Category: Industry News

BREAKING: China extends NEV purchase tax exemption until end of 2025

(Image credit: CnEVPost)

China today released details of its policy to extend the purchase tax exemption for new energy vehicles (NEVs), clarifying the timeline for the policy's withdrawal.

China will exempt the purchase tax on NEVs with a purchase date between January 1, 2024, and December 31, 2025, but the tax exemption will not exceed RMB 30,000 yuan per vehicle, according to an announcement issued today by China's Ministry of Finance.

For NEVs with a purchase date between January 1, 2026 and December 31, 2027, the vehicle purchase tax will be reduced by half, with the tax reduction not exceeding RMB 15,000 per vehicle.

China NEV insurance registrations for week ending Jun 18: Tesla 14,500, Li Auto 7,800, NIO 2,000

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Qiantu’s parent firm to establish joint venture in Jordan

The joint venture will bring Qiantu's K50, K20 and K25 to Jordan and serve the Middle East and North African markets, Qiantu said.

Qiantu's parent firm to establish joint venture in Jordan-CnEVPost

(Image credit: Qiantu)

Qiantu Motors, which is almost forgotten in China, seems to be continuing to push its presence in overseas markets.

Qiantu's parent company, CH-Auto Technology Co Ltd, recently signed a strategic partnership agreement with the Manaseer Group, Jordan's largest private company, to jointly establish a joint venture in Jordan, according to a press release yesterday.

Qiantu will work with Manaseer to expand into the Middle East and North Africa market, bringing exciting electric vehicle (EV) options to consumers in the region, the Chinese EV maker said.

Jordan has one of the most stable and reliable markets in the Middle East and ranks first in economic freedom in the region, according to the press release from Qiantu.

Manaseer was founded in 1999 and has 16 subsidiaries with businesses in construction, building materials, new energy, transportation, modern agriculture, minerals and other sectors, according to the release.

The joint venture will bring Qiantu's K50, K20 and K25 EVs to Jordan and serve the Middle East and North African markets, Qiantu said.

Founded in 2015, Qiantu was one of the first EV startups in China.

Qiantu's first model, the Qiantu K50, was launched in China in 2018, but the model did not win recognition for the company and was discontinued in November 2020.

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

Qiantu unveiled its new development plan at that time, and also held a ceremony to launch the Qiantu K50 sports car and deliver the model to customers.

In October 2022 Qiantu announced to showcase and start pre-sales of Qiantu K50, Qiantu K25 and Qiantu K20 in Malaysia, with Qiantu K25 making its global debut.

In March this year, Qiantu signed an agreement with Mullen Automotive, an American EV company, to expand into the US market, and the K50 supercar will be rebranded with the Mullen GT and GTRS.

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

To secure the supercar's 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

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Buick launches Electra E4 electric SUV in China at competitive pricing

The Buick Electra E4 starts at RMB 189,900 in China, with deliveries set to begin in July.

(Image credit: Buick)

General Motors' Buick brand has clearly adapted to the competitive Chinese electric vehicle (EV) market, launching its second model built on GM's Ultium platform at a competitive price and fast delivery pace.

Buick officially made the Electra E4, an all-electric coupe SUV, available in China yesterday, just two months after the launch of the Electra E5, its first model built on the Ultium platform.

The Buick Electra E4 is available in four versions in China, starting at RMB 189,900 ($26,520), RMB 209,900, RMB 219,900 and RMB 259,900 respectively.

For comparison, the Model Y, the best-selling electric SUV in China, starts at RMB 263,900 and the EC7, 's coupe SUV, starts at RMB 458,000.

The model will gradually become available in showrooms and its delivery will begin in July, Buick said.

The car is an all-electric coupe SUV with a length, width and height of 4,818 mm, 1,912 mm and 1,581 mm, respectively, and a wheelbase of 2,954 mm.

For comparison, the Electra E5 measures 4,892 mm in length, 1,905 mm in width and 1,655 mm in height, and has a wheelbase of 2,954 mm.

