. Besides serving local demand, the country also functions as a vital export hub, reinforcing its strategic role in global automotive operations. While EVs may struggle to reach profitability in many regions, Moody's concluded that India's demographic advantage and growing consumption will continue to fuel long-term demand for traditional vehicles.
The Independent
22-05-2025
- Business
- The Independent
Asian shares slip as worries about U.S. debt send Wall St tumbling
Asian shares fell Thursday after Wall Street slumped under pressure from the Treasury bond market and worries about surging U.S. debt. U.S. futures were little changed, while Japan's benchmark Nikkei 225 shed 0.8% to 36,988.36. Hong Kong's Hang Seng lost 0.5% to 23,711.58, while the Shanghai Composite was virtually unchanged, inching up less than 0.1% to 3,387.58. Australia's S&P/ASX 200 slipped 0.5% to 8,348.10. South Korea's Kospi dropped 1.3% to 2,591.95. Rising yields for U.S. Treasury bonds are a canary in the coal mine, Stephen Innes of SPI Asset Management said in a commentary. 'The U.S. still has the biggest markets, the deepest liquidity, and the dollar's inertia working in its favor. But even inertia can't outrun compound interest and structural deficits forever,' he wrote. The declining U.S. dollar also weighed on regional markets, according to some analysts, because some Asian nations have significant holdings in dollars. A weak dollar also hurts Asian exporters, such as Japanese automakers and electronics companies, by reducing the value of their overseas earnings when they are converted into yen. In currency trading, the U.S. dollar fell to 143.25 Japanese yen from 143.68 yen. It had been trading at 150 yen levels a year ago. The euro cost $1.1343, up from $1.1330. Investors remain worried over President Donald Trump 's actions, including tariff policies that directly affect Asian companies and decisions on major legislation such as a funding bill now in Congress. 'U.S. equities slumped in a 'Sell America' move as things turned ugly on Trump's 'big, beautiful tax bill.' ' said Tan Jing Yi, analyst at Mizuho Bank in Singapore. On Wednesday, shares tumbled on Wall Street after the U.S. government released the results for its latest auction of 20-year bonds. The government regularly sells such bonds, which is how it borrows money to pay its bills. In this auction, the U.S. government had to pay a yield as high as 5.047% to attract enough buyers to lend it a total of $16 billion over 20 years. That helped push up yields for all kinds of other Treasurys, including the more widely followed 10-year Treasury. Its yield climbed to 4.59% from 4.48% late Tuesday and from just 4.01% early last month. That's a notable move in the bond market. The S&P 500 fell 1.6% for a second straight drop after breaking a six-day winning streak, closing at 5,844.61. The Dow Jones Industrial Average lost 1.9% to 41,860.44, while the Nasdaq composite sank 1.4% to 18,872.64. Stocks had been drifting only modestly lower early in the day, after Target and other retailers gave mixed forecasts for upcoming profits amid uncertainty caused by President Donald Trump's trade war. Treasury yields have been on the rise in part because of concerns that the tax cuts currently under consideration in Washington could pile trillions of more dollars onto the U.S. government's debt. Bond yields have been on the rise recently for developed economies around the world as governments borrow more to pay their bills while central banks like the Federal Reserve have cut back on their own holdings of government bonds. When the U.S. government has to pay more interest to borrow money, that can push interest rates higher for U.S. households and businesses too, including for mortgages, auto loans and credit cards. That in turn can slow the economy. Higher yields can also make investors less inclined to pay high prices for stocks and other kinds of investments. A growing number of companies have recently said tariffs and uncertainty about the economy are making it difficult to guess what the upcoming year will bring. Others, including Walmart, have said they'll have to raise prices to offset Trump's tariffs. U.S. stocks had recently recovered most of their steep losses from earlier in the year after Trump delayed or rolled back many of his stiff tariffs. Investors are hopeful that Trump will lower his tariffs more permanently after reaching trade deals with other countries. In energy trading, benchmark U.S. crude fell 15 cents to $61.42 a barrel. Brent crude, the international standard, slipped 17 cents to $64.74 a barrel. ___ AP Business Writer Stan Choe contributed.
