Category: Deals

Tesla parts supplier Ningbo Tuopu signs cooperation deal with NIO

Ningbo Tuopu said its strategic partnership with uses an innovative T0.5 collaboration model that will provide the latter with better products and services.

NIO US | NIO HK | NIO SG

(Image credit: CnEVPost)

Ningbo Tuopu Group, a parts supplier, has signed an agreement with NIO (NYSE: NIO) in which the two companies will adopt an innovative partnership model not commonly seen in the automotive industry.

Ningbo Tuopu and NIO signed a strategic cooperation framework agreement on March 16 to establish a strategic partnership for the development, manufacture and supply of new energy vehicle components, according to an exchange announcement today from the Shanghai-listed company.

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

The companies will also collaborate on the use of low-carbon materials, supply chain emissions reduction, digital supply chain and global business exploration.

For the current phase, Ningbo Tuopu will collaborate strategically with NIO on products including chassis systems, body lightweight, thermal management systems, interior and exterior systems and NVH (noise, vibration, and harshness) damping systems.

The two companies will also explore all-round cooperation in the areas of intelligent cabin components, air suspension systems and intelligent driving systems, the announcement said.

The teams of both parties will establish regular communication mechanisms and provide adequate resource support to ensure the implementation of the strategic cooperation, according to the announcement.

Notably, Ningbo Tuopu said its strategic partnership with NIO is based on an innovative T0.5 supply chain cooperation model, which will provide the customer products and services with better QSTP (Quality, Service, Technology, Price).

Ningbo Tuopu did not explain more about the T0.5 partnership model, but it is a new model it has been working on for the past few years.

In the automotive industry, the typical relationship between parts suppliers and automakers is T1 (Tier 1), a supplier that signs a supply contract directly with the car company, and T2 (Tier 2), which has a contract with a T1 supplier.

In the T0.5 model implemented by Ningbo Tuopu, automakers are more involved in the development of components, thus shortening the development cycle and ensuring quality.

Ningbo Tuopu was founded in 1983 and is one of the largest parts suppliers in China. The company last came to the attention of the general public in China because of a recall of the Tesla Model Y.

In December 2021, Tesla announced a recall of 21,599 China-made Model Y electric vehicles because of the risk of warping or breaking the vehicle's steering knuckle, which was supplied by Ningbo Tuopu.

Following the announcement of the Tesla Model Y recall, Ningbo Tuopu's shares traded in Shanghai were at one point severely sold off.

The parts maker later issued a statement saying that the products involved in the recall were only for the Model Y and not for other Tesla models or other customers' models.

The company estimated that the recall was not material and would not have an impact on its annual operating results or on its business based on the number of recalls and defect ratios, it said in the statement at the time.

NIO won't get involved in price war, exec says

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Financially troubled Enovate reportedly close to getting life-saving money

Enovate has already owed its employees two months of salary arrears and its factory in Changsha, Hunan province, has shut down production this year, according to local media.

(Image from Enovate's Weibo)

Enovate Motors, the Chinese new energy vehicle (NEV) startup that announced late last year that it would build a production base in Saudi Arabia, is actually facing financial woes in its home market. However, the good news is that it is about to receive life-saving money.

Enovate is set to close a new round of funding in the near future, amounting to RMB 750 million yuan ($108 million), a report in local media Auto Time today said, citing multiple sources.

The money will arrive no later than March 24, one of the people familiar with the matter said. Another source with access to the financing said that it is indeed happening and that specific plans are being negotiated.

Enovate was formerly known as Zhejiang Dianka Automobile, which was founded in 2015 and produces mini electric vehicles (EVs). The Enovate brand was officially launched in November 2018.

In September 2020, the company's first model, the all-electric SUV Enovate ME7, was launched.

Enovate made its second model, the SUV Enovate ME5 with extended-range technology, available in China on July 13, 2021.

Enovate has closed eight financing rounds totaling more than RMB 11.5 billion, with the company's most recent financing round on October 13, 2020 for more than RMB 5 billion, Auto Time's report noted.

So far this year, Enovate has owed its employees two months of salary arrears, and its factory in Changsha, Hunan province, has shut down production this year, according to the report.

In addition to the Changsha manufacturing base, Enovate is also building factories in Shaoxing, Zhejiang and Nanning, Guangxi, with a planned total capacity of 220,000 units for the three production bases.

