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New energy vehicles for export at Lianyungang Port, Jiangsu Province, China, on April 25, 2024. 

Nurphoto | Nurphoto | Getty Images

Electric vehicle sales have risen sharply this year, led by growth in China and a strong demand for hybrid vehicles in particular, according to a report from Counterpoint Research. 

The report, released Monday, showed that sales of EV units globally, including fully battery-powered vehicles (BEVs) and hybrids, were up 18% in the first three months of 2024 compared with the same period last year. 

Sales of hybrid vehicles, which have both electric motors and combustion engines, vastly outpaced those of full battery-powered alternatives, rising 46% year over year. BEV sales rose 7%.

“The cheaper upfront cost of [hybrids] when compared to [battery EVs] and the availability of a fuel tank that eliminates range anxiety were among the main reasons for high [hybrid] demand,” Counterpoint research analyst Abhik Mukherjee said in the report. 

The data follows recent reports that suggest hybrid adoption is now outpacing that of fully electric vehicles amid concerns about weak resale values of the former and the possibility of current BEV technology becoming obsolete soon.

Hybrid vehicles are the hottest thing in the market right now, says Group 1 Automotive CEO

“Buying mid-priced [hybrids] is a more logical choice for consumers since their prices are comparable to or lower than most of [battery electric vehicles],” the report said.

China extends lead 

Chinese companies have been a huge beneficiary of the rise in demand for electric vehicles, especially firms that sell both BEVs as well as hybrids. 

According to Counterpoint, EV sales in China jumped 28% in the first quarter of 2023, amid an ongoing price war that has pushed down costs for consumers. 

The country’s largest EV maker, BYD, saw sales of hybrid vehicles increase by 7% in the first three months of this year, accounting for nearly one-third of the global hybrid market, followed by Geely Holdings and Li Auto. 

Sales of EVs in the United States were second highest globally, followed by Europe. But, while overall EV sales in the U.S. rose 2%, those of battery electric vehicles declined by 3% in the quarter.

Tesla, the leading U.S. EV maker, which only produces BEVs, saw a 9% year-on-year decline in sales in the first quarter. It was still in the top position globally in BEV sales in Q1 2024, commanding a 19% market share. BYD and Volkswagen had a 15% and 6% share, respectively.

Among the top three BEV makers only BYD recorded growth, with sales jumping 13%, while Tesla and Volkswagen’s sales declined 9% and 4% respectively, the report said. 

Competition between European and Chinese electric vehicle makers will intensify, analyst says

BYD’s strong performance comes as the company aggressively expands globally. According to the report, the company exported almost 100,000 EVs last quarter,  a 152% year-on-year growth, driven primarily by shipments to Southeast Asia.

Liz Lee, associate director at Counterpoint, said BYD’s remarkable exports highlight the growing global demand for EVs, including hybrids, with the market “poised for significant growth.”  

“[Y]et signs of a slowdown also loom and the annual growth may dip below 20%,” she added, noting that companies such as Tesla face declining interest in BEVs. 

Gallup poll in April found that less than half of U.S. adults — 44% — said they were seriously considering or might consider buying an EV, down from 55% in 2023. Meanwhile, the proportion of those not looking to buy an EV rose to 48% from 41%.

Other headwinds to the market could include an increase in protectionist measures in 2024, with both the EU and the U.S. reportedly set to enforce new tariffs on EV imports from China. 

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Uber opens ‘interest list’ for Waymo robotaxi rides in Austin

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Uber opens 'interest list' for Waymo robotaxi rides in Austin

Dara Khosrowshahi, CEO of Uber, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22, 2025.

Gerry Miller | CNBC

Ride-hailing and food delivery app Uber is opening its “interest list” to users in Austin, Texas, who want to be first in line for Waymo robotaxis there.

The company said in a statement that users will “be able to travel across 37 square miles of Austin — from Hyde Park, to Downtown, to Montopolis” — when the Uber-Waymo service launches soon.

The so-called “interest list” allows users to receive Uber updates and bolsters their odds of being matched with a Waymo autonomous vehicle upon launch.

The vehicles that will be part of the Austin service are Jaguar iPace electric models equipped with Waymo’s driverless systems and labeled with both Waymo and Uber branding.

The Waymo rides in Austin will only be available through the Uber app, unlike in San Francisco and Los Angeles, where riders hail them through the Waymo One app.

