European markets and US stock futures are trading lower. This anticipated decline is largely attributed to President Donald Trump's recent announcement of a 25% tariff on imported cars and light trucks, set to take effect on April 3. 

 

The automotive sector, a significant component of both economies, is at the forefront of investor concerns.

 

In the US, futures for major indices such as the Dow Jones Industrial Average and the S&P 500 indicate a downward opening. Automotive giants like General Motors and Ford have already experienced notable share price declines, reflecting apprehensions about increased production costs and potential decreases in sales volumes. 

 

Analysts warn that these tariffs could lead to higher vehicle prices for consumers, potentially adding between $5,000 to $15,000 to the cost of imported cars and $3,000 to $8,000 for domestically produced vehicles that rely on foreign parts. 

 

This surge in prices is expected to contribute to elevated inflationary pressures throughout the year.

 

European markets are similarly impacted, with futures pointing to a lower open. The pan-European STOXX 600 index has seen declines, particularly within the automotive sector. 

 

Companies such as BMW and Volkswagen have reported share price drops, as investors react to the potential challenges posed by US tariffs on European car exports. 

 

The European Union has expressed strong opposition to the tariffs, with officials indicating readiness to implement retaliatory measures, thereby escalating trade tensions further.

 

The implementation of these tariffs has intensified fears of a global trade war. The automotive industry, deeply integrated into international supply chains, faces significant disruptions. 

 

The prospect of retaliatory tariffs from affected countries adds to the uncertainty, prompting investors to reassess risk exposures and leading to a sell-off in equities, especially within the automotive sector.

 

The anticipated increase in vehicle prices due to tariffs is expected to contribute to higher overall inflation rates. We project that the tariffs could push the overall inflation rate higher by 0.4 percentage points, impacting personal consumption expenditures and potentially leading to an annual core PCE increase of 2.8%. 

 

This scenario complicates monetary policy decisions, as central banks may face challenges in balancing inflation control with supporting economic growth.

 

These developments underscore the fragility of global markets in the face of geopolitical tensions and highlight the need for investors to remain vigilant amid rapidly evolving trade policies.

 

The situation remains fluid, and market participants are advised to monitor ongoing negotiations and policy announcements closely.-TradeArabia News Service

Chinese automobile manufacturer Chery, in partnership with AW Rostamani, the official and sole distributor of Chery in the UAE, has revealed the facelifted Tiggo 4 in the UAE, under the slogan “Cross Wonderful Life”.

 

The revamped compact SUV combines modern design elements with advanced safety features and a comfortable interior, making it a compelling choice for families and urban drivers alike, said the group.

 

With a bold exterior, the new Tiggo 4 showcases Chery's signature "Tiger Face" flashing a biomimetic tiger face front design that exudes strength and sophistication. 

 

The vehicle features a new fog lamp contour, innovative tiger claw headlights, a starry diamond-shaped grille, and vertical crystal outline marker lamps, with a dynamic side view poised for action. 

At the rear, it boasts a wide contour and a mesmerizing tiger stripe through the tail lamp.

 

"The refreshed model boasts a new sporty design for the seats with headrests integrated in the front seats for a youthful look. In line with Chery’s safety-first philosophy, the car features an auto body structure with dual front airbags, ensuring essential driver and passenger protection, in addition to a body anti-theft alarm and a rear radar," said a company spokesman.

 

The new-look model also boasts a 50W fast charging port taking a smartphone’s battery from 0% to 50% in 30 minutes. The wireless Android Auto and Apple CarPlay (AA+CP) allows for seamless connectivity with a Bluetooth mobile phone hands-free system, he stated. 

 

Furthermore, the voice-activated sunroof operation, the Follow-Me-Home headlight function, the rear view camera with dynamic guides, and the premium 4-speaker Stereo system pave the way for a pleasant ride, he added.

 

The refreshed Tiggo 4 is now available in four modern colors - Moonlight Silver, Black, White and Phantom Grey – with customizable interior colours.-TradeArabia News Service

Škoda Auto, which experienced a strong growth in sales globally and in the Middle East, is expanding its presence in the Middle East from three markets in 2024 to eight markets including Saudi Arabia, with eight new sales, aftersales and used car facilities set to open by the end of 2025.

