Smart and Sustainable Electric Mobility
SAIC-Volkswagen is offering discounts of up to RMB 42,000 for the ID.3, while FAW-Volkswagen's ID.6 CROZZ is priced at RMB 63,000 less than its website shows.
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Auto industry players should not disrupt fair competition with abnormal prices and should avoid cutting prices in a reckless manner, a MIIT official said.
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Price wars are clearly not what China's main industry regulator wants to see.
An official from China's Ministry of Industry and Information Technology (MIIT) said at the 2023 China Auto Forum in Shanghai on July 6 that participants in the country's auto industry should not compete with abnormal prices, according to a report on state broadcaster CCTV today.
So far this year, the Chinese auto industry has seen the largest wave of price cuts in its history, including more than 100 models from more than 30 brands, some at any cost, the report noted.
In response to the phenomenon, the MIIT source said that the development of China's auto industry has entered a new phase, with new energy vehicles (NEVs) forming a certain lead and auto companies should regulate their marketing activities, the report said.
Auto industry players should not disrupt fair competition with abnormal prices and should avoid reckless price cuts, while strengthening technological innovation and improving product quality, the MIIT official Miao Changxing was quoted as saying in the report.
Yesterday, the China Association of Automobile Manufacturers (CAAM) and 16 major automakers jointly signed a pledge to maintain fair market order in the auto industry.
The 16 car companies include BYD, Nio, Li Auto, Xpeng, Tesla, SAIC, Geely and Great Wall Motor, who pledged to maintain a fair competition order and not to disrupt the order in the market with abnormal prices.
The initiative is just the beginning, and further restraint on bad behavior, including malicious price cuts, will depend on self-regulation and regulatory means, Fu Bingfeng, executive vice-president and secretary general of the CAAM, was quoted by CCTV in the report today.
Separately, Xu Changming, vice director of the National Information Center, said yesterday at the 2023 China Auto Forum that Tesla's average profit per vehicle is high enough that it has ammunition if it wants to fight price wars.
Tesla has previously cut its price in China by RMB 30,000 yuan ($4,140), and its average profit per vehicle is $10,426, leaving room for a 40,000 yuan price cut if the price war continues, Xu said, according to a video circulating on social media.
The calculation is based only on Tesla's 1.31 million global deliveries last year, and if it reaches its 1.8 million delivery target this year, then costs are expected to fall further, Xu noted.
Tesla's average profit per vehicle is 8.5 times that of BYD, whose figure last year was RMB 8,854 yuan per vehicle, according to Xu.
($1 = RMB 7.2401)
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China has revised its dual-credit policy, one of the key drivers of the rapid growth of the NEV industry, and the changes will take effect on August 1.
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China's so-called dual-credit policy, implemented over the past several years, has been a key driver of the rapid growth of the new energy vehicle (NEV) industry. Now the policy is seeing the latest revisions, with car companies earning fewer credits for producing NEVs.
China's Ministry of Industry and Information Technology (MIIT) today released the latest update to the policy, which will go into effect on August 1.
One of the most significant changes is the average reduction of about 40 percent in credits for standard models of new energy passenger vehicles, according to the MIIT.
After the adjustment, car companies will receive credits for each NEV produced calculated as follows:
For pure electric passenger cars, the credit calculation formula for standard models is 0.0034 x R + 0.2, where R is the range in km.
For plug-in hybrid passenger cars, a standard model's credit is 1.
For fuel cell vehicles, the credit formula for a standard model is 0.05×P, where P is the rated power of the fuel cell system in kW.
The upper limit of the standard model credit for pure electric passenger vehicles is 2.3, and the upper limit of the standard model credit for fuel cell passenger vehicles is 4.
Prior to this adjustment, NEV credits were calculated as follows:
For pure electric passenger vehicles, the standard model credit calculation formula was 0.0056 x R + 0.4.
For plug-in hybrid passenger vehicles, the standard model credit was 1.6.
For fuel cell vehicles, the standard model credit calculation formula is 0.08×P.
The upper limit of standard model credit for pure electric passenger cars is 3.4, and the upper limit of standard model credit for fuel cell passenger cars is 6.
