Huawei and Xiaomi launch new EV models in China, reigniting worries about price wars in the world’s largest EV market
- Aito, an EV brand backed by telecoms equipment giant Huawei, reports strong order book ahead of a new car model launch by smartphone vendor Xiaomi
- The 200 odd EV manufacturers in the country, fighting for a share of the pie, could renew a price war in the coming months in a bid to survive
New electric vehicle (EV) models with advanced features like augmented reality technology, autonomous-driving capability in urban areas and long driving range are piling the pressure on the laggards in China’s car market, the world’s biggest, where many are yet to turn a profit, increasing the chances of consolidation.
The 200 odd EV manufacturers in the country, fighting for a share of the pie, could renew a price war in the coming months in a bid to survive, analysts say.
“The new electric vehicles in the market appear to be competitive in performance and pricing,” said Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service. “A mild sales growth in the overall market will not be enough to ease pressure on the unprofitable carmakers.”
On Tuesday, Aito, an EV brand backed by telecommunications equipment giant Huawei Technologies, said it had booked 54,000 orders for its flagship sport-utility vehicle (SUV) M9 since presale began on September 25, with the first batch of cars likely to be delivered in late January.
Smartphone vendor Xiaomi, which will unveil details of its first EV model, the SU7, on Thursday, plans to begin trial production of the electric sedan in the coming months, according to its CEO Lei Jun.
Geely’s premium EV unit Zeekr will start to hand customers its 007 sedan beginning January 1, after getting 25,000 orders for the model within nine days of its presale starting on November 17.