Tag: BYD

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BYD China Denza Denza N7 Electric eMobility eV

Denza N7 expected to get over 30,000 orders before mid-year launch, exec says

Denza will announce the appearance of another SUV N8 in the near future, and Denza D9 MPV will next be sold in other regions including Hong Kong, Macau, Europe.

(Image credit: Denza)

's premium new energy vehicle (NEV) brand Denza began intensive warm-up for the Denza N7 SUV earlier this month, and now an executive has expressed optimism for the model's future sales performance.

Denza N7 has inspired much enthusiasm, and with the announcement of Denza's partnership with French high-end audio brand Devialet on March 22, there were many customers inquiring every day, Zhao Changjiang, general manager of Denza's sales division, said on Weibo yesterday.

Many people want to get the Denza N7 launched as soon as possible, and according to the inquiry volume data, the model is expected to get 30,000 orders before its launch in the middle of the year, Zhao said.

Zhao said in February that the Denza N7 would be released in the first half of this year.

On March 6, Denza unveiled official exterior images of the Denza N7 on Weibo, showing that the model restores much of the design of the brand's concept car INCEPTION, which was unveiled at the Chengdu auto show on August 26, 2022.

On March 9, the Denza N7 appeared in a regulatory filing list, and its key specifications were revealed.

The Denza N7 has a length, width and height of 4,860 mm, 1,935 mm and 1,602 mm respectively, and a wheelbase of 2,940 mm, according to the filing.

The model will be available in a single-motor version as well as a dual-motor version, with the former having a peak motor power of 230 kW and the latter having an additional motor with a peak power of 160 kW.

On December 20 last year, Zhao shared six spy photos of the SUV on Weibo, showing what the model might look like.

In the comments section of that Weibo, Zhao said the SUV aims to capture the market for traditional internal combustion engine cars priced around 400,000 yuan ($58,140).

In addition to mentioning his expectation of orders for the Denza N7 before its launch, Zhao also mentioned on Weibo yesterday that Denza will announce the look of another SUV, the N8, in the near future.

The Denza D9 has already been shown at the Thailand motor show and the MPV will be sold next in other regions including Hong Kong, Macau, and Europe for RMB 600,000-1 million, he said.

($1 = RMB 6.8801)

Regulatory filing: Here are core specs for BYD's Denza brand's new SUV, Denza N7

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China Die-casting Electric eMobility eV Nio NIO Suppliers Tesla Wencan

NIO signs deal with die-casting parts supplier Wencan

Wencan aims to supply products from near 's plants by 2025, and the two companies will work together to arrange capacity expansion plans.  |  NIO US | NIO HK | NIO SG

(Image credit: CnEVPost)

NIO (NYSE: NIO) has entered into a strategic partnership with yet another auto parts giant that will provide supply support near its plants.

One-piece die-casting parts supplier Wencan Group signed a five-year strategic cooperation framework agreement with NIO on March 26, according to an exchange announcement today from the Shanghai-listed company.

The two companies will collaborate on supply, low carbon, digitalization and globalization to achieve supply support around NIO's Hefei plants, according to the announcement.

Wencan and NIO will also collaborate in depth on lightweight research and development of integrated die-casting structural parts for the body and new material applications.

The two will also explore all-round cooperation in products including integrated battery boxes, core electric vehicle components and automotive chassis, according to the announcement.

Wencan aims to supply products near the NIO plants by 2025, and the two companies will work together to arrange capacity expansion plans, including investing in new production lines, or building new production sites, to ensure smooth production and delivery of NIO projects, the announcement said.

Wencan will also use its global presence to provide full support to NIO's international business and to provide full support to the electric vehicle company's global R&D and product validation, according to the announcement.

NIO will promote Wencan's casting business to its partners and will explore cooperation in other business areas, the announcement said.

The two will also cooperate deeply on business car purchases and employee car purchases.

Wencan is one of China's best-known suppliers of integrated die-casting parts and a core supplier of structural body parts to NIO, according to the team led by Cui Yan, an analyst at local brokerage firm Huaxi Securities.

