AD #4282 – Honda Stops Selling Cars in Korea; EVs Drive Growth in Europe; Tiny Smart Car Makes a Comeback

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

ELECTRIC CARS DRIVE GROWTH IN EUROPE
European automakers had a blow-out month in March. They sold 1.58 million cars, up more than 11%. That’s a good number considering the Chinese market was only 1.6 million units last month. Thanks to high fuel prices, sales of EVs shot up 42% in Europe. PHEVs were up 32% and hybrids were up 15%. Sales of gas cars fell 10% and diesels were down 14%. BYD gained the most of any automaker, up 155%. Even so, Tesla, which was up more than 100%, outsold BYD. BMW also posted big gains, up 20%, largely thanks to a 27% increase at Mini.

TESLA HAS MIXED Q1
Speaking of Tesla, it posted its Q1 numbers and investors got an upside surprise. Analysts were sure Tesla would report negative cash flow. Instead, it reported $1.4 billion of positive cash flow, up 117% compared to last year, and up slightly from Q4. After that, the numbers are kind of mixed. Tesla sold more than 358,000 vehicles, up 6% from a year ago, but down 14% from Q4. Total revenue hit $22.3 billion, up 16% from a year ago, but down 10% from Q4. It posted a net profit of $477 million, up 17%, but dropped a significant 43% compared to Q4. Investors didn’t like those up and down numbers. Tesla stock was down 3% in pre-market trading.

           

HYUNDAI HAS TOUGH 1ST QUARTER
Hyundai had a really tough first quarter. It sold 976,000 vehicles, down 2.5%. Even so, revenue rose 3.4% to $31 billion. But then tariffs in the U.S. and market disruptions caused by the war in Iran came home to bite it. Hyundai’s operating profit of $1.7 billion was down 31%. And its net profit fell 24% to $1.7 billion. Hyundai’s stock was down 1.6% on the news. We expect Kia to post its earnings soon and we’ll see if it fared any better.

HONDA STOPS SELLING CARS IN KOREA
Honda seems to be retreating all around the world. It closed down its Afeela program with Sony. It cancelled part of its EV program, with three cars that were just about to hit the market. Its top executives are taking a 3-month pay cut. And now comes the latest. Hondas will stop selling cars in South Korea at the end of the year. The company says the reasons are changes in the market and the need to strengthen its mid-to-long term competitiveness. But its also got something to do with sales. Honda sold fewer than 2,000 cars there last year, down 22%. And since its debut in 2004, it has only sold 108,600 vehicles in South Korea. But while Honda will no longer sell cars in the country, it will continue to sell motorcycles.

U.S. INSTALLS 3,400 CHARGING PLUGS IN Q1
Even though EV sales have cooled off significantly in the U.S., charging companies continue to install new plugs. According to EV charging data platform Paren, nearly 3,400 new DC charging plugs were installed and 617 new stations opened in the first quarter. Surprisingly, non-Tesla charging networks are installing significantly more CCS than NACS connectors, 2,100 vs. 600 respectively, even though many new EVs now come standard with a NACS port.

U.S. EV RENTALS TAKING OFF
While the market for new EVs isn’t great in the U.S., rentals of electric vehicles are taking off because of rising gasoline prices. Hertz says that requests for EV reservations increased 25% in March compared to February. At rental company Turo, EV reservations increased 11% the last three weeks of March compared to the prior three-week period. Then on March 31, when gas topped $4 per gallon, EV bookings on Turo were 47% higher than on the same day a year ago. And online rental company Car Rental Getaway says that EV and hybrid bookings increased 16% last month.

TINY SMART CAR MAKES A COMEBACK
The tiny little smart car is making a comeback. The brand, which is now a joint venture between Mercedes and Geely, revealed the smart #2 concept at the Beijing auto show. Its styling is not all that different from the most recent version of the smart fortwo, but it now rides on a new Electric Compact Architecture that offers a number of upgrades. For example, the all-electric fortwo had an EPA range of only 58 miles, but the #2 will offer an estimated 186 miles or 300 kilometers of range. Although, we will note that’s based on the easier WLTP test cycle. The #2 will also offer faster charging and its interior will take inspiration from the smart #1, which is an all-electric compact CUV. No word on when the #2 will go on sale, but the production version will be revealed at the Paris auto show in October. It will be built in China and sold in both China and Europe.

BMW 7 SERIES GETS NEUE KLASSE TECH
BMW is showing off the refreshed version of its flagship sedan, the 7 Series, which in our opinion has a better execution of the front-end design. This is not based on BMW’s Neue Klasse platform but it does get some Neue Klasse technology. It features the latest generation of BMW’s iDrive system, which runs on its new operating system. It not only supports things like an AI voice assistant but also a passenger side display and an upgraded rear theater screen. All versions of the 7 Series are electrified with 48-volt tech on both gas and diesel engines as well as plug-in hybrid and full battery electric options. BMW’s new cylindrical battery cells help boost range up to 720 kilometers or nearly 450 miles on the WLTP test cycle. Production and market launch of the new 7 Series kicks off in July.

IT’S REMAN DAY!
Hey, do you know what today is? It’s Reman Day. It’s a global recognition of the importance of remanufacturing. Just about everything in a car can be remanufactured. Some of the most popular include engines, transmissions, alternators, brake calipers, turbo chargers and electronic control units. Plenty of other industries remanufacture products too, including everything from medical devices, to computers and furniture. Reman products typically cost 25% to 50% less than new parts. And they’re also good for the environment. ZF says the carbon footprint of the Class 8 air compressors that it remanufactures is 60% lower than a brand new one. That’s because remanufacturing retains the “embedded energy” that went into making the part in the first place. So Happy Reman Day, everybody!

Ford lost money last year, but CEO Jim Farley got a bigger paycheck. General Motors saw its profit fall 55% in 2025. But CEO Mary Barra made more money. And GM is paying Sterling Anderson $40 million just to come work at the company. Have executive pay packages spun out of control? That’s one of the topics we’ll get into on Autoline After Hours later today. We have Jan Griffiths, the author of AutoCulture 2.0 and Jackie Charniga from the Detroit Free Press coming on the show. So join John and Gary when it goes live at 3 pm eastern.

And that wraps up today’s report. Thanks for tuning in to Autoline Daily.