Category: China

G6 will be swing factor for XPeng, says Deutsche Bank

The upcoming G6 will need to be successful to make to be truly relevant again in the market, said Edison Yu's team.  |  XPeng US | XPeng HK

(XPeng G6 shown in a regulatory filing.)

XPeng (NYSE: XPEV) will officially debut the G6 at next month's Shanghai auto show, and in Deutsche Bank's view, the new SUV's sales performance will be crucial for the electric vehicle maker.

The upcoming G6 will be the swing factor and the model will need to be successful to make XPeng truly relevant in the market again, Deutsche Bank analyst Edison Yu's team said in a research note sent to investors on Wednesday.

XPeng management said during an earnings call earlier this month that the G6 will be unveiled at the Shanghai auto show and will be officially launched and delivered by the end of the second quarter. The Shanghai auto show will be held from April 18 to April 27.

The model is a new energy SUV with a price range of RMB 200,000 ($29,250) - 300,000 and a monthly sales target of 2-3 times that of the P7, XPeng's management said.

That means at least 5,000 units per month of XPeng G6 sales, based on the trailing 6-month average, Yu's team noted.

XPeng will likely price the G6 similarly to the Model Y, hoping to attract consumers with its sleeker design and updated interior, the team said.

With increased G6 production, XPeng management believes total monthly deliveries could reach 15,000 units at some point in the third quarter, the team noted.

"This seems achievable and we model XPeng reaching this level in Sep," Yu's team wrote.

XPeng management said during a previous earnings call on August 23, 2022, that the company will launch a B-segment car in the first half of 2023 that will compete with the Tesla Model Y.

That model is the G6, and a regulatory filing earlier this month showed that it will come in three versions according to powertrain, including two single-motor versions as well as a dual-motor version. Its battery pack will have both lithium iron phosphate and lithium ternary batteries available.

The XPeng G6 measures 4,753 mm in length, 1,920 mm in width and 1,650 mm in height, with a wheelbase of 2,890 mm. For comparison, the Tesla Model Y measures 4,750 mm in length, 1,921 mm in width and 1,624 mm in height, with a wheelbase of 2,890 mm.

The G6 will have a significantly improved range that will exceed expectations and will have much more interior space than similar offerings from competitors, XPeng chairman and CEO He Xiaopeng said during the earnings call earlier this month.

($1 = RMB 6.8374)

XPeng Q4 earnings call: New order intake up 100% in Feb from Jan

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Evergrande NEV warns risks of production halt if it can’t get additional liquidity

Evergrande NEV's only model currently on sale, the Hengchi 5, has delivered more than 900 units, according to an exchange announcement.

Evergrande NEV warns risks of production halt if it can't get additional liquidity-CnEVPost

(Image credit: CnEVPost)

Evergrande New Energy Vehicle Group (Evergrande NEV), the electric vehicle unit of China Evergrande Group, is at risk of discontinuing production after struggling to deliver hundreds of vehicles.

Evergrande NEV's only model currently on sale, the Hengchi 5, is continuing to be produced in volume, with more than 900 units delivered to date, according to an announcement the company made today on the Hong Kong Stock Exchange website.

In order to focus its financial resources on supporting the mass production of the Hengchi 5, Evergrande NEV has continued its cost-saving initiatives and has taken measures to reduce the workforce of its Swedish subsidiary National Electric Vehicle Sweden AB, according to the announcement.

However, Evergrande NEV will be at risk of shutting down production in the event that additional liquidity is not available, the announcement said.

The group will plan to launch several flagship models if it can seek more than RMB 29 billion ($4.21 billion) in future financing and hopes to get them into mass production, the announcement said.

Under this plan, Evergrande NEV's cumulative unleveraged cash flow from 2023 to 2026 is expected to be between RMB minus 7 billion and RMB minus 5 billion, the announcement said.

Trading of Evergrande NEV's shares in Hong Kong has been suspended since April 1, 2022, and the timing of restarting trading has not yet been determined.

Hengchi 5 is the first model in mass production of Evergrande NEV's Hengchi Auto, which started delivery on October 29, 2022.

The model is currently available in only one version, with a price of RMB 179,000.

On December 2, Reuters reported that Evergrande NEV suspended mass production of the Hengchi 5 due to a lack of sufficient new orders for the SUV.

A Securities Times report at the time cited people close to Hengchi as saying the brand planned to lay off 10 percent of its workers and would suspend payroll to 25 percent of its workers for one to three months.

($1 = RMB 6.8807)

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Alibaba-backed DeepRoute unveils self-driving solution that doesn’t require HD maps

Passenger cars integrated with Driver 3.0 will be available at an established car brand this year, DeepRoute said.

(Car integrated with Driver 3.0 HD map-free driving smoothly in Shanghai. Image credit: DeepRoute)

Many automakers in China are trying to move away from reliance on high-definition maps as they develop technology. Now, a technology provider has a solution that promises to speed up that process.

DeepRoute, a local self-driving startup backed by Alibaba, today unveiled its new Driver 3.0 solution, which it says is a solution that eliminates the need for high-definition maps and can facilitate mass production for automakers.