The money Enovate is about to receive will first be used for employee payroll and to push the plants back into production, the report said, citing an internal employee.

The company's performance in China has been weak over the past two years, with sales of just 1,778 units in 2021 and 5,321 units in 2022.

Enovate has begun targeting overseas markets as competition in its home market grows fiercer.

Enovate signed a contract with Sumou Holding in Saudi Arabia on December 7 to jointly build a NEV production plant here, as CnEVPost previously reported.

The two companies will form a joint venture that will make two phases of spending totaling about $500 million in Saudi Arabia to build a production and R&D base with an annual capacity of about 100,000 NEVs.

The facility, when completed, will be the first Chinese-branded NEV production base in Saudi Arabia, Enovate said at the time.

Enovate is another carmaker besides that has run into financial difficulties.

WM Motor has been in serious financial trouble, leading to disruptions in its operations over the past few months. On March 7, the company announced that it was addressing its challenges and was working hard to resume production.

WM Motor also has plans to enter Saudi Arabia, with an insider saying the company is planning a joint venture to set up a plant in the Middle East, according to an Auto Time report today.

The EV maker is currently in talks with the Saudi government and local wealth funds, and the exact timing of the plan is unknown, according to the report.

Chinese EV startup Enovate to build production base in Saudi Arabia with annual capacity of 100,000 units

The post Financially troubled Enovate reportedly close to getting life-saving money appeared first on CnEVPost.

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Financially troubled Enovate reportedly close to getting life-saving money

Enovate has already owed its employees two months of salary arrears and its factory in Changsha, Hunan province, has shut down production this year, according to local media.

(Image from Enovate's Weibo)

Enovate Motors, the Chinese new energy vehicle (NEV) startup that announced late last year that it would build a production base in Saudi Arabia, is actually facing financial woes in its home market. However, the good news is that it is about to receive life-saving money.

Enovate is set to close a new round of funding in the near future, amounting to RMB 750 million yuan ($108 million), a report in local media Auto Time today said, citing multiple sources.

The money will arrive no later than March 24, one of the people familiar with the matter said. Another source with access to the financing said that it is indeed happening and that specific plans are being negotiated.

Enovate was formerly known as Zhejiang Dianka Automobile, which was founded in 2015 and produces mini electric vehicles (EVs). The Enovate brand was officially launched in November 2018.

In September 2020, the company's first model, the all-electric SUV Enovate ME7, was launched.

Enovate made its second model, the SUV Enovate ME5 with extended-range technology, available in China on July 13, 2021.

Enovate has closed eight financing rounds totaling more than RMB 11.5 billion, with the company's most recent financing round on October 13, 2020 for more than RMB 5 billion, Auto Time's report noted.

So far this year, Enovate has owed its employees two months of salary arrears, and its factory in Changsha, Hunan province, has shut down production this year, according to the report.

In addition to the Changsha manufacturing base, Enovate is also building factories in Shaoxing, Zhejiang and Nanning, Guangxi, with a planned total capacity of 220,000 units for the three production bases.

The money Enovate is about to receive will first be used for employee payroll and to push the plants back into production, the report said, citing an internal employee.

The company's performance in China has been weak over the past two years, with sales of just 1,778 units in 2021 and 5,321 units in 2022.

Enovate has begun targeting overseas markets as competition in its home market grows fiercer.

Enovate signed a contract with Sumou Holding in Saudi Arabia on December 7 to jointly build a NEV production plant here, as CnEVPost previously reported.

The two companies will form a joint venture that will make two phases of spending totaling about $500 million in Saudi Arabia to build a production and R&D base with an annual capacity of about 100,000 NEVs.

The facility, when completed, will be the first Chinese-branded NEV production base in Saudi Arabia, Enovate said at the time.

Enovate is another carmaker besides that has run into financial difficulties.

WM Motor has been in serious financial trouble, leading to disruptions in its operations over the past few months. On March 7, the company announced that it was addressing its challenges and was working hard to resume production.

WM Motor also has plans to enter Saudi Arabia, with an insider saying the company is planning a joint venture to set up a plant in the Middle East, according to an Auto Time report today.

The EV maker is currently in talks with the Saudi government and local wealth funds, and the exact timing of the plan is unknown, according to the report.

Chinese EV startup Enovate to build production base in Saudi Arabia with annual capacity of 100,000 units

The post Financially troubled Enovate reportedly close to getting life-saving money appeared first on CnEVPost.

