Tag: Li Auto

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China Deepal Deepal S7 Electric eMobility eV Industry News Product Launch Tesla

Changan’s EV brand Deepal launches S7 SUV at about half price of Tesla Model Y

The Deepal S7 is about the same size as the Model Y and is available in both BEV and EREV versions.

(Image credit: Deepal)

Changan Automobile's new energy vehicle (NEV) brand Deepal has launched an SUV that will compete with Tesla's (NASDAQ: TSLA) Model Y. Its first product is aimed at the Model 3 market.

Deepal officially rolled out the Deepal S7 at a launch event yesterday evening with a starting price of RMB 149,900 ($20,878), down RMB 20,000 from the pre-sale price announced on May 20 and well below the Model Y's RMB 263,900.

The Deepal S7 is available in two powertrain versions, including a battery electric vehicle (BEV) version, and an extended-range electric vehicle (EREV) version similar to (NASDAQ: LI) vehicles. Deliveries of the new SUV are to begin on June 30.

The Deepal S7 EREV is available in three versions with starting prices of RMB 149,900, RMB 159,900 and RMB 169,900 respectively.

The Deepal S7 BEV is available in 2 versions with starting prices of RMB189,900 and RMB202,900 respectively.

The model's price range at the time of pre-sale was RMB 169,900 - RMB 239,900.

For comparison, the Tesla Model Y is currently offered in China in three versions -- an entry-level rear-wheel drive version, a dual-motor all-wheel drive long-range version, and a dual-motor all-wheel drive performance version -- with starting prices of RMB 263,900, RMB 313,900, and RMB 363,900, respectively.

The Deepal S7 is a mid-size SUV with a length, width and height of 4,750 mm, 1,930 mm and 1,625 mm, respectively, and a wheelbase of 2,900 mm.

The dimensions are similar to those of the Model Y, which measures 4,750 mm in length, 1,921 mm in width and 1,624 mm in height, and has a wheelbase of 2,890 mm.

Both versions of the Deepal S7 BEV are rear-wheel drive and feature a single electric motor with a maximum power of 160 kW and 190 kW, respectively, and a maximum torque of 320 Nm. They can accelerate from 0 to 100 km/h in 6.7 seconds and 7.5 seconds, respectively.

These two BEV versions are equipped with a power battery capacity of 66.8 kWh and 79.97 kWh, providing a CLTC range of 520 km and 620 km, respectively.

All three versions of the Deepal S7 EREV are powered by a 1.5 L engine with a maximum power of 70 kW. They all have an electric motor with a peak power of 175 kW and a peak torque of 320 Nm.

All three versions can accelerate from 0 to 100 km/h in 7.6 seconds, 7.6 seconds and 7.7 seconds, respectively.

They have a battery pack capacity of 18.99 kWh, 18.99 kWh and 31.73 kWh, providing a battery range of 121 km, 121 km and 200 km, respectively.

At full fuel and full charge, the three versions of the Deepal S7 EREV have a CLTC range of 1,040 km, 1,040 km, and 1,120 km, respectively.

Deepal, Changan's NEV brand announced in 2022, officially launched the Deepal SL03 sedan on July 25 last year, a competitor to the Model 3.

Unlike the Tesla Model 3, the Deepal SL03 is available in three forms of power -- a BEV version, an EREV version, and a version with a hydrogen fuel cell.

In May, Deepal delivered 7,021 units, bringing January-May deliveries to 33,585, although last month's delivery was 9.48 percent lower than April's 7,756 units.

Deepal's goals for 2023 include selling 200,000 vehicles and making both the SL03 and S7 hot sellers, the brand's CEO Deng Chenghao said in an interview with Auto Home in April.

Price wars are short-term actions, and car companies ultimately need to compete on product competitiveness, technology, branding, channels and service capabilities, Deng said in that interview.

"I think the whole industry will be sustainable only if there is a value war," he said.

($1 = RMB7.1794)

Shenlan deliveries in Apr: 7,756

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AVATR China Electric eMobility eV Industry News

New patent hints BEV maker Avatr may launch models with combustion engines

The appeal of PHEVs or EREVs is clearly hard for Chinese EV companies to ignore, and the strong deliveries of the further underscore this.

(Image credit: CnEVPost)

While adding an internal combustion engine to an electric vehicle (EV) model is seen as a step backward, the approach could lead to higher sales and thus make it attractive.