Wencan's parts are used in NIO's entire lineup of models, and the average value of its parts used per NIO vehicle is more than RMB 3,000, Cui's team said in a March 17 research note.

Most automakers won't adopt 's model of using one-piece die-casting machines on their own because it requires a large investment and the scale effect is less than that of third-party suppliers, the team said.

On October 26, 2022, Wencan announced plans to raise up to RMB 3.5 billion through a private placement, of which RMB 1 billion will be used to build a parts manufacturing project in Anhui province.

Wencan plans to build a plant in Lu'an, Anhui province, which will help better serve customers including NIO and , Cui's team said.

The new agreement with Wencan is the second NIO has signed with the parts giant so far this month.

On March 16, Tesla's parts supplier Ningbo Tuopu Group announced that it had signed an agreement with NIO to establish a strategic partnership for the development, manufacture and supply of NEV parts and components.

One of the goals of the partnership between the two is for Ningbo Tuopu to provide parts supply near NIO's factories in Hefei, according to the announcement.

Tesla parts supplier Ningbo Tuopu signs cooperation deal with NIO

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BYD China Deliveries Electric eMobility eV EV Data Insurance Registrations Li Auto Neta Nio Tesla Weekly Data XPeng

China NEV insurance registrations for week ending Mar 19: BYD 38,414, Tesla 18,712, NIO 1,775

Insurance registrations for China's NEVs were 113,000 last week, up from 108,000 the week before.

Insurance registrations for new energy vehicles (NEVs) in China increased last week compared to the previous week, with a mixed performance from major EV makers.

From March 13 to March 19, insurance registrations for all passenger vehicles in China were 321,000 units, up from 308,000 units the previous week, according to figures shared by several car bloggers on Weibo.

Insurance registrations for NEVs were 113,000 last week, up from 108,000 the week before.

(OTCMKTS: BYDDY) vehicles continued to see the most insurance registrations, with 38,414 last week, up from 37,141 the previous week.

(NASDAQ: TSLA) vehicles saw 18,712 insurance registrations last week, up from 17,032 the week before.

was 1,775 vehicles last week, down from 2,170 the week before.

NIO guided for first-quarter deliveries between 31,000 and 33,000 units earlier this month, meaning March deliveries are expected to be between 10,337 and 12,337 units.

The company's insurance registrations for the first week of March, which included February 27 and February 28, were 3,345 units.

(NASDAQ: LI) vehicles registered 5,438 insurance units last week, up from 4,243 the previous week.

(NYSE: XPEV) had 1,296 vehicles last week, down from 1,635 the week before.

posted 914 units last week, down from 1,043 units the previous week.

China NEV insurance registrations for week ending Mar 12: BYD 37,141, Tesla 17,032, NIO 2,170

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China Electric eMobility eV Li Auto Li Auto Stock Nio NIO Stock Research Note Tesla XPeng XPeng Stock

China EV industry sell-off creates opportunity, says Morgan Stanley

leads the pack with superior execution, but risk-reward increasingly favors and after a drastic sell-off this year, Morgan Stanley said.

Shares of major Chinese electric vehicle (EV) makers have generally suffered a sell-off so far this year, as the sector's weak sales at the start of the year and recent widespread price wars have raised investor concerns.

However, in Morgan Stanley's view, the sales potential of China's EV companies in the second half of the year is underestimated at a time when costs are sliding.

"We think YTD stock corrections should have discounted competition risks but underrate the cost-driven upside to EV margin/volume in 2H, " Morgan Stanley analyst Tim Hsiao's team said in a research note sent to investors on March 19.

As of Monday's close, NIO's (NYSE: NIO) US-traded ADR was down 10 percent this year, XPeng was down 8 percent, and Li Auto was up about 12 percent.

Hsiao's team believes that significant margin pressure from price wars will fuel market concerns about industry profitability and cash flow, especially among new energy vehicle (NEV) heavyweights, namely and China, which can afford to initiate another round of price cuts in the second quarter.

