Automotive State of the World

🇺🇸 United States:

• The Department of Energy has proposed reducing EV mileage ratings to meet government fuel economy requirements; a move that could force automakers to produce more low-emissions cars.
• USDOE aims to update the Miles Per Gallon equivalent (MPGe) ratings for electric and plug-in electric hybrids by reexamining all of the contributing values such as national electricity, petroleum generation, distribution efficiency, and driving patterns. 
• The Alliance for Automotive Innovation issues concerns that lowering the values may discourage EV adoption.

🇨🇳 China: 

• In Q1, passenger vehicle sales fell a whopping 13.4%. 
• Of the vehicles that did sell, BEVs and plug-in hybrids rose 21.9% in March and accounted for 34% of the month's total sales.
• Price cuts and incentives by auto brands and local governments have been implemented to stimulate demand and support the auto industry.

🇲🇽 Mexico:

• Auto production rose 13.12% YoY in March to 346K vehicles.
• Auto exports increased 3.88% from the previous year, reaching 272K vehicles.
• Recently opened the doors to a $147M plant for Faurecia, a French car-parts maker serving clients like Volvo and Steallantis.

🇮🇩 Indonesia:

• Will soon propose a limited free trade agreement with the US for critical battery minerals to help the EV supply chain and allow the country to benefit from the Inflation Reduction Act (IRA) tax credits.
• Hopes to leverage its nickel reserve, the largest one in the world, to attract US EV investors like Tesla and Ford.
• The FTA proposal will likely be similar to the one the United States recently signed with Japan for a similar mineral trade agreement.