A new patent granted to Avatr Technology, an EV brand backed by , and Changan Automobile, hints that it could potentially add models with internal combustion engines to its product array.

Avatr was granted a patent related to refueling ports on May 5, meaning that the battery electric vehicle (BEV) maker could potentially introduce models that can refuel in the future.

Avatr was originally founded as Changan by Changan and NIO on July 10, 2018.

However, its product launches have not progressed well over the past several years, and with the introduction of new financing, NIO has essentially exited from the joint venture.

After several years of bumpy development, Avatr finally launched its first model, Avatr 11, on August 9, 2022, and its deliveries began at the end of December last year.

In addition to the Avatr 11, Avatr also has a limited-edition model, the Avatr 011, for which deliveries began in February of this year.

In May, Avatr sold 1,200 units, according to local consulting firm Land Roads.

Most of China's earliest EV startups targeted the BEV market in the beginning, but experience over the past few years has shown that plug-in hybrid vehicles (PHEVs), which enjoy the same support policies as BEVs at the national level, are more popular.

In addition, Li Auto's (NASDAQ: LI) tremendous success in the extended-range electric vehicle (EREV) market is more evidence that PHEVs are more accepted.

Li Auto delivered a record 28,277 vehicles in May, the third consecutive month to surpass the 20,000-unit mark. It is aiming to deliver more than 30,000 units this month.

In an effort to reverse the sales slump, Leapmotor announced plans last year to release EREV models, all of its previous models were BEVs.

On February 1, Leapmotor unveiled its dual-power strategy and its first EREV model, an EREV variant of its flagship SUV, the C11. On March 1, the C11 EREV went on sale.

In May, Leapmotor delivered 12,058 vehicles, up 38.18 percent from 8,726 units in April and 10 times the 1,139 units in January.

Leapmotor delivers 12,058 units in May, higher-priced C-series dominate-CnEVPost

The appeal of PHEVs or EREVs is clearly hard to ignore for Chinese EV makers.

He Xiaopeng, chairman and CEO of , said in a speech on June 15 that he could foresee a large number of hybrid models appearing in China in the next two years, especially inside family cars.

"Because everyone sees the success, they will follow. Because they are following, a large number of models will focus on the same place. It's a very interesting thing," he said.

He stressed, however, that car companies should have a long-term view. "I think in the automotive space, for everything, you have to think about the layout for ten to twenty years, it's not possible to achieve a big change in three years' time," he said.

Leapmotor starts bringing back combustion engines for its offerings to reverse plummeting sales

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China Electric eMobility eV Tesla XPeng XPeng Global XPeng Hong Kong

XPeng plans to launch right-hand drive model in Hong Kong next year, report says

Right-hand drive is a large segment of the overall EV market, and is determined to build itself into a strong global EV company, the South China Morning Post quoted XPeng's president as saying.

(Image credit: CnEVPost)

XPeng (NYSE: XPEV) is reportedly setting its sights on Hong Kong, after entering the European market.

Guangzhou-based XPeng plans to launch a right-hand drive model in Hong Kong next year to compete with well-established rivals like , the South China Morning Post said in a report yesterday.

XPeng would offer a vehicle distinct from existing EVs on the streets of Hong Kong that will appeal to local customers with its advanced technology and unique design, reinforcing its go-global strategy, the report quoted Brian Gu, vice chairman and president of the EV maker, as saying.

The XPeng right-hand drive model will probably hit the Hong Kong market in late 2024, Gu said.

This marks the first step for one of China's major EV makers to enter the Hong Kong market with a right-hand drive model, the report said, adding that XPeng's domestic rivals -- (NYSE: NIO) and (NASDAQ: LI) -- have not yet announced plans to sell EVs in Hong Kong.

NIO, based in Shanghai, is currently focusing its international efforts on Europe, and Li Auto, based in Beijing, has not yet begun to venture into international markets.

Right-hand drive is a large segment of the overall EV market, and XPeng is determined to build itself into a strong global EV company, the South China Morning Post quoted Gu as saying.

"By the time we enter, we will probably face pretty significant competition," he said in a keynote session at the South China Morning Post's China Conference: Hong Kong 2023.

"But we do feel that our products will have a different appeal. We want to make sure that the technologies we develop in China can be made available in Hong Kong as well," he added.