That, combined with weak full-year sales following the stimulus withdrawal, could dampen sales volumes and margins for EV brands in the first half of 2023, the team said.

Still, the production potential of China's NEV industry in the second half of the year and beyond appears to be underestimated as the decline in prices of batteries and key components accelerates following aggressive capacity expansion in 2022, the team noted.

This could translate into potential margin relief for NEV makers and potentially increase NEV penetration in the second half of the year in a cost-effective manner, the team said.

Hsiao's team estimates a 20-25 percent drop in battery costs for major NEV makers, implying a 6-10 percentage point cost savings.

The price drop of lithium carbonate, a key raw material for batteries, has accelerated in recent days and saw its biggest one-day drop so far this year on March 20, according to a CnEVPost report yesterday.

The average price of both industrial-grade lithium carbonate and battery-grade lithium carbonate fell by RMB 12,500 per ton on March 20, with the latest average price at RMB 272,500 per ton and RMB 312,500 per ton, respectively.

NIO's management said in a call with analysts after the March 1 earnings announcement that they expect lithium carbonate prices to fall back to around RMB 200,000 per ton this year, boosting gross margins back up.

EV makers that can take full advantage of this will not only enjoy margin relief, but also have more flexibility to price their models to further boost NEV penetration in mass markets and lower-tier cities, Hsiao's team wrote in their report.

"That said, the tailwinds from falling input costs may take time to kick in as our checks with major OEMs suggest they are still in discussions with battery suppliers on new terms," the team added.

The team believes that a tougher operating environment will accelerate market reshuffling, with leading EV manufacturers weathering the downturn better than their peers, while the growth of smaller, lagging EV startups could be slowed by a depletion of liquidity in 2023.

Growing investments should also push up cash burn rates. As a result, the ability to optimize working capital and access to market funding will play a more important role in ongoing operations in 2023, the team added.

"Our analysis suggests EV trio (NIO, XPeng, and Li Auto) will still hold fast, backed by healthy balance sheet conditions and better connections to capital markets," Hsiao's team wrote.

The team said they're fully aware of investor worries about EV startups' cash burn that may rapidly deplete their liquidity.

But they believe the EV trio can remain self-funded for the next 18 months, even under the stress-test scenario of a prolonged price war.

"We believe continuous investment would further solidify their technology leadership and enable them to have a better chance of winning out in the next up-cycle," the team wrote.

The team believes that trough valuations mean the market has lowered expectations for EV startups' operational performance and financial resilience in an industry downturn, making any marginal improvement in their sales a meaningful stock catalyst.

Li Auto leads the pack with superior execution, but risk-reward increasingly favors XPeng and NIO after this year's sharp dip, the team said.

Lithium prices see biggest drop this year in China as decline accelerates

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BYD BYD Global BYD Uzbekistan China Electric eMobility eV

BYD makes brand debut in Uzbekistan, starts local pre-sales of 3 models

introduced three models in Uzbekistan and its three pioneering stores in Tashkent will open in March.  |  BYDDY.US | BYD HK

(Image credit: BYD)

BYD (OTCMKTS: BYDDY) made its brand debut in Uzbekistan and introduced three models to local consumers, as the largest Chinese manufacturer of new energy vehicles (NEVs) continues to advance its efforts in the international market.

BYD held a brand debut and product pre-sale event in Uzbekistan on March 16, and several of its local dealership stores are set to open this month, according to a press release Friday.

BYD introduced three models at the event, including the Han EV, an all-electric sedan; the Song Plus DM-i, a hybrid model; and the hybrid Chazor DM-i, known as the Destroyer 05 in China.

Uzbekistan, the largest automotive market in Central Asia, is transitioning toward vehicle electrification, and BYD will bring industry-leading blade battery and DM-i super hybrid technology to local consumers, the release said.

Three pioneering BYD stores in Uzbekistan's capital Tashkent will open in March: a BYD flagship store and technology museum, a comprehensive BYD brand experience center and a BYD city showroom.

It is worth noting that BYD has already made some previous moves to pave the way for its long-term growth in Uzbekistan.

