Tag: Li Auto

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China Deliveries Electric eMobility eV EV Data Monthly Data Tesla

Tesla delivers 42,508 vehicles in China in May, taking 7.3% share of NEV market

ranked third in the CPCA's NEV retail sales rankings, with and in first and second place with 38.1 percent and 7.8 percent shares, respectively.

Tesla (NASDAQ: TSLA) retail sales in China in May were 42,508 units, ranking third in the country's new energy vehicle (NEV) market with a 7.3 percent share, according to data released by the China Passenger Car Association (CPCA) on June 9.

That's up 332.65 percent from 9,825 units in the same month last year and up 6.39 percent from 39,956 units in April, according to data monitored by CnEVPost.

BYD's retail sales in May were 220,735 units, up 94.0 percent year-on-year, placing it first in the NEV market with a 38.1 percent share, according to the CPCA's ranking.

Tesla has a factory in Shanghai, its largest in the world, producing the Model 3 and Model Y, with an annual capacity of more than 1.1 million units.

Model 3 and Model Y breakdown sales figures in China are not yet available. Tesla's pattern is to produce vehicles in the first half of each quarter primarily for export and in the second half for the local market.

China's new energy passenger vehicle retail sales in May were 580,000 units, including 388,000 battery electric vehicles (BEVs) and 192,000 plug-in hybrids (PHEVs), data released by the CPCA on June 8 showed.

This means that Tesla's share of the BEV market in China was 10.96 percent in May, slightly higher than April's 10.8 percent. It had a slightly lower share of the NEV market in May than the 7.58 percent it had in April.

Tesla's Shanghai plant exported 35,187 vehicles in May, considering the CPCA said on June 5 that Tesla sold 77,695 China-made vehicles in May.

That export figure was up 57.51 percent year-on-year but down 1.95 percent from April, CnEVPost's calculations show.

In the ranking released yesterday by the CPCA, GAC Aion came in second with a 7.8 percent share of May retail sales at 45,003 units, up 113.7 percent year-on-year.

SAIC-GM-Wuling ranked fourth with a 6.3 percent share of May retail sales, up 13.7 percent to 36,253 units.

ranked fifth with a 4.9 percent share of May retail sales, up 146.0 percent to 28,277 units.

ranked sixth with a 4.4 percent share, Changan Auto ranked seventh with a 4.2 percent share, Great Wall Motor ranked eighth with a 3.6 percent share, Leapmotor ranked ninth with a 2.1 percent share and Auto ranked 10th with a 1.9 percent share.

CPCA rankings: Top-selling automakers in China in May

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China Earnings Electric eMobility eV Li Auto Nio XPeng

Q1 earnings: How does NIO compare to XPeng and Li Auto?

and both saw net losses in the first quarter, while posted net income.

With the release of NIO's (NYSE: NIO) financial results, the trio of US-listed Chinese electric vehicles all reported first-quarter earnings.

With this article, we try to give readers a quick look at how the financials of NIO, XPeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) compare in a few charts.

It should be noted that NIO and XPeng currently offer only battery electric vehicles (BEVs), a fast-growing but small market in China that currently accounts for about 30 percent of all passenger car sales.

Li Auto's full range of vehicles are extended-range electric vehicles (EREVs), essentially plug-in hybrids, targeting a much larger market.

In terms of quarterly deliveries, all three companies are essentially continuing to grow in 2020-2021.

In the first quarter of 2022 so far, NIO and XPeng have had a weak delivery performance, while Li Auto's has continued to grow, especially in the last two quarters.

In the first quarter of the year, Li Auto delivered 52,584 vehicles, while NIO and XPeng delivered 31,041 and 18,230, respectively.

Since all three companies derive their revenue primarily from car sales, the change in deliveries essentially corresponds to the change in revenue.

In the first quarter, Li Auto's revenue was RMB 18.8 billion, NIO was RMB 10.7 billion and XPeng was RMB 4.03 billion.

Their gross margins have been relatively stable over the past two years, with NIO and XPeng declining significantly over the past two quarters due to promotional activities.

Li Auto's gross margin has rebounded over the past two quarters after seeing a decline in the third quarter of last year.

