It has been an extraordinary week in the new energy vehicle market. Huawei signed a cooperation agreement with Changan, while NIO signed battery swap agreements with Changan and Geely. In addition, BMW and Mercedes-Benz are also joining forces to accelerate the construction of super charging stations in the Chinese market. What are your thoughts on this? Let’s review the hot topics in the automotive circle this week together. #Extreme01 series price reduced by 30,000# Reading: 49,000
Event Review: Extreme Official announces price reduction, all models reduced by 30,000 yuan (4240$), with the Extreme 01 Max reduced to 219,900 yuan (31070$) and the Extreme 01 Max Performance reduced to 309,900 yuan (43790$). Netizens are discussing:
Review: Price fluctuations are common, after the adjustment of the price of the Polestar 01, the company also introduced measures to take care of old customers who have already received their cars, offering a cash compensation of 30,000 yuan (4240$) based on the latest car model price. At the same time, they also introduced multiple benefits, including an additional 12-month free subscription to the “Pure Vision” advanced intelligent driving ROBO Drive Max, lifetime warranty for the vehicle and three-electric system, and lifetime free road rescue. As for the reason for the price adjustment, let’s hear from the CEO of Polestar, Xia Yiping: “Since the launch of the Polestar 01, we have received positive feedback from users and the market. We deeply understand the important value of accelerating the promotion of ‘technological equality’ for users and the automotive industry. For this reason, Polestar has established a special team to carefully analyze and quickly iterate, formulating a new car price and benefit plan. ‘Cost-effectiveness’ is already a thing of the past, ‘intelligence-cost-effectiveness’ is the present. Compared to being far ahead, we hope to make advanced intelligence available and enjoyable to everyone.” In summary, it can be concluded that the goal is to no longer let the price of “advanced intelligence” become a “roadblock” for users when making car purchase decisions. Polestar carefully listens to the voice of the market and focuses on the voices of users for “more affordable prices and more competitive product configurations,” and readjusts the price. What score would you give for this move? #BMW and Mercedes-Benz’s cooperation in China for supercharging# Readership: 95,000
Event Review: Mercedes-Benz Investment Limited and Huachen BMW Limited announced the signing of a cooperation agreement, with both parties establishing a joint venture in China with a 50:50 share ratio to operate a supercharging network in the Chinese market, in order to meet the increasing demand for luxury charging services from Chinese customers. The first batch of charging stations is planned to begin operations in key new energy vehicle cities in China in 2024, and the joint venture’s charging network will be open to the public. Online Discussion:
Review: The two major powerhouses are once again joining forces, with the clear goal of leveraging their respective advantages in nationwide dealer networks to further provide Chinese consumers with more convenient and efficient ultra-fast charging services. The two companies complement each other’s strengths, share resources, and can also accelerate their layout in the ultra-fast charging field. We are very much looking forward to seeing how they will perform. The two parties will establish a joint venture in China with a 50:50 share ratio to operate the supercharging network. By the end of 2026, the joint venture plans to build at least 1,000 advanced supercharging stations in China, with approximately 7,000 supercharging piles. It is interesting to note that previously, most joint ventures were between Chinese and foreign companies, but the current situation is more like a partnership between two foreign companies.
