BAIC Group, a major Chinese automobile manufacturer, is ramping up its efforts to catch up with its peers in the electric vehicle (EV) industry. On March 13, BAIC subsidiary Beijing Electric Vehicle Co. (BJEV) signed a strategic cooperation agreement with battery giant Contemporary Amperex Technology Co. (CATL), with the aim of jointly developing power battery products and tapping into the new energy vehicle (NEV) market.
Under the agreement, CATL will participate in the vehicle development and production of BAIC-affiliated NEV companies, and provide power battery products and services. The two companies will build a close strategic partnership and cooperate fully in power batteries, according to a CATL press release.
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BAIC’s efforts to penetrate the NEV market are primarily led by BJEV, but its performance has been lackluster compared to most Chinese EV startups. BJEV sold 50,179 units in 2022, up 92.06 percent from 2021, but still falls behind its competitors, according to data from BAIC BluePark New Energy Technology Co., BJEV’s parent company.
However, BAIC Group is determined to make progress in the NEV sector. In July 2022, BAIC BluePark announced plans to raise up to CNY 8 billion ($1.16 billion) in additional shares to expand its business and invest in product development amid the rapid growth of China’s NEV industry.
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Meanwhile, rumors circulated in August 2022 that smartphone giant Xiaomi was in talks with BAIC Group to co-produce electric vehicles. However, BAIC Group later denied any knowledge of such discussions.
Despite BAIC BluePark’s weak share performance over the past year, BAIC Group is optimistic about its prospects in the NEV market. By partnering with CATL, the company hopes to boost its EV production and make strides in the transition to electrification.
