Major Developments in the New Energy Vehicle Market This Week

This week, several significant events took place in the new energy vehicle market. CATL partnered with Seres to accelerate expansion using a 'factory within a factory' model. On June 30, CATL officially launched two high-end CTP 2.0 battery pack production lines at the Seres Super Factory. This is CATL's first base in Chongqing and marks the first use of the 'factory within a factory' cooperation model to supply power battery systems locally for the Aito series models. As one of the world's most advanced benchmark factories, the Seres Super Factory is characterized by efficiency, intelligence, cutting-edge technology, and sustainability. The implementation of this 'factory within a factory' model will further enhance Aito's production and delivery speed, shortening the vehicle pickup cycle for users. Additionally, CATL will leverage its carbon neutrality capabilities to assist the automotive supply chain in building a complete 'green automotive value chain' and strengthen its global brand image for 'zero carbon intelligent manufacturing'. Moreover, the collaboration between CATL and Seres has extended from power batteries to the zero-carbon field. In April, the two parties successfully integrated a 50MW distributed photovoltaic project at the Seres Super Factory, providing core green energy for the factory. Moving forward, CATL and Seres will deepen their strategic synergy in new product development, new technologies, and new materials application, promoting a green and low-carbon transformation across the entire industry chain. In another development, Tesla has raised the price of the Model 3 Long Range version by 10,000 yuan. As price cuts become mainstream, Tesla has once again taken a unique stance by increasing prices. On July 1, Tesla's website showed that the Model 3/Y Long Range All-Wheel Drive version has been upgraded, with the Model 3 Long Range version's price now at 285,500 yuan, while the Model Y Long Range version remains at 313,500 yuan. The new version offers improved range, with the Model 3 Long Range version achieving a CLTC range of 753 kilometers and a 0-100 km/h acceleration of 3.8 seconds. Both new versions are equipped with a newly designed battery pack that maintains the same capacity but uses a new chemical formula, optimizing the vehicle for better range. The acceleration improvement for the Model 3 Long Range version is achieved through the standard 'Acceleration Boost' software package rather than hardware changes. This is not Tesla China's first price increase; earlier in 2023, Tesla raised prices four times within a month and previously adjusted prices for various models multiple times. Tesla's strategy reflects a shift from a price war to a 'value marketing' approach in the Chinese market. Additionally, reports indicate that the U.S. House of Representatives passed a budget bill on July 3, which includes an accelerated termination of tax incentives aimed at promoting electric vehicle adoption. This bill is currently awaiting Trump's signature, signaling the end of many incentives from the previous Inflation Reduction Act. The House approved the termination of $7,500 new electric vehicle tax credits and $4,000 used vehicle tax credits effective September 30, disregarding requests for extensions from dealers and manufacturers. The end of these tax incentives poses a significant challenge to the U.S. automotive industry. In June, the new energy vehicle rankings showed Leap Motor approaching 50,000 units sold, achieving a record high and maintaining the top spot in the Chinese new energy vehicle market for four consecutive months. Aito's sales surpassed 44,000 units, returning to the top three, while Li Auto's sales declined, causing it to drop to third place. The report also highlighted BYD's first vehicle rollout at its new factory in Brazil, marking a new phase in BYD's globalization strategy. The Brazilian plant is expected to produce both pure electric and plug-in hybrid models with a planned capacity of 150,000 units, creating 20,000 local jobs. BYD's presence in Brazil has significantly increased, with over 20,000 units sold in the first quarter of this year, making it the top-selling electric vehicle brand in the country. Overall, BYD's overseas sales surged to over 470,000 units in the first half of the year, reflecting a 132% year-on-year increase, with expectations of exceeding 800,000 units in total overseas sales by 2025.