Author: Linda Ma

Canada is evaluating the need to raise tariffs on Chinese-made electric vehicles after the White House announced substantial new levies on them, Trade Minister Mary Ng told Bloomberg News on Friday. “We are looking at this very carefully and we have an open dialogue with our American partners,” Bloomberg quoted Ng as saying in a phone interview from Peru, where she is attending meetings of the Asia-Pacific Economic Cooperation forum. Canada’s trade ministry and Ng’s office did not immediately respond to a Reuters request for comment on the report. The potential Canadian decision comes after U.S. President Joe Biden’s announcement…

Nio CEO William Li and Onvo President Alan Ai held a press conference to outline the future of the Onvo brand and its strategic positioning relative to Nio. They announced that Onvo’s second model will be a larger SUV designed for families, seating six or seven people, but it is not expected to enter production before mid-2025 according to Car News China. Onvo is set to open 100 directly operated stores by September, coinciding with the launch of the Onvo L60, and aims to expand to 200 stores by the end of 2024. Unlike Nio, Onvo will not offer exclusive…

Li Auto is currently embroiled in a class action lawsuit alleging that it misled investors by inflating market demand for its Li Mega MPV (multi-purpose vehicle) during the model’s launch. The lawsuit, filed by a group of investors, accuses Li Auto and some of its executives of securities fraud, claiming that false statements were made that violated securities laws and led to financial losses for investors. Beijing-based attorney Hao Junbo’s law firm, representing the investors, issued a statement yesterday detailing the allegations. According to the statement, investors are seeking damages for losses incurred due to the drop in Li Auto’s…

Li Auto is reportedly undergoing substantial layoffs, with the company’s sales falling short of expectations. According to a report from local media outlet 21jingji, the layoffs could affect more than 18 percent of Li Auto’s overall workforce. The carmaker’s 2023 financial report indicates a significant increase in its workforce, reaching nearly 31,600 employees, up 63 percent year-on-year. Based on the reported percentage of layoffs, Li Auto may reduce its workforce by more than 5,600 in the current round. Specifically, the layoffs are said to be impacting various divisions within Li Auto, including the sales and service operations division, the hiring…

Xiaomi EV, the car-making unit of Chinese smartphone giant Xiaomi, is reportedly gearing up to implement a double-shift production model starting next month in a bid to meet soaring delivery demands. According to local media outlet Cailian, Xiaomi EV’s factory in Beijing is poised to transition to a double-shift production schedule in June, doubling daily production hours from 8 to 16 hours. Xiaomi founder, chairman, and CEO Lei Jun had previously stated that the factory can produce 40 Xiaomi SU7s per hour, with a new car rolling off the line every 76 seconds. With the implementation of the double-shift model,…

Chinese electric vehicle manufacturer Nio has unveiled its new lower-priced brand, Onvo, with the launch of its first vehicle, the Onvo L60 SUV. Priced starting from 219,900 yuan ($30,476), the Onvo L60 aims to compete directly with Tesla’s Model Y, the world’s best-selling electric vehicle. Nio’s CEO, William Li, introduced the Onvo L60 SUV in Shanghai, highlighting the company’s ambition to redefine the standards for family cars. “RAV4 and Model Y were the benchmark for family cars in their time. With technologies evolving and people’s understanding in smart EVs deepening, today it’s time for us to redefine the new standards…

Xpeng is reportedly set to utilize batteries from BYD in its Mona sub-brand, mirroring a strategy adopted by Nio for its Onvo sub-brand. According to a report from local media outlet 21jingji, the Mona’s first model will incorporate batteries from BYD, offering a range of over 500 kilometers. This range is comparable to the entry-level version of Xpeng’s G6, which boasts a 580 km range and starts at RMB 179,900. Xpeng’s decision to source batteries from BYD for the Mona sub-brand aligns with Nio’s recent partnership with BYD for its Onvo sub-brand, as reported by Reuters on May 7. Xpeng…

The US government has announced a significant increase in tariffs on several Chinese products, including electric vehicles (EVs) and lithium-ion batteries, in a move that could further strain trade relations between the two countries. Starting in 2024, tariffs on Chinese EVs will quadruple from 25 percent to 100 percent, according to a statement from the Office of the US Trade Representative. The levy on lithium-ion batteries will also rise sharply, from 7.5 percent to 25 percent. Additionally, tariffs will increase on other products such as solar cells, steel, and aluminum. US Trade Representative Katherine Tai stated that these measures are…

Amidst reports of the United States preparing retaliatory tariffs on Chinese electric vehicles, a recent analysis suggests that Korean exports of electric and hybrid vehicles could rise by 10 percent if global tariffs on Chinese electric and hybrid vehicles increase by 20 percent. The U.S. International Trade Commission (ITC) released a report indicating that if the U.S., the European Union (EU), Japan, Korea, and other nations raise tariffs on Chinese electric and hybrid vehicles by 20 percent, China’s exports could plummet by at least 50 percent. Specifically, imports of Chinese vehicles to the United States could drop by 62.9 percent,…

Xiaomi’s electric vehicle (EV) unit, Xiaomi EV, is reportedly intensifying its orders to the supply chain as it strives to increase production capacity. According to local media outlet Wallstreetcn, Xiaomi EV has requested its upstream suppliers to increase their supply of components, with orders rising by approximately 80 percent, as per unnamed supply chain sources. For a specific category of parts, Xiaomi EV’s orders have surged from around 10,000 units per month previously to 18,000 units recently, the report noted. Xiaomi officially launched its first model, the SU7, on March 28, offering three trims — standard, Pro, and Max –…

