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China’s EV makers feel crunch as high R&D costs collide with discount pressure

More than 50 new models could hit the market this year, but relentless discounting is devouring profit margins, spelling doom for some firms.

More than 50 new models could hit the market this year, but relentless discounting is devouring profit margins, spelling doom for some firms

18 Sep 2024 - 9:27AMvideocam

EVs outsold oil-guzzlers in China last month, boosting take-up rate

10 Sep 2024 - 5:51PM

A 6-seat Model Y? Tesla to produce new variant for China market in 2025

5 Sep 2024 - 6:08AMvideocam

Tesla delivers 17% more EVs from China factory as sales slip for rivals

US carmaker bucks downward trend in first six months, while sales decline 5.6 per cent for Li Auto and 1.6 per cent for Nio despite larger government subsidy for buyers.

3 Sep 2024 - 1:15PM

Workers check Tesla EVs rolling off the assembly line at the company’s Gigafactory in Shanghai on December 22, 2023. Photo: Xinhua

China EVs: Leapmotor, Xpeng set the pace in August, while Li Auto and Nio stumble

Stellantis-backed Leapmotor hit record sales last month, while others like Li Auto and Nio struggle amid fierce competition and price war.

1 Sep 2024 - 7:03PMvideocam

BYD, Li Auto sell more EVs at thinner margins as price war intensifies

China’s only profitable EV builders rebound from poor first-quarter performance, with BYD’s second-quarter earnings nearly doubling and Li Auto’s increasing by 86 per cent.

29 Aug 2024 - 9:48AM

China’s EV makers need emerging markets amid dire profit prospects: Moody’s

Emerging markets in Latin America, the Middle East and Southeast Asia have growth potential but also carry risks for companies facing a price war at home and tariffs abroad, ratings agency says.

27 Aug 2024 - 6:00AM

BYD EVs wait to be loaded onto a ship at Taicang Port in Suzhou, in China’s eastern Jiangsu province, on February 8, 2024. Photo: AFP

China’s EV makers sell more vehicles at bigger losses in discount war

EVs account for more than half of new car sales in mainland China, but brands including Xpeng, Zeekr, Leapmotor and Xiaomi face a long road to profitability.

29 Aug 2024 - 6:01PM

China’s EV sales cruise along, while price war pushes profits further off for most

Li Auto and Geely’s Zeekr turned in the strongest growth in July, while Xpeng and Nio delivered more modest increases.

1 Aug 2024 - 10:22PM

BMW raises prices after China’s brutal discount war fails to boost deliveries

BMW’s decision to stop offering discounts could trigger others like Audi and Mercedes-Benz to follow suit as mainland China’s price war hurts automakers’ financials.

18 Jul 2024 - 5:06PM

This photo taken on May 8, 2024 shows a roll-off ceremony of the 6 millionth car produced by BMW Brilliance Automotive (BBA) in Shenyang, northeast China’s Liaoning Province. Photo: Xinhua

Chinese EV makers Li Auto, Xpeng and Nio ride discounts to solid sales growth

Nio, BYD and Zeekr all reported record sales in June, while Li Auto just missed a record, but analysts said the reliance on discounts clouds the profitability forecast.

1 Jul 2024 - 9:00PM

A photo taken on October 10, 2023, shows robots working on a car in a Nio manufacturing facility in Hefei, in east China’s Anhui Province. Photo: Xinhua

Chinese carmakers look to live streaming to shake stuffy image

The more recent development is the greater personalisation of live streaming, often featuring auto executives taking part in long road trips.

24 Jun 2024 - 6:30PM

Overseas price wars will sow doubts over quality of Chinese EVs, Bain warns

Bain advises Chinese assemblers, which already enjoy a cost advantage, to focus on premium models when building their global image, rather than selling cheaper cars to lure budget-conscious consumers.

13 Jun 2024 - 8:54AMvideocam

China’s EV makers return to fast lane as government subsidies provide tailwinds

China’s premium electric car makers can expect a smooth road ahead of them in 2024 as both consumer demand and product margins improve

10 Jun 2024 - 10:00AM

Sales surge as China’s EV price war lures buyers, imperils profits

China’s top EV makers increased deliveries by up to 36 per cent month on month in May as promotional campaigns and low prices lured consumers, but analysts warn the earnings outlook is dire.

6 Jun 2024 - 7:39PM

EVs take shape in a factory of Nio. Photo: Weibo/ @Nio

Xiaomi beats quarterly sales estimates, as EV goal remains on track

The Chinese smartphone and electric vehicle (EV) maker Xiaomi grew its first-quarter revenue by a better-than-expected 27 per cent year on year, as handset shipments recovered globally.