Take a model with a CLTC range of 500 km as an example, before the latest adjustment, a car company could earn 3.2 credits. After August 1, the credit will be 1.9, a reduction of 40.63 percent.
China released the dual-credit policy in 2017, which is known as the " Parallel Management Measures for Average Fuel Consumption of Passenger Vehicle Enterprises and New Energy Vehicle Credits". The policy has been in effect since April 1, 2018.
Automakers that fail to meet the fuel consumption control requirements can offset the negative credits from excessive fuel consumption by generating their own NEV credits, or by purchasing credits from other companies.
If a car company is unable to get its negative credits to zero, then they need to submit a product adjustment plan to the MIIT and set a deadline for compliance.
Until their negative credits are zeroed out, the substandard products cannot be sold to the public.
In essence, this amounts to penalizing car companies that continue to produce vehicles powered entirely by internal combustion engines and using these fines to subsidize the production of NEVs.
In addition to reducing the number of credits generated per NEV produced, the latest adjustments include the establishment of a credit pool management system.
Under this system, when there are too many credits, automakers can voluntarily store positive credits in the pool, which is valid for five years. When the number of credits is too low, they can withdraw their stored positive credits.
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These car companies have pledged to regulate their marketing activities and not to disrupt the order of fair competition in the market with abnormal prices.
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More than 10 car companies, including major electric vehicle (EV) startups, have pledged to jointly maintain a fair market order in China's auto market, at a time when the EV industry is growing rapidly.
At the 2023 China Auto Forum in Jiading, Shanghai, today, the China Association of Automobile Manufacturers (CAAM) and 16 major automakers signed a pledge to uphold fair market order in the automotive industry.
This is to maintain a good auto market order, jointly create a good consumer environment, and actively stabilize and promote auto consumption, they said at the conference.
The car companies that signed the commitment include:
China FAW, Dongfeng Motor, SAIC, Changan Automobile, BAIC, GAC, China National Heavy Duty Truck, Chery, JAC, Geely, Great Wall Motor, BYD, Nio, Li Auto, Xpeng, and Tesla.
The following is the main content of the commitment letter:
First, we will abide by the rules and regulations of the industry, regulate marketing activities, maintain a fair competition order, and not disrupt the fair competition order of the market with abnormal prices.
Second, we will pay attention to marketing methods, will not exaggerate or conduct false marketing, not to mislead consumers to attract attention and increase customer acquisition.
Third, we will put quality first, use quality-oriented, high-quality products and services to meet the people's needs for a better life.
Fourth, we will actively fulfill our social responsibility, and take an active role in helping to stabilize economic growth, increase confidence and prevent risks, and work together to make a contribution to national economic growth.
It should be noted that the commitment is self-regulatory and not legally binding, and it was signed after the price war at the beginning of the year and the emergence of a war of words between several EV companies and their supporters.
Since early March, a rare price war has erupted in China's auto industry, which has not boosted sales but has instead triggered a wait-and-see mood among consumers, resulting in car sales not seeing an increase.
On March 22, the CAAM called for the hype about price cuts in China's auto industry to cool down to return the industry to normal operation and ensure healthy and stable development of the industry throughout the year.
After that, the price war in China's auto industry gradually subsided.
It is worth noting that although these car companies pledged today not to disrupt the fair order with abnormal prices, it does not mean that they cannot cut prices when facing future challenges.
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Volkswagen China and FAW-Volkswagen plan to jointly invest about 800 million yuan in charging station operator CAMS to accelerate the deployment of charging network in China.
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Volkswagen plans to invest more in a charging joint ventures in China to increase its bet on the world's largest electric vehicle (EV) market.
Volkswagen China and FAW-Volkswagen plan to jointly invest about 800 million yuan ($110 million) in charging station operator CAMS New Energy Technology (CAMS) to accelerate the layout of charging network in China, according to a July 3 press release.
The transaction, which will be completed after regulatory approvals are obtained, is intended to further accelerate the layout of the charging network in China and enhance the user experience, Volkswagen said.