Xiaomi, the Chinese tech giant, is gearing up to rival Tesla by introducing an SUV similar to the Model Y, with production slated to begin as early as 2025, as reported by Bloomberg today. The development of Xiaomi’s SUV reportedly drew inspiration from Tesla’s Model Y, according to a source familiar with the matter. The idea of an SUV first surfaced in 2021 when Xiaomi’s founder and CEO, Lei Jun, announced that venturing into electric vehicles would be his final major entrepreneurial pursuit. However, the company opted to debut the SU7 sedan first, with production expected to hit around 100,000…

BYD continued its stronghold on China’s new energy vehicle (NEV) market in April, outpacing competitors and securing the top spot with a 37.5 percent share, according to the China Passenger Car Association (CPCA). The company’s retail sales of passenger NEVs totaled 254,131 units, marking a 31.1 percent year-on-year increase. Tesla, on the other hand, saw a decline in its ranking, with retail sales in China dropping to 31,421 units, down 21.4 percent from the previous year. This placed Tesla at No. 5 with a 4.6 percent share, a notable shift from its No. 2 position in March. BYD’s success is…

Tesla China has cleared a significant hurdle for the upcoming deliveries of its revamped Model 3 Performance in the country. Recent reports indicate that the reengineered model has been officially included in China’s Ministry of Industry and Information Technology’s (MIIT) catalog of upcoming vehicles. The inclusion of the new Model 3 Performance in the MIIT catalog marks the final major government approval required for the car to be sold in China, according to a report by CNEV Post. Public feedback on the new variant’s inclusion will be accepted from May 12th to 17th. The Tesla Model 3 variant listed in…

The Biden administration is reportedly considering a substantial tariff increase on Chinese electric vehicles (EVs), with sources familiar with the matter indicating a potential hike to nearly 100%. This significant increase, up from the current 25% tariff, could effectively block Chinese EVs from entering the US market. However, there is a potential loophole involving Mexico that could allow some vehicles to still reach US consumers. The proposed tariff, as reported by the Wall Street Journal and expected to be official next week, would not only affect EVs but also batteries and solar panels from China. This move follows a review…

China saw a decline in retail sales of new energy vehicles (NEVs) in April, but the penetration of NEVs in the overall market reached a record high, outperforming the broader automotive sector. According to data released by the China Passenger Car Association (CPCA), retail sales of Chinese passenger NEVs totaled 674,000 units in April, marking a 28.3 percent increase from a year ago but a 5.7 percent decrease from March. This figure is lower than the CPCA’s earlier preliminary estimate of 706,000 units and the 720,000-unit estimate from the end of last month. Battery electric vehicles (BEVs) accounted for 60.1…

Tesla is reportedly expanding its layoffs in China, with additional cuts beginning earlier this week following mid-April layoffs, according to Bloomberg, citing sources familiar with the matter. The latest round of layoffs impacts various departments at Tesla’s Shanghai factory, including customer service staff, engineers, production line workers, and the logistics team. Last month’s layoffs at Tesla primarily affected sales representatives, according to the report. The exact number of employees affected and the impact on Tesla’s operations in China remain unclear. Affected employees in China will receive compensation equivalent to one month’s salary for each year of service, plus three months’…

Nio marked a significant milestone as the 500,000th production vehicle rolled off the assembly line at its F2 plant at NeoPark in Hefei, Anhui province. The milestone vehicle, an ES8, was celebrated with a ceremony attended by officials from Anhui. Since 2019, Nio has maintained its position as the leader in the premium battery electric vehicle (BEV) market in China for vehicles priced higher than RMB 300,000 yuan ($41,500), according to the company. Founded in November 2014, Nio introduced its first production vehicle, the ES8, on December 16, 2017, at Nio Day 2017. The ES8’s initial production vehicle rolled off…

BYD contemplating the establishment of a second assembly plant in Europe by 2025, revealed European managing director Michael Shu at the FT’s Future of the Car conference. The move comes as part of BYD’s strategic vision to penetrate the European market further. Shu indicated that BYD intends to introduce a cost-effective electric vehicle (EV) based on its Chinese Seagull model to the European market. The European variant of the Seagull, which currently sells for under $10,000 in China, is expected to be priced below 20,000 euros ($21,550) in Europe. This competitive pricing aims to address the significant price disparity between…

Beijing Momenta Technology Co., a Chinese self-driving developer, has reportedly filed for an initial public offering (IPO) in the United States. However, the fate of Momenta’s IPO in the US remains uncertain amidst escalating tensions between the two nations. The news of Momenta’s potential IPO in the United States comes as Tesla’s robotaxi tests in China gain support from the local government. Tesla’s Full Self-Driving (FSD) technology appears to be openly welcomed in China, contrasting with the potential reception Momenta might face in the United States. China has been designated a “Foreign Entity of Concern (FEOC)” under the Inflation Reduction…

Guangzhou Automobile Group Co., Ltd. (GAC Group) has officially joined the battery swap alliance led by Nio, marking a significant collaboration in China’s electric vehicle (EV) market. The strategic cooperation agreement, signed on May 8 in Guangzhou, aims to advance charging and battery swap technologies, enhance vehicle R&D, and streamline operations for a more user-friendly experience. William Li, founder, chairman, and CEO of Nio, expressed optimism about the partnership, stating, “The cooperation will amplify the two companies’ respective strengths in technology and operations, and push forward the unification of battery standards and operational and management systems, so as to make…