China doesn't need any more electric vehicles to compete for market share outside of its borders, drive down prices at the expense of profit, or overcrowd a market that already has more losers than winners.
And that's all it is receiving.
A large number of the 110 EVs and plug-in hybrids that automakers plan to introduce in 2024 will be on display at the Beijing auto show, which opens on Thursday. Industry data indicates that these new models, which are mostly from Chinese firms, will be added to the over 400 "new energy" models that are currently on display in Chinese showrooms.
In contrast, there were only a little more than 50 EV vehicles available in the US during the previous year.
However, analysts, suppliers, and executives point out that if China's overcapacity poses a risk, the intense competition it has unleashed also presents an opportunity. The top EV manufacturers in China have figured out how to shorten the time it takes to create a vehicle, bringing new features to market quickly while maintaining a competitive price edge over competitors.
"This is a technological revolution," declared Launch Design's founder and chairman, Wang Xun, of the Shanghai-based automotive design and engineering company. "And in this revolution, Chinese brands are at the forefront."
The world's largest EV market, China's, is expected to eventually experience a shakeout, according to analysts. Simply said, not yet.
More than half of all EV sales in China this year have come from the top 10 models, which are dominated by BYD and Tesla. With the ability to produce more battery-powered cars than the market will allow, domestic costs are falling and exports are increasing.
China's top EV manufacturer, BYD, has reduced domestic costs on three popular models by more than 9% so far this year.
However, new rivals are also entering the market, such as smartphone manufacturers Xiaomi and Huawei, which have partnered with well-known automakers who have excess capacity. In order to fulfil a government directive to increase China's lead in networked automobiles, state-backed enterprises are also introducing new EVs.
According to David Li, CEO of Hesai, a top provider of LIDAR remote sensing technology for self-driving features, "things become cheaper quicker in China." "China's low cost isn't the reason. It is a result of China's speed."
Hesai, opens new tab, and Xiaomi are currently using a LIDAR unit that is almost half the price of the company's most popular model. Chinese electric vehicle manufacturers capitalise on the decline in the cost of such technologies by shortening the time it takes to produce a car from three years or more to 18 months, according to Li.
Li told Reuters, "It's a cheaper product because of speed and innovation." "I think that's part of it that a lot of people may not fully understand."
Recently, Huawei and Xiaomi have made a big splash with their EV launches, only months after Apple abandoned its ten-year plan to introduce a comparable model under its own name.
With the introduction of the SU7, an electric vehicle that resembles a Porsche so much that it has inspired a Chinese mashup of the two brand names, Xiaomi caused an online sensation. With 100,000 sales to aim for this year, Xiaomi is making a significant debut for a newcomer.
One of China's three major state-owned manufacturers, Dongfeng, is advertising their new eπ-007 (e-Pi-007) in Beijing's main rail station. The company has not been able to find a hit EV to date. The EV Sedan, which bears resemblance to Tesla Model 3, is priced at nearly $10,000 lower.
Dongfeng claims that the 007 battery ran underwater for an entire day in lab tests and survived nine shots fired from an AK-47, in a marketing tactic similar to that used by Elon Musk. Through March, the business sold fewer than 4,000 brand-new automobiles in China. It says there will be exports.
Xiaomi anticipates a financial loss with the SU7. The majority of its established competitors are likewise wagering that they can withstand current losses and gradually turn a profit.
Ralf Brandstaetter, the head of Volkswagen China, described the current state of the market as "unhealthy," saying that money is being invested there with no way to get it back.
However, Wang of Launch is staking even more money on disruption by leveraging the speed and cost standards of the Chinese market to let in new auto manufacturers.
Launch has created its own platform called "Launch EV One" and has provided engineering and design services for the majority of EV brands in China. It is presenting the crossover prototype to possible partners, particularly those in poor nations, who are looking for an EV that can be brought to market quickly without incurring billion-dollar upfront expenses.
"We are working to lower the barrier to entry as much as possible," Wang stated. "Once this is done, it will cause another kind of revolution in this industry."
Launch is prepared to modify an electric vehicle (EV) for a foreign brand, handle the engineering, sourcing, and safety testing, and even construct the new car at its plant in Jiangxi, southern China. Launch has filed for an initial public offering in Shenzhen. It is in discussions with possible customers.
The company's engineering and design offices in Shanghai are designed to resemble an industrial WeWork facility. An open-plan office with long tables is home to hundreds of engineers and designers who work 12-hour days, six days a week. Outside, on the busy street, are prototypes.
"The brands that have survived are putting new cars on the market faster than others," Wang stated. "We want to ride this wave, rather than be submerged by it."
