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- [00:02]
Sarah Rogers
Is one of India's biggest EV makers losing its spark. Live from the UK this is the Marketplace morning report from the BBC World Service. I'm Sarah Rogers in for Liana Byrne. Good morning. Let's start in India where shares of EV maker Ola Electric hit a record low. It follows allegations the company has defaulted on payments. Shares recovered in Tuesday's trading but are still down on the price of its public debut six months ago. The BBC's Archana Shukla joins us on Marketplace from Mumbai. Hello.
- [00:32]
Archana Shukla
Hello Sarah.
- [00:33]
Sarah Rogers
Okay, so just fill us in on Ola Electric and give us some of the context there.
- [00:37]
Archana Shukla
Ola Electric is one of the first few startup success stories from India. They started as a ride hailing service company but quickly expanded to making and selling electric vehicles. In fact, for the first five years they kind of dominated the sector. They attracted big money from marquee investors like Tiger Global and Japan SoftBank. Till a few months ago, they were the largest selling electric two wheeler company in the country and the first EV company to list in the stock markets amid much fanfare.
- [01:05]
Sarah Rogers
So we saw the share prices dropped to a record low. What's gone so wrong for them?
- [01:09]
Archana Shukla
It kind of reflects both one, a waning investor hype because this was part of the initial startup success story and we've seen a lot of these startups actually losing out in the market now that they come to an established space. And secondly, it is also an internal struggle from this unsustainable growth path that they have been on. In fact, they listed last year and they've already lost 70% of the value from the highs of the stock. Some of the troubles are really deep rooted. They were the top seller once, but they're facing tough competition in the market from the new entrants also because they've been trying to sell these vehicles directly to consumers, bypassing the dealership. But more than that, there have been numerous consumer complaints on quality and service of its vehicles. And the latest where the stock went to a record lows on Monday was after one of its key creditor took one of the subsidiaries to court over payment defaults asking for it to be liquidated. While the company is denied that claim, they say they are seeking legal advice.
- [02:10]
Sarah Rogers
And is what's happening here at Aller Electric sort of indicative of the broader market sentiment towards electric vehicle makers?
- [02:17]
Archana Shukla
Well, there has been a very fast paced adoption of electric vehicles in the market in India and the government has been giving a lot of subsidies to these electric vehicle makers. Where it fails even now is the electric charging stations as well as the other logistical infrastructure in for electric vehicles in India. So while customers want to buy these, there is still a challenge of how will I charge my scooter? What is the battery life of my vehicle? So that has been one of the big question marks. But I would still say that it is the fastest growing EV market reason why the Tesla's of the world want to sell their vehicles here. And there is a lot of demand and a lot of opportunity for EV makers.
- [03:00]
Sarah Rogers
Archana Shukla, thanks for joining us on Marketplace.
- [03:03]
Archana Shukla
Thank you, Sarah.
- [03:05]
Sarah Rogers
But in better news for one EV company, China's BYD has revealed what it's called, the Super E platform says could make charging your car as fast as filling it up with gas. Shares jumped over 6% to an all time high after claims this system could power a car for almost 250 miles after just five minutes of charging. Sticking with the automotive industry. And audi has announced seven and a half thousand job cuts in Germany, 8% of its global workforce. It said it was facing immense challenges following slowing demand for electric vehicles and rising competition from China. Okay, let's do the numbers. Hong Kong stocks hit a three year high. The Hang Seng closed up 2.5% driven by tech gains and data suggesting the economy was improving. Baidu shares were up 12.2% after it launched two new AI models. And Alibaba also climbed 5.8%. Germany's parliament is meeting today for a landmark vote to rewrite its rules on government borrowing to allow for billions of dollars of defence spending. The incoming Chancellor Friedrich Mertz's bill also includes 540 billion dol billion fund for infrastructure. Now, Germany may be six and a half thousand miles away from Peru, but a farmer there, Sal Luciano Yuya, is bringing a landmark climate case against one of its largest energy companies, rwe. He's seeking damages arguing global warming, fueled by the firm's historical greenhouse gas emissions ultimately poses a risk to his home. He's been working on the case for 10 years, but he was in Germany yesterday for an initial hearing. He told reporters why he decided to take RWE to court.
- [04:47]
Sal Luciano Yuya
I decided to sue RWE because it is one of the biggest polluters in Europe. And according to a specialized study, it is also one of the contributors to the climate crisis. I am here to attend the court. Ham court because of the climate crisis in Juarez. The mountains, the glaciers are melting and that has caused rich risks to life. And I am here to ask for climate justice.
- [05:13]
Sarah Rogers
So Luciano Yuya, rwe, which has never operated in Peru, argues that a single emitter of carbon dioxide cannot be held responsible for global warming. Noel Walker Crawford has been advising Mr. Yuya. He's a research fellow at the London School of Economics and an advisor to the non profit group German Watch.
- [05:31]
Noel Walker Crawford
The court reaffirmed their opinion. They've stated before that companies like rwe, major greenhouse gas emitters, can be held liable under German law. So in principle, they say, companies can be held legally responsible for their contribution to climate change. And so this case is now in the evidentiary stage. So the court is looking at whether there's enough evidence to prove this responsibility, to prove this link between RWE in Germany and the plaintiff and the risk to his house in Peru in this specific case. But it's important to say that even if the case is lost at this point, if the court says that the risk isn't quite high enough, the court will still put their legal opinion into a verdict saying that in principle, companies can be held viable.
- [06:18]
Sarah Rogers
Noel Walker Crawford. The case is expected to last several weeks. And that's it for Marketplace. Morning Report from the BBC World Service in the uk, I'm Sarah Rogers. Thanks for listening.
- [06:33]
Janelie Espinal
Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our feels about money. And while uncertainty is the only constant these days, it's also a great reason to get serious about understanding personal finance. I'm Janelie Espinal, host of Financially Inclined, a podcast from Marketplace that makes learning about money simple. Learn about practical skills like negotiating job offers, dealing with money and friendship and love, entrepreneurship and student loans. Get serious about your money and build a life you've always dreamed of. Listen to Financially Inclined wherever you get your podcasts.