NIO and XPeng has been continuing to face net losses while Li Auto has been profitable for multiple quarters.

In the first quarter, NIO had a net loss of RMB 4.74 billion, XPeng had a net loss of RMB 2.34 billion, and Li Auto achieved net income of RMB 934 million.

NIO Q1 earnings miss expectations, gross margin drops to 1.5%

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China Electric eMobility eV Tesla XPeng XPeng G6 XPeng Stock

XPeng surges in HK as investors seem to like G6’s pre-sale price

's stock traded in Hong Kong continues to rally after the announcement of the G6's pre-sale price, currently up about 5 percent.

XPeng (NYSE: XPEV) shares traded in Hong Kong rallied quickly after pre-sales of the new SUV G6 began, suggesting investors may be bullish on the pricing.

At press time, XPeng was up 5.03 percent to HK$34.45 in Hong Kong.

XPeng's local peer (NYSE: NIO) is now down about 0.08 percent in Hong Kong, while (NASDAQ: LI) is up 0.8 percent. Hong Kong's Hang Seng Index is up 0.58 percent.

XPeng opened up more than 2 percent in Hong Kong, but then fell quickly, giving back all of its gains at about 10:20 am.

The company announced at 10:16 am today that the G6 was up for pre-sale, with a starting pre-sale price of 225,000 yuan ($31,610). Its stock price continued to move higher after that.

The pre-sale starting price for the XPeng G6 is RMB 38,900 less than its direct competitor, the Model Y, and RMB 84,900 less than the RMB 309,900 starting price for XPeng's flagship SUV, the G9.

It is important to note that the pre-sale price is not the final price and XPeng may provide new pricing based on consumer feedback when the G6 is officially launched.

G6 show cars are already available at XPeng stores, and the model will be officially launched on June 29, with deliveries starting in July, the company said.

Analysts believe the G6 will be critical for XPeng as the company continues to face weak sales and financial performance.

"With margins and cash burn looking materially worse following 1Q earnings, we believe management may be making its last stand with the G6," Deutsche Bank analyst Edison Yu's team said in a May 30 research note.

The team's previous view assumed XPeng could see stable natural margin improvement from the sharp drop in battery input prices, but those savings were mostly offset by incremental promotional activity and a poor mix.

" Therefore, the importance of the upcoming G6 has become even GREATER," the team wrote.

Weak delivery performance over the past year has dampened XPeng shares, and they are down about 11 percent year to date.

XPeng begins pre-sales of G6 with starting price significantly lower than Tesla Model Y

($1 = RMB 7.1187)

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China Electric eMobility eV Li Auto Li Auto Plant

Li Auto Beijing plant expected to start production in Aug, report says

's Beijing plant is expected to see its first vehicle roll off the line by September, a local media report said in March.  |  Li Auto US | Li Auto HK

(Image credit: CnEVPost)

Li Auto's (NASDAQ: LI) Beijing plant, which is expected to be used first to produce its first all-electric model, doesn't appear to be far from the start of production.

Li Auto's plant in Beijing's Shunyi district is expected to be ready for production in August, and the company's first all-electric model, internally codenamed W01, will be built there, local media outlet Meiren Auto reported today.

The extended-range electric vehicle (EREV) maker is conducting mass hiring for the plant, though many candidates will need to start work in August after the plant's production lines are installed, according to the report.

The plant currently has more than 50 people on the shop floor, including more than 20 welders and 30 final assembly workers, the report said, citing a person already on board.

Li Auto, when asked about the plant, did not deny the report, saying the company is indeed actively preparing for the plant, according to the National Business Daily report.

The plant was originally Hyundai's first factory in China, but production had been halted since April 2019.

Li Auto began building its own facility based on the plant in October 2021, with a total area of 270,000 square meters for conversion and expansion and a total project investment of more than 6 billion yuan ($843 million), with production scheduled to begin in late 2023, according to a government announcement at the time.

Upon reaching production, the plant will achieve an annual capacity of 100,000 units of pure-play electric vehicles, the Shunyi district government said in the announcement at the time.

On March 15, an article posted on a WeChat account owned by local media outlet Beijing Daily said the Li Auto Beijing plant is expected to see its first vehicle roll off the line by September this year.

