Daily Archive: May 18, 2023

Price competition in China auto industry poised to ease in May, analysts say

Discounts on passenger cars in China continued to expand in April, but the industry is seeing some positive changes heading into May.

Price competition in China auto industry poised to ease in May, analysts say-CnEVPost

(Image credit: CnEVPost)

The price wars that erupted in the Chinese auto industry in March carried over into April. However, analysts see fewer car discounts heading into May.

Discounts on passenger cars in China continued to expand in April, but the industry saw some positive changes heading into May, with price competition, especially for fuel vehicles, expected to ease, said CITIC Securities analyst Zhang Ruohai's team in a research note today.

These changes include the fact that some automakers are no longer offering increased discounts to dealers, and have even scaled back compared to the first quarter, according to the team.

With China allowing some fuel models based on existing emission standards to extend their sales period by six months until the end of this year, there is much less urgency for these models to clear inventory in the short term, the team noted.

In addition, inventory levels in the Chinese auto industry fell in April, with dealer inventory levels returning to a relatively balanced position, the team said.

From January to April, discounts offered by the Chinese auto industry were generally increasing, with actual selling price to manufacturer guide price ratios of 91.3 percent, 92.4 percent, 90.8 percent and 90.2 percent, respectively, according to an indicator compiled by the team.

This means that in addition to the price pickup in February, discounts expanded in March and April, the team said, adding that the indicator was 88.1 percent and 87.3 percent for fuel cars and 96.84 percent and 96.78 percent for new energy vehicles (NEVs) in the past two months, respectively.

Against the backdrop of overall weak consumer demand for cars, the price wars had a boost to sales of some models, but depressed total sales as consumer wait-and-see sentiment increased, according to the team.

In March, when the price war was at its most intense, Chinese passenger car retail sales were 1.587 million units, up 0.3 percent year-on-year and up 14.3 percent from February, according to the China Passenger Car Association (CPCA).

In April, China's passenger car retail sales were 1.63 million units, up 55.5 percent year-on-year and up 2.5 percent from March.

From May 1 to 14, China's passenger car retail sales were 706,000 units, up 55 percent year-on-year and up 24 percent from the same period last month, according to data released yesterday by the CPCA.

China NEV retail up 101% YoY in May 1-14, CPCA data show

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Next-gen Jeep Wrangler aiming for more hardcore Trail Rated badge

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Geely Holding becomes 3rd largest shareholder of Aston Martin, increases stake to 17%

In September 2022, Holding spent about £66 million to acquire a 7.60 percent stake in Aston Martin.

(Image credit: Aston Martin)

Zhejiang Geely Holding Group (Geely Holding), China's largest private automaker, has increased its stake in Aston Martin, becoming the third largest shareholder in the ultra-luxury car brand.

Geely Holding has committed to contribute about £234 million to acquire about 42 million existing ordinary shares in Aston Martin from Yew Tree Consortium at a price of 335 pence per share and to subscribe for about 28 million new shares at the same price, according to an announcement made by the ultra-luxury British performance brand on the London Stock Exchange today.

The transaction price represents a 45 percent premium to Aston Martin's closing price per ordinary share on May 17.

Upon completion of the transaction, Geely Holding's stake in Aston Martin will increase to about 17 percent, making it the third largest shareholder behind Yew Tree Consortium's 21 percent and Saudi Arabia's Public Investment Fund's 18 percent.

Geely Holding has agreed to cease acquiring any ordinary shares that would result in its total holding in Aston Martin exceeding 22 percent by August 1, 2024, according to the announcement.

"Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin's long-term growth and success. They offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access their range of technologies and components," said Lawrence Stroll, Aston Martin's executive chairman of the board.

In September 2022, Geely Holding spent about £66 million to acquire a 7.60 percent stake in Aston Martin.

Geely has completed a number of acquisitions of foreign automakers in recent years.

In 2006, Geely acquired a 19.97 percent stake in Manganese Bronze, the maker and owner of classic black cabs in London, and in 2013, Geely acquired the business and core assets of the company.

