Latest news with #PhateZhang
Miami Herald
25-05-2025
- Automotive
- Miami Herald
EV Discounts in China Reach Record High With Profits Limited to 3 Automakers
China has recently gained a reputation for offering significant electric vehicle (EV) subsidies, and new figures from April show that the country's discounts reached a record high of 16.8%, up 0.3% from March. While EV discounts are welcomed among drivers, the offers don't appear sustainable, given that few of China's EV makers are profitable. There are around 50 active EV makers in China, the most out of any nation globally. However, only three Chinese EV makers are currently profitable: BYD, Seres, and Li Auto. BYD is the world's largest automaker, Li Auto is Tesla's closest rival on the mainland, and Seres builds AITO-brand intelligent vehicles. AITO vehicles are all-electric and hybrid vehicles with advanced driver assist systems leveraging technology such as LiDAR, HD cameras, ultrasonic radars, and more. Last year, the difference between an EV's selling price and an automaker's production cost dropped from around 20% four years ago to 10%, Carscoops reports. Phate Zhang from CnEVPost said: "Nearly all of them were the victims of price competition. But if any of them chooses to exit the price war, their sales will decline and make it more difficult to post a net income," according to the South China Morning Post. The China Passenger Car Association reported China's average EV discount in 2024 as 8.3%. "Price reflects the balance between supply and demand. Price competition has turned fiercer this year. Unfortunately, we have not seen a jump in [EV] demand so far," Nick Lai, head of auto research in Asia-Pacific at JPMorgan, said, according to the South China Morning Post. Battery electric vehicles (BEVs) also saw a 10% price cut in December. Additionally, expensive development and marketing costs weigh down many up-and-coming EV brands in China. Lai highlighted strong exports as increasing Chinese EV makers' profits since their vehicles experience bigger margins overseas. During the first four months of 2025, Chinese EVs represented 33% of the country's total auto exports-up around 8% from the last two years, the South China Morning Post reports. In April, BEVs and hybrids were 33% of China's mainland vehicle exports. BYD has differentiated itself in Australia, one of Chinese EV makers' most competitive export destinations, by promoting low-rate finance alongside price cuts, especially for its plug-in hybrid (PHEV) lineup. Domestically, EVs were 43% of China's car sales between January and April, up 2% year-over-year. JPMorgan's financial report forecasts that Chinese EVs will represent 80% of the mainland's auto market by 2030. According to the South China Morning Post, analysts predict that more minor players in China's booming EV market will be acquired by larger rivals over the next two years or forced out altogether. Claire Yuan, director of corporate ratings for China Autos at S&P Global Ratings, said: "With persistent oversupply, the price war will prolong. Carmakers are introducing more low-price models to grab share in the mass market," Nikkei Asia reports. April's top-selling all-electric vehicle in China was the Star Wish sedan from Geely's Galaxy EV brand. A base Star Wish has a range of about 192 miles and is priced at $9,500. Comparatively, Tesla's Model 3 starts at about $32,688 in China. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
South China Morning Post
17-04-2025
- Automotive
- South China Morning Post
China to crack down on EV self-driving technology, ‘autonomous driving' claims
China has stepped in to police street tests of driver-assistance systems , as well as marketing claims about such technologies, after a fatal accident involving a Xiaomi electric vehicle (EV) killed three people last month. Advertisement The Ministry of Industry and Information Technology (MIIT) convened officials from 60 companies for a conference in Beijing on Wednesday, urging them to fully comply with regulations governing the development of preliminary self-driving technologies , it said in a statement on its official website. The ministry also cautioned the companies not to overstate the role of the assistance systems, it said. 'The meeting and the warnings represent a necessary step by authorities to regulate the market,' said Phate Zhang, founder of Shanghai-based EV data provider CnEVPost. 'Rampant tests of navigation-on-autopilot [NOA] systems on highways and city roads carry high risks because most drivers are still unaware of the basics of autonomous driving.' Before the accident, regulation on the use of NOA systems was loose amid a 'misperception that the technology had grown mature', Zhang added. Advertisement At the conference, the MIIT – China's top regulator of the manufacturing and information-technology sectors – reiterated that carmakers and technology firms were barred from conducting mass testing of self-driving technologies unless they received approval from relevant authorities, according to a transcript. They are not allowed to conduct over-the-air (OTA) software updates without official approval either.
South China Morning Post
03-04-2025
- Automotive
- South China Morning Post
Tesla's first-quarter deliveries in China slump 22% to a 3-year low as it trails rival BYD
Tesla's first-quarter deliveries on the mainland fell to the lowest level in three years, slumping nearly 22 per cent as its Chinese rivals clipped at its heels with newer and more affordable electric vehicles (EV). Advertisement The US carmaker delivered 172,754 cars from its Shanghai Gigafactory 3 in the first three months of the year versus 220,876 units in the same period a year earlier, according to data from the China Passenger Car Association. The sales were also the lowest since the second quarter of 2022 when 122,100 cars were delivered. The deliveries include sales on the mainland and exports. In March, deliveries jumped 157 per cent year on year to 78,828 units, after production of a refreshed Model Y was ramped up. On a monthly basis, deliveries fell 11.5 per cent from 89,064 units in February. 'Competition in the Chinese market remains fierce and Tesla's sales in its major markets outside China are stuck in a downward spiral,' said Phate Zhang, founder of Shanghai-based EV data provider CnEVPost. Tesla's Gigafactory in Shanghai makes Model 3 and Model Y cars. Photo: Xinhua Tesla has been losing market share to Chinese rivals such as Xpeng and Xiaomi since late last year, as consumers have been attracted to their lower prices and sophisticated intelligent features. Advertisement Meanwhile, BYD, the world's top EV maker, extended its lead over Tesla in the pure EV category for a second quarter. Including hybrids, it has been dominant for 12 quarters. Shenzhen-based BYD delivered 416,388 units of pure EVs in the first quarter, an increase of 39 per cent from a year earlier, while sales of hybrids soared 76 per cent to 569,710 units.
South China Morning Post
16-02-2025
- Automotive
- South China Morning Post
How DeepSeek's AI has become a must-have feature in Chinese smart EVs
Published: 9:00am, 16 Feb 2025 Chinese electric vehicle (EV) makers are scrambling to install artificial intelligence (AI) developed by DeepSeek to add to their cars' digital bells and whistles in a highly competitive market. More than a dozen carmakers, from EV leader BYD to Stellantis-backed start-up Leapmotor, have announced plans to develop cars fitted with DeepSeek AI features over the past two weeks. 'It is the latest sign of competition emerging on a new front – enticing drivers and passengers with more advanced chatbot tools,' said Phate Zhang, founder of Shanghai-based EV data provider CnEVPost. 'Cars without DeepSeek will either lose market share or be edged out of the market.' The Hangzhou-based start-up seized the world's attention over the past few weeks after releasing two advanced open-source AI models, DeepSeek-V3 and DeepSeek-R1 , at a fraction of the cost and computing power that major tech companies typically require for large language model (LLM) projects. LLM is the technology behind generative AI services like OpenAI's ChatGPT and DeepSeek's own namesake chatbot. 05:00 Does the arrival of China's low-cost DeepSeek mean the end of Nvidia's chip dominance? Does the arrival of China's low-cost DeepSeek mean the end of Nvidia's chip dominance? AI can make cars safer and smarter through advanced driver assistance systems (ADAS), enhance in-car infotainment and improve the overall driving experience.