The Buick Electra E4 is available in two power versions, the dual-motor version with a maximum output of 143 kW for the front electric motor and 68 kW for the rear electric motor, accelerating from 0 to 100 km/h in 6.2 seconds.

Its single-motor version features a front motor with a maximum output of 150 kW.

The Buick Electra E4 is powered by a ternary lithium-ion battery supplied by a joint venture between and SAIC, with a 65-kWh pack for the standard range version and a CLTC range of 530 km. Its long-range version has a pack capacity of 79.7 kWh and a CLTC range of 620 km.

Buick is one of the most aggressive in embracing the transition to electrification in the Chinese auto industry. It launched the Electra E5 on April 13, offering five versions with starting prices of RMB 208,900, RMB 222,900, RMB 225,900, RMB 239,900, and RMB 278,900 respectively.

On April 25, Buick announced that the Electra E5 received more than 8,000 orders after 12 days on the market.

On May 29, SAIC Motor, a joint venture between GM and SAIC, said the first deliveries of Electra E5 vehicles had begun, but did not announce the number of deliveries.

($1 = RMB 7.1614)

Buick Electra E5 gets over 8,000 orders in less than 2 weeks after launch in China

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HiPhi begins accepting pre-orders for HiPhi X and HiPhi Z in Europe, deliveries to begin in Q3

HiPhi's third model, the HiPhi Y, which will be launched in China on July 15, will also be introduced to the European market soon and will be available for pre-order there by the end of the year.

HiPhi begins accepting pre-orders for HiPhi X and HiPhi Z in Europe, deliveries to begin in Q3-CnEVPost

(Image credit: HiPhi)

Chinese premium electric vehicle (EV) maker Human Horizons' HiPhi brand has announced the European pricing of its models and started accepting pre-orders.

HiPhi began accepting reservations for the HiPhi X and HiPhi Z from local consumers in Germany and Norway, with first deliveries of the vehicles expected to begin in the third quarter, it announced yesterday.

The HiPhi showroom at Munich International Airport in Germany will open shortly, and the first HiPhi X and HiPhi Z have completed their license plate registration in Germany, allowing consumers to visit the showroom to experience the vehicles and book test drives, it said.

The HiPhi X six-seater and four-seater versions start at 109,000 ($119,000) euros and 123,000 euros respectively in Germany. In Norway, they start at NOK 1,164,000 ($108,690), NOK 1,326,000 respectively.

The HiPhi Z starts at 105,000 euros for the five-seat version in Germany and 107,000 euros for the four-seat version. In Norway, they are NOK 1,110,000, NOK 1,143,000 respectively.

HiPhi begins accepting pre-orders for HiPhi X and HiPhi Z in Europe, deliveries to begin in Q3-CnEVPost

(Image credit: HiPhi)

Human Horizons launched the HiPhi X, the first model of the HiPhi brand, in October 2020, and deliveries of the model began in China in May 2021.

The HiPhi X starts at RMB 570,000 ($79,450) in China for the six-seat version and up to RMB 800,000 for the four-seat version.

In August 2022, the HiPhi Z, the second model under the HiPhi brand, went on sale. The model is available in five-seat and four-seat versions, with starting prices of RMB 610,000 and 630,000 yuan in China, respectively, and deliveries began at the end of January.

The HiPhi X is powered by dual motors with a maximum output of 440 kW and accelerates from 0 to 100 km/h in 3.9 seconds.

The car is equipped with a battery pack with a capacity of 97 kWh and a CLTC range of 560 km.

The HiPhi Z is equipped with dual motors with a maximum output of 494 kW and accelerates from 0 to 100 km/h in 3.8 seconds.

The car is equipped with a 120-kWh battery pack and has a CLTC range of up to 705 km.

HiPhi begins accepting pre-orders for HiPhi X and HiPhi Z in Europe, deliveries to begin in Q3-CnEVPost

(Image credit: CnEVPost)

Both models have received EU certification from the TÜV Nord Group for sale in Europe, HiPhi said yesterday.