In February 2022, BYD and Uzavtosanoat JSC (UzAuto) signed a mutual memorandum of understanding, agreeing to study the feasibility of joint production of electric passenger cars and electric buses in the Central Asian country.

UzAuto, established in 1994, is the largest and only car manufacturer in Central Asia with a complete automotive industry footprint and an extensive local and inter-regional sales network and after-sales service system.

On December 30, 2022, BYD announced that it had signed an agreement with UzAuto to establish a joint venture that will focus on the production of NEVs and their components.

The joint venture will be based in Uzbekistan and will focus on the future production of several of BYD's best-selling NEV models, including the DM-i Super Hybrid, and related components, according to a BYD press release at the time.

BYD, the world's largest maker of NEVs, sold 193,655 vehicles in February, up 27.96 percent from 151,341 units in January and up 119.36 percent from 88,283 units in the same month last year, according to figures it announced earlier this month.

In February, BYD sold 15,002 NEVs in overseas markets, up 44.13 percent from 10,409 units in January.

In addition to announcing its business progress in Uzbekistan, BYD also announced on Friday that it entered into a partnership with UAE dealer Al-Futtaim on March 15.

NIO's global expansion: Demands of under-the-radar owners underscore urgency

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BYD BYD Bus BYD Global BYD Indonesia China Electric eMobility eV

BYD delivers 22 electric buses in Indonesia

This is the second batch of electric buses delivered by in Indonesia after it delivered 30 in the country a year ago.  | BYDDY.US | BYD HK

(Image credit: BYD)

BYD has delivered a new batch of electric buses in Indonesia, the second batch delivered there by the Chinese new energy vehicle (NEV) maker.

VKTR Group, a BYD electric bus distributor in Indonesia, recently delivered 22 electric buses, the K9, to local bus company Mayasari, according to a press release from the NEV maker today.

The electric buses will be put into operation on the Transjakarta bus rapid transit system, helping Indonesia achieve its goal of electrifying public transportation nationwide by 2030, BYD said.

This is the second order BYD has delivered in Indonesia, representing the NEV maker's continued effort in the Indonesian market, said Tian Chunlong, general manager of BYD's commercial vehicle operations division, at the delivery ceremony.

In 2022, BYD and its Indonesian partner VKTR Group announced a partnership with Tri Sakti, a local bus assembly plant.

On March 8, 2022, the first 30 BYD buses were delivered to Transjakarta, a bus operator in Jakarta, which were the first all-electric buses to be put into operation in Indonesia.

Up to now, BYD has promoted electric public transportation systems in more than 70 countries and regions and 400 cities around the world, according to the press release.

BYD sold 1,863,494 NEVs in 2022, making it the world's largest player in the segment. Those NEVs include 1,857,379 passenger cars and 6,115 commercial vehicles, according to data monitored by CnEVPost.

The company sold 1,177 and 1,991 new energy commercial vehicles in January and February, respectively, up 386.36 percent and 145.8 percent year-on-year, respectively.

BYD plans to launch new commercial vehicle models in markets such as China, Europe and Japan over the next three years, the Wall Street Journal said on March 8, citing people familiar with the company's plans.

The company has set a budget of more than $20 billion for its commercial vehicle division through 2025, with major spending planned for research, product development and capacity expansion, the people said.

BYD reportedly planning big push for battery electric commercial vehicles

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BYD BYD Team China Electric eMobility eV

BYD adjusts organizational structure to prepare for higher sales, report says

's biggest organizational change so far this year is to let its car brands operate independently, according to local media.  |  BYDDY.US | BYD HK

(Image credit: CnEVPost)

BYD (OTCMKTS: BYDDY) is restructuring its organization to prepare it for further growth in sales, a new report said.

BYD's biggest organizational change so far this year is to make its car brands operate independently, according to a report by local media outlet 36kr today.

The restructuring starts with BYD's core R&D department, and its engineering institute is planning to set up several separate divisions to cover its product lineup, including Dynasty, Ocean and Denza, according to the report.

