Europe Must Act Fast in EV Race

Welcome to the latest edition of the China EV Pulse Newsletter!

In this issue, we dive into crucial developments influencing both Chinas electric vehicle industry and its global ripple effects.

We start with insights from Daniel Kirchert, who stresses that Europe must act swiftly to stay competitive in the fast-evolving EV race. The tensions between China and the EU are also heating up, with an important tariff vote scheduled for September 25.

We feature an interview with SuperPanther's CEO, discussing the company's growing partnerships and its outlook for the future of EVs in Europe. Meanwhile, China is urging its automakers to prioritize keeping cutting-edge EV technology within its borders.

In company news, BYD has secured a major electric bus contract in Sweden, while Smart has launched its #5 model in China, with plans to debut in Europe by 2025. Nio has addressed and denied rumors surrounding a potential purchase of Audi’s Brussels factory.

Additionally, GWM has revealed plans to assemble vehicles in Vietnam by 2025, and Xpeng is set to release its first hybrid SUV by late 2025. Stay tuned as we unpack these key events shaping the future of the EV industry.

Happy reading!

Daniel Kirchert: Europe Must Act Fast or Fall Behind in EV Race

In a recent conversation with Daniel Kirchert, CEO of Noyo Mobility, we explored the challenges facing European automakers in the fast-evolving EV landscape. Kirchert strongly criticized potential EU tariffs on Chinese electric vehicles, calling them a "catastrophic political mistake." He highlighted how these tariffs could slow down much-needed growth in affordable EVs, a crucial segment for mass adoption.

Kirchert emphasized China's rapid rise to dominance in the electric vehicle industry, driven by strategic industrial policies and unmatched speed in innovation. He noted that Chinese manufacturers can develop new models in just 24 months, far outpacing their European competitors, who are struggling to keep up.

German automakers, once dominant in China, are now losing ground in the EV market, which now accounts for half of all new cars sold there. Kirchert warned that this "super dramatic" situation could extend beyond China, posing a serious threat to European brands if they fail to adapt quickly.

Discussing Noyo Mobility's efforts to help Chinese brands enter Europe, Kirchert highlighted the underestimation of brand-building challenges. Trust and service, he explained, are crucial to gaining consumer acceptance in Europe. Budget EVs like the Dongfeng Box could be game-changers, filling a gap in the market for affordable electric cars.

Kirchert concluded with a hopeful yet cautionary message, urging Europe to take a proactive stance in embracing EVs. He believes that, with collaboration between European and Chinese manufacturers, Europe can remain a leader in the global automotive industry rather than falling behind.

China Tariff Tensions: EU Vote Set for September 25

The European Union is set to vote on new tariffs targeting Chinese electric vehicle manufacturers like SAIC, Geely, and BYD on September 25. If approved, the tariffs could take effect in November unless a significant number of EU member states oppose them. These tariffs would add to existing duties, despite recent reductions in rates for companies like Tesla. China sees these measures as protectionist and has filed a complaint with the WTO, while Germany and Spain, concerned about their automotive industries, advocate for alternative solutions to avoid escalating a trade conflict.

SuperPanther CEO on Partnerships and EV Future in Europe

In an exclusive interview with Chao Liu, CEO of SuperPanther, he shared insights into the electrification of Europe’s commercial vehicle sector and the unique strategy his company is using to support this transition. SuperPanther is not just focused on producing its own electric trucks in China but also helping European manufacturers shift to electric mobility. Chao explained that partnerships with local companies, such as Steyr, are a key part of their strategy. He emphasized that European partners have a deep understanding of local markets and customer needs in the traditional combustion engine sector but need assistance in making the leap to electric vehicles. Instead of competing by introducing another Chinese truck brand in Europe, SuperPanther positions itself as an "enabler" for the wider industry.

A significant portion of the discussion focused on the environmental benefits and the urgency of reducing CO₂ emissions in the transport sector. Chao pointed to record global temperatures as a clear warning of the need for immediate action. SuperPanther has ambitious goals, aiming to put 16,000 electric trucks on European roads by 2030. These trucks could potentially save two million tons of CO₂ emissions annually, marking a significant contribution to the fight against climate change.

SuperPanther's rapid development process sets it apart from traditional manufacturers. Chao revealed that, thanks to its decentralized R&D structure, the company managed to develop a fully functional electric truck in just two years. This speed gives SuperPanther a competitive edge, enabling the company to quickly adapt to new technologies and changes in the market.

