Category: China

BYD reportedly reduces shifts at two EV plants

has asked some workers at its Xi'an plant to work only four days a week and shifts at its Shenzhen plant have been reduced from three shifts a day to two shifts a day, according to a report from Reuters.  |  BYDDY.US | BYD HK

(Image credit: CnEVPost)

BYD (OTCMKTS: BYDDY), China's largest new energy vehicle (NEV) maker, has reduced shifts at two plants, a new report said, as consumer demand for EVs weakens.

BYD has asked some workers at its Xi'an plant, its largest manufacturing hub, to work only four days a week, with the plant running two eight-hour shifts a day, Reuters said in a report today, citing an internal memo and three people familiar with the matter.

BYD also reduced shifts at its Shenzhen plant, which makes the Han sedan, from three shifts a day to two shifts a day, according to the report.

BYD did not give a reason for the reduction in shifts in the memo, the Reuters report said. One of the people said BYD is scaling back production in the face of weak industry-wide demand in China since the beginning of the year, according to the report.

It was not possible to determine how long BYD's shift reductions will last and whether its other three assembly plants in China are being affected by the change in production schedules, the report noted.

BYD has been growing rapidly and taking market share in China. But it has also been slowing production since the beginning of this year, when sales across the industry began to slow and China ended its state subsidy program for NEVs, the report said.

The NEV maker sold 193,655 units in February, up 27.96 percent from 151,341 units in January and up 119.36 percent from 88,283 units a year earlier, data it released on March 1 showed.

After 's sharp price cut in China in early January, several NEV makers followed suit. During the month, traditional fuel car makers began offering significant official discounts, bringing about a widespread price war.

On March 9, BYD also began offering discounts on Song Plus as well as Seal models, as the price war intensifies.

Analysts believe aggressive discounts have created some demand as other automakers have followed Tesla into what has become a price war for market share, but inventories have been rising across the industry, the Reuters report today noted.

At the end of February, China's passenger car inventory stood at 3.41 million units, up 2.4 percent from 3.33 million units in January, according to data released last week by the China Passenger Car Association (CPCA).

China's fuel vehicle market was slower to stabilize in February, leading to higher inventories at manufacturers and dealers at the end of February, the CPCA said.

BYD offers discounts for Song and Seal as China's auto price war intensifies

The post BYD reportedly reduces shifts at two EV plants appeared first on CnEVPost.

For more articles, please visit CnEVPost.

Beijing, Xi’an latest cities to offer subsidies to encourage residents to buy NEVs

Beijing is offering subsidies of up to RMB 10,000 for residents to purchase NEVs, while Xi’an is offering subsidies of up to RMB 6,000 for NEV purchases and RMB 10,000 for the installation of charging piles.

Beijing, Xi'an latest cities to offer subsidies to encourage residents to buy NEVs-CnEVPost

(Image credit: CnEVPost)

After China’s state-level subsidies for the purchase of new energy vehicles (NEVs) expired at the end of last year, a growing number of cities have begun offering separate subsidies this year to support local economic development.

The Chinese capital city of Beijing released details of its policy to encourage local residents to purchase NEVs, following media reports of the city’s plans without any details last month.

Between March 1 and August 31, Beijing residents who transfer or scrap passenger vehicles they have owned for more than a year and buy NEVs can receive a subsidy of up to 10,000 yuan ($1,450), according to a program jointly released today by several government departments in the city.

The move is aimed at boosting Beijing’s car consumption, optimizing the local vehicle mix and encouraging local residents to replace their passenger cars with NEV, the program reads.

The program refers to passenger vehicles as gasoline, diesel, gas, hybrid or battery-powered small and micro vehicles registered in Beijing for more than one year, and NEVs as purely electric small and micro passenger vehicles, including extended-range electric vehicles (EREVs).

This means that residents who previously owned a passenger car in Beijing — whether it was a traditional internal combustion engine vehicle or NEVs — can receive a subsidy if they purchase a pure electric vehicle or an EREV when replacing their old vehicle. If they purchase a plug-in hybrid, on the other hand, they will not be eligible for the subsidy.

If they previously owned NEVs, they can receive a subsidy of RMB 8,000 even if they have held them for less than 1 year.

Local residents who transfer out of other types of passenger vehicles and purchase NEVs can receive a subsidy of RMB 8,000 if the original vehicle has been owned for 1-6 years. If the old vehicle has been held for more than 6 years, then the subsidy amount is RMB 10,000.

It is worth noting that Beijing implemented a similar policy last year.

