ARI Motors, Volkswagen, BYD – E-mobility between urban niche, China strategy, and ethical boundaries

ARI Motors: EUR 4.40 per 100 km for an urban mobility revolution

Tradespeople are familiar with the problem. A new job is in the middle of the city centre, the tools are too heavy to transport by public transport, and the parking situation is unbearable or unaffordable. This is where the small and agile electric vehicles from ARI Motors come into play. Named after the Japanese term for "ant", the electric runabouts fit into even the narrowest alleys and on pedestrian paths of parks and green spaces.

The models can be charged with fresh electricity both at standard power outlets and at e-charging stations. Electricity costs are only about EUR 4.40 per 100 km at an electricity price of EUR 0.30/kWh - compared to EUR 16–18 for a conventional combustion engine. There are many possible applications. Whether tradespeople or service providers for inner-city deliveries, large companies such as Coca-Cola, Bayer or Schaeffler for trips on the factory premises or for municipal operations, for maintaining public parks and green spaces – ARI is as versatile as its range of models. There are now 50 versions, including a model for ground operations in military bases.

Last year, the Company increased its turnover to EUR 6 million, delivered 236 vehicles and even optimised the after-sales process in several languages by improving the online shopping offer. "Thanks to reliability, good service and the seriousness of our framework agreements, we were able to secure larger order quantities," emphasises CEO Thomas Kuwatsch. The strategy of a low entry-level price of EUR 2,995 is particularly beneficial for companies in times of recession. "Especially in times of crisis, many buyers appreciate the good price-performance ratio of our vehicles," explains Kuwatsch. For the coming financial year 2025, Kuwatsch expects to sell up to 500 vehicles. This risk-conscious forecast is based on the current weak economic situation in Germany, where the Company is based, and the challenging market conditions in the electric mobility sector.

Despite the cautious sales forecast, management remains confident. ARI Motors strives to continuously improve its products and expand its services. Its customers range from the Emil-Nolde-Museum near the German-Danish border down to Lake Constance. So far, its established export markets include Austria, Spain, Italy, the Czech Republic and France. In Portugal, for example, the little ant is used to cultivate olive groves. ARI Motors stands for pragmatic and customer-oriented electromobility.

Volkswagen is strengthening its collaboration with e-vehicle maker XPeng for fast-charging stations

While Volkswagen is cutting around 35,000 jobs in its home country and wants to shrink management salaries, the Company is expanding its cooperation in China with the local EV maker XPeng. Both manufacturers will open their fast-charging networks to each other's users, thus further expanding the nationwide supply of charging infrastructure. The two companies also plan to build jointly branded fast-charging stations.

The dimensions of this agreement are unprecedented: around 20,000 charging stations in 420 Chinese cities will be available to drivers of both brands in the future. Whether an XPeng or Volkswagen driver, both will benefit from the generous coverage.

As early as 2023, Volkswagen acquired a 5% stake in XPeng for around USD 700 million. In addition, two new VW electric vehicle models will be sold in the Chinese market under the XPeng brand by 2026. This Trojan horse strategy is intended to help the German automaker sell more vehicles in China.

XPeng, also known as Xiaopeng Motors, was founded in Guangzhou, China, in 2014 and has a branch in Munich. Its best-known investors include Alibaba, Foxconn and IDG Capital. In addition to electric vehicles, XPeng is also developing autonomous driving technologies, operating systems, and core components for electric vehicles.

BYD: Scandal over illegal Chinese workers in Brazil

The Chinese electric automaker BYD is making headlines in Brazil. A local labour inspectorate has discovered that the Company has brought several hundred Chinese workers with invalid visas to build a factory. But that is not all: the workers are said to be working under slave-like conditions.

The workers slept on beds without mattresses and had no cupboards for their belongings. There was one toilet for every 31 workers. Passports were confiscated, and 60% of wages were withheld. All of this does not reflect well on the Chinese automaker. A total of 500 Chinese workers are said to have been smuggled in, the majority of whom have left Brazil or are about to leave.

Meanwhile, BYD has terminated its cooperation with the contractor Jinjiang, which was allegedly responsible for the working conditions. Now that the inhumane conditions have been made public, BYD has promised to improve and comply with local labour laws for the remaining workers. For BYD, this human rights scandal is a major blow to its brand image.

ARI Motors specialises in small, agile electric transport vehicles. With a turnover of EUR 6 million and 236 vehicles delivered last year, the Germany-based company is demonstrating robust growth. Starting at EUR 2,995 per vehicle, the low-price strategy is proving particularly successful in the tight economic situation. The cautious forecast of 500 vehicles for 2025 shows that management has a realistic approach to business. The strategic partnership between Volkswagen and XPeng points to a significant step in VW's Chinese expansion strategy. There are plans for 20,000 co-branded charging stations in 420 Chinese cities. The development of joint electric vehicle models under the XPeng brand, in which the group holds a 5% stake, could help VW strengthen its position in the Chinese market. BYD has been exposed as a slave-labour operator of 163 Chinese workers and as a major trafficker of illegal visas, with a total of around 500 workers in Brazil on invalid visas. Its promise to comply with local labour laws from now on looks like a cosmetic fix. The damage to its image is unavoidable.