In Europe, consumers in Germany and Norway will be the first to experience HiPhi's new driving experience, said Mark Stanton, co-founder, CTO and president of Human Horizons Europe.

With Germany and Norway as the starting point, Human Horizons will expand its business to more countries and regions, he said.

The HiPhi Y, the third model of the HiPhi brand, will be launched on July 15 in China, and it will also be introduced to the European market soon and will be available for pre-order by European consumers by the end of the year, the company said.

The HiPhi Y was included in the latest list of models that will be allowed to be sold in China, announced by the Chinese Ministry of Industry and Information Technology (MIIT) on February 13.

The HiPhi Y will have a single-motor and a dual-motor version, with the single-motor version having a maximum motor power of 247 kW. Its dual-motor version has an additional front motor with a maximum power of 124 kW, according to the filing.

HiPhi was finalizing the pricing for the HiPhi Y series, with the 560 km range version expected to be set at RMB 369,000 to start, said Xu Bin, HiPhi's brand and communications manager, on May 24.

($1 = EUR 0.9160, $1 = NOK 10.7093, $1 = RMB 7.1745)

Saudi Arabia signs $5.6 billion deal with Chinese EV maker Human Horizons

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Polestar partners with Geely’s Meizu to make in-car operating system that caters to Chinese consumers

Polestar will own 49 percent of the joint venture, with Xingji Meizu holding the remaining 51 percent.

(Image credit: CnEVPost)

After acquiring smartphone maker Meizu last year, is integrating it with car brands under its umbrella.

Swedish electric vehicle (EV) maker Polestar said today it has formed a joint venture with Xingji Meizu to build an operating system for Polestar cars sold in China.

Polestar will own 49 percent of the joint venture, with Xingji Meizu holding the remaining 51 percent, according to a statement.

The joint venture will build on Xingji Meizu's existing operating system, Flyme Auto, for Polestar's smart operating system, Polestar OS, for the Chinese market.

The system can be integrated with cell phones, augmented reality smart terminals and user service applications to create a borderless digital ecosystem, Polestar said.

China is one of the fastest-growing EV markets in the world, with distinct consumer trends, notably the deep integration of consumer electronics and cars, said Polestar CEO Thomas Ingenlath.

Through this partnership, Polestar and Xingji Meizu will provide Chinese customers with an experience that exceeds expectations, he said.

Originally a brand acquired by Volvo Cars, Polestar became independent with joint funding from Geely and Volvo, focusing on premium EVs and based in Gothenburg, Sweden.

In June 2022, Polestar went public on NASDAQ through a merger with a SPAC (Special Purpose Acquisition Company).

Currently, Polestar's models are all produced in Chinese factories.

Meizu was one of the first smartphone manufacturers in China, founded in 2003, and became one of the best-known phone makers in the smartphone era. However, the company's market share has declined severely over the past few years.

On July 4, 2022, Hubei Xingji Shidai Technology, a cell phone company founded by Eric Li, founder and chairman of carmaker Zhejiang Geely Holding Group, announced the completion of its acquisition of a majority stake in Meizu.

Xingji acquired a 79.09 percent controlling interest in Meizu and gained sole control of the company.

Last November, Meizu released the system, called Flyme Auto, saying it was a continuation of the Flyme mobile operating system for the smart cockpit.

In March, the Xingji Meizu Group was officially launched, and its executives announced at the time that the company would focus on mobile and in-car systems, XR technology and forward-looking technologies going forward.

With the new joint venture, Polestar is no longer an EV company, but a technology company with multiple smart terminals, including cars and phones, Xingji Meizu CEO Shen Ziyu said today.

Polestar 4 launched in China with starting price of $50,870

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China may introduce NEV support measures soon

China's State Council Information Office will hold a briefing at 10 am Beijing time on June 21 on promoting the development of the NEV industry.

China may introduce NEV support measures soon-CnEVPost

(Image credit: CnEVPost)

China is expected to introduce policy initiatives to promote the "high-quality development" of the new energy vehicle (NEV) industry in recent days, local media China Securities Journal said in a report today.