All of BYD's sub-brands will have a separate engineering institute, the report said, citing a source.

R&D, operations and product development for all BYD brands are conducted at BYD's engineering institute, and now, in addition to R&D continuing in that department, sub-brands' projects, operations and products will be handled by independent engineering institutes, according to the report.

The organizational restructuring began at the beginning of the year, and key positions in each brand's research institute are now in place.

The heads of BYD's Dynasty and Ocean series' research institutes are basically the directors of their respective models, and the head of the research institute for Denza is the brand's former CEO Wang Fengyi, the report said.

BYD has two automotive R&D departments -- the engineering institute and the planning -- institute -- the former responsible for vehicle engineering technology, model projects and operations, and the latter like a technology provider responsible for DM-i hybrid technology, intelligent cockpit and intelligent driving R&D, according to the report.

Automakers' consideration for implementing independent institutes is usually the desire for clearer responsibility, more flexibility in the operation of each brand, and a heightened sense of competition among different brands, the report said, citing an industry source.

BYD's "family culture" and its previous first value of "equality" have led to a relatively slow pace of operations, the report said, citing several employees of the new energy vehicle (NEV) maker.

As BYD's sales increase dramatically starting in 2022, the company has implemented measures to improve efficiency.

However, for improving efficiency, organizational changes are fundamentally needed, the report said, adding that the establishment of independent research institutes for each brand is a signal that BYD wants to strengthen resource integration and improve operational efficiency.

BYD's planning institute's structure is also being adjusted to begin unifying the management of smart driving R&D tasks, after several departments of the NEV maker had R&D for autonomous driving projects, according to the report.

BYD's full-year 2020 NEV sales were 189,689 units, and that number grew to 603,783 in 2021, an increase of 218.3 percent.

In 2022, BYD's NEV sales growth accelerated significantly, seeing monthly sales exceed 100,000 units for the first time in March, when BYD announced that it stopped production and sales of vehicles powered entirely by internal combustion engines.

For the full year 2022, BYD's NEV sales were 1,863,494 units, up 208.64 percent year-on-year.

BYD launches new Han sedan and Tang SUV with lower prices

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BYD byd han BYD Tang China Electric eMobility eV Product Launch

BYD launches new Han sedan and Tang SUV with lower prices

announced today that the two models received 8,196 orders on the day they were launched on March 16. BYDDY.US | BYD HK

(Image credit: BYD)

As the price war in China's auto industry continues, BYD (OTCMKTS: BYDDY) has launched revamped versions of its flagship sedan and flagship SUV at lower prices than previously available models.

BYD launched the 2023 Han EV and 2023 Tang DM-i at its March 16 online event, both starting at RMB 209,800 ($30,440).

Both models appear to have received good initial acceptance, with BYD announcing today that the two models received a total of 8,196 orders on March 16.

The dimensions of the 2023 Han EV remain unchanged from the previously available model, measuring 4,975 mm in length, 1,910 mm in width and 1,495 mm in height, with a wheelbase of 2,920 mm.

The2023 Han EV is currently available in five versions with starting prices of RMB 209,800, 229,800, 259,800, 279,800 and 299,800 respectively, with the most expensive being the four-wheel drive version and the rest being front-wheel drive models.

As a comparison, the previous BYD Han had a starting price range of RMB 219,800-298,800.

The new Han has four range options, with CLTC ranges of 506 km, 605 km, 715 km and 610 km, of which the 715 km version is available in two models.

The least expensive version is equipped with a motor with a maximum power of 150 kW and a CLTC range of 506 km. The model, like all other single-motor Han models, can accelerate from 0 to 100 km/h in 7.9 seconds.

The highest-priced version has a front motor with 180 kW and 350 Nm of peak torque and a rear motor with 200 kW and 350 Nm of peak torque, which accelerates from 0 to 100 km/h in 3.9 seconds.

The BYD Han 2023 all supports fast charging, taking less than 30 minutes to charge from 30 percent to 80 percent.

The length, width and height of the 2023 BYD Tang DM-i are 4,870 mm, 1,950 mm and 1,725 mm respectively, with a wheelbase of 2,820 mm, also unchanged.

