Category: Tesla

Tesla asks Chinese suppliers to build plants in Mexico, report says

is asking several Chinese supply chain companies to build factories in Mexico in order to replicate a Giga Shanghai and its supply chain system there, according to local media.

(Image: Tesla China video screenshot)

China's well-established electric vehicle (EV) industry chain is one of the key factors in Tesla's success in the country. Now, the US EV maker is reportedly looking to replicate it in Mexico.

Tesla is asking several Chinese supply chain companies to build factories in Mexico to replicate a Giga Shanghai and its supply chain system there, local media outlet 36kr reported today.

Tesla's pace is urgent and suppliers could lose orders amounting to hundreds of millions of yuan if they don't respond in time, the report said, citing a person familiar with the matter.

On March 1, Tesla unveiled plans to build a factory in Mexico for the production of next-generation cars at an Investor Day event.

Mexican Foreign Ministry officials had said the plant would invest more than $5 billion and have a planned capacity of 1 million vehicles.

Some of Tesla's suppliers in China have announced plans to build factories in Mexico since the beginning of this year.

Ningbo Xusheng Group said in late March that it would build a production base in Mexico, with a total investment of no more than $276 million. Late May, the construction of the project was officially launched in Mexico's Coahuila state.

If all goes well, the plant will be ready for production in July or August next year, 36kr said, citing a source close to the project.

According to the report, a number of Chinese manufacturers of production line equipment have already set up offices in Mexico to take charge of design, after-sales support and other business aspects.

Mexico is now a hotbed of investment, many customers are coming over, and there are even supply chain companies bringing production line workers to Mexico to build factories, the report quoted a Tesla supplier source as saying.

Low labor costs, and industrial chain support are Mexico's advantages. However, there are supply chain sources said that Mexico is not as mature as the European and American markets, social and geopolitical risks are relatively high, the report noted.

On July 18 last year, Bloomberg reported that Chinese power battery giant was considering building a manufacturing plant in at least two locations in Mexico, possibly to supply Tesla and Ford.

The CATL sites would help Mexico cement its role in the region's electric vehicle production, which has long been a major part of the auto industry's supply chain, the Bloomberg report noted.

Tesla's revamped Model 3 nears final trial production in Shanghai, report says

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China NEV insurance registrations for week ending Jun 4: Tesla 14,500, Li Auto 6,600, NIO 1,700

launched the new ES6 on May 24, though the model is likely still in the process of climbing capacity and not contributing much to sales.

(NASDAQ: LI) kept sales strong last week, while its two local peers, NIO (NYSE: NIO) and (NYSE: XPEV), remained weak.

With 6,600 units sold in the week of May 29 to June 4, Li Auto continues to lead the pack among China's new car-making brands, the company said today on Weibo.

That's far more than other new car brands and more than the second and third places combined, Li Auto said.

Li Auto has delivered more than 20,000 units for three consecutive months, and this month the company will aim to reach its 30,000-unit monthly sales target, it added.

Li Auto didn't explain what the weekly sales are based on, but apparently, they are insurance registrations. The company had suspended sharing those numbers in May, but has now resumed sharing them.

All of Li Auto's models currently on sale are extended-range electric vehicles (EREVs), essentially plug-in hybrids that are targeting a broader market, including the five-seat Li L7 and the six-seat Li L9 and Li L8.

NIO and XPeng, on the other hand, offer only purely electric models and face a growing but much smaller market space.

NIO sold 1,700 units last week, according to figures shared by Li Auto. This is slightly higher than the previous week's 1,600 units.

Last week included the last three days of May and the first four days of June. The insurance data represents the number of vehicles registered in China.

NIO launched the new ES6 on May 24, although the model is likely still in the process of climbing capacity and thus still not contributing much to sales.

The electric vehicle (EV) maker delivered 6,155 vehicles in May, down 7.55 percent from April and down 12.37 percent year-on-year, according to data released on June 1.

NIO will finish climbing capacity for the new ES6 in June to deliver vehicles as early as possible, Jim Wei, the company's senior vice president of user operations, said in announcing May delivery figures on the NIO App on June 1.

In a research note sent to investors yesterday, Morgan Stanley analyst Tim Hsiao's team said that NIO's overall new order intake hit a year-to-date high thanks to the launch of the new ES6.

(NASDAQ: TSLA) sold 14,500 units last week, up from 12,800 the week before, according to figures shared by Li Auto.

Tesla sold 77,695 China-made vehicles in May, including those exported, data released yesterday by the China Passenger Car Association (CPCA) showed.

This was up 2.44 percent from 75,842 vehicles in April and up 141.55 percent from 32,165 vehicles in the same month last year.

XPeng (NYSE: XPEV) sold 2,100 units last week, unchanged from the previous week.

The company delivered 7,506 vehicles in May, down 25.87 percent year-on-year, but up 6.03 percent from April.

XPeng will begin pre-sales of the G6, the new SUV designed to compete with Tesla's Model Y, on June 9.

sold 2,100 units last week, up from 1,900 units the week before.

The company delivered 8,678 vehicles in May, up 100.42 percent from 4,330 in the same month last year and up 7.12 percent from 8,101 in April.

This is the fourth consecutive increase in monthly deliveries for Zeekr, which will begin deliveries of its third model, the Zeekr X, later this month.

Leapmotor sales were 3,400 units last week, down from 3,600 the week before. was 2,900 units last week, up from 2,100 the week before.

https://cnevdata.com/2023/06/06/china-nev-weekly-insurance-registrations-0606/

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