DeepRoute.ai is one of the first companies to successfully complete public road tests of autonomous driving without HD maps, thus breaking down the limitations imposed by geo-fencing, it said.

The company is also among the first to win production contracts from automakers to produce self-driving cars for consumer use, it said, adding that vehicles integrated with the Driver 3.0 self-driving solution will hit the market in 2023.

DeepRoute shared a video showing lane-level information around the car being generated in real-time without HD maps.

Driving on its own in Shanghai during rush hour traffic, the car interacts safely with pedestrians, e-bikes and others using the road and remains consistent in all road conditions.

It is capable of adaptive cruise control (ACC), stop and go, obstacle avoidance, unprotected left turns, and other technically complex maneuvers.

Driver 3.0 includes two versions of its autonomous driving solution for automakers, D-PRO and D-AIR.

D-PRO costs $2,000 in hardware and includes operations and features that do not require HD maps, such as Valet Parking Assist (VPA), and point-to-point navigation on all roads without operational design domain (ODD) restrictions.

D-AIR costs $1,000 in hardware and focuses on driver assistance that does not require HD maps, such as Automatic Cruise Control (ACC), Lane Centering Control (LCC), and Autonomous Emergency Braking (AEB).

Both versions of the Driver 3.0 solution accelerate automakers’ mass production plans because they comprehensively address concerns about the high cost of mapping and maintenance and the limitations of geo-fencing, according to DeepRoute.

“We focus on rapidly bringing highly advanced, affordable autonomous driving to automobile OEMs,” said Maxwell Zhou, CEO of DeepRoute.

Unlike most other autonomous driving solution providers, DeepRoute is focused on developing an autonomous driving framework and commercializing it by deploying ADAS capabilities first, Zhou said.

DeepRoute strategized the HD map-free approach back in 2020 and began working with OEMs last year based on this approach, he said, adding that without relying on HD maps, smart driving will be available everywhere and affordable for both automakers and consumers.

Passenger cars integrated with Driver 3.0 will be available at an established car brand this year, DeepRoute said, without mentioning the brand’s name.

DeepRoute was founded in February 2019 and became the first company to be able to conduct robotaxi passenger tests in Shenzhen in April 2021.

On September 14, 2021, DeepRoute announced the closing of a $300 million Series B round led by Alibaba, making it the first such company the e-commerce giant has invested in China.

The high cost of self-driving kits is one of the factors preventing the technology from being used at scale, and one of the goals of DeepRoute’s efforts over the past few years has been to bring the cost down.

On December 8, 2021, DeepRoute unveiled Driver 2.0 for under $10,000, nearly the same price as FSD and the lowest recorded in the industry. Driver 2.0 was available in brands including Lincoln and ‘s Geometry at the time of launch.

On April 20, 2022, DeepRoute announced its first fleet of 30 vehicles with the Driver 2.0 solution, which will be put into the company’s robotaxi operation in Shenzhen.

Chinese self-driving startup DeepRoute unveils L4 self-driving solution that costs less than $10,000

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

Reducing prices to deal with inventory and properly recover costs are normal business practices, but these tactics should not turn into price wars, the CAAM said.

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

(Image credit: CnEVPost)

The price war is one of the most talked-about topics in China's auto industry this month, creating operational challenges for many car companies. Now, an industry association is calling for a return to rationality for all parties to bring order to the market.

The hype about this round of price cuts in China's auto industry should be cooled down as soon as possible so that the industry can return to normal operation and ensure healthy and stable development throughout the year, the China Association of Automobile Manufacturers (CAAM) said in an article posted on its WeChat account today.

In the article, titled "The current round of auto promotions should be treated rationally and the market should return to normal order as soon as possible," the CAAM argues that price wars are not a long-term solution and the auto market should return to normal order as soon as possible.

In the fourth quarter of last year, especially since the Covid outbreak in China in December, the pace of auto production and sales has been seriously affected, the article noted.

The overall sales of China's auto industry dropped significantly in January-February, inventories rose sharply, and automakers saw their operating pressure increase and took various measures to reduce inventories, the article said.

Some local governments have launched pro-consumption policies aimed at boosting local auto consumption and easing difficulties for car companies.

The reasons for this round of short-term promotions are multifaceted, and the companies offer a lot of discounts on models that are mostly long-stocked, old and stagnant inventory cars that have previously been available at considerable discounts, the CAAM said.

However, some marketing in the sales channels exaggerated price reductions to attract attention in order to increase customer acquisition, which is easily misleading, the CAAM said.

The CAAM calls for proper marketing and objective and accurate media reporting.

With the accelerated pace of transformation of the auto industry, traditional car companies are under the dual pressure of maintaining stable operations and making the transformation, with weaker profitability, the CAAM said.

Price cuts to deal with inventory and proper cost recovery are normal business measures, but these means should not turn into price wars, the CAAM said.

Price wars don't last, and value for money is the eternal law of business, according to the article.

Automakers should look at the long term and make more efforts in product technology, quality, service and brand power. Local governments should take the right approach in the process of stabilizing growth and promoting consumption, the article said.