On February 3, XPeng announced the launch of its two latest EVs in the European market, the G9 flagship SUV and the new P7 sports sedan, marking the restart of an overseas expansion that XPeng had suspended for much of last year.

He Xiaopeng, the company's chairman and CEO, said on Weibo on June 18 that the company would launch "version 2.0" of its overseas expansion efforts starting in the third quarter with the delivery of the P7 and G9.

After that, XPeng will accelerate its entry into more markets, he said.

Unlike most of the models exported, XPeng expects to bring high-quality, high-tech vehicles to overseas markets and expects to see more and more Chinese brand vehicles around the world, he said.

Earlier today, XPeng announced that it has selected the ACCESS Twine for Car (Twine4Car) in-car infotainment solution to provide apps and games, including prominent streaming services, for its new range of EVs.

This will start with the all-electric XPeng P7 sedan, with European deliveries set to begin this summer, the company said.

XPeng sales in China have been weak over the past year, due to product switches and a weakening in overall EV demand.

The company delivered 7,506 vehicles in May, down 25.87 percent year-on-year but up 6.03 percent from April.

In the January-May period, XPeng delivered 32,815 vehicles, down 38.88 percent year-on-year, according to data monitored by CnEVPost.

By the end of May, XPeng's cumulative deliveries since its inception were 291,525 vehicles.

XPeng CEO sees China EV landscape far from set

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China China NEV Market Electric eMobility eV Nio Policy

NIO welcomes China’s move to extend tax breaks for NEV purchases

From now until 2027, pure electric vehicles will continue to enjoy purchase tax incentives, which will give vehicles a significant advantage over fuel-powered luxury vehicles in terms of purchase costs, NIO said.

(Image credit: CnEVPost)

China today announced details of an extension of tax incentives for new energy vehicle (NEV) purchases, and NIO (NYSE: NIO) welcomed the move.

From now until 2027, pure electric vehicles (EVs) will still enjoy purchase tax incentives, which will give NIO vehicles a huge advantage over fuel-powered luxury vehicles in terms of purchase costs, the electric vehicle (EV) maker said in a comment shared with CnEVPost.

With the new EV purchase tax policy in place, NIO's body-battery separation model could significantly help consumers lower the cost of purchasing a vehicle and reduce spending on purchase tax, it said.

The continuation of the purchase tax incentives is a great boon to the shift from fuel vehicles to NEVs and to stimulate auto consumption, NIO said.

Earlier today, China's Ministry of Finance announced that NEVs with a purchase date between January 1, 2024, and December 31, 2025, will be exempt from vehicle purchase tax, but the tax exemption will not exceed 30,000 yuan ($4,170) per vehicle.

For NEVs with a purchase date between January 1, 2026 and December 31, 2027, the vehicle purchase tax will be levied at half the normal rate, with the tax reduction not exceeding RMB 15,000 per vehicle.

The latest policy continues to provide additional support for models like NIO that are battery swap enabled.

When consumers purchase a NEV, if the invoice for the car and the battery are separate, the taxable price is the price of the body without tax, according to the Ministry of Finance's announcement.

NIO's (NYSE: NIO) peer (NASDAQ: LI) also voiced support for the new policy earlier today.

Li Auto aims to reach annual sales of 1.6 million vehicles and annual revenue of RMB 500 billion by 2025, Li Xiang, the company's founder, chairman and CEO, wrote on Weibo.

China has provided an additional four years of stable policies, which is great and leaves Li Auto's team with no excuse not to meet its strategic goals for 2025, Li said.

By early 2026, Li Auto's ability to meet the goal will be proven, he said.

($1 = RMB 7.1935)

BREAKING: China extends full purchase tax exemption for NEVs until end of 2025

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China Electric eMobility eV Li Auto Li Xiang Sales Target

Li Auto CEO reaffirms goal of reaching 1.6 million annual sales by 2025

aims to reach annual sales of 1.6 million vehicles and annual revenue of RMB 500 billion by 2025, its CEO said.

The CEO of Li Auto (NASDAQ: LI) welcomed the clarification of China's new energy vehicle (NEV) purchase tax exemption policy for the next few years and reiterated the company's ambitious goals.

Li Auto aims to reach annual sales of 1.6 million vehicles and annual revenue of RMB 500 billion ($70 billion) by 2025, Li Xiang, the company's founder, chairman and CEO, wrote on Weibo today.

