Chinese EV makers face ‘do-or-die moment’ as competitive screws tighten Source : https://www.evlife.sg/blog/chinese-ev-makers-face-%E2%80%98do-or-die-moment%E2%80%99-as-competitive-screws-tighten Only those that can sustain operations without external funding will stay in the race amid overcapacity and tariff woes, analysts say Unprofitable Chinese electric vehicle (EV) makers, ravaged by a discount war at home and higher tariffs abroad, are stepping up cost-cutting measures and new model launches as they strive to survive in the cutthroat market. Only those that can sustain their operations without resorting to external funding will stay in the country’s EV race as overcapacity woes loom, analysts said. “As the domestic market becomes saturated and overseas sales in developed economies are hampered by punitive tariffs, the key players will have to be very efficient in cost control and refrain from splashy spending to save powder for the tough business environment ahead,” said Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, an industry consultancy. “The market has entered a new phase, with all companies expected to face a do-or-die moment soon.” Among the four unprofitable, publicly traded Chinese premium EV builders – Nio, Xpeng, Geely unit Zeekr and Stellantis-backed Leapmotor – only Nio reported a wider net loss in the three months ending September, year on year. All of them have made plans to stem their losses. The mismatch between capacity and actual demand is stark. By the end of 2023, EV assemblers in mainland China were capable of producing 17 million electric cars annually, and the overall factory utilisation rate stood at 54 per cent, according to Goldman Sachs. The US bank predicted that additional capacity of 3.2 million units would be added this year, less than the 5.2 million units of capacity added in 2023. The China Association of Automobile Manufacturers forecast full-year deliveries of more than 11 million units in 2024, which would represent 54.5 per cent of that total capacity of 20.2 million – nearly unchanged from a year earlier. The mainland is home to about 50 EV assemblers, but He Xiaopeng, CEO of Xpeng, said last year that only eight players would remain by 2027, because smaller players will not be able to survive the fierce competition in the fast-growing industry. To date, only BYD, the world’s largest EV builder, Li Auto, Tesla’s nearest rival on the mainland, and Aito, backed by telecoms equipment giant Huawei Technologies, have eked out profits, while the bruising price war is ensnaring most of their domestic competitors. Manufacturers hoping that international markets would help improve their bottom lines hit a speed bump this year after the US and the European Union decided to slap additional tariffs on Chinese-made electric cars. “The US and EU are two of the biggest automotive markets in the world,” said Gao Shen, an independent analyst in Shanghai. “Carmakers that are unable to take a considerable share in the two markets cannot be defined as powerful international marques. If demand is not enough, existing production facilities will be redundant.” To survive, some companies are betting on new models to increase market share. Xpeng president Brian Gu told Reuters on Wednesday that the carmaker, which counts Volkswagen as a minority shareholder, would break even next year, buoyed by strong demand for its new models. The company posted a net loss of 1.81 billion yuan (US$249 million) for the quarter ending September, narrowing 53.5 per cent from the same period in 2023. Leapmotor and Zeekr said early this year that they expected to break even in 2025. Nio, fresh off a US$471 million funding injection, expects to make a profit in 2026 after it debuts new models and a budget brand called Firefly, CEO William Li said during a results briefing on Tuesday. China is the world’s largest automotive and EV market. The top players are at the global vanguard of the supply chain because they have capitalised on core technologies for batteries, self-driving technology and in-car entertainment, according to David Xu Daquan, China president of Bosch, the world’s largest car-parts supplier. “Chinese electric-car makers will still look for opportunities abroad amid the goal of achieving carbon neutrality globally,” said David Zhang, general secretary of the International Intelligent Vehicle Engineering Association. “They need to be patient until some common ground can be achieved between Beijing and the foreign governments to avert trade friction.” Last month, the EU voted to impose tariffs of up to 35.3 per cent on pure-electric cars made on the mainland. The new duties, which are on top of a standard 10 per cent tariff, will be in effect for five years. The White House raised the tariff on Chinese-made EVs to 100 per cent from 25 per cent in August.

