Tag Archives: EU

NEWS

Europe plans to ban carbon fibre use before making a ‘U-turn’

Did you know that the European Union had recently proposed a ban on the use of carbon fibre in vehicle construction by the year 2029?

However, the proposal to prohibit the use of this lightweight material has been retracted, according to a recent report by Motor1 Italia.

In a legal amendment enacted last January, the EU intended to add carbon fibre to the list of hazardous materials, which includes mercury, lead, and cadmium.

This decision was based on concerns that during the vehicle disposal process, detached carbon fibre filaments could become airborne and pose a risk if they come into contact with human skin.

Authorities also determined that this material could damage the recycling machinery used.

The automotive industry accounts for 20 percent of global carbon fibre production.

Due to its lightweight and durable properties, carbon fibre has become an essential material for the construction of high-performance vehicles, including chassis, seats, and side mirrors. Some manufacturers even use the same material to create lighter rims.

Carbon fibre is also a primary material in electric vehicles, aimed at reducing weight and contributing to longer driving ranges.

Fortunately, the move to ban the use of this material will not be pursued.

If it had been, there would have surely been strong opposition from most automotive manufacturers worldwide.

NEWS

BYD to open RM4.7 billion plant in Turkiye to avoid tariffs

BYD has reportedly agreed to invest $1 billion in an assembly plant in Turkiye as part of its efforts to further expand its brand into the European region.

BYD’s Chairman Wang Chuanfu and Turkiye’s Minister of Industry and Technology Mehmet Fatih Kacir signed an investment deal in Istanbul, witnessed by President of Turkiye, Recep Tayyip Erdogan.

Local media reports claim the manufacturing plant will have an annual production capacity of up to 150,000 vehicles and is expected to create around 5,000 job opportunities.

The plant is expected to commence operations by the end of 2026. However, the specific models to be assembled at the upcoming facility are currently unknown.

The deal comes hot on the heels of the European Union (EU) slapping extra provisional tariffs of up to 38% on EVs imported from China.

To make matters worse for the Chinese manufacturers, Turkiye had previously announced a 40% import tariff on all vehicles from China to protect its automotive industry.

But by establishing an assembly plant in Turkiye, BYD can now bring its cars into Europe without having to deal with the import tariffs, as Turkiye is part of EU’s Customs Union.

China is the world’s largest EV producer, and with the fierce price war in the country, Chinese EV makers have been aggressively exporting their cars overseas.

The influx of Chinese EVs has led several countries to impose high tariffs not only on EVs but also various goods from China to protect their economies.

One way to avoid these tariffs is by starting local assembly operations. BYD has started making its move in the Old Continent with the announcement of assembly plants in Hungary and Turkiye.

On top of that, the brand has recently launched an assembly plant in Rayong, Thailand, cementing its presence in the Southeast Asian region.