Category: China

Chery’s NEV unit cuts vehicle prices by up to 10%

In January-February, Chery's NEV sales were 13,293 units, down 57.6 percent from 31,367 units in the same period last year.

(Image credit: Chery New Energy)

Chinese auto giant Chery's new energy vehicle (NEV) division has slashed the prices of several models, becoming the latest car company to do so.

Chery New Energy announced today that official guide prices for three of its NEV models has been cut by up to 9,000 yuan ($1,310) starting at 00:00 on March 27.

The reduction covers the QQ Ice Cream, Little Ant and Wujie Pro, with the Little Ant's 408km range seeing an RMB 9,000, or 8.74 percent, price cut.

The QQ Ice Cream priced at RMB 39,900 saw a price reduction of RMB 4,000, or 10 percent.

Following this reduction, the QQ Ice Cream's latest starting price range is RMB 35,900 to RMB 45,900, the Little Ant is RMB 64,999 to RMB 94,000, and the Wujie Pro is RMB 84,900 to RMB 110,900.

This is due to the global price correction of new energy materials and the company's cost control and supply chain management capabilities, Chery New Energy said in an announcement.

The price of lithium carbonate, a key raw material for batteries, has fallen sharply in the past few months, with the current price having dropped about 50 percent from its high point last November.

As of March 24, the average price of battery-grade lithium carbonate in China was RMB 277,500 per ton and industrial-grade lithium carbonate was RMB 235,000 per ton, according to data from Mysteel monitored by CnEVPost.

While Chery New Energy attributed the price cuts to lower raw material prices, the recent price war in the Chinese auto industry and its weak performance so far this year may be the bigger reasons.

After cut prices earlier in the year, several NEV makers followed suit. Earlier this month, multiple traditional internal combustion engine automakers launched price wars with steep discounts.

These moves have increased the consumer's wait-and-see attitude toward car purchases and disrupted the industry, and last week, the China Association of Automobile Manufacturers (CAAM) called on all parties to help return the industry to normalcy.

For Chery, its performance at the beginning of the year was weak.

In January-February, Chery's NEV sales were 13,293 units, down 57.6 percent from 31,367 units a year earlier, according to data from the China Passenger Car Association (CPCA) monitored by CnEVPost.

($1 = RMB 6.8819)

CAAM calls for return to normal order in China's auto industry as price war disrupts sector

ModelVersionPrevious Price (RMB)Latest PriceChangeChange %
QQ Ice Cream120 km Milkshake39,90035,900-4,000-10.03%
QQ Ice Cream120 km Cone43,90039,900-4,000-9.11%
QQ Ice Cream170 km Sundae49,90045,900-4000-8.02%
Little Ant251 km Hot Love69,99964,999-5,000-7.14%
Little Ant301 km True Love Plus82,99977,999-5,000-6.02%
Little Ant301 km Half Sugar82,90076,900-6000-7.24%
Little Ant408 km Full Sugar103,00094,000-9,000-8.74%
Wujie Pro301 km Moshou89,90084,900-5,000-5.56%
Wujie Pro301 km Lingshou94,90089,900-5,000-5.27%
Wujie Pro301 km Shenshou99,90094,900-5000-5.01%
Wujie Pro408 km Moshou105,900100,900-5,000-4.72%
Wujie Pro408 km Shenshou115,900110,900-5,000-4.31%

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LiDAR-maker Hesai to set up software R&D headquarters in Chongqing

Hesai shipped 80,462 LiDAR units for the full year 2022, up 467.5 percent year-on-year.  |  Hesai.US

LiDAR-maker Hesai to set up software R&D headquarters in Chongqing-CnEVPost

(Hesai FT120 automotive short-range LiDAR. Image from Hesai prospectus.)

Shanghai-based LiDAR maker Hesai Group (NASDAQ: HSAI) signed an investment agreement with Chongqing Economic Development Zone on March 26 to build a software global R&D headquarters in the southwestern Chinese city, according to a report in Chongqing Daily today.

Hesai is a global leader in LiDARs for autonomous driving and advanced assisted driving, and Chongqing wants it to strengthen its cooperation with local car companies, the report said, citing the city's mayor, Hu Henghua.