The report did not mention details about the possible policies.

A notice posted on the website of China's State Council Information Office today shows it will hold a regular briefing at 10 am Beijing time on Wednesday, June 21, to introduce the promotion of "high-quality development" of the NEV industry and answer reporters' questions.

China's current policy to support the NEV industry is mainly the exemption of purchase tax.

In order to support the development of energy-efficient vehicles, China first started to exempt NEVs from purchase tax in 2014.

The policy originally expired at the end of 2017, but was renewed before its expiration until the end of 2020. In March 2020, China renewed the policy again until the end of 2022.

On September 26, 2022, several Chinese government departments announced in an official announcement that the purchase tax exemption for NEVs would continue until the end of 2023.

On June 2, a Bloomberg report said that China was considering extending the tax exemption for cheaper NEVs for another four years.

One of those measures could be extending the purchase tax exemption for electric and plug-in hybrid vehicles that cost less than 300,000 yuan ($42,910), according to the Bloomberg report.

Hours after that Bloomberg report was published, state broadcaster CCTV reported that a State Council meeting mentioned that China would extend and optimize the vehicle purchase tax exemption for NEVs.

The upcoming press conference on June 21 may be related to the extension of the NEV purchase tax exemption policy.

Before this year, China also offered state subsidies for NEV purchases, and they were not renewed when they expired at the end of last year, although some local governments have offered subsidies to local residents for their purchases from time to time.

Following the withdrawal of state subsidies, growth in China's NEV industry has slowed significantly so far this year.

From January to May, retail sales of NEVs in China were 2.42 million units, up 41.45 percent year-on-year, according to the China Passenger Car Association (CPCA). For comparison, the growth rate for the same period last year was 117.21 percent.

($1 = RMB 7.1580)

China to extend and optimize NEV purchase tax exemption policy, says State Council meeting

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US can’t yet compete with China in EV production, says Ford chairman

"They developed very quickly, and they developed them in large scale. And now they're exporting them," Bill Ford said.

(Image credit: Ford China Weibo)

The US is not ready to compete with China in electric vehicle (EV) production, Ford executive chairman Bill Ford said on CNN's "Fareed Zakaria GPS" Sunday program.

"They developed very quickly, and they developed them in large scale. And now they're exporting them," Ford said, adding, "They're not here but they'll come here we think, at some point, we need to be ready, and we're getting ready."

Ford CEO Jim Farley said in May that Chinese EV makers are its main competitors in the segment and that Ford would need a unique brand or lower cost to beat them.

"I think we see the Chinese as the main competitor, not GM or Toyota. The Chinese are going to be the powerhouse," Farley said.

China has a well-established EV industry chain that Ford is trying to tap into in its electrification transformation efforts.

On February 13, Ford announced it is investing $3.5 billion to build a lithium iron phosphate (LFP) battery plant in Marshall, Michigan.

The plant, which is wholly owned by Ford, is the first battery plant in the US to be wholly owned by an automaker and will introduce LFP battery solutions for Ford's EV products.

Notably, Ford will use technology provided by Chinese power battery giant .

Ford has a new agreement with CATL, which will provide technical and service support for the production of the LFP battery plant, and Ford engineers will work on cell and vehicle integration, it said at the time.

In China, Ford appears to be scaling back its efforts on electrification, after initial attempts didn't yield the desired results.

Earlier this month it was reported that Ford was making organizational changes that would see the Mustang Mach-E team integrated back into Ford China, and that the separate entity running the program would be written off in the future.

That's because Mustang Mach-E sales were too poor for the separate company to sustain losses for long, Jiemian said on June 8, citing a person familiar with the matter.

The reshuffling of the team does not mean the Mustang Mach-E will be withdrawn from China, and the project will continue to be produced by Changan Ford, Ford's joint venture in China, according to the report.

