Latest news with #Seres
Auto Blog
26-05-2025
- Automotive
- Auto Blog
EV Discounts in China Reach Record High With Profits Limited to 3 Automakers
Analysts forecast that China's EV price war will force many smaller players out of the market within the next two years. China's EV price war is bigger than ever, but for how long? 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. 0:02 / 0:09 2025 Ford Maverick: 4 reasons to love it, 2 reasons to think twice Watch More 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. BYD Seagull — Source: BYD 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. The value of exports in China's competitive EV landscape 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. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Seres SF5 — Source: Seres Final thoughts 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.
Yahoo
25-05-2025
- Automotive
- Yahoo
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. EV Discounts in China Reach Record High With Profits Limited to 3 Automakers first appeared on Autoblog on May 25, 2025
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.
Straits Times
19-05-2025
- Automotive
- Straits Times
China's luxury car brand that's come from behind to overtake BMW
Aito, through its popular M9 SUV, became the best-selling car brand in China last year in the 500,000 yuan and above category. PHOTO: AFP BEIJING – In under four years, Seres Group, a small Chinese automaker once best known for its 30,000 yuan minivans, has beaten luxury legacy names like BMW and Mercedes to become the nation's hottest high-end car seller. Formerly called DFSK Motor, Seres partnered with telecommunications giant Huawei Technologies back in 2021 to launch the Aito brand of premium electric and hybrid sport utility vehicles. Since then, Seres has had a dizzying rise. Sales tripled in three years to around 427,000 vehicles in 2024, while the company's Shanghai-listed stock is up 120 per cent. Aito, through its popular M9 SUV, became the best-selling car brand in China last year in the 500,000 yuan and above category, despite the vehicle only being launched at the end of 2023. Deliveries of the spacious model, which features Huawei's Harmony operating system, a triple-screen dashboard and options such as a dual-zone refrigerator and ambient lighting, were around 151,000 units, according to data from Shanghai-based automotive consultancy ThinkerCar. The M9's most basic battery EV version starts from 509,800 yuan. Aito's flagship models are 'reshaping the luxury car market in China,' Seres chairman Zhang Xinghai said at the Shanghai auto show in April. 'Aito's success today is thanks to the market's recognition and customers' preferences.' Outside of the M9, Aito's latest premium model is the M8, a slightly smaller SUV launched earlier this year. China's luxury segment was seen as the last slice of the automotive market relatively insulated from the EV transition that's left mass market foreign carmakers such as Volkswagen and General Motors struggling to catch up. It's often thought that newer EV manufacturers with zero pedigree couldn't match the brand prestige they offered. Aito has proven that wrong, and shown how Chinese consumers' luxury tastes are shifting. It's also testimony to the success of China's smartphone makers Huawei and Xiaomi Corp. When the pair, independently, first started talking about entering the EV market around four years ago, they faced a large amount of skepticism. Xiaomi's sales have been impacted by a fatal crash involving one of its vehicles in late March, but despite that, its SU7 sedan continues to see healthy demand. Fronting a media briefing in 2022, Mr Zhang said many doubted that Seres, which up until that point mainly made cheap minivans, and Huawei, which had never made vehicles before, could manufacture a luxury marque. Seres' success faces some challenges, however. The luxury car market in China experienced a 23 per cent decline in 2024, ThinkerCar data show, impacted by the nation's economic slowdown and weak consumer sentiment. There's also the ongoing price war. The sticker price for most of the 2025 refreshes of the M9 was cut by between 10,000 yuan and 20,000 yuan and Aito is starting to fall behind. In January and February, Mercedes delivered 22,160 vehicles and BMW, 18,130, to overtake Aito at 17,190 units, according to ThinkerCar. Seres' overall sales also slumped in first quarter, falling by 42 per cent. A more unique hurdle to Seres lies in its tie-up with Huawei. The technology giant is setting up similar in-car software deals with other manufacturers. It's launched EV ventures like Luxeed with Chery Automobile, and Stelato, with BAIC Motor, which also target the high-end market. That's led to concerns around homogenisation and cannibalisation. Even some of Seres' European competitors, such as BMW, have teamed up with Huawei to offer intelligent features in their vehicles. Richard Yu, who oversees Huawei's consumer business group, is sanguine, saying the Aito premium brand has had its share of setbacks in its short life. 'It's hard work every time we build a brand, especially luxury brands,' Mr Yu said at a product launch last September. 'But we won't give up and will keep persisting,' he said, adding that Huawei is determined to make a success out of every automotive brand it launches with partners, not just Aito. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
