Li Auto, founded in China in 2015 by entrepreneur Li Xiang, is one of several Chinese makers of electric cars listed on the New York stock exchange (NYSE). The carmaker, based in Beijing but with an assembly in the Jiangsu provincial city of Changzhou, counts Meituan as among its investors.
If America really is not afraid of free and fair competition, it must rise to the challenge presented by Chinese electric vehicles and not apply its ‘national security’ brake.
Nio envisions full automation at its plants in future through the use of advanced AI and robotic technologies, vice-president Ji Huaqiang says. The EV maker laid off 10 per cent of its staff this month.
Shanghai-based Nio has formed a partnership with state-owned Changan Automobile to build EVs equipped with battery swapping technology to ease drivers’ range anxiety.
New launches by BYD, the world’s largest electric vehicle (EV) maker, targeting established models by Tesla, leader in China’s premium EV segment, are expected to intensify competition in the world’s largest auto market, analysts said.
Li Auto, Tesla’s closest rival in mainland China, unveiled its first multipurpose vehicle (MPV) on Friday as the electric vehicle (EV) maker looks to expand its customer base in the family segment of the world’s biggest car market.
The carmaker, which saw losses expand to US$537 million in the quarter ended September 30, said it would hand between 59,500 and 63,500 vehicles to customers between October and December, marking an all-time high.
Tesla’s deliveries in mainland China fell 34.2 per cent month on month in October, slipping further following a 32.8 per cent drop in September, according to CPCA. The price increases will push consumers towards rivals, analyst says.
The Shanghai-based company’s lay-offs reflect its effort to stay afloat amid escalating competition in the world’s largest EV market and rising losses.
China’s premium EV makers report bumper October sales as technology-packed vehicles continue to find favour with wealthy buyers.
The 14,000 yuan (US$1,917) increase comes after Tesla reported a 32.8 per cent month-on-month sales decline on the mainland in September and could signal a shift to prioritising profit over volume, an analyst says.
Chinese EV start-up Xpeng plans to expand the use of its semi-autonomous driving technology to 50 mainland cities by the end of the year and nationwide by the end of 2024.
Aito sold 60,000 units of the M7 in a month, resulting in delivery delays and underlining the strong demand for domestic EVs in the sizzling mainland China market long dominated by Tesla.
The Gigafactory in Shanghai delivered 12 per cent fewer cars in September – bucking the market trend – as Tesla upgraded its mainland China plant ahead of the launch of a revamped Model 3.
China’s EV market is expected to maintain strong growth momentum in the fourth quarter of 2023, thanks to new launches and discounts offered by carmakers, industry players and observers said.
China’s fast growing electric vehicle market has seen a proliferation of manufacturers at a time when demand was boosted by government subsidies. But rising costs and slowing demand are beginning to weigh on the smaller players who are now faced with the risk of elimination.
The carmaker, one of China’s EV marques, broke monthly sales records again, riding on robust demand in the world’s largest EV market.
The company started European sales of two models just weeks ago and plans to add another seven by 2025, but its aspirations could run into a roadblock should the European Union impose extra import tariffs on Chinese EVs.
The company believes a technology-heavy owner experience, supported by the phone’s more than 30 car-specific features, will give it an edge in a sizzling but crowded market.
German luxury carmaker BMW expects to sell more units in China this year, CFO Walter Mertl says, adding that the firm has not been affected by a price war in the cheaper segment of the local market.
Li Auto and BYD, two of China’s top electric vehicle marques, broke monthly sales records in August as they benefited from a release of pent-up demand in the world’s largest EV market.
The new basic edition of the Model 3 is priced at 259,900 yuan (US$35,783) and can go as far as 606km on a single charge. Tesla’s sales fell 58 per cent month on month in July.
Chinese EV start-up Nio predicts its deliveries will soar by as much as 80 per cent as it reported a net loss for the second quarter that had widened by 27.8 per cent on the year to 6.1 billion yuan (US$836 million).
The upbeat delivery estimates were presented after Xpeng reported that its net loss for the second quarter widened by 19.7 per cent.
Tesla has cut prices of the Long Range and Performance versions of the Model Y SUV by 4 per cent each. The move follows cuts by Chinese EV makers who have slashed prices of some models by up to 10 per cent.
The Beijing-based carmaker says third-quarter deliveries should reach 100,000 to 103,000 units as it reports record second-quarter profit and revenue.
Chinese consumers’ mania for electric vehicles has driven the stocks of leading carmakers in a two month rally that has seen some of them double in value dwarfing the market benchmark’s gains.
Strong sales for BYD, Li Auto and Nio, which follow a price war earlier in 2023 that failed to spark demand, have helped put the country’s electric car sector back on the fast track, and are likely to offer the slowing national economy a much-needed boost.
AI development in China could be difficult in the near term, but that problem can be solved in the long run, says BRV China managing partner Jui Tan.
China’s electric vehicle battery industry will face severe overcapacity in the next two years, which could lead to the closure of many small players, analysts say.
The market expects monthly orders for the G6 to reach at least 10,000 units, in line with the company’s expectations. Output and delivery in the third quarter are likely to reach 19,000 to 24,000 units, according to Citi’s estimates.