China has provided stable policies for the next four years, which is great and gives Li Auto's team no excuse not to accomplish its strategic goals for 2025, Li said.

By early 2026, Li Auto's ability to meet that goal will be verified, he said.

Li Auto originally set that aggressive goal in February 2021, saying the company aims to be the No. 1 smart electric vehicle company in China with a 20 percent market share, or 1.6 million units sold annually, by 2025.

For reference, sold 1,804,624 retail units in China for the full year last year, ranking first with an 8.8 percent share, according to the China Passenger Car Association (CPCA).

Li Auto delivered 133,246 vehicles last year, up 47.25 percent year-on-year, but did not make the CPCA's top-selling automaker ranking.

All three models currently sold by Li Auto are extended-range electric vehicles (EREVs), which are essentially plug-in hybrid vehicles (PHEVs) that are still equipped with internal combustion engines.

Recently, there has been some concern that China may be scaling back support for PHEVs in order to accelerate the auto industry's transition to battery electric vehicles (BEVs).

Earlier today, China's Ministry of Finance released details of the policy to extend the purchase tax exemption for NEVs, with equal treatment for BEVs, PHEVs, EREVs, and fuel cell vehicles.

The country exempts NEVs with a purchase date between January 1, 2024 and December 31, 2025 from vehicle purchase tax, the tax exemption will not exceed RMB 30,000 per new energy passenger vehicle.

For NEVs with a purchase date between January 1, 2026 and December 31, 2027, the vehicle purchase tax will be levied at half the normal rate, with the tax reduction not exceeding RMB 15,000 per new energy passenger vehicle.

To achieve its 2025 target, Li Auto announced two months ago its plan to launch new models in the next two years.

On the first day of the Shanghai auto show on April 18, Li Auto unveiled its all-electric solution, based on the 800 V high-voltage platform, capable of giving a BEV a 400 km range on a 10-minute charge.

With the launch of the solution, Li Auto officially enters a phase of parallel development of its EREV and BEV product lines, it said at the time.

By 2025, Li Auto's product array will include one super flagship model, five EREVs, and five BEVs, the company said.

By then, Li Auto's models for the market priced above RMB 200,000 will fully meet the needs of family users, it said.

($1 = RMB 7.1945)

Li Auto Family Tech Day: 1st BEV named Li MEGA, aims to be top seller above $70,000 in China

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

China NEV insurance registrations for week ending Jun 18: Tesla 14,500, Li Auto 7,800, NIO 2,000

Correction: Fixed the error in the last table.

was 2,000 units last week. Its sales from June 1 to June 18 were 4,800 units.

In the week of June 12 to June 18, sold 7,800 units, continuing to lead among China's new car makers, the company said today on Weibo.

As of June 18, Li Auto had sold 19,800 units this month, and the company will aim to achieve a monthly sales target of more than 30,000 this month, it said.

Li Auto didn't explain what that weekly sales tally was based on, but apparently they were insurance registrations. The company had suspended sharing those numbers in May, but has since resumed sharing them.

Li Auto delivered 28,277 vehicles in May, up 145.97 percent year-on-year and up 10.11 percent from April, the third consecutive month to exceed the 20,000-unit mark.

Li Auto's current least expensive model, the five-seat Li L7, achieved its second consecutive month of more than 10,000 deliveries in May, the company said on June 1.

On Li Auto's Family Tech Day event on June 17, the Li L7 sold more than 1,000 units in a single day for the first time, the company's founder, chairman and CEO Li Xiang said on June 18.

(NASDAQ: TSLA) sold 14,500 units in the week of June 12 to June 18, lower than the 16,400 units sold in the previous week, according to figures shared by Li Auto.

From June 1 to June 18, Tesla sold 40,600 units in China, the highest number of vehicles, including internal combustion engine vehicles, for premium brands.

NIO (NYSE: NIO) was 2,000 units last week, up from 1,500 units the week before.

Between June 1 and June 18, NIO sold 4,800 units.

NIO officially launched the new ES6 on May 24 and rolled out the ET5 Touring on June 15.

The company had produced some of the vehicles in the designer-recommended configuration combinations for quick delivery prior to the launch of both models.

Deliveries of the new ES6 began on the night of the May 24 launch, and deliveries of the ET5 Touring began on June 16.

(NYSE: XPEV) was at 1,600 units last week and 3,800 units from June 1 to June 18.

