New Energy Vehicles (NEVs) in China

All you need to know about Big 3 automakers in China
Unless you embrace EVs, you won't do well in China.

If you think Huawei is doing well, Baidu is the next one to watch out for. It doesn't have the same expertise in electric drivetrain, but it's software/AI should be better. And they've been experimenting with smart driving for over many years now.

This is from a while back when Frank Wu became the head of Jidu's design studio.
Robo-1 just looks cool

And that's not it, DJI is getting involved with SAIC-GW-Wuling JV

tphuang said:

The American auto manufacturers are still American. They are not going to be banned from selling in America.

CATL has no factory in the US. Right now, there is a huge bullseye on Chinese companies in America. Placing factories in an area of Mexico known for cartels so that they don't have to tariffs is a really bad look. If they were going to put a Mexican plant, they should have put it in around Mexico City. At least the gov't is in control there and they'd get great coverage from Mexican press.

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CATL building plant in US for Mercedes. US won't ban CATL from supplying to US auto companies, competition keeps prices low, especially since US doesn't have domestic battery brands.

CATL plans units in Mexico; may supply Tesla, Ford​

By CHENG YU | China Daily | Updated: 2022-07-19 10:00

CATL batteries are displayed during an expo in Xiamen, Fujian province, in September. [Photo provided to China Daily]

Contemporary Amperex Technology Co Ltd is mulling accelerated overseas expansion, as the Chinese battery giant is planning at least two locations in Mexico for a manufacturing facility to potentially supply Tesla and Ford Motor.

The Ningde, Fujian province-based company is contemplating an investment of as much as $5 billion in the new plant. Two Mexican cities, Ciudad Juarez of Chihuahua and Saltillo of Coahuila, are options, Bloomberg reported.

Ciudad Juarez is attractive in part because it would provide a route around the border crossings of Texas, which is the home of Tesla's new factory but in recent months has taken measures that complicate shipping and entry into the United States.

Industry experts said that CATL aims to speed up its global layout to better meet the needs of overseas customers and reduce logistics costs, especially when new energy vehicle development is expected to see a boom globally over the next years.

In June, CATL confirmed to China Daily that it has also supplied electric vehicle batteries to South Korea's Kia Corp, which marked the first entry of a non-South Korean battery into the market.

CATL also received approval to produce battery cells in its factory in the German federal state of Thuringia in April. The new plant, as its first factory outside of China, has a total investment of 1.8 billion euros ($1.9 billion), which is much higher than the average 300 million yuan ($47 million) to 400 million yuan investment in the company's domestic factories.

"Recent moves showed CATL's ambitious plan and accelerated steps for its capacity expansion in overseas markets, so as to get closer with major car manufacturers to reduce costs in logistics amid COVID-19 pandemic uncertainties," said Wang Jing, a research supervisor for high-end manufacturing at Shanghai Chaos Investment Group Co Ltd.

"With an anticipated boom in NEV sales globally in the coming years, mainstream battery manufacturers will no doubt rev up steps in going global," she said.

Robin Zeng Yuqun, chairman of CATL, remarked to over 50 investors including Hillhouse Group, Sequoia Capital, Tencent Holdings and Temasek Holdings, that CATL is also considering opening a plant in the US and the company is exploring the feasibility of localizing in the market. However, Zeng admitted that the plan faces many challenges, such as worker training.

China renews purchase subsidy program for NEVs​

As part of its efforts to pursue net-zero carbon emissions, China has activated a new round of subsidy program to stimulate purchases of new energy vehicles (NEVs) in rural areas, which is expected to boost sales for component makers in the EV ecosystem in the second half of the year, according to supply chain sources.
The sources said China's Ministry of Industry and Information Technology, Ministry of Agriculture and Rural Affairs, Ministry of Commerce, and National Energy Administration are jointly enforcing a campaign promoting NEVs and establishment of more battery swap facilities in rural areas.
Statistics show that car retail sales in China rose 43.5% on month and 22.6% on year reaching 1.943 million units in June, thanks to the full lifting of lockdowns in eastern Chinese cities.
Of the June total, NEVs accounted for 571,000 units, jumping 141% on year and 35.3% on month. And in the first half of 2022, total sales of NEVs already amounted to 2.467 million units.
NEVs are becoming a mainstay in the car market, and the subsidy incentives will encourage consumers to purchase such vehicles, with NEV sales to pick up further in the second half of the year, the sources said.
Many Taiwanese suppliers of precision components, connectors, cable assemblies and wire harnesses are poised to embrace stronger shipments to China in the months ahead, including China Fineblanking Technology, Hu Lane, Eason Precision, Primax Electronics. Sinbon Electronics, and Aces Electronics

This contains the July retail numbers for NEVs for 11 to 17th, also replies to NEVs for 4th to 10th. They typically have lower sales in Week 1 and then slowly goes up by Week 4 (when it really explodes). See the following from 2020 and 2021 for July
and 2020 to 2022 for June
If we go by 2021 pattern.

BYD will probably hit 150 to 155k sales this month. Overall, we are probably going to 500k NEV sales.

Huge drop there for Tesla. I believe they shut down their factory for 2 weeks to ramp up production.

Evergrande flunked its real estate business, but its EV business seems to have a good start.

Evergrande: Hengchi 5 EV preorders top 37,000​

Preorders for the Hengchi 5 have far exceeded company expectations, president Liu Yongzhuo said at an online event Wednesday.​

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Hengchi 5:

Interestingly, Sinopec's swap stations for heavy commercial vehicles offer swaps for battery, CNG, and even gasoline!

BYD is experimenting with hydrogen powered vehicle. I suspected that the technologies will be used for heavy commercial vehicles in the future, such as buses, so it's probably a miniaturized demo testbed.

Jiang ZeminFanboy said:

https://twitter.com/i/web/status/1549470195651067906

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But on average, China's EV stocks performed better than America's.

supercat said:

Evergrande flunked its real estate business, but its EV business seems to have a good start.

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Well, would you look at that! Evergrande is finally doing something useful. They still deserve to get crushed just for having that name.

ZeEa5KPul said:

Before we even consider that, we should examine whether the "fact" that Buffett sold shares is true or disinformation. One of the more effective disinformation tactics I've observed is shifting the conversation to "why did X happen?" without ever establishing that X actually happened.

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It's a tactic commonly employed by the Jai Hind school of disinformation.

ZeEa5KPul said:

Well, would you look at that! Evergrande is finally doing something useful. They still deserve to get crushed just for having that name.

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It looks like Evergrande will become another EV giant in the Guangdong region.