Lucid Motors, the US-based electric vehicle (EV) manufacturer, is actively considering entering the Chinese market, a move that could potentially thrust it into one of the world’s most fiercely competitive EV landscapes. Eric Bach, Chief Engineer at Lucid, emphasized the significance of China’s automotive sector, stating, “Every car manufacturer has to look very deeply or has already looked into China. It’s the world’s largest car market. It’s going to be likely the world’s largest and fastest adopting EV market as we can see.”
Bach’s remarks were made during an interview with CNBC at the IAA Munich auto show in Germany, where he expressed the company’s keen interest in exploring this strategic expansion. However, he also underscored the importance of meticulous planning, cautioning that entering China on the wrong terms could lead to costly errors.
“We haven’t cited a market entry date yet because we just need to get it right,” Bach said, adding, “If you enter China on the wrong terms, you can make a lot of mistakes.”
Lucid has already taken concrete steps towards this endeavor, with a dedicated team in China assessing the feasibility of entering the market. Their focus extends to crucial aspects such as pricing strategies and manufacturing plans.
Bach elaborated further, stating, “So we’re looking at the whole gamut of what we should be doing as a young manufacturer, and we’ll get it right.”
Founded in 2007 by Bernard Tse, a former vice president and director at Tesla, and Sam Weng, a former Oracle executive, Lucid Motors has made substantial strides in the EV industry. In December 2016, the company launched its first production EV, the Lucid Air. Its journey in the financial markets began when Lucid went public on the Nasdaq in July 2021, following a merger with a special purpose acquisition company (SPAC). The company currently boasts a market capitalization of $14 billion.
Crucially, Lucid has enlisted the expertise of Zhu Jiang, a former executive at renowned automotive firms Nio, Ford, and Baidu’s car-making unit, Jidu Auto, to lead its operations in China. Jiang acknowledged that Lucid is in the early stages of preparing for its Chinese market entry.
China stands as the world’s largest auto market, with annual sales consistently reaching around 20 million vehicles over recent years. Moreover, it has solidified its status as the leading market for new energy vehicles (NEVs), which now account for more than 30 percent of monthly car sales.
In its pursuit of success in China’s dynamic EV sector, Lucid Motors is navigating the complex landscape with strategic foresight, fully aware of the challenges and opportunities that lie ahead.