For more articles, please visit CnEVPost.

CATL, BAIC sign deal to jointly develop battery products

will participate in the vehicle development and production of BAIC-affiliated NEV companies, and provide power battery products and services.

(Image credit: CATL)

BAIC Group, which has lagged behind many of its local counterparts in the transition to electrification, appears to be stepping up its efforts.

CATL and BAIC signed a strategic cooperation agreement on March 13, in which they plan to jointly develop power battery products and tap into the new energy vehicle (NEV) market, according to a press release from the power battery giant yesterday.

CATL will participate in the vehicle development and production of BAIC-affiliated NEV companies and provide power battery products and services, according to the press release.

The two sides will build a close strategic partnership and cooperate fully in power batteries, the release said.

BAIC's efforts in the NEV market are mainly carried out by its subsidiary Beijing Electric Vehicle Co Ltd (BJEV), but its performance has been lukewarm.

BJEV sold 50,179 units for the full year 2022, up 92.06 percent from 26,127 units in 2021, but lags behind most Chinese electric vehicle startups, according to data released by its parent company BAIC BluePark New Energy Technology Co.

In the first two months of this year, BJEV sales were 4,812 units, up 42.16 percent from 3,385 units in the same period last year.

In August 2022, Bloomberg reported that smartphone giant Xiaomi was in talks with BAIC Group to collaborate on the production of electric vehicles, which could see vehicles built by BAIC BluePark and co-branded with .

BAIC Group later told local media that the company had "not heard of this."

That comes after BAIC BluePark announced on July 15 that it plans to raise up to 8 billion yuan ($1.16 billion) in additional shares to no more than 35 specific targets.

The stock offering is intended to increase the company's capital strength, as it continues to increase the size of its business and invest in product development amid the rapid growth of China's NEV industry, BAIC BluePark said at the time.

BAIC BluePark's share price has been weak over the past year and is currently down about 40 percent from its high last June.

($1 = RMB 6.8715)

Xiaomi reportedly in talks with BAIC to jointly build EVs

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BYD says report that Tesla won’t extend battery supply partnership with it untrue

A spokesperson, responding to CnEVPost's request for comment, said the information was untrue and did not correspond to reality.

BYDDY.US | BYD HK | TSLA.US

(File photo shows BYD's blade battery. Credit: BYD)

will not continue to use BYD's batteries after its contract with the latter expires, according to a report in a South Korean media outlet yesterday. BYD denied it today.

Tesla has decided not to use BYD's batteries due to quality issues arising from a series of fire accidents with the latter's LFP (lithium iron phosphate) batteries, South Korea's Korea Economic Daily said in a report yesterday.

Tesla first used BYD's 10 GWh batteries last year for its low-end models in Europe, according to the report.

Earlier this year, Tesla did not request the additional supply of BYD batteries for the standard, low-cost trim version of the Model 3 after its contract to supply them expired, the report said, citing industry sources.

Fires in electric vehicles where BYD applied its own batteries have occurred several times in China, triggered by quality problems, the report said.

Contrary to BYD's explanation, there is no reason for Tesla to use BYD batteries as accidents become more frequent, a source from the battery industry said. That seems to be the reason for it, he said.

Tesla's reliance on LG Energy Solution, which is accelerating the development of LFP batteries for electric vehicles at Tesla's request, is expected to grow, according to the report.

Tesla uses LG Energy Solution and in Europe and Panasonic products in North America. Existing companies will most likely fill BYD's vacancy, the report noted.

A BYD spokesperson, responding to CnEVPost's request for comment, said the information was untrue and did not correspond to reality.

In February 2022, rumors surfaced that Tesla had officially placed an order with BYD's battery manufacturing division, FinDreams Battery, for blade batteries for 204,000 vehicles per year.

In early June 2022, BYD executive vice president Lian Yubo said in an interview with state-owned media outlet CGTN host Kui Yingchun that BYD would soon be supplying batteries to Tesla.

Lian provided no further details at the time, and a video of that interview posted on Weibo was subsequently deleted.

On August 10, 2022, Sina Tech cited multiple sources familiar with the matter as saying that BYD's blade battery supplies to Tesla had already begun to be delivered to the latter's plant in Berlin, Germany, the first Tesla Gigafactory to use BYD batteries.

