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
Regulatory Reform Urged to Boost UK Investment and Green Initiatives
Business
Report Calls for Doubling of Remote Gaming Duty to Address Gambling Harm and Fiscal Shortfall
The Social Market Foundation (SMF) has released a report recommending a substantial increase in the Remote Gaming Duty from the current 21% to 42%. This proposed change could potentially generate up to £900 million for the UK Treasury, as the country grapples with a £22 billion fiscal shortfall.
The report, authored by Dr. James Noyes and Dr. Aveek Bhattacharya, highlights the increasing financial burden associated with online gambling, particularly in the realm of casino gaming, which has been linked to heightened rates of gambling-related harm. Fiscal costs associated with this issue are estimated to exceed £1 billion, prompting calls for a reevaluation of how the sector is taxed.
The authors argue that the online gambling sector is currently undertaxed compared to its counterparts in other countries, where operators face higher tax rates. They contend that the UK government has a significant opportunity to modernize its outdated tax system while addressing the social costs tied to gambling, including addiction and related health issues.
In recent years, the surge in online gambling, accelerated by the pandemic, has raised concerns about its impact on public health. Many experts believe that the current tax framework does not adequately reflect the economic and social implications of the industry. By increasing the Remote Gaming Duty, the government could not only bolster public finances but also invest in programs aimed at mitigating gambling-related harm.
The report emphasizes that the increased tax revenue could be earmarked for initiatives designed to support those affected by gambling addiction, funding education and treatment programs, and improving resources for gambling harm prevention.
Critics of the current tax structure argue that the existing rates do not align with the industry’s rapid growth, leading to a disconnect between the benefits enjoyed by operators and the social costs incurred by society. The SMF’s recommendations aim to bridge this gap by ensuring that the online gambling sector contributes its fair share to the economy while addressing the negative consequences of its activities.
As the government seeks to address its fiscal challenges, the SMF’s report may serve as a catalyst for discussions about reforming gambling taxation. With the potential to generate substantial revenue while prioritizing public health, the proposal could reshape the landscape of online gambling in the UK for years to come.
As stakeholders from various sectors weigh in on the report’s findings, the debate over how best to regulate and tax the online gambling industry is set to intensify, highlighting the complex interplay between economic opportunity and social responsibility.
Business
Faith-Based Schools Challenge New VAT Policy Amid Concerns Over Discrimination
Emmanuel School in Derby, the Branch Christian School in Yorkshire, and the King’s School in Hampshire have joined forces with concerned parents to challenge the UK government’s proposed Value Added Tax (VAT) on school fees. The claimants argue that the tax discriminates against faith-based schools and families, potentially making Christian education unaffordable and threatening the viability of many institutions.
In a letter addressed to the government, the schools and parents assert that the VAT imposition breaches human rights laws and fails to adhere to legal standards. They describe the decision to impose VAT on education—historically exempt from such taxes in the UK—as unprecedented and unjust. Their legal team contends that this policy disproportionately affects Christian schools, which typically operate on tighter budgets and charge lower fees compared to larger independent schools.
The claimants further argue that the VAT policy infringes upon anti-discrimination rights outlined in the European Convention on Human Rights, which is integrated into UK law through the Human Rights Act 1998. Caroline Santer, headteacher at the King’s School, criticized the government’s proposal as “ill thought out,” emphasizing that families who opt for faith-based education often forego other luxuries, including holidays and extracurricular activities, to afford tuition.
Parents like Stephen White voiced concerns that the new tax could force them to resort to homeschooling their children, as they are unwilling to enroll them in secular state schools. “It’s an impossible situation,” White said. “We want our children to have a Christian education, but this tax could make that impossible.”
Andrea Williams, chief executive of the Christian Legal Centre, which is supporting the legal challenge, echoed these sentiments. She warned that the VAT charge would make independent faith-based schooling unaffordable for many families and could lead to the closure of smaller faith-based schools.
This legal challenge arises amid broader criticism of the VAT policy from education unions and private school associations, which have urged Chancellor Rachel Reeves to postpone the tax’s implementation scheduled for January. Despite the mounting pressure, the government remains steadfast in its commitment to the tax, asserting it will generate £1.5 billion to bolster state education and hire 6,500 new teachers.
The situation reflects a growing concern regarding the implications of the VAT on school fees for faith-based and smaller independent schools. The Treasury has been contacted for comment but has yet to respond to the unfolding controversy. As the legal challenge progresses, the future of Christian education in the UK hangs in the balance.
-
Featured1 month ago
Trump’s Claim About School-Given Gender-Affirming Surgeries for Kids Proven False
-
Politics1 week ago
Civil Rights Groups Sue Georgia to Extend Voter Registration Deadline Post-Hurricane Helene
-
Technology1 month ago
Sakana.AI Unveils AI Model Capable of Automating Scientific Research
-
Business1 week ago
UK Data Centre Expansion Needed to Maintain Global AI Competitiveness
-
Technology1 month ago
CMA Accuses Google of Illegal Practices in New Competition Probe
-
Featured1 month ago
Trump Mulls Second Debate with Harris Amid Fallout from First Showdown
-
Featured1 month ago
Biden Administration Faces Challenges in Gaza Ceasefire Negotiations
-
Featured1 month ago
2024 Presidential Race Intensifies as Ballots Begin to Go Out