Under the agreement, Hesai will build a software global R&D headquarters, set up an innovation incubation center and create a LiDAR industrial park in Chongqing's Economic Development Zone, the report said, without providing further details.

Founded in Shanghai in late 2014, Hesai initially focused on developing high-performance laser sensors and has been exploring driverless LiDAR products since 2016.

On February 9, the company made its NASDAQ debut, becoming the first Chinese LiDAR manufacturing company to list in the US.

Hesai shipped 47,515 LiDAR units in the fourth quarter, up 739.2 percent from 5,662 units in the same period in 2021, it said in its earnings report on March 16.

It shipped 43,351 ADAS LiDAR units in the fourth quarter, compared to 87 units in the same period in 2021.

The company shipped 80,462 LiDAR units in the full year 2022, up 467.5 percent year-on-year.

LiDAR-maker Hesai posts Q4 revenue growth of 56.6% YoY in 1st earnings report since US IPO

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NIO signs deal with die-casting parts supplier Wencan

Wencan aims to supply products from near 's plants by 2025, and the two companies will work together to arrange capacity expansion plans.  |  NIO US | NIO HK | NIO SG

(Image credit: CnEVPost)

NIO (NYSE: NIO) has entered into a strategic partnership with yet another auto parts giant that will provide supply support near its plants.

One-piece die-casting parts supplier Wencan Group signed a five-year strategic cooperation framework agreement with NIO on March 26, according to an exchange announcement today from the Shanghai-listed company.

The two companies will collaborate on supply, low carbon, digitalization and globalization to achieve supply support around NIO's Hefei plants, according to the announcement.

Wencan and NIO will also collaborate in depth on lightweight research and development of integrated die-casting structural parts for the body and new material applications.

The two will also explore all-round cooperation in products including integrated battery boxes, core electric vehicle components and automotive chassis, according to the announcement.

Wencan aims to supply products near the NIO plants by 2025, and the two companies will work together to arrange capacity expansion plans, including investing in new production lines, or building new production sites, to ensure smooth production and delivery of NIO projects, the announcement said.

Wencan will also use its global presence to provide full support to NIO's international business and to provide full support to the electric vehicle company's global R&D and product validation, according to the announcement.

NIO will promote Wencan's casting business to its partners and will explore cooperation in other business areas, the announcement said.

The two will also cooperate deeply on business car purchases and employee car purchases.

Wencan is one of China's best-known suppliers of integrated die-casting parts and a core supplier of structural body parts to NIO, according to the team led by Cui Yan, an analyst at local brokerage firm Huaxi Securities.

Wencan's parts are used in NIO's entire lineup of models, and the average value of its parts used per NIO vehicle is more than RMB 3,000, Cui's team said in a March 17 research note.

Most automakers won't adopt 's model of using one-piece die-casting machines on their own because it requires a large investment and the scale effect is less than that of third-party suppliers, the team said.

On October 26, 2022, Wencan announced plans to raise up to RMB 3.5 billion through a private placement, of which RMB 1 billion will be used to build a parts manufacturing project in Anhui province.

Wencan plans to build a plant in Lu'an, Anhui province, which will help better serve customers including NIO and , Cui's team said.

The new agreement with Wencan is the second NIO has signed with the parts giant so far this month.

On March 16, Tesla's parts supplier Ningbo Tuopu Group announced that it had signed an agreement with NIO to establish a strategic partnership for the development, manufacture and supply of NEV parts and components.

One of the goals of the partnership between the two is for Ningbo Tuopu to provide parts supply near NIO's factories in Hefei, according to the announcement.

Tesla parts supplier Ningbo Tuopu signs cooperation deal with NIO

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XPeng begins P7i deliveries in China

's store traffic and test drives have reached new highs in recent months following the launch of the P7i, the company's management said earlier this month.  |  XPeng US | XPeng HK

(Image credit: XPeng)

XPeng (NYSE: XPEV) has begun deliveries of the P7i in China, where the sedan was officially launched earlier this month.

XPeng recently began the first deliveries of the P7i, a facelift of its flagship P7 sedan, in seven cities, according to an article posted yesterday by the electric vehicle (EV) maker on its mobile app.

The seven cities are Beijing, Guangzhou, Shenzhen, Wuhan, Hangzhou, Chengdu, and Chongqing, where XPeng held the P7i delivery ceremonies, according to the article.