On June 26, 2022, Beijing launched a program on encouraging vehicle replacement consumption in order to incentivize residents to purchase NEVs when they replace their vehicles.

The city also offered subsidies of up to RMB 10,000 at the time, and the policy was then valid from June 1 to December 31.

On February 28, Beijing Daily reported that the Beijing city government held a consumer season launch ceremony with tens of thousands of merchants participating in areas including automobiles, restaurants, e-commerce and tourism.

In the auto sector, Beijing will continue last year’s car replacement subsidy policy, details of which will be released in due course, the report said.

In addition to Beijing, Xi’an, a city in northwest China’s Shaanxi province, also released its NEV purchase subsidy program today.

Between March 21 and April 30, consumers who buy a NEV produced by a local carmaker in Xi’an will receive a subsidy of up to RMB 6,000 yuan.

Local consumers who install their own charging facilities by December 31 of this year will receive a subsidy of RMB 10,000.

Prior to Beijing and Xi’an, many other cities, including Shanghai and Hefei in Anhui province, released similar policies earlier this year.

($1 = RMB 6.8722)

Shanghai extends $1,500 subsidy to encourage residents to replace cars with EVs

The post Beijing, Xi'an latest cities to offer subsidies to encourage residents to buy NEVs appeared first on CnEVPost.

For more articles, please visit CnEVPost.

Panic selling of lithium carbonate just won’t stop

Lithium carbonate prices continue to decline, leading to a heavy wait-and-see mood among downstream customers, who are reluctant to place large orders.

 

The price of lithium carbonate has dropped by half from five months ago, with panic selling not stopping.

Battery-grade lithium carbonate prices in China fell RMB 12,500 per ton ($1,818 per ton) today, bringing the average price down to RMB 300,000 per ton, according to Mysteel.

Industrial-grade lithium carbonate also fell by RMB 12,500 per ton today, leaving the average price at RMB 260,000 per ton.

Compared to yesterday's average prices, battery grade lithium carbonate and industrial grade lithium carbonate fell by 4 percent and 4.59 percent respectively, the new biggest drop of the year.

The price of battery-grade lithium carbonate has fallen 49 percent compared to RMB 590,000 per ton on November 21 last year, and the drop this year is about 40 percent.

Lithium carbonate is still being sold off at an accelerated pace, a report in local media Yicai today quoted an unnamed industry source as saying.

The continued decline in lithium carbonate prices has led downstream customers to shy away from placing large orders, with a heavy wait-and-see mood, the source said.

On March 20, a company in northwest China's Qinghai province dropped its sell offer for battery-grade lithium carbonate to RMB 280,000 per ton, and some local battery-grade lithium carbonate ex-factory prices dropped to RMB 250,000 per ton, the report noted.

As lithium prices continue to fall in China, some analysts previously said the drop will not last long as imports become more attractive.

Overseas lithium products have seen a significant premium, which could support prices for lithium products in China, said CITIC Securities in a March 7 research note.

Notably, Yicai's report today said there have been withdrawals of lithium carbonate orders in overseas markets, which has further pushed down the price of lithium carbonate.

A month ago, it was reported that was pushing a lithium rebate program to car companies, with some cells to be settled at RMB 200,000 per ton of lithium carbonate.

CATL acknowledged the plan on March 9, but did not mention the base prices.

CATL's lithium sharing plan was not motivated by a price reduction, but rather that the company already owns some mineral resources and does not want to reap windfall profits, the company said.

CATL's proposed price benchmark of RMB 200,000 per ton for lithium carbonate has further lowered market expectations for the price, accelerating the panicked drop in lithium carbonate prices, Yicai's report today quoted several industry sources as saying.

($1= RMB 6.8742)

Lithium prices see biggest drop this year in China as decline accelerates

The post Panic selling of lithium carbonate just won't stop appeared first on CnEVPost.

For more articles, please visit CnEVPost.

CATL has begun mass production of Qilin Battery, report says

Deliveries of 's Zeekr 009 MPV, the world's first vehicle to be powered by the Qilin Battery, are expected to begin in the second quarter.

(Image credit: )

Chinese power battery giant CATL's Qilin Battery has achieved mass production and has a 13 percent higher capacity than 4680 batteries in the same volume, local media outlet The Paper reported today.

As the world's first vehicle to be powered by the Qilin Battery, deliveries of Zeekr's Zeekr 009 MPV are expected to begin in the second quarter, 1-2 months behind the battery's mass production, the report said.

A high percentage of consumers who ordered the Zeekr 009 opted for the version with the Qilin Battery, a Zeekr source said, adding, "This surprised us."