The model is available in three versions, with starting prices of RMB 209,800, 219,800 and 233,800 respectively. For comparison, the previously available Tang DM-i starts at RMB 209,800, RMB 226,800 and RMB 281,800 for its three variants.

The model continues to be equipped with a plug-in hybrid system consisting of a 1.5T engine and electric motor, with the engine producing 102 kW of maximum power and 231 Nm of peak torque, and the motor producing 160 kW of maximum power and 325 Nm of maximum torque. The model can accelerate from 0 to 50 km/h in 4.3 seconds.

All three models of the BYD Tang DM-i are powered by a 21.5 kWh blade battery with a battery-powered CLTC range of 112 km.

The BYD Han family, including the Han EV and the hybrid Han DM series, sold 274,015 units in 2022, contributing 14.7 percent of the automaker's 1,863,494 full-year 2022 new energy vehicle (NEV) sales, according to data monitored by CnEVPost.

BYD Tang family models, including the Tang EV as well as the Tang DM series, sold 150,832 units in 2022, contributing 8 percent of BYD's NEV sales.

Supported by a downward shift in price range and configuration upgrades, the 2023 Han EV and Tang DM-i are expected to boost BYD's demand, thus driving sales to accelerate upward, Huaxi Securities analyst Cui Yan's team said in a research note today.

($1 = RMB 6.8925)

BYD Feb sales breakdown: Song 52,400 units, Yuan 33,612 units

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China Earnings Earnings Preview Electric eMobility eV Tesla XPeng

XPeng earnings preview: Q4 to be soft with promotions hitting margins

"We expect generally soft results and a weak 1Q23 outlook due to challenging demand and pricing dynamics," Edison Yu's team said.

US | XPeng HK

XPeng (NYSE: XPEV) will report fourth-quarter earnings on Friday, and as usual, Deutsche Bank analyst Edison Yu's team provided their preview.

"We expect generally soft results and a weak 1Q23 outlook due to challenging demand and pricing dynamics," the team said in a research report sent to investors yesterday.

Soft fourth-quarter

XPeng will report its unaudited financial results for the fourth quarter and fiscal 2022 on Friday, March 17, before the US markets open.

It delivered 22,204 vehicles in the fourth quarter, above the upper end of the guidance range of 20,000 to 21,000, but down 46.82 percent year-on-year and down 24.91 percent from the third quarter.

XPeng's previous revenue guidance for the fourth quarter was RMB 4.8 billion to RMB 5.1 billion, representing a year-on-year decrease of about 40.4 percent to 43.9 percent.

"We expect a soft quarter with deliveries already reported at 22,204, above management's guidance range (20,000-21,000), but with promotional activity hitting margins," Yu's team wrote.

The team expects XPeng to post revenue of RMB 5.4 billion yuan and a gross margin of 11.5 percent in the fourth quarter.

They expect XPeng's vehicle margin to be 8.5 percent in the fourth quarter, down 3.1 percentage points from the third quarter, and adjusted earnings per share of RMB -2.33.

The current analyst consensus in the Bloomberg survey is for revenue of RMB 5.7 billion, gross margin of 12.1 percent and adjusted EPS of RMB -2.25.

For the first quarter, Yu's team expects deliveries to be around 19,000-20,000 units and for gross margin to drop to single digits as price cuts take hold.

XPeng deliveries in January and February were 5,218 and 6,010 units respectively, for a cumulative total of 11,228 units. Insurance registration figures for the past two weeks suggest that the company did not see a significant improvement in deliveries in March.

Uncertainty in 2023

The key to XPeng's relevance going forward is to win back market share, and that could take several quarters to achieve, which has created significant uncertainty this year, Yu's team said.

Demand for the company's flagship SUV, the G9, has clearly been disappointing, despite mostly positive reviews, the team said, adding that they expect XPeng to potentially make pricing or SKU adjustments to the SUV in the coming months.

XPeng's new P7i sedan should help with order volume, but there won't be materially beneficial until the second quarter, the team said.