"The government, enterprises and the media should look at this rationally and work together to maintain market order," the CAAM said.

The article also mentioned that China's new energy vehicle (NEV) sales reached about 7 million units last year, and the number is expected to reach 9 million in 2023.

However, internal combustion engine (ICE) vehicles are also accelerating technology upgrades and constantly adapting to changes in market demand, the CAAM said, adding that NEVs and ICE vehicles will coexist for a long time to come and can meet different consumer needs.

More Chinese EV makers promise no price cuts as price war intensifies consumer wait-and-see sentiment

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NIO’s 1st NIO House in Netherlands to open on Mar 23

The House is located in the Rotterdam Centrum neighborhood of Rotterdam, the second largest city in the Netherlands.  |  NIO US | NIO HK | NIO SG

(Image credit: NIO)

NIO (NYSE: NIO) will open its first NIO House in the Netherlands a day later, as the Chinese electric vehicle (EV) maker works to bring its entire service model from China to overseas markets.

NIO's first NIO House in the Netherlands will officially open on March 23 local time, according to a post by Ruben Keuter, general manager of NIO Netherlands, published today on the company's mobile app.

The NIO House is located in Rotterdam, the second largest city in the Netherlands, which is an important port connecting five continents.

NIO Houses is NIO's flagship showroom, which functions as a space to display and sell vehicles while providing a quality lifestyle for NIO owners. The company's showrooms also include the much smaller NIO Spaces.

The NIO House building generally consists of two areas, a display area for vehicle models, and a place with various functions for users.

With the NIO House, NIO hopes to make this lifestyle available to users in every city, so that outsiders will think that buying an NIO vehicle is not just getting a car, but joining a high-end lifestyle group.

The first NIO House in the Netherlands is located in Rotterdam's Rotterdam Centrum neighborhood, next to a new, chic and colorful variety of buildings, according to the article in the NIO App.

On October 1, 2021, NIO opened an NIO House in Norway, its first such facility in Europe.

NIO held the NIO Berlin launch event on October 7 European time, introducing its three latest models to European consumers -- the ET7, EL7 and ET5. The EL7 is known as the ES7 in China.

On October 18, NIO said it made the first ET7 deliveries in Germany and the Netherlands.

On December 1, the first NIO battery swap station in the Netherlands went online. On December 13, NIO announced that its second battery swap station in the Netherlands was put into operation.

Here are some images of Rotterdam shared by NIO.

NIO to launch ET5 shooting brake variant in Europe in June or July, says president

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Neta sending 3,600 EVs to Thailand

This is the largest single export to date for the new Chinese carmaker. The V has already accumulated over 2,000 deliveries in Thailand.

(Image credit: Neta)

Chinese electric vehicle (EV) maker Neta Automobile is sending thousands of EVs to Thailand as it ramps up its efforts in Southeast Asia.

On March 21, 3,600 Neta V EVs began shipping at Guangzhou's Nansha port, the largest single export to date by a new Chinese carmaker, Neta said in a press release today.

The vehicles will be shipped to Thailand, where Neta V has already accumulated more than 2,000 deliveries and ranked second on the list of pure electric model license plate registrations for 2 consecutive months, Neta said.

Neta announced the launch of the right-hand-drive version of the Neta V at a launch event in Thailand on August 24, 2022, as its first model offered there.

Neta said at the time that it had 25 authorized dealers in Thailand and that number would reach 30 by the end of 2022. Its press release today did not mention the company's latest number of dealers in Thailand.

To date, Neta has established a European division, a Thai subsidiary, launched three overseas products including Neta U global version, Neta V global version and Neta V right-hand drive version, and has a presence overseas across ASEAN, South Asia and Middle East markets, it said.

Neta currently sells the Neta V, Neta U-II and Neta S in China, which start at RMB 83,900 ($12,190), 135,800 and 242,800 respectively.

The company delivered 7,117 vehicles in February, up 255 percent from a year earlier, but down 35 percent from 11,009 units in January, data released by the company earlier in the month showed.

On March 10, Neta laid the groundbreaking for its plant in Bangkok, Thailand, which will be its main manufacturing base for building right-hand drive electric vehicles for export to ASEAN.

The plant is Neta's first overseas factory and the first in Thailand for a new Chinese carmaker.

When completed, the plant will have a capacity of 20,000 units per year and is expected to be operational by the end of January 2024, Neta said earlier this month.

Neta plans to expand its overseas operations to more regions including the Middle East and the European Union, making it a brand that consumers around the world recognize and trust, company co-founder and CEO Zhang Yong said at the groundbreaking ceremony for the Thai plant.

As competition in China's EV market grows fiercer, many local car companies have stepped up efforts to expand into overseas markets.

Neta's latest export is the ninth batch of NEVs to be exported from Guangzhou's Nansha Free Trade Pilot Zone this year, according to a report by state-owned CCTV today.

So far this year, the Nansha pilot zone has exported 7,251 NEVs, up more than 33 times year-on-year, according to the report.

($1 = RMB 6.8847)

Neta starts construction of its first overseas plant in Thailand, with planned annual capacity of 20,000 units

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