On June 23, 2022, CATL officially unveiled its highly anticipated CTP (cell to pack) 3.0 Qilin Battery, which it said brought battery system integration to a new level.

The Qilin Battery allows volume utilization to exceed 72 percent and energy density to reach 255 Wh/kg, easily allowing vehicles to achieve a range of 1000 km, CATL said at the time.

With the same chemistry system and the same pack size, Qilin Battery delivers 13 percent more power compared to 4680 batteries, achieving an overall improvement in range, fast charging, safety, life, efficiency, and low-temperature performance, according to CATL.

Last August 27, Zeekr and CATL announced that the Zeekr 009 MPV will be the world's first vehicle to carry the Qilin Battery, and the Zeekr 001 will use an ultra-long range version of the Qilin Battery, which will be the world's first production vehicle to carry the 1000-km range Qilin Battery.

In a post on its WeChat account at the time, Zeekr said that deliveries of the Zeekr 009 with the Qilin Battery are expected to begin in the first quarter of 2023, while the Zeekr 001 with the battery will be available in the second quarter of 2023.

"With its 140-kWh battery pack, the Zeekr 009 ME version sets a global record for a mid to large size MPV achieving an all-electric range of 822 kilometers," The Paper quoted Liu Changyan, CATL's executive president of China passenger vehicle business, as saying.

In addition to Zeekr, several other vehicle brands, including , , Lotus and AITO, have previously said they will use CATL's Qilin Battery.

It is worth noting that the Qilin Battery is a CATL innovation in pack structure, not in battery chemistry. This means that both ternary batteries, as well as lithium iron phosphate (LFP) batteries, can use this pack structure.

The Qilin Battery can achieve energy densities of 255Wh/kg with ternary cells and 160Wh/kg with LFP cells, CATL previously said.

CATL's innovation was named the best invention of 2022 by Time magazine in the US, according to information shared by the battery maker on Weibo on December 30 of last year.

CATL unveils Qilin Battery, says it can easily achieve 1,000 km vehicle range

The post CATL has begun mass production of Qilin Battery, report says appeared first on CnEVPost.

For more articles, please visit CnEVPost.

Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS

Mullen has acquired Qiantu's North and South American intellectual property and distribution rights, allowing the assembly and distribution of the Qiantu K50 in the Americas.  |  Mullen Automotive Inc

Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS-CnEVPost

(Image credit: Qiantu)

Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS

Mullen has been granted Qiantu's North and South American intellectual property and distribution rights, allowing the assembly and distribution of the Qiantu K50 in the Americas.

Qiantu Motors, which is almost forgotten in its home market of China, is partnering with an American electric vehicle (EV) maker to bring its electric supercar back to life.

Qiantu recently signed a strategic partnership agreement with Mullen Automotive to expand into the Americas, according to a press release from the Chinese startup today.

Qiantu will leverage its strengths in vehicle design, technology development, and process innovation, combined with Mullen's manufacturing and sales strengths in the Americas market, to bring new EV options to consumers in the Americas, the release said.

Qiantu's partnership with Mullen dates back to 2019, when the two partnered on the marketing of the Qiantu K50 in North America.

With the signing of the latest partnership agreement, the Qiantu K50 will transition from the marketing phase to a substantial production and sales phase, the release said.

The partnership area will also be expanded from the North American market to include the entire Americas, according to the release.

Separately, Mullen said in its March 20 press release that it has been granted the North and South American intellectual property and distribution rights for Qiantu and its affiliates, allowing assembly and distribution of the Qiantu K50 in the Americas.

Mullen will begin its program to re-engineer and re-design the product to meet requirements for US certification and customer expectations for today's supercars, with final assembly in Mishawka, Indiana, the US EV maker said.

These modifications will be consistent with Mullen's current vehicle design language in the Mullen FIVE and Mullen FIVE RS.

To ensure supercar status, the car will also feature an updated powertrain, targeting a 0-60 mph time of less than 2.0 seconds and a top speed of more than 200 mph.

Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS-CnEVPost

(Image credit: Mullen)

Qiantu, a wholly owned subsidiary of CH-Auto Technology Co Ltd, was founded in 2015 and was one of the first EV startups in China.

Qiantu's first model, the Qiantu K50, was launched in 2018 at a then subsidized price of RMB 686,800 ($99,860), but the model did not earn recognition for the company and was discontinued in November 2020.

On December 18, 2021, Qiantu held a strategy sharing session at its plant in Suzhou, marking its return after a two-year hiatus.