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China Electric eMobility eV Guest Post Nio Tesla

China’s EV sector at crossroads as NIO joins bloody price war

's about-face highlights the plight now facing China's EV makers, as they try to navigate an unexpected turn in the road that analysts say could stretch on for some time to come.

This article by Trevor Mo was first published in The Bamboo Works, which provides news on Chinese companies listed in Hong Kong and the United States, with a strong focus on mid-cap and also pre-IPO companies.

(Image credit: CnEVPost)

Key Takeaways:

NIO cut its prices last week, reversing its previous position, in response to slowing sales growth over the past two months after many of its rivals made similar reductions.

Smaller firms could be the most vulnerable if the current EV price war drags on, due to their thinner margins compared to larger peers.

Used to being praised for its cutting-edge electric vehicles (EVs), NIO Inc. (NIO.US; 9866.HK) found itself in unfamiliar terrain last week when it became the target of online sarcasm after announcing it would slash prices for all of its electric vehicles (EVs) by 30,000 yuan ($4,209).

Just two months earlier, CEO William Li had proclaimed he would never join the price war now throttling his sector, saying such blind cuts would only lead to "unhealthy competition".

NIO's about-face highlights the plight now facing China's EV makers, as they try to navigate an unexpected turn in the road that analysts say could stretch on for some time to come. Smaller firms are in the most difficult bind since further cuts will further erode their already thin margins. But refusing to stay in the cutting game risks losing sales to industry heavyweights such as (1211.HK; 002594.SZ) and (TSLA.US).

We'll look shortly at how the recent price war is affecting China's smaller homegrown EV makers, which also include (LI.US; 2015.HK), Leapmotor (9863.HK) and (XPEV.US; 9868.HK), as well as non-listed peers like . But first, we'll shift into reverse to see how the ongoing months-long price war has evolved.

Things began last October when Tesla cut prices for its Model 3 and Model Y by as much as 9 percent, then further slashed prices as much as another 13.5 percent in January.

Those cuts prompted others to follow suit, with XPeng announcing reductions in January for its G3i SUV and P5 and P7 sedans by as much as 13 percent. BYD joined the following month by cutting the price of its 2021 Han EV model by 20,000 yuan in Beijing, and the 2021 Qin EV by 15,000 yuan.

Other brands, from domestic heavyweights like GAIC, SAIC, and FAW, to foreign names like Ford, Volkswagen, BMW, and Toyota, also joined the bloodbath. The cuts followed Beijing's retirement of one of the main government incentive programs for EV purchases at the end of last year, which previously helped to double the sector's sales in 2022.

The price war later spilled into the fossil fuel vehicle sector as well, with automakers rushing to clear inventory before a new set of stringent emissions standards takes effect in July.

As of late March, more than 40 carmakers had gotten sucked into the Chinese price war by offering discounts on electric and gas-powered vehicles, according to local media outlet Yicai, which cited data from third-party consultancy Positioning Pioneers.

As the cutting gained traction, about 20 percent of passenger cars being sold in China came with discounts of 10,000 yuan or more, according to PingWest, another local news outlet, citing data compiled by research group China Auto Market.

Driving consolidation

The price war is already showing signs of driving consolidation in a crowded sector whose growth was fueled in no small part by strong government incentives that are now being rapidly phased out.

As the war drags on, bigger players are increasingly cementing their leading positions, while smaller ones face sluggish sales. In the first four months of this year, three companies – BYD, Tesla and – held a combined 50.1 percent share of the pure-battery EV market, up from 42.7 percent in the same period a year ago, according to the China Passenger Car Association (CPCA). BYD led the trio with 24.9 percent of the market, up 7.4 percentage points year-on-year.

As the big names gained share, many smaller brands moved in the opposite direction. XPeng reflected that group, symbolically dropping off the list of the top 10 EV makers in the first four months of this year.

NIO managed to increase its share by 0.3 percentage points, but its 27.1 percent growth rate in vehicle deliveries during the period was far behind BYD and Tesla, which each recorded more than 60 percent year-on-year growth.

Facing such slowing growth, it comes as little surprise that NIO has finally joined the price war. But it also remains to be seen whether the move will significantly boost its sales.

XPeng's experience suggests otherwise. Its massive price cuts in January failed to lift sales, and the company's total vehicle deliveries actually plunged by 47.3 percent in the first three months of this year.