The Beijing plant is used to produce all-electric models with a design capacity of 100,000 units per year, Li Auto management said in a call with analysts following the company's first-quarter earnings announcement on May 10, adding that the company will optimize its production lines and production efforts in the future in response to more model launches and demand.

Li Auto's plant in Changzhou, Jiangsu province, has two production lines, one of which is used to produce the Li L9 and Li L8, with a capacity of 20,000 to 25,000 vehicles per month in double-shift production, its management said during the call.

The other line, which produces the Li L7 and Li L8, is currently a single-shift line with a capacity of 10,000 to 12,000 per month. Further capacity can be ramped up later, depending on the demand for deliveries, the company said.

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.

($1 = RMB 7.1183)

Li Auto delivers record 28,277 vehicles in May, surpassing RMB 10 billion in monthly revenue for 1st time

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China Electric eMobility eV Li Auto

Li Auto rumored to open larger stores in sales network expansion

is preparing to open so-called "central stores" in select Chinese cities, moving away from its current model of opening only experience stores in shopping malls, local media said.

(Image credit: Li Auto)

Li Auto (NASDAQ: LI) is said to be opening larger stores that resemble traditional dealership stores as part of an effort to expand its sales network.

The extended-range electric vehicle (EREV) maker is preparing to open so-called "central stores" in some Chinese cities, moving away from its existing model of opening only experience stores in shopping malls, local auto media outlet Yiche said in a report today.

These larger stores, similar to traditional car dealership stores, would offer a more comprehensive range of services, the report said, citing unnamed industry sources.

Li Auto is seeking proposals from supporters for sites to build such stores in 26 priority cities, including four first-tier cities -- Beijing, Shanghai, Guangzhou and Shenzhen -- and smaller cities including Nantong, Xinyang and Yangzhou, according to an image in the report.

Li Auto's requirements for venues are to be located in automotive markets, with luxury brands in around them preferred, and an area of 700-1500 square meters, according to the image.

For Li Auto, its original stores located in shopping malls seem to be inadequate as more models become available.

The company currently sells three models -- the five-seat Li L7, the six-seat Li L8 and the Li L9 -- all of them SUVs. It is expected to launch its first all-electric model, which will be an MPV, by the end of the year.

In terms of its retail store network, Li Auto was continuing to add new retail centers as it launches multiple models, the company's management said in a May 10 analyst call following its first-quarter earnings announcement.

Li Auto is also working quickly on store upgrades, replacing stores that used to be small with larger stores that support multiple models, the company said at the time.

Since the launch of Li L9 last June, Li Auto has optimized a total of nearly 50 existing stores and added more than 50 new stores through location changes and space expansions, the company previously said.

Li Auto opened 16 new retail stores and expanded two stores in May, according to information it announced on June 5.

As of May 31, 2023, Li Auto had 314 retail centers in China, covering 124 cities. It has 319 after-sales repair centers and authorized sheet metal spray centers, covering 222 cities.

Li Auto delivers record 28,277 vehicles in May, surpassing RMB 10 billion in monthly revenue for 1st time

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CATL China Electric eMobility eV Insights Research Note

CATL shares plunge after Morgan Stanley downgrades rating to underweight

Second-tier battery makers may adopt a more aggressive pricing strategy to gain market share in the second half of the year, and could face increasing risks to its market share and margins in the domestic market, Morgan Stanley said.

Morgan Stanley downgraded its rating on CATL, citing market share risks, sending shares of the Chinese power battery giant tumbling in morning trading.

"We downgrade CATL to UW as we think second-tier battery makers may adopt more aggressive pricing strategies to gain market share in 2H23," analyst Jack Lu's team said in a research note sent to investors earlier today.

As of press time, CATL shares traded in Shenzhen were down about 6 percent to near their lowest point of the year.

Earlier this year, Morgan Stanley upgraded CATL to equal weight, while being bearish on most battery material makers, as it believes CATL is better able to respond to slowing demand and leverage its cost advantages and bargaining power across the broader value chain.

Now, Lu's team believes that the dual-sourcing battery strategy of local EV companies may help the Tier 2 battery makers achieve their goals, while CATL may face increasing risks in terms of market share and margins in the domestic market.