In 2010, Geely acquired Volvo, and in 2017, Geely acquired a 51 percent stake in Lotus Cars, a British luxury sports and racing car brand.

"Our decision to increase our shareholding in Aston Martin reflects our confidence in the company's growth prospects, its technologies and its management team," said Eric Li, Geely Holding Group chairman, according to Aston Martin's announcement.

Aston Martin sold 6,412 vehicles globally in 2022, up about 4 percent from a year earlier, with about 50 percent of those being the four-door crossover DBX line.

It currently has four models on sale in China, including the coupe Vantage, DB11 and DBS, as well as the DBX.

Chinese auto giants Geely and Changan sign strategic cooperation deal

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BYD launches facelifts of Han sedan’s hybrid variants with lower prices

This is 's latest move to further expand its market share by launching revamped models to make prices lower, following the launch of the 2023 Han EV, as well as the 2023 Seal.  |  BYDDY.US | BYD HK

(Image credit: BYD)

BYD (OTCMKTS: BYDDY) has released revamped models of the plug-in hybrid version of its flagship Han sedan to make it more affordable, similar to what it has done so far this year to expand its market share.

The new energy vehicle (NEV) giant today officially made the 2023 Han DM-i Champion and 2023 Han DM-p Warrior editions available in China, starting at lower prices while allowing for upgraded specifications.

The 2023 Han DM-i is available in six versions with starting prices of RMB 189,800 ($27,000), RMB 199,800, RMB 209,800, RMB 219,800, RMB 239,800 and RMB 249,800 respectively.

The previously available Han DM-i has 4 versions with starting prices of RMB 217,800, 227,800, 237,800 and 291,800 respectively.

This means that the starting price of the 2023 Han DM-i is reduced by RMB 28,000.

BYD's 2023 Han DM-p is only available in one version with a starting price of RMB 289,800.

The 2022 Han DM-p is also available in one version at a starting price of RMB 321,800. The price for the 2023 model was reduced by RMB 32,000.

Several BYD models are available in both pure electric and plug-in hybrid versions, with the latter sometimes include a DM-i version that focuses more on fuel economy and a DM-p version that focuses more on performance.

On March 16, BYD made the 2023 Han EV available for a starting price of RMB 209,800, down from RMB 219,800 for the model's 2022 version.

The BYD Han has a length, width and height of 4,975 mm, 1,910 mm and 1,495 mm, respectively, and a wheelbase of 2,920 mm.

The entry version of the 2023 Han DM-i can accelerate from 0 to 100 km/h in 7.9 seconds and the 2023 Han DM-p in 3.7 seconds.

The 2023 Han DM-i has two options for pure electric range, with an NEDC range of 121 km and 200 km. The model has a combined range of 1,260 km on full fuel and full charge.

The Han DM-p has an NEDC range of 200 km and a combined range of 1,120 km on a full fuel and charge.

Chinese NEV companies have generally faced weaker consumer demand so far this year, with the withdrawal of state purchase subsidies at the end of last year.

Many NEV makers have chosen to stimulate sales by cutting prices, and BYD has previously offered discounts for some of its models.

Unlike other peers, BYD's larger model matrix and vertical integration of its supply chain has allowed it to get prices lower by quickly rolling out facelifts.

On May 10, BYD made a revamped version of its all-electric Seal sedan available for sale, starting at RMB 23,000 less than the previously available model.

BYD sold 210,295 NEVs in April, up 98.31 percent from 106,042 units a year earlier and up 1.55 percent from 207,080 units in March, figures released by the company earlier this month showed.

The BYD Han family sold 14,329 units in April, up 6.77 percent year-on-year and 5.75 percent from March.

BYD Seal sold 6,212 units in April, up 3.53 percent from 6,000 units in March.

BYD aims to sell at least 3 million vehicles this year and strives to reach 3.6 million, the company's chairman and president Wang Chuanfu said at a March 29 investor conference.

($1 = RMB 7.0342)

BYD aims to sell at least 3 million vehicles this year

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