Chinese Electric Car Company
In recent years, Chinese electric car companies have become major competitors to U.S. manufacturers like Tesla. One such company is BYD, which recently made its first foray into Europe. Another is SAIC-GM-Wuling, which has a popular mini EV called the Hongguang.
Other notable EV makers include Li Auto, whose flagship model is the L7 SUV with light-sensitive paint and premium features. The company also has a pure electric sports car called the Neta GT.
Li Auto
Li Auto designs, develops, manufactures, and sells premium smart electric vehicles. The company also provides charging stations and services to support the operation of EVs. Its flagship product, the six-seater Li ONE, is an extended range electric vehicle (EREV). EREVs combine a battery and gas engine to provide extended driving range.
In 2022, the company introduced its second model, the Li L9. The car is a pure battery-electric vehicle (BEV). Like its predecessor, it is capable of a full charge in less than three hours. Its safety features meet the requirements of China’s National New Car Assessment Program.
Unlike its loss-making rivals, Li Auto is a profitable business. Its founder, Li Xiang, owns 25.1% of the stock and 70.3% of the voting power, and Meituan chairman Wang Xing holds 23.5% motorcycle manufacturer of the stock and 9.3% of the voting rights.
However, the company faces challenges. First, its retail network is limited. It operates only 206 stores where potential customers can visit to have their cars checked or test-drive vehicles. This may hinder growth.
XPeng
XPeng has raised more than $5 billion since its founding in 2014, though it hasn’t delivered a single car. Its private valuation is now $3.6 billion, and it has a strong pipeline of new models. It is a pure-battery startup, which has a different approach than established automakers. Founder He Xiaopeng has deep roots in technology and the ability to make decisions quickly.
Using his experience at GAC New Energy, He started designing the first XPeng prototype and recruited cofounders to help with engineering and financing. Xia Heng was responsible for engineering, while He Tao took charge of finding money.
The company has recently expanded its lineup with the P7 sedan, which is scheduled to begin deliveries in 2021. The P7 will use lithium iron phosphate batteries, which are cheaper than lithium nickel manganese cobalt oxide (NCM) batteries used in most EVs. These batteries have also shown superior safety and reliability. XPeng is expanding its global footprint and will exhibit at Munich’s Internationale Automobil-Ausstellung next month. Investors should keep the company in their watchlist and look to buy XPeng stock when the market returns to a confirmed uptrend.
Singulato Motors
Founded in 2014, Singulato Motors is one of China’s most well-funded electric car start-ups. The company recently secured a deal with Toyota to produce and help sell its tiny iC3 EV for the Japanese automaker. Singulato believes it can tap into the demand for small, low-cost EVs in China. Its iC3 will feature entertainment, safety and navigation features designed to appeal to young buyers. It will also be equipped with a range of self-driving technologies. The iC3 will be produced in Tongling, Anhui province, and will cost 100,000 yuan ($15,000 U.S). The car will generate green-car credits that can be sold to help meet production quotas in China.
Founded in December 2014 in Beijing, Singulato is an internet-based company that produces premium Chinese new energy vehicles. The company has also developed new energy systems, autonomous driving technologies and automotive networking services. On October 12, the company received a capital injection of nearly $100 million from Japan’s Itochu Corp. Itochu’s stake in Singulato Motors will rise to about 7%, and the companies could receive an additional few hundreds of millions of dollars from the Japanese trading company if certain conditions are met.
Changan
Changan is a large Chinese automobile manufacturer that sells more than 3 million vehicles annually. It has a number of joint ventures with international automakers, including Ford and Mazda. Changan also has its own line of light commercial vehicles that it markets in Asia and other parts of the world.
In recent years, the company has invested in EV technology and is moving away from traditional internal combustion engines. The company has committed to stop selling ICE cars by 2025. This decision is in response to the high levels of air pollution in China and stringent emissions regulations.
The company’s newest EV brand is Deepal, launched in 2018. Its entry level models are called the Qiyuan (Chang An Qi Yuan). Deepal has plans to launch additional models that will fill out its product lineup. The company has 32 vehicle and engine plants, which can produce 2 million vehicles each year. It also has research and development facilities in China, Italy, Japan, England, and the United States. These facilities help Changan develop state-of-the-art EV technology and design for its vehicles.
Hozon Auto
Hozon Auto, which was founded in 2014, has been gaining momentum. Its sales in June surpassed popular Chinese EV start-ups such as Nio and XPeng. It also outsold Leap Motor and Li Auto. It has big chinese electric car company backers from the EV industry, including the biggest supplier of batteries for electric vehicles, Contemporary Amperex Technology Co.
Its new Neta S sedan is the company’s first digitalized model, which runs on its self-developed technology. The company also announced a partnership with Huawei, in which it will work on in-vehicle visual perception technologies and intelligent driving data platforms.
However, like other local start-ups such as Nio and Li Auto, Hozon has a long way to go before turning a profit. In 2021, it spent 3 billion yuan on R&D alone. Meanwhile, its current high sales tallies are based on deals rather than consumer demand. It’s a perilous journey for the company to continue such a trajectory without access to capital markets. But if it can make the right moves, Hozon Auto could be one to watch in the EV space.