Business
Global EV Sales Growth Slows, European Automakers Lose Ground Amid Plug-In Hybrid Surge
Global electric vehicle (EV) sales in July 2024 reached 853,000 units, representing a modest 6% year-on-year growth, according to Bank of America’s latest EV Tracker report. The lukewarm performance raises concerns about the sector’s ability to maintain its growth momentum, particularly as European automakers struggle to keep pace with competitors.
The report highlights a notable underperformance among key European brands, including Stellantis, Volkswagen, and Mercedes-Benz, all of which saw significant declines in market share. Stellantis’ share fell to 2.7% in July, down from 4.0% a year earlier. Volkswagen’s market share dropped to 6.6%, and Mercedes-Benz saw a dip to 1.9%, underscoring the difficulties faced by traditional European car manufacturers in the rapidly evolving EV landscape.
“Electric vehicle sales in Germany are suffering from a high comparison base from last year, when subsidies for company cars expired in September 2023,” noted Bank of America analysts.
While battery electric vehicle (BEV) sales saw slow growth, sales of plug-in hybrid electric vehicles (PHEVs) surged by 58%, driven primarily by strong demand in China. This shift reflects consumer concerns about the range limitations and higher costs associated with fully electric models, particularly in Europe.
BMW Bucks the Trend
Amid the challenges faced by European automakers, BMW defied the broader trend with strong growth in its EV market share. BMW’s electric vehicle sales rose by 40% year-on-year in July 2024, pushing its market share to 4.6%. The i4 and iX1 models, along with the newly launched i5, were cited as key drivers of this success.
Unlike some of its competitors, BMW’s decision to prioritize BEVs over PHEVs appears to be paying off, as it continues to capture a larger share of the market.
BYD Overtakes Tesla, Plug-In Hybrids Lead the Way
Chinese automaker BYD continued its ascent, overtaking Tesla to become the global EV leader with a 17.2% market share in July, up from 14.7% in 2023. However, while BYD’s BEV sales in China fell by 7%, its global plug-in hybrid sales surged by 62%, showcasing a shift in consumer preference.
Tesla, on the other hand, saw its global market share drop to 14%, down from 19.4% in the second quarter of 2023, with a particularly sharp decline in Europe due to rising prices for the Model 3 and import tariffs on vehicles manufactured in China.
Challenges for Europe’s EV Market
One of the key barriers to wider BEV adoption in Europe remains the higher total cost of ownership compared to internal combustion engine vehicles. Despite lower running costs, the high upfront prices and significant depreciation of BEVs have deterred many consumers. In Germany, for example, BEV prices remain 20% higher than traditional vehicles, even after subsidies.
Bank of America analysts have revised their forecast for European BEV sales, now predicting a 2% decline for 2024, highlighting the need for lower prices to drive adoption, regardless of regulatory pressures.
Business
Gary Lineker Places TV Production Company into Voluntary Liquidation Ahead of Tax Rises
Former England footballer and broadcaster Gary Lineker has placed his television production company, Goalhanger Films, into voluntary liquidation as the UK government prepares to raise capital gains tax rates. The move is seen as a strategic decision to minimize tax liabilities before the upcoming increase in tax rates.
Co-owned with former ITV controller Tony Pastor, Goalhanger Films reported net assets exceeding £440,000 in its last published accounts. The liquidation comes in response to the UK government’s announcement in the recent Budget that capital gains tax rates will rise from 10% to 14% in April, with a further increase to 18% in 2025. By liquidating the company now, Lineker and Pastor will be able to take advantage of the current lower tax rate on distributions from the company’s assets.
Tony Pastor confirmed that Goalhanger Films is being “mothballed,” allowing both he and Lineker to focus on their growing podcast venture, Goalhanger Podcasts. The podcast platform, which hosts popular series such as The Rest Is History and The Rest Is Football, reported net assets of nearly £591,000 earlier this year, reflecting the success and rapid growth of the podcasting business.
The liquidation of Goalhanger Films follows the process of Members’ Voluntary Liquidation (MVL), which allows solvent companies to wind down operations in a tax-efficient way. This process enables business owners to treat distributions from retained earnings as capital gains rather than income, potentially yielding significant tax savings under the Business Asset Disposal Relief framework.
Goalhanger Films, launched in 2014, produced high-profile sports documentaries featuring figures like Mohamed Salah and Serena Williams. However, the shift towards podcasts marks Lineker’s strategic adaptation to the evolving media landscape, where podcasts have become a more lucrative and popular format.
Although Lineker stepped down from hosting Match of the Day after a 26-year tenure, he continues to maintain a strong presence at the BBC. He holds contracts to present coverage for major events, including the FA Cup and the 2026 World Cup.
Lineker’s financial move offers valuable lessons for business owners and entrepreneurs, particularly in anticipating tax changes and making timely decisions to maximize financial benefits. Business owners looking to close solvent companies may also find the MVL process an effective way to unlock value efficiently. Additionally, Lineker’s pivot to podcasting highlights the importance of adapting to emerging markets and shifting focus to the most successful ventures.
Business
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