XPeng did not disclose the number of P7i vehicles that were delivered in the first batch.

The P7i is the shortest time between the official launch and delivery of any XPeng model, as the company may be concerned that keeping consumers waiting too long could lead to lost orders.

XPeng officially launched the P7i in China on March 10, offering only four versions with a starting price of RMB 249,900 ($36,390).

The XPeng P7i continues to be built on the regular 400 V platform, rather than the 800 V high-voltage platform used by the G9.

However, the P7i's maximum charging power has been increased from its predecessor's 90 kW to 175 kW, and can be charged from 10 percent to 80 percent in 29 minutes.

The Pro version of the XPeng P7i comes standard with an Nvidia Orin-X Smart Drive chip with 254 TOPS of computing power. The Max version of the model comes standard with two Orin-X chips as well as two LiDARs.

The P7i's predecessor, the P7, was the XPeng's main seller for a long time, selling 59,066 units in 2022, contributing 49 percent of the XPeng's annual sales of 120,757 units, according to data monitored by CnEVPost.

Following the launch of the P7i, XPeng's store traffic and test drives have reached new highs in recent months, He Xiaopeng, the company's chairman and CEO, said during a March 17 analyst call after the company reported fourth-quarter earnings.

The P7i has been well received by customers for its smart features, styling and performance, as well as its other clear advantages against similar products, he said.

Amid the market's prevailing weakness in new order intake, XPeng outperformed the market with a 100 percent increase in new orders in February compared to the previous month, Mr. He said.

With the strong momentum in orders following the official launch of the P7i, XPeng expects total new orders in March to grow significantly month-on-month, he said, adding that this marks the company's initial success following a comprehensive transformation, which has also boosted morale.

($1 = 6.8680 RMB)

XPeng Q4 earnings call: Key points of transcript

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CPCA expects China’s Mar NEV retail sales to rise 27.5% from Feb to 560,000 units

The overall market is recovering at a slower pace than previously expected due to increased consumer wait-and-see sentiment caused by big price cuts, the CPCA said.

The China Passenger Car Association (CPCA) expects China's new energy vehicle (NEV) sales to continue to recover this month from last month, although growth in the overall passenger car market remains slow.

Retail sales of passenger vehicles in China are expected to be 1.59 million units in March, flat from a year ago and up 14.5 percent from February, the CPCA said in a report late last night.

Among them, retail sales of NEVs are expected to be 560,000 units, up 25.8 percent from a year ago and up 27.5 percent from February, with a penetration rate of 35.2 percent, according to the report.

In mid-March, the overall market discount rate for passenger cars in China was about 14.4 percent, up from 13.9 percent at the end of February, indicating intense price competition in sales channels, the report said.

The Chinese car market performed poorly in January-February amid multiple unfavorable factors, and demand began to be released in March, the CPCA said.

However, the overall market recovered at a slower pace than previously expected due to increased consumer wait-and-see sentiment caused by car companies' price-cut marketing, the report said.

Large discounts offered by car companies in Hubei province in early March attracted a lot of consumer attention, but at the same time led to a wait-and-see mood among consumers in other provinces and cities, the CPCA said.

Other local governments have since introduced subsidy policies and car brands have followed suit with promotions, which have boosted store traffic but limited actual order conversion, the CPCA said.

Consumer wait-and-see sentiment further increased, negatively impacting the auto market, the report said.

Average daily retail sales for major Chinese automakers in the first and second weeks of March were 31,500 and 36,700, down 16 percent and 18 percent year-on-year, respectively, according to the report.

Average daily retail sales in the third week are expected to be 40,800, up 10 percent year-on-year, mainly due to a low base from last year as a result of the Covid outbreak in the same period last year.

Considering the upward pulse of car sales at the end of the quarter and promotional policies in some regions, the auto market is expected to maintain its rebound in the fourth and fifth weeks, the CPCA said.

The CPCA usually releases estimates of passenger vehicle sales at the end of the month, with preliminary data released early the following month, followed by final data.

It estimated February NEV retail sales in China at around 400,000 units on February 22, released a preliminary figure of 438,000 units on March 7, and released a final figure of 439,000 units on March 8.

CAAM calls for return to normal order in China's auto industry as price war disrupts sector

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