In the face of investor pressure to step up its autonomous vehicle strategy after Tesla promised it would soon start producing robotaxis, Uber last year said it had begun testing a ride-hailing app with some of its employees.

While Tesla does not make vehicles that are safe to use without a human driver at the wheel, ready to steer or brake at all times, Elon Musk’s automaker in January said it will “begin launching” a driverless ride-hailing business “later this year” starting in Austin.

According to the Texas Department of Transportation, testing and operating a commercial robotaxi service in the state does not require the same types of special licenses and permits that other states require.

“Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road,” a spokesperson for the department told CNBC by e-mail.

Uber CEO Dara Khosrowshahi is expected to discuss the impact of automated driving systems — or self-driving cars — on the company’s overall business and strategy on a fourth-quarter earnings call on Wednesday.

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Apple shares fall 3% in premarket after China reportedly considers probe into App Store practices

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Apple shares fall 3% in premarket after China reportedly considers probe into App Store practices

China reportedly considers probe into Apple's App Store practices

Apple shares fell on Wednesday after Bloomberg reported that Chinese regulators are considering whether to open a formal probe into the iPhone giant’s App Store fees and policies.

Shares of Apple were down 2.66% at 09:34 a.m. London time in premarket trading.

The State Administration for Market Regulation (SAMR) is looking into policies that include Apple taking a cut of as much as 30% on in-app spending, as well as blocking third-party payment services and app stores, Bloomberg reported Wednesday, citing people familiar with the matter.

China’s market regulator has not decided whether to formally open an investigation into Apple, according to the report.

Apple and China’s Ministry of Commerce was not immediately available for comment when contacted by CNBC.

The news comes as trade tensions between the U.S. and China ramp up under the administration of President Donald Trump, one month into his second term.

Apple has maintained that its strict App Store policies are designed to protect users and improve the experience across its products.

China this week also opened a probe into Google over alleged antitrust violations, although the market regulator did not supply details over the focus of the investigation.

The Financial Times reported on Tuesday that the SAMR is also considering a probe into U.S. chipmaker Intel.

Apple’s App Store has come under scrutiny from regulators globally. It was forced to open up its App Store in Europe, under the sweeping Digital Markets Act in the EU. This means that it now allows non-Apple companies to offer app stores in Europe, and app developers can also use third-party payment systems.

If the China probe goes ahead, it would cause further headache for Apple in one of its biggest markets. The Cupertino giant is already facing stiff competition from local players like Huawei that are eating away at its smartphone market share. Apple sales in Greater China declined 11% year-on-year in the December quarter.

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Toyota Motor posts nearly 28% drop in third-quarter operating profit, missing estimates

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Toyota Motor posts nearly 28% drop in third-quarter operating profit, missing estimates

FILE PHOTO: The logo of Toyota is pictured in Cuautitlan Izcalli, Mexico, January 30, 2025 

Raquel Cunha | Reuters

Japan’s Toyota Motor on Wednesday reported a second consecutive fall in quarterly profit, while announcing that it will set up a new company in China to make electric vehicles as it plays catch up with automakers focused on EVs. 

Here are Toyota’s results compared with estimates from analysts, compiled by LSEG.

  • Revenue: 12.39 trillion yen vs. 12.1 trillion yen
  • Operating profit: 1.22 trillion yen vs. 1.39 trillion yen

The world’s largest automaker by sales volume saw a nearly 28% year-on-year drop in operating profit during the quarter ended December.

The results mark Toyota’s second consecutive year over year decline in operating profit after the company saw profit fall 20% year over year in the previous quarter.

Net income attributable to the company, however, jumped to 2.19 trillion yen from 1.36 trillion yen a year ago.

The automaker’s consolidated vehicle sales for its financial third-quarter dropped to 2.44 million from 2.55 million units a year ago.

Still, Toyota maintained its full-year dividend forecast at 90 yen, compared with a dividend payout of 75 yen a year earlier.

Toyota said it will establish a wholly-owned company for the development and production of Lexus BEVs and batteries in Shanghai, China. The new company is expected to start production in 2027.

Toyota shares rose over 1% in Tokyo on Wednesday.

The company saw its operating profit drop in the key North America region by 113.7 billion yen in the December quarter, year on year, while it declined by over 46 billion yen in Asia. 

Toyota has been slower than competitors at embracing fully battery-powered electric vehicles, and instead has focused on hybrids, according to local reports.

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