On June 6, 2022, Qiantu announced the start of pre-sales in China for its second model, the Qiantu K20, a two-door, two-seat hatchback with a pre-sale price range of RMB 86,800 to 149,800.

On October 24, 2022, Qiantu and Appollen EV held a launch event in Malaysia to showcase and start pre-sales of the Qiantu K50, Qiantu K25, and Qiantu K20.

They were renamed S1, A1 and A2 respectively in Malaysia, with the Qiantu K25 making its global debut and not previously launched in China, the company said at the time.

($1 = RMB 6.8772)

Qiantu Motor taps Malaysian market with 3 models

The post Qiantu inks deal with Mullen to tap US market, K50 supercar to be rebranded as Mullen GT and GTRS appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China NEV insurance registrations for week ending Mar 19: BYD 38,414, Tesla 18,712, NIO 1,775

Insurance registrations for China's NEVs were 113,000 last week, up from 108,000 the week before.

Insurance registrations for new energy vehicles (NEVs) in China increased last week compared to the previous week, with a mixed performance from major EV makers.

From March 13 to March 19, insurance registrations for all passenger vehicles in China were 321,000 units, up from 308,000 units the previous week, according to figures shared by several car bloggers on Weibo.

Insurance registrations for NEVs were 113,000 last week, up from 108,000 the week before.

(OTCMKTS: BYDDY) vehicles continued to see the most insurance registrations, with 38,414 last week, up from 37,141 the previous week.

(NASDAQ: TSLA) vehicles saw 18,712 insurance registrations last week, up from 17,032 the week before.

was 1,775 vehicles last week, down from 2,170 the week before.

NIO guided for first-quarter deliveries between 31,000 and 33,000 units earlier this month, meaning March deliveries are expected to be between 10,337 and 12,337 units.

The company's insurance registrations for the first week of March, which included February 27 and February 28, were 3,345 units.

(NASDAQ: LI) vehicles registered 5,438 insurance units last week, up from 4,243 the previous week.

(NYSE: XPEV) had 1,296 vehicles last week, down from 1,635 the week before.

posted 914 units last week, down from 1,043 units the previous week.

China NEV insurance registrations for week ending Mar 12: BYD 37,141, Tesla 17,032, NIO 2,170

The post China NEV insurance registrations for week ending Mar 19: BYD 38,414, Tesla 18,712, NIO 1,775 appeared first on CnEVPost.

For more articles, please visit CnEVPost.

China EV industry sell-off creates opportunity, says Morgan Stanley

leads the pack with superior execution, but risk-reward increasingly favors and after a drastic sell-off this year, Morgan Stanley said.

Shares of major Chinese electric vehicle (EV) makers have generally suffered a sell-off so far this year, as the sector's weak sales at the start of the year and recent widespread price wars have raised investor concerns.

However, in Morgan Stanley's view, the sales potential of China's EV companies in the second half of the year is underestimated at a time when costs are sliding.

"We think YTD stock corrections should have discounted competition risks but underrate the cost-driven upside to EV margin/volume in 2H, " Morgan Stanley analyst Tim Hsiao's team said in a research note sent to investors on March 19.

As of Monday's close, NIO's (NYSE: NIO) US-traded ADR was down 10 percent this year, XPeng was down 8 percent, and Li Auto was up about 12 percent.

Hsiao's team believes that significant margin pressure from price wars will fuel market concerns about industry profitability and cash flow, especially among new energy vehicle (NEV) heavyweights, namely and China, which can afford to initiate another round of price cuts in the second quarter.

That, combined with weak full-year sales following the stimulus withdrawal, could dampen sales volumes and margins for EV brands in the first half of 2023, the team said.

Still, the production potential of China's NEV industry in the second half of the year and beyond appears to be underestimated as the decline in prices of batteries and key components accelerates following aggressive capacity expansion in 2022, the team noted.

This could translate into potential margin relief for NEV makers and potentially increase NEV penetration in the second half of the year in a cost-effective manner, the team said.

Hsiao's team estimates a 20-25 percent drop in battery costs for major NEV makers, implying a 6-10 percentage point cost savings.

The price drop of lithium carbonate, a key raw material for batteries, has accelerated in recent days and saw its biggest one-day drop so far this year on March 20, according to a CnEVPost report yesterday.

The average price of both industrial-grade lithium carbonate and battery-grade lithium carbonate fell by RMB 12,500 per ton on March 20, with the latest average price at RMB 272,500 per ton and RMB 312,500 per ton, respectively.

