Major Developments in the Automotive Industry This Week

This week, several significant events occurred in the automotive industry, both domestically and internationally. Lei Jun, founder and CEO of Xiaomi, revealed that the company will not consider exporting its electric vehicles until 2027, prioritizing domestic delivery issues due to a high number of pre-orders. The recently launched Xiaomi YU7 saw impressive early sales, with 240,000 units locked in just 18 hours. Lei Jun noted the average age of YU7 buyers is 33, with 30% being female. Meanwhile, Faurecia China has established a joint venture with Guangzhou Huawang Semiconductor Technology Co., aiming to leverage their respective strengths and respond to market demands. Additionally, Anhui Anwa New Energy Technology has successfully launched the world's first GWh-level solid-state battery production line, designed for high energy density and safety. Changan Automobile announced plans to establish a factory in Europe to support its local sales strategy, with aspirations to expand into at least 10 European markets by the end of 2025. Meanwhile, Neta Auto has faced another equity freeze involving 2 billion RMB, indicating ongoing challenges in the company’s operations. Xiaopeng Motors' chairman, He Xiaopeng, emphasized that the next five years will be crucial for the survival of Chinese electric vehicle manufacturers, predicting significant industry consolidation and a potential reduction of surviving companies to fewer than seven.