Another smaller EV startup, Leapmotor, announced similarly dismal results after rolling out its own massive price cuts. The company's vehicle deliveries tumbled by 51.3 percent in the first quarter to 10,509, according to its latest quarterly report.

Not all smaller players have suffered. Li Auto – the last holdout in the intensifying price war – delivered 52,584 vehicles during the first quarter, up 65.8 percent year-on-year. The company also recorded a 933.8 million yuan net profit for the period, making it one of the few EV makers that has been able to operate profitably. Both BYD and Tesla recorded profits during the period, while NIO, XPeng, and Leapmotor all lost money.

The smaller companies' dismal bottom-line performance is reflected in their profit margins that sharply trail their larger peers. NIO, XPeng, and Leapmotor all recorded gross profit margins of less than 2 percent during the first quarter, well behind BYD's 17.9 percent and Tesla's even higher 19.3 percent for its EV business.

That brings us back to the dilemma now confronting smaller firms that will find it increasingly difficult to wage a prolonged price war that sucks up their dwindling cash hordes, with skeptical investors unlikely to provide fresh funds.

NIO's cash fell to 37.8 billion yuan by the end of March from 45.5 billion three months earlier, while XPeng's fell to 34 billion yuan from 38 billion yuan over the same period. Those declines are likely to continue, or even accelerate if the price war continues.

The war has already left a number of the smallest major EV makers teetering on the brink of insolvency. One of those is WM Motor, a former highflyer that is currently facing a financial crunch that saw it reportedly slash salaries and implement mass layoffs late last year and into 2023. Data from the CPCA showed that WM Motor sold just 457 vehicles in the first two months of 2023, down 92.4 percent from the year-ago period.

BREAKING: NIO cuts starting prices by $4,200 for all models and makes battery swap benefits optional

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China Electric eMobility eV Li Auto Li L7 Li Xiang

Li L7 sees single-day sales of over 1,000 units, says Li Auto CEO

The Li L7 is a model that was nearly canceled during development, according to CEO Li Xiang.

(Image credit: CnEVPost)

The Li L7 -- a new model that almost got canceled -- saw its highest single-day sales ever on Saturday, according to Li Xiang, founder, chairman and CEO of Li Auto (NASDAQ: LI).

"Yesterday was our first tech day, and today is also a historic moment -- the first time that the Li L7 has sold more than 1,000 units on a single day with no new model launch," Li wrote on Weibo late at night on June 18.

Li Auto held its first Family Tech Day event on June 17, announcing the official name of its first BEV, Li MEGA, and the company's progress in developing assisted driving and supercharging capabilities.

"For a model with a starting price of RMB 300,000 ($42,100) or more and in a steady state of sales, selling more than 1,000 in a single day should be a moment to remember," Li said.

Li Auto launched the Li L7, its first five-seat SUV, on February 8 and currently offers three versions with starting prices of RMB 319,800, RMB 339,800 and RMB 379,800, respectively.

All of the company's current models are extended-range electric vehicles (EREVs), with the other two being the higher-priced, six-seat Li L8 and Li L9.

The Li L7 was almost canceled during development, according to Li, who said he was quite determined to axe the model last September, but several other executives stopped him.

Li mentioned in another Weibo yesterday that most members of Li Auto's management team thought the company should set an annual sales target of 360,000 units at the beginning of the year, but he ultimately decided to set a budget target based on annual sales of 306,000 units.

"This was partly because I didn't think we could be too optimistic about the economic environment this year, and partly because we didn't meet our budget targets for all three years from 2020-2022," he said.

Li said the too-low targets he set caused the company to place orders at suppliers at the beginning of the year that were clearly not keeping up with current sales, so several key components would take more than a quarter to reach the right capacity if production ramp-up began now.

Currently, Li Auto's plant in Changzhou, Jiangsu province has two production lines, one for double-shift production and one for single-shift production, according to Li.

The current peak capacity of the plant is 7,500 units/week, of which six days are production time and one day is used for maintenance, Li said.

Li Auto's goals set at the beginning of the year were too conservative, and suppliers of key components are currently adding equipment in line with the company's demand of more than 10,000 units/week, according to Li.

Li said Li Auto won't be able to achieve 10,000 units/week capacity until the fourth quarter when both of its lines will be based on double-shift production.

Li Auto delivered a record 28,277 vehicles in May, up 145.97 percent year-on-year and 10.11 percent from April, the third consecutive month to exceed the 20,000-unit mark, according to data released June 1.