CAMS was founded in May 2019 and is based in Changzhou, Jiangsu province. Volkswagen China holds a 30 percent stake in the company, China FAW holds 30 percent, and two other local companies hold 40 percent of the remaining shares.
By June 2023, CAMS had established 1,250 supercharging stations in China, offering 10,950 charging terminals covering more than 180 cities and serving more than 2 million registered users, according to the Volkswagen press release.
By 2025, CAMS plans to have 17,000 fast charging terminals in China with superchargers ranging from 120 kW to 180 kW and even 300 kW to 480 kW, it said.
In addition, Volkswagen China and CAMS have joined forces with a subsidiary of State Grid to launch a managed charging (V1G) pilot in the Beijing-Tianjin-Hebei region.
The pilot's intelligent remote-control technology can control charging power according to the requirements of grid load regulation, thus balancing power supply and demand and contributing to grid stability, according to Volkswagen.
The first phase of the pilot program will run from July 2023 to June 2024, with 2,400 EV customers initially planned to be recruited in the Beijing-Tianjin-Hebei region.
Volkswagen's weekly sales of new energy vehicles (NEVs) in China were 3,900 units in the week of June 26 to July 2, according to data shared yesterday by local auto media outlet Dongchedi.
($1 = RMB 7.2144)
China NEV insurance registrations for week ending Jul 2: BYD 54,000, Nio ES6 1,900
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This is below the CPCA's June 25 estimate of about 670,000 units.
Retail sales of passenger new energy vehicles (NEVs) in China were 638,000 units in June, up 19 percent year-on-year and up 10 percent from May, according to preliminary data released today by the CPCA.
On June 25, the CPCA estimated in a report that China's retail sales of passenger NEVs in June would be around 670,000 units. The latest preliminary figures have been revised downward from the previous estimate.
From January to June, retail sales of passenger NEVs in China were 3.06 million units, up 36 percent year-on-year, according to the CPCA.
Wholesale sales of passenger NEVs in China were 744,000 units in June, up 30 percent year-on-year and up 10 percent from the previous month.
From January to June, wholesale sales of passenger NEVs in China were 3.53 million units, up 43 percent year-on-year.
Retail sales of all passenger vehicles in China were 1.896 million units in June, down 2 percent year-on-year but up 9 percent from May, according to the CPCA.
This means that the penetration of passenger NEVs at retail in June was 33.64 percent, up from 31.66 percent in May.
Retail sales of all passenger vehicles in China from January to June were 9.528 million units, up 3 percent year-on-year.
Wholesale sales of passenger cars in China increased 2.23 million units in June, up 2 percent year-on-year and up 11 percent from May.
From January to June, China's wholesale passenger vehicle sales were 11.06 million units, up 9 percent year-on-year.
The following is the CPCA's weekly retail sales performance for the Chinese passenger vehicle market for June, as announced today:
For the first week of June, June 1-4, passenger vehicle daily retail sales averaged 31,000 units, down 9 percent year-on-year and down 42 percent from the same period in May.
In the second week of June, from June 5-11, the average daily retail sales of passenger cars were 43,000 units, down 10 percent year-on-year and 14 percent lower than the same period in May.
In the third week of June, June 12-18, average daily retail sales of passenger cars were 58,000 units, down 2 percent year-on-year but up 21 percent from the same period in May.
In the fourth week of June, June 19-25, average daily retail sales of passenger cars were 75,000 units, up 9 percent year-on-year and up 53 percent from the same period in May.
In the fifth week of June, from June 26-30, the national passenger car market averaged 108,000 daily retail sales, down 7 percent year-on-year and up 30 percent from the same period in May.
China NEV insurance registrations for week ending Jul 2: BYD 54,000, Nio ES6 1,900
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In the first half of the year, wholesale sales of passenger NEVs in China are expected to be 3.53 million units, up 44 percent year-on-year.
China's wholesale sales of passenger new energy vehicles (NEVs) are expected to be 740,000 units in June, up 10 percent from May and up 30 percent year-on-year, the China Passenger Car Association (CPCA) said in a report today.
