The Rise of China EV Companies
πππChinese EV companies are gaining prominence in the world. Chinese EVs already make up 60% of worldwide sales according to International Energy Agency.
According to market research firm Trend Force 's February 2024 report Tesla is clinging on to Top Spot at 19.9% while $BYD COMPANY(01211)$
BYD is also China's Top Selling Car maker last year. The competition from Chinese EV companies has made a big impression on Western car companies.
In January this year, Tesla CEO Elon Musk said that "Our observation is generally that the Chinese car companies are the most competitive car companies in the world". "I think they will have significant success outside of China."
The growth of BYD comes amid its rapid global expansion over the past 18 months into new markets such as Australia and Europe. BYD is also rolling out dozens of new models from USD 20,000 electric city hatchbacks to high priced 4 wheel drives and luxury SUVs.
The 2024 Beijing International Automotive Exhibition is happening this week from April 25 to May 4. This event is one of the most important automotive fairs in the world and held every 2 years. All major automakers will showcase their latest models.
BYD will unveil their newest model Qin L. Prices are expected to start at RMB 129,800 (USD 17,930) and will likely be equipped with BYD's 5th generation DM-i hybrid technology. Qin L comes with fuel consumption of just 2.9 L per 100 km on NEDC standard and a combined range of 2,000 km.
$NIO Inc.(NIO)$
Nio has unveiled Onvo L60 which was seen performing a battery swap recently. Onvo is Nio's sub brand. Onvo will be launched in early to mid May. According to Nio, the Onvo L60 would be the one that competes directly with Tesla Model Y.
$XPeng Inc.(XPEV)$
XPeng 's smart driving team has shared a video about testing XPeng' s Navigation Guided Pilot (NGP) and its smooth performance on a German highway. XPeng plans to start developing globally usable assisted driving features in 2024.
$Li Auto(LI)$
Li Auto said that it was aiming to challenge the target of 30,000 deliveries per month for the Li L6. However it acknowledges that there will be stiff competition.
$XIAOMI-W(01810)$
Xiaomi's SU7 directly targets Tesla's Model 3. The SU7 costs RMB 215,900 (USD 29,825) versus Tesla 's Model 3 which costs USD 38,990. The SU7 also comes with more features than Model 3.
In the latest news, Tesla has just announced that it is cutting prices of all of its models in China on April 21. Model 3 and Model Y have been cut by 4 to 6% while Model S and Model X have been reduced by as much as 22%.
Why are the Chinese EVs so competitive?
The Chinese authorities offers large tax breaks for both consumers and manufacturers. From 2024, Chinese buyers would not have to at tax on a full electric vehicle that has a driving range of at least 200 km per charge.
There is also a package of sales tax breaks for EVs up to a maximum of RMB 30,000 (USD 4144) in 2024 with a maximum tax exemption of RMB 15,000 (USD 2072) in 2026 and 2027.
Another advantage is the car batteries used by Chinese EV companies which are manufactured in China. Chins also owns the 3rd largest lithium mine in the world in Yajiang located in Sichuan province. Lithium is an essential raw material needed to make batteries that power EVs.
EVs are expected to rise in popularity. Research shows that EVs are more environmentally friendly than their petrol counterparts, making these vehicles more attractive to consumers.
While the competition is intense currently, causing volatility in the share prices of Chinese EV stocks, I believe that there is exponential growth ahead for the major Chinese EV companies such as BYD, Li Auto, Nio and XPeng. These Chinese EV stocks are undervalued and oversold currently and offers great value for money to the Bold and Patient Investors. My Top Pick is BYD because it ticks all the core fundamentals of a quality stock with profitability, excellent balance sheet and an excellent management team.
@Daily_Discussion @TigerStars @MillionaireTiger @Tiger_comments @CaptainTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- NEXTTOMEΒ·04-22TOPWah, Chinese EV companies really make a big splash leh!1Report
- δΈζ»ιΈ.Β·04-22πππ1Report