19-05-2025
- Automotive
- Business Times
China's luxury car brand that's come from behind to overtake BMW
[HONG KONG] In under four years, Seres Group, a small Chinese automaker once best known for its 30,000 yuan (S$5,403) minivans, has beaten luxury legacy names such as BMW and Mercedes to become the nation's hottest high-end car seller. Formerly called DFSK Motor, Seres partnered with telecommunications giant Huawei Technologies back in 2021 to launch the Aito brand of premium electric and hybrid sport utility vehicles. Since then, Seres has had a dizzying rise. Sales tripled in three years to around 427,000 vehicles in 2024, while the company's Shanghai-listed stock is up 120 per cent. Aito, through its popular M9 SUV, became the best-selling car brand in China last year in the 500,000 yuan and above category, despite the vehicle only being launched at the end of 2023. Deliveries of the spacious model, which features Huawei's Harmony operating system, a triple-screen dashboard and options such as a dual-zone refrigerator and ambient lighting, were around 151,000 units, according to data from Shanghai-based automotive consultancy ThinkerCar. The M9's most basic battery electric vehicle (EV) version starts from 509,800 yuan. Aito's flagship models are 'reshaping the luxury car market in China', Seres chairman Zhang Xinghai said at the Shanghai auto show in April. 'Aito's success today is thanks to the market's recognition and customers' preferences.' Outside of the M9, Aito's latest premium model is the M8, a slightly smaller SUV launched earlier this year. China's luxury segment was seen as the last slice of the automotive market relatively insulated from the EV transition that's left mass market foreign carmakers such as Volkswagen and General Motors struggling to catch up. It's often thought that newer EV manufacturers with zero pedigree could not match the brand prestige they offered. Aito has proven that wrong, and shown how Chinese consumers' luxury tastes are shifting. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up It's also testimony to the success of China's smartphone makers Huawei and Xiaomi. When the pair, independently, first started talking about entering the EV market around four years ago, they faced a large amount of scepticism. Xiaomi's sales have been impacted by a fatal crash involving one of its vehicles in late March, but despite that, its SU7 sedan continues to see healthy demand. Fronting a media briefing in 2022, Zhang said many doubted that Seres, which up until that point mainly made cheap minivans, and Huawei, which had never made vehicles before, could manufacture a luxury marque. Seres' success faces some challenges, however. The luxury car market in China experienced a 23 per cent decline in 2024, ThinkerCar data show, impacted by the nation's economic slowdown and weak consumer sentiment. There's also the ongoing price war. The sticker price for most of the 2025 refreshes of the M9 was cut by between 10,000 yuan and 20,000 yuan and Aito is starting to fall behind. In January and February, Mercedes delivered 22,160 vehicles and BMW, 18,130, to overtake Aito at 17,190 units, according to ThinkerCar. Seres' overall sales also slumped in the first quarter, falling by 42 per cent. A more unique hurdle to Seres lies in its tie-up with Huawei. The technology giant is setting up similar in-car software deals with other manufacturers. It's launched EV ventures such as Luxeed with Chery Automobile, and Stelato, with Baic Motor, which also target the high-end market. That's led to concerns around homogenisation and cannibalisation. Even some of Seres' European competitors, such as BMW, have teamed up with Huawei to offer intelligent features in their vehicles. Richard Yu, who oversees Huawei's consumer business group, is sanguine, saying the Aito premium brand has had its share of setbacks in its short life. 'It's hard work every time we build a brand, especially luxury brands,' Yu said at a product launch last September. 'But we won't give up and will keep persisting,' he said, adding that Huawei is determined to make a success out of every automotive brand it launches with partners, not just Aito. BLOOMBERG