In February, CATL launched a lithium rebate program to trade cheap lithium resources for market share. However, the subsequent plunge in lithium prices to below RMB 200,000 per ton has led to significant uncertainty about the program, the team said, adding that they have not received any further news about the program.

Meanwhile, battery makers have been offering fairly significant price cuts against the backdrop of falling lithium prices in the second quarter, the team noted.

"Our checks with tier-two battery makers indicate that the price cuts could be in the range of 10-20% during the quarter, with some battery makers likely offering more aggressive cuts than others," the team wrote.

Such actions could threaten CATL's market share in its domestic market, and market share potential is an important stock price driver, the team said.

CATL's power battery installed base in China was 10.26 GWh in April, ranking first with a 40.83 percent share, but down from 44.95 percent in March, China Automotive Battery Innovation Alliance (CABIA) data from last month showed. Data for May is Expected to be available in a few days.

(NYSE: NIO) and (NASDAQ: LI) are bringing in new battery suppliers instead of making CATL their sole supplier, Lu's team noted.

"With many new models being launched in the domestic EV market, we think CATL's domestic market share could come under pressure," the team said.

As background, since late last year, regulatory filings for NIO's new NT 2.0-based models have shown battery suppliers that include the smaller CALB in addition to CATL.

Last month, NIO filed to use semi-solid-state batteries from Beijing WeLion New Energy Technology in its models.

On February 8, Li Auto officially launched its first five-seat SUV, the Li L7, and announced the introduction of Sunwoda Electric Vehicle Battery and Svolt Energy as new battery suppliers.

More and more Tier 2 companies are adopting increasingly aggressive pricing strategies, and CATL may have to do the same, according to Lu's team.

Despite a short-term recovery in value chain orders, there will still be excess battery capacity in the short term and price competition is inevitable, the team said.

In addition to the market share pressure it faces domestically, Lu's team believes CATL's overseas path is increasingly uncertain.

"Some investors have argued that CATL's market share overseas is yet to see signs of decline; however, in our view CATL's overseas market is under increasing scrutiny and becoming more and uncertain, limiting visibility," the team wrote.

CATL has tried to penetrate overseas markets through exports and localization of production, but both pathways are increasingly at risk due to geopolitical tensions, particularly in the US, the team said.

Notably, Lu's team stressed that if the cost of battery materials and minerals continues to fall, this could give car companies more room to pursue new technologies and other battery performance metrics.

"If this is the case, CATL could regain any lost market share and continue to dominate the global battery market, leveraging its strong R&D capabilities and bargaining power over the supply chain. Our bull case scenario assumes 60% global market share in the long term," the team wrote.

Global EV battery market share in Jan-April: CATL 35.9%, BYD 16.1%

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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 4: Tesla 14,500, Li Auto 6,600, NIO 1,700

launched the new ES6 on May 24, though the model is likely still in the process of climbing capacity and not contributing much to sales.

(NASDAQ: LI) kept sales strong last week, while its two local peers, NIO (NYSE: NIO) and (NYSE: XPEV), remained weak.

With 6,600 units sold in the week of May 29 to June 4, Li Auto continues to lead the pack among China's new car-making brands, the company said today on Weibo.

That's far more than other new car brands and more than the second and third places combined, Li Auto said.

Li Auto has delivered more than 20,000 units for three consecutive months, and this month the company will aim to reach its 30,000-unit monthly sales target, it added.

Li Auto didn't explain what the weekly sales are based on, but apparently, they are insurance registrations. The company had suspended sharing those numbers in May, but has now resumed sharing them.

All of Li Auto's models currently on sale are extended-range electric vehicles (EREVs), essentially plug-in hybrids that are targeting a broader market, including the five-seat Li L7 and the six-seat Li L9 and Li L8.

NIO and XPeng, on the other hand, offer only purely electric models and face a growing but much smaller market space.

NIO sold 1,700 units last week, according to figures shared by Li Auto. This is slightly higher than the previous week's 1,600 units.

Last week included the last three days of May and the first four days of June. The insurance data represents the number of vehicles registered in China.

