To The Moon

🌟🌟🌟The  Chinese authorities have just issued a new policy to encourage consumers to trade in old cars for new ones, with subsidies of up to RMB 10,000 (USD 1380) as part of an effort to stimulate consumption.  

The subsidy is for RMB 10,000 for those customers with  fuel passenger cars with China 3 or lower emission standards or new energy passenger cars registered before April 30, 2018 and who purchase new passenger cars that meet the energy saving requirements.  They are then eligible for a 1 time fixed subsidy between April 24 and December 31 2024.

According to Topsperity Securities, the policy is expected to generate incremental sales of 400,000 to 800,000 units of New Energy passenger cars and 600,000 to 1.2 million of Fuel Passenger Cars.

It is not surprising that Chinese EV companies are up this week with $NIO Inc.(NIO)$  up 8.7% on Friday and a jump of 22% for the week.  $XPeng Inc.(XPEV)$  is up 10.7% on Friday and has risen 17% for the week.  $XIAOMI-W(01810)$  is up 4.5% on Friday and has risen 9.3% for the week.  $BYD COMPANY(01211)$  has also risen 4.4% on Friday and is up 5.8% for the week.  $Li Auto(LI)$  is up 6.6% on Friday and has now risen 2.8% for the week.

The Beijing Auto Show 2024 is currently on from April 25 to May 4 where Chinese Automajers will showcase their newest models.

BYD has unveiled  Denza Z9GT EV at the show.    The Z9GT is Denza's luxury flagship sedan model which is based on BYD's e3 technology that can power up to nearly 1000 hp. 

BYD has also unveiled Qin L, Seal 06 hybrid sedans at Beijing Auto Show.  They are both mid size sedans that will go on sale in the 2nd quarter and will feature BYD's 5th generation DM hybrid technology.  

BYD has  introduced its 1st new energy pick up truck named BYD Shark, built on the DMO super hybrid off road platform.

BYD is not only the largest NEV maker in China but also one of the  largest battery makers in the world. 

In other news, Nio and Lotus has signed an agreement to collaborate in areas including the development and customisation of models that support charging and battery swap and charging connectivity. 

Lotus Technology is a luxury EV maker, majority owned by Geely Holding.   Nio has the most self charging and battery swap facilities in China with 2404 battery swap stations.  Nio also has 2205 supercharging stations. 

Nio has just launched the new 2024 ET7 at the Beijing Auto Show with the same price as its previous model but with 180 upgrades. The new 2024 ET7 is offered in 2 options - Executive and Executive Signature.  The starting price is RMB 428,000 (USD 59,060), the same as the 2023 model.

XPeng has launched a new variant for G6 580 SUV with a lower price tag, starting from RMB 199,900 (USD 27,630) or RMB 179,900 after discount.

XPeng and Volkswagen has recently signed a deal to collaborate on vehicle architecture, advancing their efforts to build 2 Volkswagen branded EV models in China.  In December 2023, XPeng has announced the completion of Volkswagen 's substantial USD 700 million investment in XPeng.  This translates into 4.99% stake in XPeng.

XPeng has signed a distributor deal with Malaysia' s Sime Darby Group on April 6 to offer its EV models for sale in Hong Kong.  XPeng is also partnering with Xin Kang Heng Group in Macau to offer the G9, X9 and P7i models there.

CEO He Xiaopeng said that 2024 will be the first year of V 2.0 for XPeng's internationalisation efforts.  So far in 2024 XPeng has announced dealership in several Middle Eastern countries and Thailand.  XPeng has launched the G9 and P7 in Germany and said it also plans to enter other European markets including France, Italy and the UK.

In the latest news, following Tesla's price curs in China, Li Auto has cut prices of all models except Li L6.  Most of the price cuts for Li L series are RMB 20,000 and Li Mega saw the biggest drop at RMB 30,000.

The price of Li L6 which only went on sale on April 18, remains unchanged at RMB 249,800 and RMB 279,800 for the 2 variants. 

Tesla has cut prices of its entire lineup models in China by RMB 14,000 at a time when competition is getting more intense. 

In other news, Xiaomi has received 75,723 locked in orders for its SU7 as of April 24.  Xiaomi has delivered 5781 units 28 days after its launch. 

Xiaomi is going into full gear to expand its EV production capacity, targeting monthly deliveries of more than 10,000 units of SU7 in June according to CEO and Founder Lei Jun.  He said that Xiaomi is targeting to deliver 100,000 of SU7 in 2024.

Xiaomi is now working on the next 2 models.  The 2nd model will be an all electric SUV and the 3rd model will be at a lower price point after its first model SU7 which was a success. 

The 3rd Xiaomi model is more affordable and will be priced in the RMB 150,000 range. 

China has the world's largest EV market with more than 55% of the overall global EV car sales.  Data from China Passenger Car Association shows that New Energy cars surpassed ICE vehicles in terms of new car sales in the first 2 weeks of April. 

With the new incentives to trade old cars for new, sales for EVs will continue to grow exponentially in the future.  However competition is heating up and the best EV companies like BYD, Tesla, Nio, XPeng, Li Auto and newcomer Xiaomi will not only survive but thrive. 

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