(Source:www.economictimes.com)
And that's all it is receiving.
A large number of the 110 EVs and plug-in hybrids that automakers plan to introduce in 2024 will be on display at the Beijing auto show, which opens on Thursday. Industry data indicates that these new models, which are mostly from Chinese firms, will be added to the over 400 "new energy" models that are currently on display in Chinese showrooms.
In contrast, there were only a little more than 50 EV vehicles available in the US during the previous year.
However, analysts, suppliers, and executives point out that if China's overcapacity poses a risk, the intense competition it has unleashed also presents an opportunity. The top EV manufacturers in China have figured out how to shorten the time it takes to create a vehicle, bringing new features to market quickly while maintaining a competitive price edge over competitors.
"This is a technological revolution," declared Launch Design's founder and chairman, Wang Xun, of the Shanghai-based automotive design and engineering company. "And in this revolution, Chinese brands are at the forefront."
The world's largest EV market, China's, is expected to eventually experience a shakeout, according to analysts. Simply said, not yet.
More than half of all EV sales in China this year have come from the top 10 models, which are dominated by BYD and Tesla. With the ability to produce more battery-powered cars than the market will allow, domestic costs are falling and exports are increasing.
China's top EV manufacturer, BYD, has reduced domestic costs on three popular models by more than 9% so far this year.
However, new rivals are also entering the market, such as smartphone manufacturers Xiaomi and Huawei, which have partnered with well-known automakers who have excess capacity. In order to fulfil a government directive to increase China's lead in networked automobiles, state-backed enterprises are also introducing new EVs.
According to David Li, CEO of Hesai, a top provider of LIDAR remote sensing technology for self-driving features, "things become cheaper quicker in China." "China's low cost isn't the reason. It is a result of China's speed."
Hesai, opens new tab, and Xiaomi are currently using a LIDAR unit that is almost half the price of the company's most popular model. Chinese electric vehicle manufacturers capitalise on the decline in the cost of such technologies by shortening the time it takes to produce a car from three years or more to 18 months, according to Li.
Li told Reuters, "It's a cheaper product because of speed and innovation." "I think that's part of it that a lot of people may not fully understand."
Recently, Huawei and Xiaomi have made a big splash with their EV launches, only months after Apple abandoned its ten-year plan to introduce a comparable model under its own name.
With the introduction of the SU7, an electric vehicle that resembles a Porsche so much that it has inspired a Chinese mashup of the two brand names, Xiaomi caused an online sensation. With 100,000 sales to aim for this year, Xiaomi is making a significant debut for a newcomer.
One of China's three major state-owned manufacturers, Dongfeng, is advertising their new eπ-007 (e-Pi-007) in Beijing's main rail station. The company has not been able to find a hit EV to date. The EV Sedan, which bears resemblance to Tesla Model 3, is priced at nearly $10,000 lower.
Dongfeng claims that the 007 battery ran underwater for an entire day in lab tests and survived nine shots fired from an AK-47, in a marketing tactic similar to that used by Elon Musk. Through March, the business sold fewer than 4,000 brand-new automobiles in China. It says there will be exports.
Xiaomi anticipates a financial loss with the SU7. The majority of its established competitors are likewise wagering that they can withstand current losses and gradually turn a profit.
Ralf Brandstaetter, the head of Volkswagen China, described the current state of the market as "unhealthy," saying that money is being invested there with no way to get it back.
However, Wang of Launch is staking even more money on disruption by leveraging the speed and cost standards of the Chinese market to let in new auto manufacturers.
Launch has created its own platform called "Launch EV One" and has provided engineering and design services for the majority of EV brands in China. It is presenting the crossover prototype to possible partners, particularly those in poor nations, who are looking for an EV that can be brought to market quickly without incurring billion-dollar upfront expenses.
"We are working to lower the barrier to entry as much as possible," Wang stated. "Once this is done, it will cause another kind of revolution in this industry."
Launch is prepared to modify an electric vehicle (EV) for a foreign brand, handle the engineering, sourcing, and safety testing, and even construct the new car at its plant in Jiangxi, southern China. Launch has filed for an initial public offering in Shenzhen. It is in discussions with possible customers.
The company's engineering and design offices in Shanghai are designed to resemble an industrial WeWork facility. An open-plan office with long tables is home to hundreds of engineers and designers who work 12-hour days, six days a week. Outside, on the busy street, are prototypes.
"The brands that have survived are putting new cars on the market faster than others," Wang stated. "We want to ride this wave, rather than be submerged by it."
(Source:www.economictimes.com)