NIO launched the new ES6 on May 24, although the model is likely still in the process of climbing capacity and thus still not contributing much to sales.

The electric vehicle (EV) maker delivered 6,155 vehicles in May, down 7.55 percent from April and down 12.37 percent year-on-year, according to data released on June 1.

NIO will finish climbing capacity for the new ES6 in June to deliver vehicles as early as possible, Jim Wei, the company's senior vice president of user operations, said in announcing May delivery figures on the NIO App on June 1.

In a research note sent to investors yesterday, Morgan Stanley analyst Tim Hsiao's team said that NIO's overall new order intake hit a year-to-date high thanks to the launch of the new ES6.

(NASDAQ: TSLA) sold 14,500 units last week, up from 12,800 the week before, according to figures shared by Li Auto.

Tesla sold 77,695 China-made vehicles in May, including those exported, data released yesterday by the China Passenger Car Association (CPCA) showed.

This was up 2.44 percent from 75,842 vehicles in April and up 141.55 percent from 32,165 vehicles in the same month last year.

XPeng (NYSE: XPEV) sold 2,100 units last week, unchanged from the previous week.

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

XPeng will begin pre-sales of the G6, the new SUV designed to compete with Tesla's Model Y, on June 9.

sold 2,100 units last week, up from 1,900 units the week before.

The company delivered 8,678 vehicles in May, up 100.42 percent from 4,330 in the same month last year and up 7.12 percent from 8,101 in April.

This is the fourth consecutive increase in monthly deliveries for Zeekr, which will begin deliveries of its third model, the Zeekr X, later this month.

Leapmotor sales were 3,400 units last week, down from 3,600 the week before. was 2,900 units last week, up from 2,100 the week before.

https://cnevdata.com/2023/06/06/china-nev-weekly-insurance-registrations-0606/

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China Deliveries Electric eMobility eV EV Data Great Wall Motor Industry News Monthly Data

Great Wall Motor sells record 23,755 NEVs in May, up 60% from Apr

The Lanshan DHT-PHEV, which competes with 's Li L8, sold 5,136 units in its first full month of sales, and its production capacity is climbing, Great Wall Motor said.

Great Wall Motor's new energy vehicle (NEV) sales saw significant growth last month as the auto giant ramps up its efforts to make the transition to electrification.

Great Wall Motor sold a record 23,755 NEVs in May, up 104.13 percent from a year earlier and up 59.83 percent from 14,863 units in April, data released yesterday showed.

Including conventional fuel vehicles, Great Wall Motor's total sales in May were 101,020 units, up 26.18 percent year-on-year and up 8.49 percent from 93,107 units in April.

This means that NEVs contributed 23.5 percent of Great Wall Motor's sales in May.

From January to May, Great Wall Motor's NEV sales were 66,426 units, up 30.48 percent year-on-year, contributing 16 percent of all vehicle sales of 414,095 units.

Although Great Wall Motor saw significant growth in NEV sales, it still lags far behind (OTCMKTS: BYDDY) in the segment.

BYD sold 240,220 NEVs in May, up 108.99 percent year-on-year and up 14.23 percent from April.

BYD ceased production and sales of vehicles powered entirely by internal combustion engines in March 2022, shifting its focus to plug-in hybrids and pure electric vehicles.

On May 25, Great Wall Motor accused two BYD hybrid models of failing to meet pollutant emissions standards.

Great Wall Motor's battery electric vehicle-focused brand, , sold 10,616 units in May, up 19.27 percent from 8,901 units in April.

Its premium Wey brand sold 5,770 units in May, up 128.97 percent year-on-year and up 142.95 percent from April.

The Wey brand launched the six-seat Lanshan DHT-PHEV on April 13 with a starting price of RMB 273,800 to compete with Li Auto's Li L8. Deliveries of the model began on April 25.

The Lanshan DHT-PHEV sold 5,136 units in its first full sales month, and its production capacity is currently climbing with more orders to be delivered, Great Wall Motor said yesterday.

On May 25, Great Wall Motor's Haval brand launched the Haval Xiaolong and Haval Xiaolong Max, two hybrid SUVs with a starting price of RMB 139,800.

The Haval Xiaolong and Haval Xiaolong Max sold 3,088 units in May, Great Wall Motor said.