Growth of EV vehicle sales slows down in U.S. over lack of chargers: research Source: https://evlife.sg/blog/growth-of-ev-vehicle-sales-slows-down-in-u.s.-over-lack-of-chargers:-research The growth of electric vehicle (EV) sales has slowed in the United States this year, with an estimated 346,309 EVs sold in the third quarter, accounting for nearly 9 percent of the total car sales, according to the latest data released by Cox Automotive, a market research firm. In 2023, 1.4 million plug-in electric vehicles were sold in the country, more than 9 percent of all car sales that year and an increase of over 50 percent from 2022, according to Argonne National Laboratory, a federally funded research center. "Some of the slowdown in EV sales this year can be chalked up to drivers who hesitate to trade in their gas-powered cars because of concerns about EV charging infrastructure, which has grown more slowly than EV sales," reported The New York Times on Monday about the development. Broken chargers have been a problem: one in five ports does not work when motorists pull up, according to recent research led by a Harvard Business School fellow. In total, over 200,000 public chargers are spread across about 74,000 stations in the United States, but more than a million public chargers will be needed by 2030 to keep up with EV sales, researchers at the National Renewable Energy Laboratory have estimated.

Xiaomi raises EV deliveries goal again on surging demand Source: https://evlife.sg/blog/xiaomi-raises-ev-deliveries-goal-again-on-surging-demand China's Xiaomi Corp , opens new tab said on Monday it aimed to deliver 130,000 electric vehicles this year, raising its forecast for the third time as the automaker upstart posted a 30.5% jump in third-quarter revenue. CEO Lei Jun said on his social media account that the electronics maker was raising its goal from a previous target to deliver 120,000 of its first EV, the SU7 sedan, as demand surges. This is also far more than an initial goal of 76,000 it set when it launched the SU7 early this year. Xiaomi launched the car, which takes styling cues from Porsche, in March, entering a crowded Chinese EV market with an attention-grabbing price tag - under $30,000 for the base model, $4,000 cheaper than that of Tesla's , opens new tab Model 3 in China. EV and plug-in hybrid sales in China have grown to account for over half of overall sales in the world's largest auto maker. In October they grew by 56.7% from the prior year, marking the fourth consecutive month battery-powered autos including plug-ins outsold gasoline cars in the country. To keep up with demand, Xiaomi has doubled production shifts since June and launched the premium SU7 Ultra model priced at more than $110,000. Xiaomi's President Lu Weibing told a post-earnings call that its factory now had the capacity to make 20,000 cars each month and that he still saw scope for that to grow. "Our investment is still very substantial and we continue to improve our hardware and software. And basically it doesn't matter what the ultimate delivery level is, we are still investing very heavily. We are working on R&D (research and development) for new models," he said. One of the areas Xiaomi was working on was developing autonomous driving technology, he added. Revenue was 92.5 billion yuan ($12.77 billion) for the quarter ended Sept. 30, beating an LSEG consensus estimate from 15 analysts of 91.1 billion yuan. Huatai Securities has forecast Xiaomi will deliver 400,000 EVs in 2025 when electric cars will grow to account for roughly a fifth of revenue compared with 8% for this year. Xiaomi's auto business though is still operating at a loss. The unit reported an adjusted loss of 1.5 billion yuan for the quarter, with a gross profit margin of 17.1%. During the quarter, Xiaomi maintained its position as the world's third-largest smartphone maker with shipments of 42.8 million units, up 3% and capturing 14% of the market, according to research firm Canalys. Lu said the company planned to increase the number of offline retail stores in mainland China from 13,000 to 15,000 by the end of the year and 20,000 to next year, and was investing heavily in technology to grow its market share. Xiaomi reported adjusted net profit up 4.4% to 6.25 billion yuan, versus a consensus estimate of 5.92 billion yuan.

