NOVEMBERASIA BUSINESS OUTLOOK9NEWSROOMTOYOTA TO ACQUIRE SUZUKI'S FIRST EV AS PARTNERSHIP GROWSTwo people briefed on the matter said China has told its automakers to halt major investments in European countries that support extra tariffs on Chinese-built electric vehicles, a move likely to further divide Europe. The new European Union tariffs of up to 45.3 percent came into effect on Wednesday after a year-long investigation that divided the bloc and prompted Beijing's retaliation.Ten EU members, including France, Poland, and Italy, supported tariffs in a vote this month, five members, including Germany, opposed them, and 12 abstained.Chinese automakers including BYD, SAIC, and Geely were told at a meeting held by the Ministry of Commerce on Oct. 10 that they should pause their heavy asset investment plans such as factories in countries that backed the proposal, said the people.Several foreign automakers also attended the meeting, where the participants were told to be prudent about their investments in countries that abstained from voting and were "encouraged" to invest in those that voted against the tariffs, the people said.Geely declined to comment. SAIC, BYD, and the commerce ministry did not immediately reply to requests for comment.The move by Chinese authorities to suspend some investment in Europe would suggest the government is seeking leverage in talks with the EU over an alternative to tariffs, keen to avoid a sharp fall in EV exports to the key market.Europe accounted for more than 40 percent of EVs shipped from China in 2023, according to Reuters' calculations using data from the China Passenger Car Association.Given 100 percent tariffs on Chinese-made EVs in the United States and Canada, a drop in EV exports to Europe would risk deepening overcapacity Chinese automakers face in their home market. In a statement, the Japanese manufacturer Suzuki Motor said that its Indian division planned to supply Toyota Motor with its first-ever electric vehicle, representing their first partnership on green vehicles.Maruti Suzuki, which is mainly owned by Suzuki Motor, plans to begin producing the EV in the spring of 2025 at its Gujarat plant in western India.According to the statement, Suzuki, Toyota, and Daihatsu Motor collaborated to build the EV.Toyota President Koji Sato said, "We would like to learn from each other's strengths, compete, and further joint efforts based on a multi-pathway approach." Additionally, Suzuki would like to invest more than $1 million in India, its largest market outside of Japan, strengthening India as an EV powerhouse.With a range of 500 kilometers (311 miles), the sport utility vehicle EV will be fueled by a 60-kilowatt-hour battery. Last year, an electric vehicle concept appeared at the Indian car show.Sources claim that the largest manufacturer in the world plans to introduce ten battery-powered vehicles by 2026, including the new model. Other than the Gujarat factory, no plans exist to develop the EV elsewhere.Earlier in the year, Toyota said that it sold about 108,000 battery-powered electric cars globally in the first nine months, which accounted for 1.5 percent of its total sales during that time, including sales under its luxury Lexus brand.With a capacity of 250,000 units yearly Maruti Suzuki plans to open a fourth production line especially for EVs at the Gujarat facility.It had previously stated that it intended to deliver the EV to markets throughout the world, including those in Europe and its parent company Japan. CHINA CONTINUES PAUSE ON EV INVESTMENTS IN EU
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