NIO's management said in a call with analysts after the March 1 earnings announcement that they expect lithium carbonate prices to fall back to around RMB 200,000 per ton this year, boosting gross margins back up.

EV makers that can take full advantage of this will not only enjoy margin relief, but also have more flexibility to price their models to further boost NEV penetration in mass markets and lower-tier cities, Hsiao's team wrote in their report.

"That said, the tailwinds from falling input costs may take time to kick in as our checks with major OEMs suggest they are still in discussions with battery suppliers on new terms," the team added.

The team believes that a tougher operating environment will accelerate market reshuffling, with leading EV manufacturers weathering the downturn better than their peers, while the growth of smaller, lagging EV startups could be slowed by a depletion of liquidity in 2023.

Growing investments should also push up cash burn rates. As a result, the ability to optimize working capital and access to market funding will play a more important role in ongoing operations in 2023, the team added.

"Our analysis suggests EV trio (NIO, XPeng, and Li Auto) will still hold fast, backed by healthy balance sheet conditions and better connections to capital markets," Hsiao's team wrote.

The team said they're fully aware of investor worries about EV startups' cash burn that may rapidly deplete their liquidity.

But they believe the EV trio can remain self-funded for the next 18 months, even under the stress-test scenario of a prolonged price war.

"We believe continuous investment would further solidify their technology leadership and enable them to have a better chance of winning out in the next up-cycle," the team wrote.

The team believes that trough valuations mean the market has lowered expectations for EV startups' operational performance and financial resilience in an industry downturn, making any marginal improvement in their sales a meaningful stock catalyst.

Li Auto leads the pack with superior execution, but risk-reward increasingly favors XPeng and NIO after this year's sharp dip, the team said.

Lithium prices see biggest drop this year in China as decline accelerates

The post China EV industry sell-off creates opportunity, says Morgan Stanley appeared first on CnEVPost.

For more articles, please visit CnEVPost.

Kia enters China’s crowded EV market, 1st model expected to launch in Aug

The Kia EV6 will be brought to China as an import and is expected to go on sale in August this year. It will also launch the EV5 in November, its first model to be produced in China.

Kia Motors, an affiliate of Hyundai Motor Co, is entering China's increasingly crowded electric vehicle (EV) market.

The South Korean automaker announced its official entry into the Chinese EV market at a launch event today, unveiling the EV5 Concept, EV9 Concept and EV6 GT.

Its first all-electric model offered in China, the EV6, will be introduced as an import and is expected to be launched in August of this year.

The EV6 is Kia's first all-electric vehicle, based on the dedicated EV platform E-GMP, and claims to be able to accelerate from 0 to 100 km/h in as fast as 3.5 seconds.

The model is equipped with 800V fast charging capability, charging from 10 percent to 80 percent in just 18 minutes.

Kia will also launch the EV5, its first global model to be built in China and debuting here, in November.

(Kia EV5 concept car)

Kia also plans to launch its flagship electric SUV EV9 in 2024, an entry-level all-electric SUV in 2025, a premium electric sedan based on a next-generation EV-specific platform in 2026, and a mid-size all-electric SUV in 2027.

The EV9 concept has a length of more than 5,000 mm and a wheelbase of 3,100 mm, with a 3-row, 6-seat interior layout.

The concept car will have an 800 V high-voltage fast charging system and can be charged up to 350 kW.

The EV9 will be Kia's first vehicle in China to be equipped with the highway system, and the production version is expected to be equipped with L3 assisted driving system.

(Kia EV9 concept car)

In China, Kia has a sales target of 450,000 units by 2030, of which 40 percent will be new energy vehicle (NEV) models.

Kia plans to launch the Kia brand app in China later this year, which will offer features including car shopping, car use, services, and infotainment.

The automaker will create sales channels in China including dealership stores as well as City Stores, and will set up special sections for NEV models in showrooms.

Kia will establish City Store city showrooms in the core business districts of China's first and second-tier key cities, including Beijing, Shanghai, Guangzhou and Shenzhen.

Notably, on November 20 last year, Kia announced the opening of its first City Store in China in Xi'an, Shaanxi province, where its EV6, an all-electric vehicle, will be one of the first models to be showcased in the store.

The City Store is a new channel for Kia's electrification transformation and a new platform to revolutionize the user experience, the company said at the time.

Kia launches EV offensive with opening of its 1st City Store in China

The post Kia enters China's crowded EV market, 1st model expected to launch in Aug appeared first on CnEVPost.

For more articles, please visit CnEVPost.