On June 1, the Wey brand launched the Mocca DHT-PHEV, a 5-seat SUV with a starting price of RMB 231,800,000.

Great Wall Motor sold a record 25,131 units overseas in May, up 15.21 percent from April and 104.04 percent year-on-year.

Its cumulative overseas sales from January to May were 98,920 units, up 100.36 percent year-on-year.

Great Wall Motor accuses 2 BYD hybrids of failing to meet pollutant emissions standards as competition intensifies

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China Earnings Earnings Preview Electric eMobility eV Insights Nio Research Note

NIO Q1 earnings preview: Struggling along for another quarter

Deutsche Bank expects to report soft results for the first quarter, with downside risk to margins, though some relief in on the way.

NIO (NYSE: NIO) will report first-quarter unaudited financial results on Friday, June 9, before the US markets open. As usual, Deutsche Bank analyst Edison Yu's team provided their preview.

"NIO is suffering from weaker-than-expected demand and is facing its greatest adversity since nearly going bankrupt in 2020," the team said in a research note sent to investors today titled "Struggling along for another quarter."

The team expects NIO to report soft results in the first quarter, with downside risk to margins, and a very weak outlook for sales, and margins in the second quarter.

First quarter earnings

Previous data showed that NIO delivered 31,041 vehicles in the first quarter, slightly above the lower end of the guidance range of 31,000 to 33,000 vehicles.

NIO's previous revenue guidance for the first quarter was between RMB 10.93 billion and RMB 11.54 billion, implying year-on-year growth of about 10.2 percent to 16.5 percent.

Yu's team expects NIO to report revenue of RMB 10.9 billion in the first quarter, with a gross margin of 2.5 percent and adjusted earnings per share of RMB -3.07.

This compares to the current analyst consensus estimates of RMB 11.7 billion, 7.4 percent, and RMB -2.66, respectively, in a Bloomberg survey.

Looking ahead, Yu's team expects NIO to deliver 21,000-23,000 units in the second quarter.

NIO delivered only 12,813 units in April and May combined due to very low demand for the ET7 and ES7, the team noted.

The EV maker delivered 6,155 vehicles in May, down 7.55 percent from 6,658 in April, according to data released on June 1.

Why the weak sales?

While production and supply chain issues appear to be resolved, underlying demand for NIO's premium BEVs has been disappointing as customers opt for gasoline models from German luxury carmakers BMW, Mercedes-Benz, Audi and EREVs, Yu's team said.

The team attributed NIO's recent weak sales to 3 main factors. The following is from their research note:

1. NIO's pricing is the highest amongst the start-ups and premium BEV demand has been generally weak across the board.

2. The premium segment appears to be electrifying more slowly which may be counter-intuitive to those outside China. 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.

Our read is the EREV value position is resonating with a much broader audience than anticipated which Li Auto has done a very effective job at maximizing.

3. We believe NIO's brand appeal has hit a wall of sorts as it is struggling to get momentum outside of Shanghai (and surrounding provinces) and also beyond finance/tech social circles.

To illustrate this, we look at the performance of NIO's best-selling ET5. Nearly 40% of sales mix comes from this region and ET5 sells quite poorly in the south despite in theory having the broadest appeal amongst NIO's offerings.

Moreover, based on our channel checks, affluent older customers simply are not buying into the brand (yet) and still prefer traditional BBA cars.

Management will need to figure out ways to augment the appeal of its unique services such as battery swapping. For existing customers, the usage is actually quite high, having set records during recent holiday (69k swaps in one day or ~20% of car parc).

Some relief on the way

NIO officially launched the new ES6 -- the best-selling NIO SUV in history -- in China on May 24, and deliveries began the same night.

In addition to the new ES6, NIO will also begin deliveries of the new ES8 and the ET5 Touring, a derivative of the ET5 sedan, this month.

NIO's deliveries in June will get a boost from a full month of new ES6 deliveries and partial contributions from the ET5 Touring, Yu's team said.

The new ES6 starts at RMB 368,000, higher than expected, as many potential buyers are comparing it to the Li Auto Li L7, which starts at RMB 319,800, the team said.