In May, the 12 manufacturers with more than 10,000 NEVs sold at wholesale contributed 82.8 percent of all wholesale sales, the CPCA said.
These companies are expected to sell 611,000 units in June, and the normal structure would put China's June wholesale sales of passenger NEVs at around 740,000 units, the CPCA said.
In the January-June period, China's wholesale sales of passenger NEVs are expected to be 3.53 million units, up 44 percent from a year earlier, according to the report.
In China, NEVs include battery electric vehicles, plug-in hybrids and fuel cell vehicles.
China's passenger NEV market maintained strong growth in June, continuing May's trend with sales reaching an all-time high, the CPCA said.
With the launch of a large number of competitive new products and increased promotions in the second quarter, consumers' enthusiasm for buying was gradually released, the report said.
Manufacturers and dealers are actively carrying out various promotional activities to achieve their semi-annual targets, and coupled with local government subsidies, NEV retail sales continue to improve, the CPCA said.
Passenger vehicle sales in China are expected to be 23.5 million units in 2023, with 8.5 million units of NEVs sold and penetration expected to reach 36 percent, the CPCA said, repeating its previous forecast.
For the full year 2022, China's wholesale sales of passenger NEVs are expected to be 6.5 million units, up 96.3 percent year-on-year.
Here are the CPCA's June NEV wholesale sales figures for major automakers.
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In 2022, RoboSense had 953 customers, including Geely, GAC Aion, Great Wall Motor, Xpeng, Lotus and Lucid.
(Image credit: RoboSense)
RoboSense Technology has filed for a Hong Kong IPO and is expected to become the second Chinese LiDAR maker to go public after Hesai Group.
RoboSense's prospectus was made public on the HKEX website today, with JPMorgan and China Renaissances as co-sponsors.
The number of shares RoboSense plans to issue or the amount of capital it plans to raise has not been announced, but the prospectus provides details about its business.
RoboSense was founded in 2014 and its RS-LiDAR-M1 was the world's first mass-produced solid-state LiDAR, with mass production and delivery beginning in June 2021.
In 2022, RS-LiDAR-M1P, an upgraded version of RS-LiDAR-M1, achieves mass production.
Sales of RS-LiDAR-M1 and RS-LiDAR-M1P were 36,600 units and 4,300 units respectively in 2022.
RoboSense demonstrated the new product RS-LiDAR-E1 at its Tech Day event on November 7, 2022, and will begin mass production in the second half of 2023.
As of March 31, RoboSense has received expected orders for 52 models of LiDAR from 21 car companies and Tier 1 suppliers, of which 9 models have already started production, according to its prospectus.
In 2022, RoboSense has 953 customers, including primarily Geely, GAC Aion, Great Wall Motor, Xpeng, Lotus, and Lucid.
Since inception, RoboSense has delivered more than 100,000 LiDARs cumulatively as of the end of the first quarter.
RoboSense's revenues for 2020 to 2022 were RMB171 million ($23.5 million), RMB331 million, and RMB530 million, respectively.
Like many other tech startups, RoboSense is still in the red.
From 2020 to 2022, RoboSense recorded net losses of RMB 220 million, RMB 1.65 billion, and RMB 2.09 billion, respectively.
Its adjusted net losses for these three years were RMB 59.9 million, RMB 108 million, and RMB 563 million, respectively. These adjustments include the exclusion of share-based compensation, changes in the value of financial instruments issued to investors, and listing expenses.
RoboSense entered into a supply partnership with BYD at the end of 2021 and announced on February 6 this year a supply partnership agreement with Toyota to supply LiDARs for a number of the latter's models.
RoboSense is set to become the second Chinese LiDAR maker to go public, after its local counterpart Hesai was listed in the US on February 10.
Hesai, also founded in Shanghai in late 2014, initially focused on developing high-performance laser sensors and has been exploring driverless LiDAR products since 2016.
($1 = RMB 7.2689)
Shanghai auto show: EVs take center stage, nearly 40 models equipped with LiDARs
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Retail penetration of NEVs in China was 36.92 percent from June 1 to June 25, and 32.50 percent year-to-date.
