News summary about emerging EV makers

Here you will find trending news topics in the automotive and mobility markets around the world.

We carefully select interesting news in the automotive industry, both domestic and international, and translate and summarize the contents for your reference. We hope you will find it useful in catching up with the latest news in the industry.

Up to 650,000 yen off, a loss of 150,000 yen per unit sold… Which is the future of the Chinese EV market, which is going through a catastrophic price war?

May 2, 2024 by Tokyo Shimbun

China’s automotive market continues to experience intense price competition for new energy vehicles. In particular, in the electric vehicle (EV) market, the Chinese government’s promotion policy and the economic downturn have led automakers to engage in extreme price competition to increase sales and attract consumers.

The Chinese government is offering subsidies and preferential policies to promote new energy vehicles. However, this may cause overproduction and trade friction, raising concerns about the health of the market.

Looking at manufacturers that exhibited at the Beijing Motor Show, Xiaomi, a major consumer electronics company that announced sales of its new EV at the end of March, overwhelmed the entire industry with its cost performance that was prepared to lose money. The company has been overwhelming the entire industry with its loss-paying cost performance. It has not only attracted Chinese automakers but also foreign automakers in a price war. In addition, at the same event, NETA, a new Chinese EV brand, cut prices, and South Korea’s Kia Motors also moved to stir up consumers’ purchasing motivation by offering substantial discounts and savings.

On the other hand, there is debate over whether such price competition is a sustainable business model. Some major Japanese automakers, such as Honda and Mazda, and some automakers, such as the emerging Chinese EV maker NIO, have expressed concern about lowering prices without regard to profitability, pointing out the need to consider the long-term interests of customers.

While price competition in the Chinese auto market can lead to a temporary increase in sales, it can also affect the stability and sustainability of the market. It is important that automakers and the government take appropriate measures to maintain a healthy market environment.

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Chinese EV maker NIO to unveil first mass-market model by the end of the month = executives

May 7, 2024 By Reuters

Chinese electric vehicle manufacturer NIO has launched a new mass-market vehicle brand and announced plans to launch a new model this month.In addition, the company plans to launch a small EV for the European market in 2023.

CEO Bin Li established the sub-brand Onvo to launch new EVs to compete with Tesla’s Model Y. NIO will launch two new brands for the European market, the first model of which, Onvo, will be launched this year, while the other brand, Firefly, cars expected to be unveiled in 2025. These brands are linked to NIO’s fast battery replacement stations in China, where batteries can be changed in a matter of minutes.

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Lucid, an emerging U.S. EV company, expects increased capital investment this year.

May 7, 2024 by Reuters

Lucid Group, an emerging U.S. EV manufacturer, will increase its capital investment this year compared to the previous year to prepare for the production of its new Gravity SUV. On the other hand, the company explained lower-than-expected production of 9,000 units and the balance between supply and demand. The stock price temporarily fell 9%. CEO Peter Rawlinson emphasized production matching demand and avoiding unnecessary inventory. Q1 sales exceeded analyst expectations and net income/(loss) narrowed YoY.

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