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South China Morning Post
3 days ago
- Automotive
- South China Morning Post
Chinese EV maker Xpeng, peers look to win over Hongkongers to power global push
He Xiaopeng, co-founder and CEO of the Guangzhou-based carmaker, said in Hong Kong on Thursday that testing of its Xpeng Navigation Guided Pilot (X NGP) driver-assistance system in the city would take only two months before sales could begin. However, he added that testing could start only after regulators gave Xpeng the green light to promote the software. 'I expect our technology to help Hong Kong improve [logistics] efficiency and driving safety,' He told reporters during the four-day 2025 International Automotive & Supply Chain Expo, which runs through Sunday. 'Xpeng and other mainland Chinese companies have abundant new technologies that can be introduced to Hong Kong.' Cars fitted with X NGP are viewed as semi-autonomous because drivers are still required to be hands-on and fully alert. The system, similar to Tesla's FSD , had performed better than its US rival on the mainland because Xpeng invested heavily in fleet-data analysis and training algorithms to reduce failure rates, according to David Zhang, secretary general of the International Intelligent Vehicle Engineering Association.
The Star
16-05-2025
- Automotive
- The Star
Trump's tariff chaos push Chinese car-parts makers to recalibrate global expansion plans
Lower tariffs on Chinese goods are likely to keep auto-parts exports relatively attractive for American buyers, prompting mainland-based producers to reassess their plans to build production facilities in the US. The US agreed to lower its combined 145 per cent tariffs on most Chinese imports to 30 per cent for 90 days after talks in Geneva on Monday, cooling a stand-off between the world's two biggest economies since US President Donald Trump rolled out his so-called reciprocal tariffs on the nation's trading partners. Officials with five vendors said they embraced the truce since their goods were still demanded by their American clients. China shipped almost 100 billion yuan (US$13.9 billion) worth of auto parts to the US – from electric vehicle (EV) batteries to lidar sensors and drive control systems – in 2024, according to customs data. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. 'We are confident that US customers will be willing to buy our products, even if they still have to pay the extra [lower] tariffs,' said Qian Kang, who owns a factory making printed circuit boards in Zhejiang province in eastern China. 'But neither Chinese vendors nor American customers are able to strike deals, because the outlook is uncertain. You have to be aware that tariffs may jump again 90 days later.' Chinese-made EV batteries are now subject to 58.4 per cent US tariffs – which comprises the 30 per cent extra levy and the existing duties, down from 173.4 per cent before the Geneva deal. Not all Chinese car-parts producers were subject to the 145 per cent additional duty the US imposed last month. On average, they faced an import duty of around 70 per cent, according to the International Intelligent Vehicle Engineering Association. 'All those companies are closely monitoring the tariff war and the adjustments,' said David Zhang, general secretary of the Shanghai-based association. 'But there is no way that any of them can figure out the best way to sustain their business given the uncertainties.' Several automotive supply-chain vendors are still bemused by the volatile tariffs that are complicating their go-global strategies. Studies on production and logistics costs, as well as pricing strategies, were not keeping up with the dynamic trade conditions, they said, making risk management a top priority to navigate the tariff spat. At Auto Shanghai, the world's largest marquee event that ended on May 2, several car-parts producers said they had plans or were already in talks to set up factories in the US as a way of sidestepping Trump's punitive tariffs. Autolink, a smart cockpit supplier backed by Chinese EV maker Nio, has been planning to set up a production base in Detroit since the beginning of this year, a manager told the Post. Fuyao Glass, which makes auto glass, announced in March that it would invest US$400 million to expand its Illinois factory to add to its Ohio operations. Another state-backed manufacturer of electrical connectors and optical devices for EVs, based in central China's Henan province, was also considering building US production facilities, in addition to its existing factories in Vietnam and Germany, according to a manager who requested anonymity because he was not authorised to talk to the media. 'We see greater sensitivity to tariffs among China's car-parts makers,' S&P Global analysts including Claire Yuan wrote in a report last week. 'The fluid tariff situation also makes planning difficult, particularly with regard to offshore investment.' The industry officials with the supply-chain vendors said most of their US customers would opt for their Chinese-made batteries, tyres, optical devices and wheels should the 'reciprocal' tariff stay unchanged beyond the 90-day cooling period. 'My suggestion [to Chinese car-parts makers] is not to make any definitive plans due to the ongoing uncertainty,' said Yale Zhang, managing director of Shanghai-based consultancy Automotive Foresight. 'If you already have branches in Mexico and Thailand, or a European operation supplying the local markets, your global strategy is largely already in place.' More from South China Morning Post: For the latest news from the South China Morning Post download our mobile app. Copyright 2025.
South China Morning Post
02-04-2025
- Automotive
- South China Morning Post
Xiaomi car crash sparks concerns, BYD beats Tesla again: 7 EV reads
We have put together stories from our coverage on electric and new energy vehicles from the past two weeks to help you stay informed. If you would like to see more of our reporting, please consider subscribing Xiaomi founder and CEO Lei Jun unveils the SU7 Ultra in Beijing on October 29, 2024. The car model was involved in an accident on the mainland on Saturday, which claimed three lives. Photo: Reuters Xiaomi will cooperate with the police after an accident involving the autonomous driving feature of its SU7 electric vehicle (EV) claimed three lives, sparking concern over the rapid proliferation of self-navigating systems on the mainland. Chinese companies are the vanguard of autonomous-driving, investing billions of dollars and employing thousands of engineers to analyse fleet data and train algorithms to reduce failure rates, according to David Zhang, the general secretary of the International Intelligent Vehicle Engineering Association (IIVEA).
South China Morning Post
02-04-2025
- Automotive
- South China Morning Post
‘Millions of drivers need to be educated' in wake of fatal Xiaomi crash, analysts say
Advertisement The accident that killed three people in east China's Anhui province on Saturday has prompted the company to investigate the crash and review its driver-assistant technology, as CEO Lei Jun said Xiaomi would not dodge its responsibility. The country's leading smartphone maker launched the hit SU7 , its first car, last year. Analysts said the tragedy should not be examined in isolation. Widespread use of preliminary self-driving technology , also known as navigation on autopilot (NOA), carries high safety risks because drivers lack knowledge about the system's role, as well as relevant rules and regulations, they said. 'Millions of drivers need to be educated to properly use the NOA systems,' said David Zhang, general secretary of the International Intelligent Vehicle Engineering Association. 'They have to be fully alert when the system is turned on, and the drivers are still responsible for their own and passengers' safety.' Xiaomi said in a statement on Monday that the car was travelling at 116km/h on a highway with the driver-assistance system engaged, adding that the system alerted the driver to take over two seconds before the car hit a concrete barrier. Advertisement Lei said in a separate post on his Weibo account late on Monday that the company had set up a special task force to assist the police investigation. 'Thank you for all your attention and criticism,' he said. 'Every word of yours has been noted and we will take concrete actions to address your concerns.'