Groundless ‘EV graveyard’ hype smears orderly devt of sector in China Source: https://evlife.sg/blog/groundless-%E2%80%98ev-graveyard%E2%80%99-hype-smears-orderly-devt-of-sector-in-china As China's booming new-energy vehicle (NEV) industry recently achieved a significant global green milestone - annual production exceeding 10 million units - a foreign media outlet has resurfaced a couple of old photos to sensationalize the report of so-called "electric vehicle (EV) graveyards" in China, claiming that "giant graveyards of new EVs in the suburbs of Chinese cities are multiplying." In reality, the visual materials used by these media outlets recently are merely old images from a report of Bloomberg last August and a video from "Inside China Auto" on YouTube. At that time, both Chinese and foreign reporters conducted investigations and clarified the misleading claims regarding the so-called "EV graveyards" depicted in these reports. In an article titled "The Real Story of That Chinese EV Graveyard Isn't What You Were Told," on August 14, 2023, James Gilboy, contributing writer at auto industry information website The Drive, noted that "a closer look reveals the opposite to be true: These are not new EVs, and they only number in the hundreds. Most are five to six years old and have seen significant use ... [It's] a fleet of retired rideshare cars that were once operated in large cities in China." On August 23, 2023, an investigation by the Chinese media outlet The Paper.cn into the photos of the so-called "new EVs graveyard" in the suburbs of Hangzhou, East China's Zhejiang Province also showed results similar to those of Gilboy. The NEVs in the photos were all produced at least six years earlier, so using them to claim that China's NEV industry is "over-invested and wasteful" is untenable. At a time when China's NEV industry has just set a new annual production record, old photos are being dug up again, using groundless and misleading reports about "EV graveyards" to talk down China's EV industry. The ill intention behind this is to suggest that "China's EV industry is struggling with issues of disorderly development and capacity waste." However, this is not true. In the first 10 months of this year, China's production of NEVs reached 9.779 million, up 33 percent year-on-year, while sales of NEVs reached 9.75 million, up 33.9 percent year-on-year. The small discrepancy between production and sales indicates that there are few idle or abandoned vehicles in the market. The market share of NEVs continues to increase, with significant potential for further expansion. Demand for NEVs is anticipated to keep rising. After more than a decade of rapid development, China has become the world's largest producer and seller of NEVs. Admittedly, this rapid growth also means that, over time, the number of old batteries being retired from circulation each year will continue to increase. This emerging industry, which is still evolving with new technologies, faces the challenge of recycling and reusing batteries and automotive components. For instance, according to predictions from the Technical Committee of New Energy Battery Recycling and Utilization, by 2027, the cumulative amount of retired power batteries is expected to reach 1.14 million tons. If not properly handled, discarded batteries could cause environmental pollution and significant waste. But China's NEV industry is developing rapidly in terms of technology, and product updates are also occurring quickly, with related industries advancing swiftly. Just a few days ago, a breakthrough was made in the recycling technology for used lithium-ion batteries in China, according to the Xinhua News Agency. The increase of used NEVs is normal and does not necessarily indicate a problem. As long as related industries continue to develop rapidly, there will be no negative impact on the healthy development of the NEV industry - indeed, there will be new opportunities in the sector. Botree Recycling, a Chinese start-up, is making significant strides in the field of battery recycling. By dismantling spent lithium-ion batteries and utilizing patented low-cost chemical processes, this innovative recycling processes help make related minerals more circular, thus contributing to a sustainable future, according to an article by the World Economic Forum last week. China has been developing robust capabilities and advanced technologies to support the growth of the NEV sector. This approach will promote high-quality and orderly development through improved regulations and strategic planning, contributing to a sustainable future for global green transportation.