In addition, it is also noted that in the cooperation, it is mentioned that ultra-fast charging will be provided to the public in the future, so there will definitely be another issue involved. That is the issue of priority and allocation, and there may even be different prices. If all kinds of ride-hailing cars and large transport vehicles are charging at the charging stations of Mercedes-Benz and BMW, while the owners of their own brands can only watch, this should not be what both sides want to see. In fact, it is not difficult to understand that with the current development speed of new energy vehicles and various new forces in China, in a few years, there will be more and more electric vehicles on the streets. Luxury brands must not lag behind, as it would be very dangerous. As luxury brands, the biggest advantage is their domestic dealer network. Joining forces to overcome difficulties is the key. #China’s automobile production and sales volume has ranked first in the world for 14 consecutive years# Readership: 95,000
Event review: On November 29th, the Chain Expo Smart Car Forum was held. The China Council for the Promotion of International Trade introduced that China’s automobile production and sales volume has been the world’s number one for 14 consecutive years. In the first 10 months of this year, China’s automobile exports reached 3.922 million vehicles, a year-on-year increase of 59.7%, including 995,000 new energy vehicles, a year-on-year increase of 99.1%. Netizens’ hot discussion:
Review: From January to October this year, the total sales of automobiles in China reached 23.9671 million units, with a cumulative growth rate of 9.1%. In October, the total sales of automobiles reached 2.8526 million units, an increase of 13.8% year-on-year. China still maintains its title as a major automobile country and is also an unquestionable consumer of automobiles. The focus of future development is undoubtedly in the field of new energy vehicles and intelligentization. In October, the retail sales of new energy vehicles reached 767,000 units, an increase of 37.5% year-on-year and 2.7% month-on-month. The domestic retail penetration rate of new energy vehicles reached 37.8%, a significant increase from 30.2% in the same period last year. Among them, the performance of domestic brands is particularly outstanding, with a new energy vehicle penetration rate of 60.4%, while the penetration rates of new energy vehicles in luxury cars and mainstream joint venture brands are 19.6% and 6.5% respectively. The market share of Chinese brand automobiles continues to rise. In September 2023, the retail sales of Chinese brands reached 1.07 million units, an increase of 20% year-on-year and 7.9% month-on-month, with a market share of 53.4%, an increase of 6.4 percentage points year-on-year. This growth is not only reflected in the domestic market, but also in the international market. According to the General Administration of Customs, in the first half of 2023, China’s total vehicle exports reached 2.34 million units, an increase of 76.9% year-on-year. Among them, the export of new energy vehicles reached 795,000 units, an increase of 112.7%, ranking first in the world. With the interaction of factors such as promotional activities, price wars, and supportive policies, we look forward to the release of the full year sales data. #Huawei has officially invited the four realms# Readership: 335,000
Event Review: According to a report from Caijing on November 28th, Huawei’s Executive Director and Chairman of the Intelligent Car Solutions BU, Yu Chengdong, stated today that Huawei has invited Saic Motor, Chery, JAC, and BAIC to open up their equity, and hopes that China FAW Group will join in. Social Media Discussion: Netizens are discussing…
Review: Full openness and cooperation, full resource sharing, and the ultimate win-win result. Huawei’s smart selection of cars may have been thought of by many before, but no one expected it to be on such a large scale and so rapid. Huawei has always been serious about playing in the high-end market. As Yu Chengdong said, “What everyone sees now is the product of cooperation between Huawei and Saic, and Chery. In the future, products developed through cooperation between Huawei and Beiqi, and JAC are already in the process of development and on the road. The cooperative products will become more and more high-end.” This will be a plan involving the entire industry chain and platform. Yu Chengdong, Executive Director and Chairman of the Intelligent Car Solutions BU of Huawei, said that after signing the cooperation with Changan, the new joint venture company will still be led by Huawei in terms of technology research and development direction, and future partners of Huawei’s smart car business will gradually join the joint venture company. According to incomplete statistics, a total of 10 listed companies, including Chuanhuan Technology, Guanghui Automobile, Asia-Pacific Shares, Desai Xiwei, Sanlian Forging, and Guangting Information, have replied to the interaction platform with Changan Automobile regarding specific supply or cooperation situations in the past two trading days. The game behind this is definitely going to be more exciting. #He Xiaopeng believes that the future of smart cars will be the most brutal in the next three years# Reading volume: 436,000 Event review: He Xiaopeng, chairman of Xiaopeng Motors, wrote, “In the field of smart cars, the next three years will be the most brutal and the most opportunistic. The core is not only to establish a few long boards, but also to have no short boards, and it is a great test of the organization’s basic skills in intense changes and rapid development. We must use extraordinary methods to follow the path of struggle.”