(Image credit: CnEVPost)

For the ET5 Touring, the team expects pricing to be at RMB 335,000 - RMB 345,000, slightly higher than the regular ET5.

NIO management aims to capitalize on the success of the 001, which proves there is a sizable local market for luxury sport EV wagons, the team said.

Yu's team expects NIO to see only a minimal improvement on vehicle margins in the second quarter.

"While lower battery input costs should help by at least 1-2% sequentially along with phasing out of aggressive promotional activity on first-gen 866 models, this will be partially offset by lack of overhead absorption/higher D&A as overall volume in 2Q will be down materially compared with 1Q," the team wrote .

As sales improve in the second half of the year, auto margins should return to double digits, the team said.

On the operating cost side, with sales under so much pressure, Yu's team suspects NIO management may be forced to show some level of restraint.

"We are skeptical NIO can achieve 'core' breakeven in 4Q23 and overall breakeven in 2024," the team wrote.

Also, cash burn will intensify due to declining deliveries, similar to what XPeng is experiencing, the team said, adding that they suspect NIO management will roll back its previous RMB 10 billion capex outlook.

Notably, the team remains bullish on the company's prospects, despite many investors have lost patience after multiple sales and margin disappointments.

"We think the stock is already embedding in a very negative path forward and we reiterate NIO's longer-term strategy of having multiple brands, holistic charging infrastructure, and an aspirational ecosystem can still ultimately win out once the dust settles on the EV wars," The team wrote.

NIO's local peers react to launch of new ES6

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Baojun Yep China Electric eMobility EREVs eV Industry News Saic-gm-wuling

Wuling mulls post-delivery fuel-engine option for Baojun Yep

Wuling is considering offering a range-extender option for the Baojun Yep, which would provide the mini EV with the ability to get an extra 80 kilometers of range by refueling.

(Image credit: Baojun)

SAIC-GM-Wuling is considering a range-extender option for the Baojun Yep mini electric vehicle (EV), which went on sale only last month, highlighting a new approach to trying to address range anxiety among EV consumers.

Baojun will not offer an official extended-range electric vehicle (EREV) version of the Yep, but will consider offering a post-delivery range-extender option for the model, Zhou Xing, vice president of SAIC Wuling's brand division, said on Weibo yesterday.

"Because of the call from everyone, the team is looking into the possibility of putting a small generator in the engine compartment," Zhou wrote.

The option, which could cost about 2,000 yuan ($280), could hold four liters of gasoline and thus provide an additional 80 kilometers of range, according to a supplier proposal, he said.

The option is similar to a power bank for a cell phone and would additionally allow the vehicle to support external discharge capability, according to Zhou.

Zhou asked his followers on Weibo if they really wanted the option and if so, they would speed up the rollout process.

Consumers expecting the option can still buy the Baojun Yep now, as it can be installed after delivery, Zhou said.

It's not clear if Wuling's planned option complies with China's vehicle modification regulations.

SAIC-GM-Wuling officially launched the Baojun Yep on May 25, offering it in two versions with starting prices of RMB 79,800 and RMB 89,800, respectively.

Both versions of the model have a battery pack capacity of 28.1 kWh and a combined CLTC range of 303 km.

Baojun's idea to offer a range-extender option for the Yep underscores the appeal of plug-in hybrid or quasi-plug-in hybrid models at a time of transition to electrification in the Chinese automotive industry.

Among Chinese EV startups, (NASDAQ: LI) is known for its EREVs, which delivered a record 28,277 vehicles in May.

For comparison, (NYSE: NIO) and (NYSE: XPEV), which only offers battery electric vehicles (BEVs), have had weak deliveries over the past few months, delivering 6,155 and 7,506 units in May, respectively.

Their peer Leapmotor has abandoned its insistence on offering only BEVs, attracted by the larger market space.

On February 1, Leapmotor unveiled its first EREV model -- an EREV variant of its flagship SUV, the C11. The Leapmotor C11 EREV went on sale on March 1 and deliveries began in mid-March.

In May, Leapmotor delivered 12,058 vehicles, the fourth consecutive month of growth and well above the 1,139 units delivered in January.

($1 = RMB 7.1061)

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

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