EV Drivers In Australia Are Being Deployed For Natural Disaster Help Source: https://evlife.sg/blog/ev-drivers-in-australia-are-being-deployed-for-natural-disaster-help With summer storms expected to hit the Land Down Under in the coming months, EVs with vehicle-to-load are being put to good use. A lot of electric cars on the market have something called vehicle-to-load (V2L). It means power can be exported from the high-voltage battery, transforming the car into a mobile generator. In Australia, a company has launched a pilot program where owners of V2L-equipped EVs can go out and help people in areas that were hit by natural disasters. A lot of new electric vehicles on the market today have something called vehicle-to-load or V2L. This means you can export power from the high-voltage battery that usually sends juice to the motors to power tools or appliances. All of General Motors’ Ultium-based EVs have V2L, as well as models from Hyundai, Kia and Ford. The controversial Tesla Cybertruck is also part of this group. It’s a very useful thing to have, especially when grid power goes down and your refrigerator is left without electricity for days on end or you don’t have any way to cook a warm meal. We’ve written about EVs coming to the rescue in tough situations before, but now a company from Australia is taking things up a notch by creating a volunteer group that can use V2L-equipped EVs to go out during or after natural disasters and help out people in need. The trial initiative is the brainchild of Mycar, a company that sells car tires, servicing and repairs. After signing up as a volunteer in “The Mycar Chargers” program, EV owners will be called on by a lead member to drive their cars to areas where the grid is down following a natural disaster to power kettles, microwave ovens, refrigerators and even medical equipment. The volunteers will also work with local authorities to come up with the best solutions for helping affected communities, according to CarExpert. With a power output of anywhere between 2 and 4 kilowatts, EVs with V2L functionality can operate as huge portable generators. With a full battery, they can power loads for days before needing to be recharged, which can prove crucial in moments of despair. The trial volunteer program will run across New South Wales, Victoria, Queensland and the Australian Capital Territory from November 2024 to January 2025. EV owners who drive a car with V2L and have the necessary adaptor for exporting power from the main battery can register on Mycar’s website.

Tesla Supports Trump's Plan to End EV Tax Credits Source: https://evlife.sg/blog/tesla-supports-trump%27s-plan-to-end-ev-tax-credits In a surprising move, Tesla CEO Elon Musk has expressed support for President-elect Donald Trump's plan to eliminate the $7,500 federal tax credit for electric vehicle (EV) purchases. This decision, which might seem counterintuitive given Tesla's reliance on such incentives, is seen as a strategic move to outmaneuver competitors. Musk believes that while the removal of the tax credit could slightly impact Tesla, it would be devastating for other automakers, thereby strengthening Tesla's market position. "Long term, it probably actually helps Tesla," Musk stated during a recent earnings call. The Trump administration's plan to end the EV tax credit is part of a broader effort to reduce government subsidies, including those for oil and gas. This move aligns with Musk's call to end all government subsidies. Tesla's dominance in the EV market, coupled with its aggressive pricing strategy, has already put significant pressure on competitors. The elimination of the tax credit could further hinder rivals' ability to compete, potentially leading to a consolidation of Tesla's market share. The proposal to end the tax credit will require congressional approval and is expected to face significant opposition from other automakers and environmental advocates.

Volkswagen Boosts Bet on Rivian’s EV Tech by $800 Million Source: https://evlife.sg/blog/volkswagen-boosts-bet-on-rivian%E2%80%99s-ev-tech-by-%24800-million Volkswagen AG raised investment plans in Rivian Automotive Inc. by $800 million, signaling its commitment to the US partner even as electric-vehicle demand softens and the incoming Trump administration threatens to curtail supportive policies. The companies also named leaders for their multibillion-dollar joint venture and showcased a prototype EV. The spending may ease concerns about Rivian’s cash burn and give the German carmaker access to its US partner’s software technology — an area where VW has stumbled. Rivian’s stock surged 24% on Wednesday to $13.10 as of 9:45 a.m. in New York. Volkswagen shares fell 3.3% as of 3:45 p.m. in Frankfurt. Both companies in June agreed to develop battery-powered vehicles together, with VW expected to invest as much as $5 billion into Rivian. Their JV, known as Rivian and VW Group Technology LLC, will be