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From June 1 to June 25, retail sales of passenger new energy vehicles (NEVs) in China were 500,000 units, up 13 percent year-on-year and up 15 percent from the same period last month, according to data released today by the China Passenger Car Association (CPCA).
So far this year, retail sales of passenger NEVs in China were 2.92 million units, up 35 percent year-on-year.
From June 1 to June 25, wholesale sales of passenger NEVs in China were 534,000 units, up 14 percent year-on-year and up 14 percent from the same period last month, according to the CPCA.
Wholesale sales of passenger NEVs so far this year were 3,317,000 units, up 40 percent year-on-year.
Between June 1 and June 25, retail sales of all passenger vehicles in China were 1.35 million units, down 1 percent year-on-year while up 9 percent from the same period last month, the CPCA said.
So far this year, cumulative retail sales of passenger cars in China were up 3 percent to 8.986 million units.
This means that from June 1 to June 25, the penetration of NEVs at retail in China was 36.92 percent, and 32.50 percent year-to-date.
In the first week of June -- June 1-4 -- the average daily retail sales of passenger cars in China were 31,000 units, down 9 percent from a year ago and 42 percent lower than the same period last month.
In the second week of June -- June 5 to 11 -- average daily retail sales of passenger cars were 43,000 units, down 10 percent year-on-year and down 14 percent compared to the same period in May.
In the third week of June -- June 12 to 18 -- average daily retail sales of passenger cars were 58,000 units, down 2 percent year-on-year, but up 21 percent compared to the same period in May.
In the fourth week of June -- June 19-25 -- average daily retail sales of passenger cars were 75,000 units, up 9 percent year-on-year and up 53 percent compared to the same period in May.
China began halving purchase taxes on mainstream internal combustion engine vehicles last June, causing sales to shift toward the beginning of the month, the CPCA said. The policy was not renewed when it expired at the end of last year.
By comparison, June is a normal sales month this year, so a dip at the beginning of the month is normal, the CPCA said.
Notably, China saw campaigns to promote auto consumption during this month, which, combined with dealers facing semi-annual performance reviews, is helping support June auto sales, according to the CPCA.
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Kia has not yet announced pricing for the EV6 in China, which starts at $42,600 in the US.
(Image credit: Kia)
Kia Motors, an affiliate of Hyundai Motor Co, is accepting pre-orders in China for its first all-electric model, the EV6.
Starting June 28, Chinese consumers can pre-order the EV6 by paying RMB 666 ($92) for the model, which will be imported into China but is limited to 1,000 units, Kia announced today.
Kia has not yet announced the prices for the EV6 in China; the model has a starting price of $42,600 in the US, according to its website.
The car is based on Kia's EV-specific platform E-GMP and has a wheelbase of 2,900 mm.
The vehicle offers a variety of all-electric, zero-emission powertrain options, including a long-range version with a 77.4 kWh battery pack and a standard-range version with a 58-kWh battery pack.
The Kia EV6 has a maximum power of 125 kW and a maximum torque of 350 Nm in the standard range rear-wheel drive version and a maximum power of 173 kW and a maximum torque of 605 Nm in the standard range four-wheel drive version, which can accelerate from 0 to 100 km/h in 6.2 seconds.
The EV6 long-range rear-wheel drive version has a maximum power of 168 kW and a maximum torque of 350 Nm. Its long-range 4WD version has a maximum power of 239 kW and a maximum torque of 605 Nm, and can accelerate from 0-100 km/h in 5.2 seconds.
The car supports 800 V charging and takes only 18 minutes to charge from 10 percent to 80 percent. For the long-range 2WD version, a 4.5-minute charge adds 100 km of range, the company said.
Kia announced its official entry into the Chinese EV market at an event on March 20, unveiling the EV5 concept, EV9 concept and EV6 GT.
Kia 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 car has a length of over 5000 mm and a wheelbase of 3100 mm, with a 3-row, 6-seat interior design.
In China, Kia is aiming for 450,000 units by 2030, with new energy models accounting for 40 percent of the total, according to its previously announced plans.
Kia enters China's crowded EV market, 1st model expected to launch in Aug
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