China Emerging EV Automakers: Developing Core Components and Promoting Production In-house

Hozon, NIO, Li Auto, XPeng, Leapmotor

2023/04/13

Summary
Chinese emerging EV manufacturers' sales volumes in 2022: Hozon tops the list; top 5 EV makers each exceed 100,000 units
Hozon : Promoting in-house development and production of key components; Thai plant scheduled to start production in 2024
NIO : Sustainable approach to energy supply, considering introducing middle-market models
Li Auto : Production to start at its Beijing plant by the end of 2023; becoming a world-leading AI company by 2030
XPeng: Guangzhou plant to start production, all-scenario driver assistance to be achieved by 2023-2025
Leapmotor : 70% of vehicle costs covered by parts developed in-house; exporting the T03 compact car to Israel

Summary

In 2022, China's new energy passenger car sales totaled 6,565,000 units, of which the share of sales by China's 15 emerging electric vehicle (EV) makers (companies established after 2010 and not affiliated with traditional automakers) was 11.4%, down 3.3 points from the previous year. Against this backdrop, the top five emerging Chinese EV makers (Hozon, NIO, Li Auto, XPeng, and Leapmotor) all had sales exceeding 100,000 units. Hozon New Energy Automobile Co., Ltd. (Hozon) topped the sales volume list for the first time among the 15 leading companies with 152,000 units, and Zhejiang Leapmotor Technology Co., Ltd. (Leapmotor) also entered the top group with a high growth rate. On the other hand, Guangzhou Xiaopeng Motors Technology Co., Ltd. (XPeng), the leader in 2021, fell to fourth place. WM Motor Technology Group Co. Ltd. (WM Motor) is also lagging far behind. The Chinese NEV (New Energy Vehicle: battery electric, plug-in hybrid, and fuel cell vehicles) market is becoming increasingly competitive and restructuring is accelerating.

By model, Shanghai NIO Automobile Co., Ltd. (NIO) and Li Auto Inc. (Li Auto) are focusing on the high-end market with prices above CNY 300,000, but may launch models below that in the future. Although Hozon and Leapmotor still rely relatively heavily on entry-level models priced below CNY 100,000, the share of entry-level models is on a declining trend compared to 2021. XPeng, whose main models are in the CNY 150,000 - 250,000 class, launched a high-end SUV with a price that exceeds CNY 300,000 for the first time.

This report presents recent major trends among the top five, in terms of sales volume, Chinese emerging EV manufacturers. Each of these companies has made in-house development and in-house production of core components a pillar of its strategy. Hozon announced its technology brand "Hozon Intelligent Technology” and established an in-house development and manufacturing system for key components such as electric drives and range extenders. According to some media reports, NIO will establish a battery technology company and build its first battery plant in Hefei City, Anhui Province. Li Auto already has production bases for range extenders, 5-in-1 electric drives, and SiC power modules in Sichuan and Jiangsu provinces. XPeng has established several companies involved in the development and manufacturing of batteries, motors, and other components. Leapmotor is deepening its vertical integration, and parts developed and manufactured in-house account for 70% of vehicle costs.

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