Despite these advancements, Chao acknowledged that the industry faces significant challenges, particularly with the charging infrastructure needed for heavy-duty electric trucks. While there are currently no unified standards for megawatt charging, which is essential for these vehicles, SuperPanther is working closely with partners to ensure that the infrastructure keeps pace with vehicle technology.

Ultimately, Chao sees the future of transportation as electric, but the journey to widespread adoption is still filled with obstacles, particularly in building the necessary infrastructure. The success of this transition will depend on how well the industry works together and how quickly the charging infrastructure can be established. SuperPanther is committed to playing a leading role in this transformation, both by developing its own vehicles and by supporting others in making the shift to electric transport.

Headline Roundup

💡 China Urges Automakers to Keep EV Tech at Home (EAN)

China is urging its automakers to keep key EV technologies within the country, even as companies like BYD and Chery build factories abroad to avoid high tariffs on exports, according to BNN Bloomberg. The government encourages the use of knock-down kits, where parts are made in China and assembled overseas. This policy aims to protect Chinese EV technology and manage regulatory risks, with particular restrictions on investments in India. While Chinese manufacturers seek global expansion due to domestic market saturation, these directives could slow their efforts and impact countries like the EU that are hoping for Chinese investments.

💡 BYD Wins Swedish Electric Bus Contract from Ebusco (Electrive)

BYD has replaced Ebusco as the electric bus supplier for Connect Bus in Växjö, Sweden. The switch came after Ebusco failed to deliver 47 Ebusco 3.0 buses by the agreed deadline of late 2023. Connect Bus evaluated six alternatives and chose BYD for its product quality and delivery timeline. Ebusco is currently undergoing restructuring due to financial difficulties, reporting a significant EBITDA loss and delayed deliveries in 2024. The company has also made leadership changes and outsourced the assembly of its Ebusco 3.0 model to a partner in China.

💡 Smart #5 Launches in China, European Debut in 2025 (Electrive)

Smart has begun pre-sales of its new fully electric SUV, the Smart #5, in China, priced from 245,000 Yuan (about 31,000 euro). The Smart #5 marks the brand's shift from its small-car roots to the premium mid-size segment, offering off-road features and a 4.70-meter length. Developed under the joint venture between Mercedes-Benz and Geely, the SUV combines Mercedes’ design language with Geely’s 800-volt platform, achieving over 740 km of range. The Smart #5 is set for full launch in China by October 2023 and will arrive in Europe in early 2025.

💡 Nio Denies Rumors of Buying Audi’s Brussels Factory (EAN)

Reports suggesting that Chinese EV maker Nio was interested in acquiring Audi's Brussels factory have been swiftly denied by Nio. CEO William Li stated that the company has no plans to take over the plant, emphasizing that Nio is cautious about investments in physical assets, except for battery swap stations. The Audi factory, currently producing the Q8 e-tron, faces potential closure as no new models are planned after the Q8’s production ends. Nio, which faces high EU tariffs on its Chinese-made EVs, would benefit from a European plant but dismissed the acquisition rumors.

💡 GWM to Assemble Vehicles in Vietnam by 2025 (EAN)

Great Wall Motor (GWM) has signed an agreement with Vietnam’s TAG Group to begin assembling vehicles in Vietnam by the end of 2025. The deal involves using Completely Knocked Down (CKD) kits, where parts are shipped from China for local assembly, allowing key EV technologies to remain in China. This follows GWM's similar CKD project in Malaysia and is part of its broader global expansion strategy, with operations in several Southeast Asian markets. In 2023, GWM sold over 1.2 million vehicles, with a significant increase in international sales.

💡 Xpeng to Launch First Hybrid SUV by Late 2025 (EAN)

Xpeng is developing its first Extended-Range Electric Vehicle (EREV), a hybrid SUV expected to launch by late 2025. The SUV, codenamed G01, will combine electric power with a range extender, and production will take place at Xpeng's Guangzhou factory. The vehicle is based on the Xpeng G9 prototype and is expected to start at around €28,000. Xpeng has selected Harbin Dongan Auto Engine as the supplier for the range extender and will reveal more details at its Tech Day in October 2024. Xpeng sees EREVs not as a transitional technology but as a core part of its future strategy.

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Sebastian & team | China EV Pulse

📸 _{Image Credits (in order of appearance): Burhan Oral GUDU / Shutterstock - Noyo Mobility - shutterstock / 2001526418 - SuperPanther - shutterstock / 1204164946}