Netizens are discussing: Online users are buzzing about:
Review: Xiaopeng’s strength lies in its intelligent performance. However, with the increasing frequency of the opponent’s speed and movements, the pressure is becoming more and more intense. New and old rivals such as Huawei, NIO, Li Auto, and Tesla are exerting stronger and stronger pressure on Xiaopeng. The pressure Xiaopeng is under can be imagined, but on the other hand, pressure brings motivation, and both are growing. Xiaopeng, keep it up. On November 15th, Xiaopeng Motors released its third quarter financial report for 2023. The report shows that Xiaopeng Motors achieved a revenue of 85.3 billion yuan in the third quarter, a year-on-year increase of 25% and a quarter-on-quarter increase of 68.5%; the net loss was 38.9 billion yuan, a year-on-year increase of 63.6% and a quarter-on-quarter increase of 38.6%. In terms of car sales, Xiaopeng Motors delivered a total of 40,000 vehicles in the third quarter, an 80.18% increase year-on-year and a 72.4% increase quarter-on-quarter; car sales revenue was 78.4 billion yuan, a 25.7% increase year-on-year and a 77.3% increase quarter-on-quarter. Looking at the gross profit margin, Xiaopeng Motors’ gross profit margin in the third quarter was -2.7%, a decrease of 16.2 percentage points from the same period last year; the car gross profit margin was -6.1%, a decrease of 17.7 percentage points from the same period last year. Some people may bring up the example of Li Auto. Yes, based on this year’s performance, Li Auto has definitely given a satisfactory answer. It has already started to be profitable. Xiaopeng, representing the new forces, may say they are not anxious, but that’s definitely not true. But as the saying goes, once you make a choice, you have to stick to it and stick to it to the end! #Tesla Cybertruck will be delivered in the early hours of December 1st# Views: 906,000
Event Recap: Cybertruck North American official delivery event will take place at Tesla’s Texas Gigafactory at 4am on December 1st Beijing time. According to Tesla officials, this delivery will redefine traditional standards and revolutionize aesthetic design. Online Discussion:
Review: Tesla first launched the all-electric pickup truck Cybertruck in 2019, with a futuristic design and innovative technologies such as 4680 battery cells, integrated die-casting, ultra-hard 30X cold-rolled stainless steel body, armored glass, and adaptive air suspension. Many people are looking forward to its production in China, but there is currently no official news about the local production of Cybertruck. According to official Tesla data, the Cybertruck accelerates from 0-100km/h in just 2.9 seconds, has a top speed of 200km/h, and a maximum range of 400 miles. With its futuristic design and new electric range, coming from Tesla’s super factory, everything seems very American. The question is, is the Cybertruck suitable for the Chinese market? First, the demand for pickup trucks in both markets is very different. In the US market, the Cybertruck should have a wider application. The Ford F-150, a representative of American pickups, sells around 900,000 units per year in North America, not to mention other car companies like GM and Toyota, estimating a total annual sales volume of around 2.5 million units. Now you know the ambition of Cybertruck. In contrast, the cumulative sales of pickup trucks in China in 2022 is around 320,000 units, which shows a significant difference. Secondly, the Cybertruck is a new energy pickup, so issues such as range and recharging will exist. In China, the northeastern, Xinjiang, Inner Mongolia, and other areas are most suitable for pickups, but due to climate issues, it is estimated that new energy vehicles will not be able to effectively solve this problem in the short term. Of course, this does not mean it will always be the case, as technological advancements will eventually address it, but for now, we need to wait. Another issue is the price. Some netizens have asked if it can be produced locally for around 350,000 RMB. It’s hard to say, but the Cybertruck’s cold-rolled stainless steel body will be the highest level of automated production in history, and it does not require painting. When both battery and body production capacity are not an issue, Tesla can quickly scale up, and if it is truly produced locally, there may be some surprises in terms of pricing. #Great Wall Motors has begun selecting a site for a research and development center in Europe# Views: 935,000
Event Review: According to insider sources, it has been revealed that GWM, the overseas brand of Great Wall Motors, has initiated its real estate sales plan in Europe and has begun the process of selecting a location for its research and development center. In countries such as Germany, the United Kingdom, Ireland, and Sweden, GWM has already established partnerships with local partners, and agreements with partners in other markets are also in the works. Social Media Buzz:
Review: When Chinese car companies enter the European market, the EU’s response is to conduct anti-subsidy investigations. However, Great Wall’s answer is, “Chinese cars going overseas may encounter difficulties, but we are unwavering and will accelerate our pace to go global.” The trend of global integration is unstoppable, and these small difficulties cannot deter Great Wall’s confidence in going global, nor can they stop China’s determination to fully enter the world market. Looking at it now, the EU’s anti-subsidy investigation has little impact on Great Wall’s expansion plans in Europe. In terms of specific overseas strategies, Chinese car companies have two models: one is the light-asset model of exporting products for foreign sales, and the other is the localized model of local production and sales. Great Wall has chosen the latter, with greater resource investment, but it will also be more conducive to long-term development in the local market. At the 2022 Overseas Dealers Conference, Great Wall announced its latest global brand strategy: focusing on the GWM brand, developing different paths for overseas expansion based on the category characteristics of the five major brands – Haval, Wey, ORA, Tank, and Great Wall Pickup. It will also combine different countries and regional markets and industrial policies to differentiate the layout of new energy products, and build a localized ecosystem. According to insiders, the eight new European markets that Great Wall plans to enter are Italy, Spain, Portugal, the Netherlands, Belgium, Luxembourg, Austria, and Switzerland. Looking at the Wey Paitan PHEV’s starting price in Europe at 47,990 euros, this price is not only higher than in China, but also on par with the luxury models available in Europe. #Geely Holding and NIO Carry Out Battery Swap Cooperation# Reading Volume: 4.49 million
Event Review: On November 29th, several automotive bloggers revealed that they were attending the “Geely Holdings and NIO Battery Swap Strategic Cooperation Signing Ceremony”. This comes after NIO’s battery swap cooperation with Changan, making Geely the latest automaker to announce participation in battery swap cooperation. Online Discussion:
Review: There is no doubt that this is another major move in the Chinese new energy vehicle market. Based on a high degree of strategic consensus and the principle of sharing and openness, the two parties will complement each other’s existing businesses and carry out comprehensive strategic cooperation in battery swapping. Through the “joint investment, joint construction, joint sharing, and joint operation” model, the two parties will work together to create two major battery swapping standard systems for “private cars” and “commercial vehicles”. Ultimately, consumers will benefit. It will also provide more convenient, safer, and more comprehensive services for users with different needs. In addition, the two parties will establish an efficient battery asset management system, establish a unified battery swapping operation management system, and collaborate on the development of battery swapping passenger cars compatible with both systems. The two parties jointly stated: “With the encouragement of national policies, the coverage of battery swapping networks is becoming wider, and the battery swapping model is becoming increasingly favored by electric vehicle users. NIO’s ‘chargeable, swappable, and upgradable’ service system has created the best charging experience in the industry for private car users, and Geely Holding’s subsidiary, Cao Cao Mobility, has been deeply cultivating the battery swapping market for commercial vehicles for many years and accelerating the expansion of services in more cities. This cooperation is in line with the direction of national new infrastructure and new energy development, and will accelerate the standardization of battery swapping technology and the scale of battery swapping networks, driving the low-carbon transformation of the automotive industry.” Geely is the second vehicle manufacturer to finalize a battery swapping cooperation with NIO, following Changan Automobile. Can you guess which other car companies are following suit? According to Li Bin’s internal speech, there are currently 4-5 companies in talks, so let’s look forward to it. #Changan Automobile and Huawei sign investment cooperation memorandum# Views: 7.53 million
Event Recap: On November 26th, Changan Automobile and Huawei signed a “Investment Cooperation Memorandum”. After negotiations, Huawei plans to establish a company engaged in the research, design, production, sales, and service of intelligent automotive systems and components solutions. The company intends to invest in the target company and carry out strategic cooperation. Online Discussion:
Review: We all know that Huawei’s commitment is “Huawei does not make cars”, but Huawei will provide a full range of smart solutions. This time, Huawei and Changan Automobile signed a cooperation agreement. Huawei plans to integrate the core technology and resources of its smart car solution business into a new company, and Changan Automobile and its affiliates intend to invest in the company and jointly support its future development with Huawei. The new company will strive to become a world-class leader in the automotive intelligent driving system and component industry. In terms of the ultimate goal, Huawei’s original intention has never changed. In addition, Yu Chengdong, Executive Director of Huawei and Chairman of the Intelligent Car Solutions BU, said at the signing ceremony of the memorandum: “We have always believed that China needs to build an electrified and intelligent open platform that is jointly participated in by the automotive industry, a platform with a ‘locomotive’. We will deepen cooperation with Changan and also work with more strategic partner car companies to continuously explore new models of open and win-win cooperation, and seize the opportunity of the electrification and intelligent transformation of the automotive industry.” Yu Chengdong revealed that after Wenjie and Zhijie, there will be two more “jies” in the future, coming from the results of cooperation between Huawei and BAIC Blue Valley and JAC Motors. Let’s wait and see.