($1 = RMB 7.1265)

Ford scaling back ambitions for Mustang Mach-E in China amid poor sales

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China auto exports expected to reach 4.4 million in 2023, over 30% to be NEVs, says Canalys

Chinese car penetration is expected to rise to 16.5 percent in Europe and 12.8 percent in Southeast Asia by 2025, according to Canalys.

China auto exports expected to reach 4.4 million in 2023, over 30% to be NEVs, says Canalys-CnEVPost

China's total vehicle exports are expected to reach 4.4 million units in 2023, with new energy vehicles (NEVs) expected to account for more than 30 percent of the total, market research firm Canalys said in a report today.

China's auto exports have been climbing since 2020, surpassing Germany as the world's second-largest exporter in 2022. In the first quarter, China surpassed Japan as the world's largest auto exporter, with growth in NEVs exports the main reason for the overall increase, Canalys said.

In April, China's vehicle exports rose 142.40 percent to 424,200 units, up 9.61 percent from March, according to the China Passenger Car Association (CPCA).

In January-April, China's auto exports were 1.49 million units, up 71 percent year-on-year, according to the CPCA.

The core regions of China's auto export destinations are shifting from Africa, Central Asia and South Asia to more developed regions, including Europe and Southeast Asia, the report noted.

China's light vehicle exports to these two core regions contributed 5.9 percent and 7.6 percent of the country's vehicle exports in 2020, respectively. In 2022, the share was 22 percent and 14.3 percent, respectively, according to Canalys.

The average selling price of Chinese car exports increased from RMB 112,000 ($15,670) in 2021 to RMB 140,000 in 2022, up by more than 25 percent. In the European market, the figure was RMB 210,000 in 2022.

In 2022, Chinese automotive products had a penetration rate of 2.6 percent in the Southeast Asia region. By 2025, that figure is expected to rise to 12.8 percent, Canalys said.

In Europe, the penetration of Chinese cars is expected to rise to 16.5 percent by 2025, according to the report.

The average selling price of mainstream products in the European market is highly aligned with the average price of Chinese automotive exports, and consumers here are more aware of the NEV market, according to Canalys.

The overall light vehicle market volume in Europe and Southeast Asia is expected to grow to 13.7 million and 3.8 million units, respectively, by 2025, with NEVs penetrating more than 40 percent in Europe, Canalys said.

In 2021, the Covid pandemic caused instability in overseas supply chains and was the core reason for the growth of Chinese vehicle exports. After 2022, the growth of the overseas NEV market presents new opportunities, according to the report.

Chinese automakers have a first-mover advantage in electrification and vehicle intelligence, and have sufficient capacity and short product delivery times, Canalys said, adding that brands in other countries are lagging behind in the NEV transition and are falling short of expectations in core technology development.

($1 = RMB 7.1457)

China Apr auto exports up about 10% from Mar

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Analysts expect 16% of heavy trucks sold in China to be electric by 2025

At present, 89 percent of the new energy heavy trucks are pure electric models, and half of them support battery swap.

(Image: Screenshot from a video)

China's electrification transition involves not only regular passenger cars, but heavy trucks as well.

By 2025, sales of electric heavy trucks in China are expected to reach 190,000 units, with a penetration rate of about 16 percent, said CITIC Securities analyst Yuan Jiancong's team in a research note today.

In China, the singularity for accelerated penetration of electric heavy trucks has arrived, with penetration expected to reach 35 percent by 2030, the team said.

The acceleration of new energy heavy truck penetration in China from 2021 onward was largely driven by China's restrictions on carbon emissions from high-emitting companies, according to the team.

In 2022, retail sales of new energy heavy trucks in China were 25,000 units, up 142 percent year-on-year, with a penetration rate of about 5 percent, CITIC Securities said, citing data from China Automotive Technology and Research Center (CATARC).

At present, 89 percent of new energy heavy trucks are pure electric models, and half of them support battery swap, according to the team.

Heavy-duty trucks have larger batteries and take longer to recharge at the same charging rate, and battery swap meets the efficiency requirements of these models, the team said.