led by co-chief executive officers Wassym Bensaid, Rivian’s chief software officer, and Carsten Helbing, VW’s chief technology officer, the companies said late Tuesday. The co-CEOs will lead a dedicated group of about 1,000 engineers from both companies. “This is an acceleration of our plans for the future,” Bensaid said in an interview at Rivian’s Palo Alto office. Volkswagen aims to launch vehicles in 2027 with technology fine tuned by the JV. The companies also aim to develop an all-new software-defined vehicle with more advanced technologies, which they ultimately aim to license to other automakers. The prototype shown to a small group of reporters in Palo Alto integrates Rivian’s software-based vehicle architecture into an unmarked VW test vehicle, which Bensaid said was outfitted by the JV’s engineers in a 12-week period. The venture with Rivian may prove critical for Volkswagen as the manufacturer struggles despite massive investment. In the aftermath of the 2015 diesel scandal, Europe’s largest carmaker laid out what was arguably the industry’s most ambitious EV push under then-CEO Herbert Diess. But buggy software delayed key electric models, contributing to his ouster in 2022. Faced with waning EV demand in Europe and intensifying competition in China, where buyers gravitate toward local models, VW is currently considering large-scale cost reductions in Germany. Helbing, who will also serve as chief operations officer of the venture, said the technology will be easily translatable to commercially available Volkswagen models at a similar pace. He added that kind of accelerated decision-making and development timeframe is a side benefit from the collaboration with a smaller and more nimble partner like Rivian. “For us, the impressive part was the speed and pace of implementation,” Helbing said in the interview. “The intention is to keep the pace.” Bensaid said Rivian sees the venture as a way to boost cost savings by leveraging the scale economies enjoyed by its larger partner, and thereby improve its own vehicle margins. VW’s new Scout brand also plans to use technology from the Rivian-VW JV, he said.

Stellantis aims to improve EV aerodynamics with MGP technology Source: https://evlife.sg/blog/stellantis-aims-to-improve-ev-aerodynamics-with-mgp-technology Stellantis is investing $29.5 million into “Moving Ground Plane” (MGP) technology to enhance its wind tunnel at the company’s research and technical centre in Auburn Hills, Michigan. This investment will help Stellantis develop affordable EVs, improve EV aerodynamics, and thus reduce their battery size. The MGP technology uses high-pressure compressed air to drive the wheel and centre belts at speeds of up to 140 mph (504 kph). Upgrading the aero-acoustic wind tunnel will allow Stellantis to measure and reduce airflow resistance from wheels and tyres. According to Stellantis, airflow resistance makes up ten per cent of total real-world aerodynamic drag. To reduce the latter, the manufacturer hopes to enhance its wind tunnel with the Moving Ground Plane (MGP) technology. It would allow it to design EVs more aerodynamically, so they can offer more range on a single charge. “Range is a core consideration for customers transitioning to cleaner mobility through battery power,” said Mark Champine, senior vice president and head of North America engineering technical centres. “That’s what makes this investment so critical. By reducing drag, we improve electric-vehicle range and, ultimately, the overall customer driving experience.” Champine added: “For EVs, a range increase enabled by improved aerodynamics can lead to potential battery-size reductions. This has positive implications from more efficient packaging-to-weight savings that, in the end, will enhance the customer experience.” The upgrade allows the company to simulate real-world travel with test vehicles. During the simulation, four belts suspended by air cushions achieve wheel movement at all four corners. The simulation employs an additional belt that runs longitudinally beneath the vehicle to replicate on-road travel conditions. Moreover, the wind tunnel also provides a valuable complement to virtual development tools. “This apparatus is a great addition to virtual tools, which may not account for factors such as tyre deformation that can compromise aerodynamics,” said Champine. “With this technology, we can replicate such conditions and capture real-time data to explore solutions.” The research and technical centre also features vital automation capability, which helps to accelerate the time required to make changes to the wheelbase and track testing. This investment also aligns with the company’s Dare Forward 2030 strategic plan. Furthermore, the upgraded facility is part of an estimated $85 million investment outlined in the 2019 UAW contract. The investment aims to yield a new annexe for staging test vehicles and an outbuilding to support the MGP system.

