Lucid Group, a luxury electric vehicle (EV) manufacturer based in the United States, is making preparations to enter the largest auto market in the world, China. The head of Lucid’s China operations, Zhu Jiang, confirmed that the company is gearing up to enter the Chinese market. While Lucid plans to initially sell imported cars in China, there is also consideration being given to local production, although no specific details were provided.
Zhu, who has extensive experience in the auto industry and previously worked at Jidu Motor and Ford Motor, expressed that Lucid’s entrance into the Chinese market would be facilitated by the recent announcement of their plan to raise approximately $3 billion through a stock offering. The majority of this funding will come from the Public Investment Fund of Saudi Arabia. Zhu believes that this injection of capital will enable Lucid to introduce advanced EV technology and products to the global industry and consumers more rapidly. He also mentioned that China is eagerly anticipating Lucid’s presence in their market.
Like other EV manufacturers, Lucid is facing challenges such as increasing losses and limited cash reserves. The market has been affected by concerns of an impending recession and a price war initiated by Tesla, the market leader. In response to these challenges, Lucid recently adjusted down its production forecast for 2023 and reported lower-than-expected revenue in the first quarter of the year. CEO Peter Rawlinson attributed these difficulties, in part, to rising interest rates impacting the market. Notably, Lucid has been reluctant to lower prices on its Air luxury sedan, which starts at $87,400 in the United States.
Overall, Lucid Group’s entry into the Chinese auto market is expected to bring further competition and innovation to the EV industry. The company’s strategic plans, including the possibility of local production, will likely shape its future growth and success in China, a country with a rapidly expanding EV market.