 

Škoda Auto delivered 926,600 vehicles to customers worldwide in 2024 – a year-on-year increase of 6.9% despite a very dynamic market environment. 

 

Germany remained the company’s largest market, with 187,100 vehicles delivered, representing an increase of 29,200 cars compared to 2023. The updated Octavia maintained its status as Škoda’s top-selling model, with 215,700 units delivered (+12.4%). 

 

This performance comes as Škoda Auto proudly celebrates its 130th anniversary, marking over a century of automotive excellence and reinforcing its commitment to innovation and customer satisfaction.

 

The company’s expansion in the Middle East has also gained momentum over the past 12 months, with the region reporting continued growth in sales, driven notably by growing interest in UAE and strong demand in Kuwait, which recorded impressive 62% year-on-year growth. With a dynamic product portfolio and network expansion that will see the launch of multiple new facilities, Škoda is well-positioned for continued growth across the region in 2025, the company said.

 

Middle East success and strategic focus  

The year 2024 marked a period of significant groundwork for Škoda Middle East, focused on the establishment of partnerships, processes, contracts and internal systems, laying a solid foundation for sustained growth. Additionally, Škoda introduced a completely new model, the Kushaq Monte Carlo, alongside three facelifted models—the Karoq, Kamiq and Scala, catering to evolving customer preferences and strengthening the product offering in the region. Škoda’s most popular model in the Middle East has been the Kodiaq, followed by the Kushaq, reflecting strong customer demand for the brand’s versatile SUV lineup. Kuwait emerged as the fastest-growing regional market in 2024, highlighting the brand’s growing appeal and the effectiveness of localised strategies.

 

Looking ahead, Škoda will be taking an even more future-oriented approach by establishing a stronger regional network to deliver further growth and seamless customer experience. The brand is set to expand its presence from three markets in 2024 to eight markets by the end of 2025, with the opening of eight new sales, aftersales and used car facilities across the Middle East.

 

As part of its regional expansion to bring its products and services closer to customers, Škoda has recently launched its presence in Oman and is set to officially commence operations in Saudi Arabia in the first half of 2025. In the UAE, two fully digital Škoda lifestyle-designed showrooms will be opened in Abu Dhabi and Dubai in the upcoming months, followed by a state-of-the-art service facility in Dubai in the summer, further enhancing aftersales support. 

 

In addition to expanding its network, Škoda will further strengthen its’ portfolio by launching three key models in 2025.

 

The all-new Kodiaq NG, the brand’s flagship SUV, that saw its regional premiere earlier in January 2025 is set to make a significant impact, proven to be the ideal 7-seater for active Middle East families and explorers alike.

 

In the first half of the year, Škoda will also introduce the highly anticipated Octavia facelift, including its sporty performance variant, the Octavia VRS. The Octavia remains Škoda’s best-selling model worldwide, demonstrating its enduring popularity and appeal across markets. Later in the year, Škoda will debut the next-generation Superb, a luxury sedan designed to meet the expectations of the most discerning customers, offering premium craftsmanship, spacious interiors and advanced technology.

 

These developments highlight Škoda’s unwavering focus on delivering European craftsmanship and engineering excellence, tailored to the unique needs of Middle Eastern drivers. The brand’s expansion and new product introductions reflect its dedication to providing innovative mobility solutions and enhancing the customer experience at every touchpoint.

 

Lukas Honzak, Managing Director of Škoda Middle East, said: “The Middle East is a unique and dynamic region, where the automotive market is evolving rapidly. What stands out in 2024 is how deeply connected our growth has been to understanding the specific needs of this region. This reflects the success of our customer-first approach and our commitment to offering vehicles that resonate with local lifestyles. Looking ahead, 2025 is set to be transformative. We’re not just growing geographically; We are opening new showrooms and service centres to be closer to our customers, and bringing completely refreshed line up of affordable sedans and SUVs.. Škoda’s combination of European craftsmanship, advanced technology, and adaptability puts us in a strong position to build lasting relationships in the Middle East and take our regional story to new heights.” – TradeArabia News Service