The Li L7 achieved its second consecutive month of over 10,000 deliveries in May, Li Auto said at the time, without disclosing specific figures.

Li Auto aims for the Li L7, Li L8 and Li L9 models to see combined monthly sales of more than 40,000 units this year, Li said on June 1.

($1 = RMB 7.1266)

Li Auto Family Tech Day: 1st BEV named Li MEGA, aims to be top seller above $70,000 in China

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China Electric eMobility eV Li Auto Li Auto Family Tech Day Li MEGA Tesla

Li Auto Family Tech Day: 1st BEV named Li MEGA, aims to be top seller above $70,000 in China

"We are confident that it will be the No. 1 seller of all passenger cars priced at RMB 500,000 ($70,160) or more, regardless of energy form and regardless of body form," said.

Li Auto (NASDAQ: LI) announced the naming of its first battery electric vehicle (BEV) model and set an ambitious goal for its sales.

Li Auto's first BEV, its super flagship model, has been officially named Li MEGA and is expected to be released by the end of 2023, the company announced today at its first Family Tech Day event held at its facility in Changzhou, Jiangsu province.

"We are confident that it will be the No. 1 seller of all passenger cars priced at RMB 500,000 ($70,160) or more, regardless of energy form and regardless of body form," the company said.

Li MEGA will break the traditional perception that high-end pure electric vehicles cannot be hot sellers, Li Auto said.

Li Auto currently has three models on sale, the five-seat Li L7, and the six-seat Li L8 and Li L9, all of which are extended-range electric vehicles (EREVs), essentially plug-in hybrids.

The Li MEGA will be Li Auto's first foray into the BEV market, and it will be an MPV (multi-purpose vehicle, or van) model, according to information it previously shared.

By 2025, Li Auto's product array will include one super flagship model, five EREVs, and five BEVs, it said on the first day of the Shanghai auto show on April 18.

By then, Li Auto's models for the market priced above RMB 200,000 will fully meet the needs of family users, the company previously said.

Li Auto models currently on sale have a starting price range of RMB 319,800 to RMB 459,800.

Li Auto's first all-electric model will be the world's first to feature 's 4C Qilin Battery, it said on April 18.

C refers to the battery's charge multiplier, and 4C means that the pack can theoretically be fully charged in a quarter of an hour.

Notably, Li Auto began today's Family Tech Day event by introducing its 5C charging solution, which it said allows for charging power of more than 500 kW.

Li Auto has developed its own 800 V high-voltage all-electric platform and will mass-produce 5C all-electric vehicles, it said.

The company has optimized the battery at the system level to take fuller advantage of the battery's 5C charging multiplier, giving vehicles a range of 400 kilometers in 9 minutes and 30 seconds and 600 kilometers in 22 minutes of charging.

As a comparison, 's latest V3 Supercharger has a peak charging power of 250 kW and can charge the vehicle with up to about 250 km of range in 15 minutes at peak power.

Li Auto will fast-track the deployment of the 5C supercharging network, completing more than 300 supercharging stations by the end of this year and more than 3,000 by 2025, it said.

Li Auto did not say whether Li MEGA will use that 5C solution, but said that with mass deliveries of its 5C BEV models, more Chinese households will enjoy the high-voltage, pure-electric technology that will replace fuel-powered vehicles on a large scale.

The company unveiled its auto-charging robot at today's event, saying it will provide an energy replenishment experience that goes far beyond refueling.

Li Auto's vehicles will automatically drive to charging spaces and park themselves, and the charging robot can automatically connect, charge and settle with the vehicle through visual recognition.

Li Auto also announced its progress on advanced driver assistance systems, saying it will open internal testing of City NOA (Navigation on ADAS) in Beijing and Shanghai this month.

In the second half of the year, Li Auto will open up the commute NOA feature and make City NOA available in more cities, it said.

For the commute NOA feature, vehicles can be activated for simple routes in less than 1 week and trained for more complex routes in 2-3 weeks.

Li Auto estimates that commute NOA can cover more than 95 percent of commuting scenarios, making the vehicle a "dedicated elevator" for owners.

The company said its City NOA is the first in China that doesn't rely on high-precision maps, and with the help of AI big models, will achieve driving performance close to that of a human driver.