23 May 2024 - 8:35PM

Tesla rival Li Auto reports big drop in earnings, margins in warning to EV peers

Tesla’s closest rival in China’s EV market reported a major setback in the first quarter, after earnings and deliveries slumped from the preceding three months. Margins eroded amid price discounting.

20 May 2024 - 7:38PMvideocam

From BYD to Xpeng, Chinese EV makers delaying payments to vendors

China’s leading EV makers are taking longer to settle payments with suppliers, indicating stress in the industry because of slowing sales and mounting discounts.

20 May 2024 - 3:22PMvideocam

Cars are assembled at BYD’s plant in Shenzhen, south China’s Guangdong province. Photo: Xinhua

A peek at EVs’ future at Beijing show as oil-guzzlers stay on sidelines

The era of battery-powered cars has truly arrived, as EVs dominated the car show. While carmakers still displayed a lot of futuristic concepts, it was the ongoing price war that had people talking.

13 May 2024 - 4:13PMvideocam

Chinese EV trio Li Auto, Xpeng and Nio post mixed April sales amid bruising price war

China’s top three premium EV makers posted mixed sales last month, as companies remain entrenched in a price war in the world’s largest car market that shows no signs of ending.

2 May 2024 - 4:45PMvideocam

BYD’s first-quarter profit, revenue slump amid bruising price war in China

The Warren Buffett-backed carmaker posted first-quarter net profit of 4.57 billion yuan (US$631 million), 47.3 per cent lower than the quarter ended December 2023.

29 Apr 2024 - 9:07PMvideocam

Visitors take a closer look at BYD’s new plug-in hybrid model at the Beijing International Automotive Exhibition on April 25. Photo: Kyodo

Chinese EV maker Xpeng says Nvidia partnership unaffected by US trade sanctions

Chinese electric vehicle start-up Xpeng said its partnership with AI chip supplier Nvidia has not been affected by tighter US trade sanctions, but it will keep its options open with local suppliers.

26 Apr 2024 - 5:23AM

An Xpeng X9 electric vehicle on display at the Beijing Auto Show on Thursday. Photo: Bloomberg

Editorial | Drivers to pay price of EU backlash against China electric vehicles

Beijing accuses Brussels of protectionism over its threatened tariffs against imports of competitively priced quality cars, putting relations on an even rockier road.

24 Apr 2024 - 4:21AMvideocam

Tesla rival Li Auto cuts prices as EV discount war spreads to premium market

Li Auto , Tesla’s nearest rival in mainland China, reduced the price of all its vehicles by up to 5.7 per cent, just a day after the US carmaker offered discounts to local customers amid an escalating discount war.

22 Apr 2024 - 1:29PMvideocam

China EVs: Li Auto takes on Tesla’s Model Y by pricing L6 SUV deliberately lower

Beijing-based Li Auto has priced the new L6 SUV from 249,800 yuan (US$34,509) onwards, 5 per cent cheaper than Tesla’s popular Model Y.

19 Apr 2024 - 11:30AMvideocam

Cars are assembled at Li Auto’s Changzhou plant, in eastern China’s Jiangsu province. Photo: AFP

Li Auto says cheapest model yet to launch next week, will ‘bring you happiness’

Li Auto, Tesla’s nearest rival in mainland China, plans to start selling a new, more economical model aimed at families amid a price war in the country’s electric vehicle market.

9 Apr 2024 - 6:00AMvideocam

Li Auto will unveil prices for the new Li L6 SUV on April 18. Photo: Handout

Strong sales of Xiaomi’s ‘game changer’ SU7 turbocharges China’s EV price war

Strong sales of smartphone vendor Xiaomi’s first electric car have exacerbated a price war in the sector that is squeezing the profit margins of most players in China.

7 Apr 2024 - 6:15PMvideocam

Chinese EV makers Li Auto, Nio, Xpeng and BYD report March sales rise

Li Auto, Nio and Xpeng, China’s top three premium EV manufacturers, have reported a strong rebound in deliveries in March, while BYD said the sales of its pure electric and plug-in hybrids had surged as well.

1 Apr 2024 - 9:11PM

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Li Auto

Li Auto was founded in China in 2015 by entrepreneur Li Xiang. It primarily produces hybrid electric vehicles. The company has also started to manufacture pure electric vehicles, targeting the luxury segment with its maiden launch in March 2024 of a seven-seater multipurpose vehicle.

last updated:

27 August, 2024