From 2021 to 2022, the percentage of battery swap-enabled heavy-duty trucks ramped up, the team said, adding that they expect such electric heavy-duty trucks to become the industry's dominant product form in the near term.

On June 12, CATL unveiled Qiji Energy, a battery swap solution for heavy-duty trucks. Similar to the Chinese power battery giant's EVOGO solution for passenger cars released last year, Qiji Energy supports flexible use of the number of batteries.

With a capacity of 171 kWh in a single battery block, heavy trucks can choose to use 1-3 blocks, and the entire battery replacement process takes only a few minutes, CATL said.

In the vehicle-battery separation model, a heavy truck can save RMB 30,000 ($4,190) to RMB 60,000 in annual costs, CATL said.

CATL's move is expected to further boost the electrification of heavy trucks, CITIC Securities said in the research note today.

The penetration of electric heavy trucks is expected to accelerate in areas with higher requirements for range and economy, the team said.

The note also said that 's first electric heavy truck, the Semi, which began deliveries on December 2, 2022, has a range of 800 km at 37 tons fully loaded and has met the criteria for wide-scale commercial operation.

Electric heavy-duty trucks have shown good economic performance in both the US and China, and the Tesla Semi could help the industry grow more rapidly in the US, the team said.

In China, electric heavy-duty trucks will be adopted preferentially in the short term in scenarios including coal industrial parks, steel industrial parks, and sanitation trucks, driven by policy.

By 2025-2030, market forces will drive more growth in the sector as electric heavy trucks improve in economy and range, according to the team.

($1 = RMB 7.1551)

CATL launches battery swap solution Qiji Energy for heavy-duty trucks

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Buick to launch Electra E4 coupe SUV in China on Jun 19

Only about 2 months ago on April 13, Buick launched the Electra E5 SUV -- its first model based on GM's Ultium platform -- in China.

(Image credit: Buick)

General Motors' Buick brand is probably the most aggressive of the foreign brands when it comes to tapping into the Chinese electric vehicle (EV) market, with a second model coming two months after launching its first model based on the Ultium platform two months ago.

The Buick Electra E4 -- an all-electric coupe SUV -- will go on sale in China on June 19, the brand announced on its social media accounts yesterday.

Notably, Buick launched the Electra E5 SUV, its first model based on GM's Ultium platform, in China only about 2 months ago, on April 13.

Buick was already warming up for the Electra E4's launch earlier this month, sharing exterior images of the model as well as its core specs.

The Electra E4 entered the Chinese industry regulator's list of new models that will be allowed to be sold in China two months ago.

The model has a length, width and height of 4,818 mm, 1,912 mm and 1,581 mm, respectively, and a wheelbase of 2,954 mm, according to the regulatory filing dated April 11.

For comparison, Buick's first model based on the Ultium platform, the Electra E5, has a length, width and height of 4,892 mm, 1,905 mm and 1,655 mm, respectively, and a wheelbase of 2,954 mm.

The model has two power versions, the dual-motor version with a maximum output of 143 kW for the front motor and 68 kW for the rear motor. Its single-motor version has a front motor with a maximum output of 150 kW. The model supports a top speed of 180 km/h.

The Buick Electra E4 is powered by a ternary lithium-ion battery supplied by a joint venture between and GM's local car-making partner SAIC, with a 65-kWh pack for a CLTC range of 530 km in the standard range version and a 79.7-kWh pack for a CLTC range of 620 km in the long-range version.

Buick is one of the most aggressive in embracing the transition to electrification in the Chinese auto industry. It launched the Electra E5 on April 13, offering five versions with starting prices of RMB 208,900 ($29,100), RMB 222,900, RMB 225,900, RMB 239,900 and RMB 278,900, respectively.

On April 25, Buick announced that the Electra E5 received more than 8,000 orders after 12 days on the market.

On May 29, SAIC Motor, a joint venture between GM and SAIC, said the first deliveries of Electra E5 vehicles had begun, but did not announce the number of deliveries.

($1 = RMB 7.1780)

Buick begins delivery of Electra E5 electric SUV in China

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