Most importantly, XPeng's upcoming Model Y competitor, the G6, needs to reach at least 5,000 units per month by the end of the year to be considered a success, the team said.

The team now expects XPeng to be on track to deliver 145,000 vehicles in 2023, a 10,000-unit downward revision from earlier, taking into account the decline in G9 sales.

How can capacity utilization be improved?

If XPeng's sales continue to be weak, its management may need to get creative to improve its capacity utilization, Yu's team said, adding that the easiest way to do that would be to sign some large fleet deals.

That may be hard in China, considering and GAC have stronger positions in the taxi and ride-sharing segment, but XPeng recently signed deals with some local car rental companies to buy its P7 sedan, the team noted.

XPeng entered into a strategic partnership with local car rental company eHi Car Services on July 19, 2022, and delivered the first few hundred cars to the latter.

On January 9 this year, XPeng signed agreements with car rental company China Auto Rental and 's travel service platform Xiaolinggou Travel Technology, and completed the delivery of the first XPeng P7 vehicles in Ningbo, Zhejiang province.

In addition, XPeng has restarted its expansion efforts in Europe, where large fleet deals could make sense due to the region's high percentage of corporate fleets and low availability of cheap BEV options, Yu's team said.

"We note BYD has an agreement with SIXT for 100,000 EVs and XPeng's vehicles fall into a similar price point. BYD also just announced a 5,000 unit agreement with UK's Octopus EV," the team wrote.

Another option is to partner more deeply with traditional OEMs on EVs and robotaxis, which could come in the form of equity investments or strategic alliances, according to the team.

XPeng offering discounts to clear P7 inventory, facelift to launch next week, report says

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China Denza Electric eMobility eV Industry News Leapmotor Neta price war

More Chinese EV makers promise no price cuts as price war intensifies consumer wait-and-see sentiment

EV makers including , and Denza have all introduced 90-day price protection policies.

(Image credit: Neta)

As the auto price war in China continues, some electric vehicle (EV) makers are beginning to make it clear that they will not cut prices in an attempt to dispel the wait-and-see sentiment of potential consumers.

EV makers including Leapmotor, Neta and Denza have all introduced price protection policies, after (NASDAQ: LI) introduced a similar policy and (NYSE: NIO) made it clear that the company would not cut prices.

Leapmotor announced yesterday that for consumers who purchase any of its models during this month, they will get the difference back if the price drops within 90 days or if the company offers additional cash discounts.

This is in line with a policy introduced earlier this week by Li Auto, whose salespeople said it was designed to make clear to consumers that its models would not be reduced in price.

Neta, Hozon Auto's EV brand, announced today that consumers who order its flagship sedan, the Neta S, by April 30 will not have to worry about the model's price dropping within 90 days.

If the price of the model drops within 90 days of the consumer's purchase, Neta will refund the difference.

Notably, along with the announcement of the price protection policy, Neta began offering an RMB 23,000 ($3,340) discount for the lowest-priced model of the Neta S, bringing the model's starting price down to RMB 179,800 from the previous RMB 202,800, valid until the end of April 30.

Neta models on sale also include the Neta V and Neta U, which start at less than RMB 150,000 and are not covered by its price protection policy.

Denza, 's premium brand, announced that if consumers who purchase its vehicles during the month see a drop in official guide prices will receive a rebate for the difference.

Auto and Volvo Car's jointly held Lynk & Co brand also began offering a 90-day price protection policy that expires on April 30.

The increasing number of car companies joining the price war has led to an increased wait-and-see mood among consumers to avoid seeing price cuts soon after purchasing a car.

An NIO executive said yesterday that they noticed Li Auto's move and the company had considered whether to issue a similar policy.

But for NIO, it has previously made it clear that prices will not be lowered, the company's assistant vice president of sales operations Pu Yang said at a media event yesterday, adding that NIO is not only not cutting prices for 90 days, but prices will not change for a longer period of time.

(1 $= RMB 6.8843)

NIO won't get involved in price war, exec says

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