Tesla's competitive relationship with BYD is also one of the reasons it will not extend its contract in Europe, according to Korea Economic Daily. Tesla asked LG Energy Solution to develop LFP batteries to keep its electric vehicle rival in check, the report said.

In October 2022, Steve Westly, a former Tesla board member and founder of Westly, said the only one that can truly compete with the US electric vehicle giant on a global scale is BYD.

"For the first time, I think there is a real challenger and that challenger's name is BYD," Westly said in a CNBC interview that aired on October 20 of last year.

"BYD will likely hit one million EV units produced and sold this year. That's something that should keep your eye on," he said, adding, "In contrast, it is good to compare, Ford, probably has 60,000 units and GM struggling to hit 50,000 units. They are barely 4 to 5 percent of Tesla."

So right now, it looks like it's Tesla and the Chinese battle, Westly said.

BYD sold 1,863,494 new energy vehicles (NEVs) in 2022, including 946,239 plug-in hybrid passenger cars, 911,140 pure electric passenger cars, and 6,115 commercial vehicles, according to data monitored by CnEVPost.

For comparison, Tesla delivered 1,313,851 vehicles worldwide in 2022, with 439,770 delivered to Chinese consumers.

Charlie Munger, a renowned US investor, said on February 15 that Tesla pales in comparison to BYD in China.

"Tesla last year reduced its prices in China twice. BYD increased its prices. We are direct competitors. BYD is so much ahead of Tesla in China, it's almost ridiculous," Munger said.

In addition to being an NEV giant, BYD is also one of the world's largest power battery manufacturers.

BYD installed 5.8 GWh of power batteries globally in January, up 78.8 percent from 3.3 GWh in the same month last year, according to a report released by South Korean market research firm SNE Research on March 6.

BYD ranked second globally with a 17.6 percent market share, up from the 11.6 percent share in the same period last year.

CATL installed 11.2 GWh of batteries globally in January, continuing to rank first with a 33.9 percent market share, but lower than the 37.6 percent share in the same month last year.

LG Energy Solution installed 4.3 GWh of power batteries in January, ranking third with a 13.0 percent market share, up from 10.1 percent in the same month last year.

BYD so far ahead of Tesla in China that 'it's almost ridiculous,' says Charlie Munger

The post BYD says report that Tesla won't extend battery supply partnership with it untrue appeared first on CnEVPost.

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BYD signs deal to supply 5,000 EVs to UK car rental firm Octopus EV over 3 years

The initial order will include the Atto 3, which will be available under the Salary Sacrifice program.

BYDDY.US | BYD HK

(Image credit: BYD)

BYD (OTCMKTS: BYDDY), which just last week officially announced its entry into the UK passenger car market, has signed a purchase agreement with a local car rental company.

BYD entered into a partnership with UK-based Octopus Electric Vehicles (Octopus EV) on March 10, which plans to buy 5,000 BYD electric vehicles over the next 3 years, according to a press release today.

The initial order will include the BYD Atto 3, an all-electric C-segment SUV that debuted in the UK this month.

The vehicles will be offered with the Salary Sacrifice program, one of the most affordable ways to lease BYD vehicles in the UK, according to the Chinese new energy vehicle (NEV) maker.

The start of this commercial relationship lays the foundations for Octopus EV to become a BYD partner for the Salary Sacrifice scheme in the UK, with plans for further orders in the future, the release said.

A salary sacrifice program is an agreement to reduce an employee's cash compensation entitlement, usually in exchange for a non-cash benefit.

Founded in 2018, Octopus EV is a subsidiary of Octopus Energy Group, one of Europe's largest renewable energy investors based in the UK.

Octopus EV offers services including electric vehicle leasing, charging post installation, and special discounted tariffs for electric vehicles through its parent company.

On March 8, BYD announced the official start of sales of the Atto 3 in the UK, its first passenger car offered in the country.

The model will start at £36,490 ($43,230) in the UK and local deliveries will begin on March 15, BYD said last week.

The first BYD pioneer stores will open soon, in the backbone of the U.K., including Birmingham, Manchester, Glasgow and Milton Keynes, the company said.

The Atto 3, known in China as the Yuan Plus, went on sale on February 19, 2022, and is the first SUV on BYD's all-electric platform, e-platform 3.0.

BYD to deliver 100,000 EVs to German car rental firm SIXT over next six years

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