Li Auto also unveiled the progress of its in-car voice assistant, Lixiang Tongxue, at today's event, saying it built Mind GPT, a cognitive big model, to make the feature even smarter.

With the help of Mind GPT, Lixiang Tongxue can turn into a teacher for users, a professional car butler, an expert in teaching drawing and programming, Li Auto said.

In addition to its technological advances, Li Auto announced that its 400,000th vehicle rolled off the assembly line today.

Li Auto delivered a record 28,277 vehicles in May, bringing cumulative deliveries to 363,876.

($1 = RMB 7.1266)

Li Auto says confident it will outsell German luxury brands in China in 2024

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China Electric eMobility eV Nio Research Note

NIO’s urgency to capture volume and cut expenses finally here, says Deutsche Bank

With 's broad price cuts and the rapid rollout of new NT 2.0 models, it could see a considerabe sales rebound in the second half of the year, according to Edison Yu's team.

NIO (NYSE: NIO) management expressed a rare cautious approach to future spending during last week's earnings call, and this week let the purchase threshold for the entire lineup drop. To Deutsche Bank, this series of moves suggests that NIO is finally starting to show real urgency.

"Our main takeaway following 1Q earnings and hosting NIO management (CFO in person in NYC this week) is that the urgency to capture volume and cut back spending is finally here," analyst Edison Yu's team said in a research note sent to investors today.

With NIO's broad price cut and the rapid rollout of the new NT 2.0 model, its sales can rebound considerably in the second half of the year, paving the way for 20,000 units per month, the team said.

In addition, as NIO reduces spending on non-core initiatives, its operating expenses and capital expenditures should be much more controlled, the team added.

NIO reported weaker-than-expected first-quarter results on June 9, with gross margins falling to just 1.5 percent due to promotional activities.

The company's management said during the earnings call that NIO will manage its cash flow carefully, postpone some of its fixed asset investments and focus on the countries it has already entered in Europe.

NIO is confident that it will see sales of more than 20,000 units per month in the second half of the year, William Li, the company's founder, chairman and CEO, said at the time.

On June 12, NIO lowered the starting prices of its entire new model lineup by RMB 30,000 yuan ($4,200), but the previously free battery swap service several times a month became a paid option.

Yu's team said in the research note today that they applaud the move as demand for NIO's existing models, particularly sedans, has been struggling in recent months.

"In our view, pricing is an issue for getting incremental buyers considering premium BEVs in general have sold poorly this year," the team wrote.

Despite the ongoing platform changeover for NIO's three first-generation SUVs, combined sales of the Avatr 11, IM LS7 and G9 averaged only about 4,500 units per month this year, about half of what the Audi Q5 sells locally in China, the team noted.

NIO's pricing is the highest among the upstart brands. In addition to price adjustments, the company must effectively compete with internal combustion engine vehicle makers, and extended-range electric vehicle (EREV) makers, and enhance its brand appeal, Yu's team said.

The electrification of China's premium car market appears to be proceeding more slowly, which may be counterintuitive to those outside of China, the team said.

They explained further:

Based on our analysis of the premium SUV market (>300k RMB), the BEV mix is only 12% YTD, compared with PHEV (includes EREV) at 18%, leaving 70% for ICE.

This compares with the overall market that is 21% BEV and 10% PHEV, showing customer preferences are quite different depending on the sub-segment.

The team's interpretation of this is that the EREV value proposition is resonating with a broader audience than expected, and has done a very effective job at maximizing.

In addition, Yu's team believes that NIO's brand appeal has hit a wall of sorts as it struggles to gain momentum outside of Shanghai and surrounding provinces and outside of financial and tech social circles.

The performance of NIO's best-selling ET5 is a case in point. Nearly 40 percent of the model's sales come from Shanghai and surrounding provinces, and while the ET5 theoretically has the broadest appeal among NIO's offerings, sales in the south have been quite poor, the team said.

"Moreover, based on our channel checks, affluent older customers simply are not buying into the brand (yet) and still prefer traditional BBA cars (i.e., greater loyalty)," the team said.

For investors, they are shifting to a less negative view as NIO's sales and cash burn trajectory appears to be reversing, the team said.

Depending on how the second half of the year plays out, NIO's stock price could remain volatile until there is a clear upward trajectory in sales, according to the team.

($1 = RMB 7.1236)

BREAKING: NIO cuts starting prices by $4,200 for all models and makes battery swap benefits optional

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