Suzuki electric car plans uncertain due to competition and slow demand Source : https://www.evlife.sg/blog/suzuki-electric-car-plans-uncertain-due-to-competition-and-slow-demand Suzuki’s first electric car is due to be launched in summer 2025, but it’s unclear when a second might follow Suzuki’s plans to launch five pure-electric models in Europe by the end of the decade now seem uncertain, with the company’s president Toshihiro Suzuki citing the slowdown in electric car sales and fierce competition from China as contributing factors. Last year it was announced Suzuki would invest 4.5 trillion yen (approximately £23billion) in research, development and new facilities for EVs through 2030. So far, its first EV, the all-new Suzuki e Vitara, has been unveiled, but is not due to go on sale until next summer. Speaking to media at the reveal of the e Vitara, Toshihiro Suzuki didn’t confirm whether the company still intended to launch five EVs by 2030, nor could he provide a timeframe for when the company might launch a second zero-emissions model. “Sales of EVs are slowing down, and on the other hand, affordable and cheap EVs from China are coming into the market,” he said, “so it’s a very difficult time to introduce BEVs.” He added: “The government incentives for the BEVs are going out and there are Chinese EVs which have a very strong cost competitiveness [in their segments], so Suzuki has to think carefully about what kind of BEV should be introduced to the market in which time.” According to Toshihiro Suzuki, the company’s next EV will potentially be smaller than the e Vitara, but that was all he would reveal. Any hopes of it being a Jimny EV were dampened when the boss said an electrified version of the baby 4x4 would “ruin the best part of the Jimny”. Suzuki has developed an all-new, EV-dedicated platform called ‘Heartect-e’, with the help of Toyota and Daihatsu. But when asked if the same architecture will be used by future models, Toshihiro Suzuki said, “As we see how the sales transform, then we may also think about the further models that will use this platform.” Toshihiro Suzuki added the company isn’t solely focused on EVs; it’s also working on hybrids and e-fuels, because “from [the company] Suzuki's point of view, EV is not the only solution.” He added, “Maybe I said that you have to carefully monitor the situation, but that does not mean that we are leaving the [EV] technology development, so we want to keep up these developments.”

Audi unveils new EV brand in China without four ring logo Source : https://www.evlife.sg/blog/audi-unveils-new-ev-brand-in-china-without-four-ring-logo Audi on Thursday unveiled a new electric vehicle brand in China whose cars will sport just the name AUDI and not its signature four-ring logo, a move aimed at attracting younger customers in the world's largest auto market. The premium marque owned by Germany's Volkswagen, opens new tab partnered with Chinese automaker SAIC last year to co-develop cars under the brand, the first of which it plans to put on the market in the summer of next year. It marks an effort by both Audi and SAIC to win back market share in China, where legacy local players and foreign automakers have been losing ground to EV- and hybrid-focused rivals. Reuters reported in August that the new brand would not bear the four ring logo. Developing cars specifically for China allows foreign automakers to better target a huge customer pool. The new EV series uses automotive architecture co-developed with SAIC, and Audi says it will rely more on local suppliers and technologies. The EV series aims to attract younger drivers who seek high-end technology features such as advanced driver-assistance systems, Fermin Soneira, CEO of the project, told Reuters on the sidelines of an event in Shanghai to unveil the first concept car, a fully electric sportback. "The customers (here) are much younger than the rest of the world, 30 and 35 (years old) on average in the premium segment, while the rest of the world is 55," he said. Besides the sportback, the partnership plans to introduce two more cars, including a sport-utility vehicle, within the next three years. Audi sold fewer than 15,000 EVs in China in the first nine months of 2024, according to data from the China Association of Automobile Manufacturers. In comparison, Chinese premium EV brands Nio and Xpeng sold roughly ten and seven times more, respectively. Audi's EVs currently sold in China have the four-interlocking ring logo. These are the Q4 e-tron made with joint venture partner FAW, the Q5 e-tron SUV made with SAIC, and the Q6 e-tron made with FAW, which will be launched later this year.