Significant Events in the New Energy Vehicle Market This Week

This week saw crucial developments in the new energy vehicle market. As the electric vehicle tax credit policy in the US approaches its end, manufacturers are ramping up sales efforts. Tesla's website prominently warns: 'Federal tax credit will end; please complete your vehicle purchase by September 30, 2025.' On the same day, Ford extended its promotion offering free home chargers and installation services until the end of September to attract electric vehicle buyers. The recent comprehensive tax and budget bill passed by the US Congress announced the termination of the $7,500 tax credit for new electric vehicle purchases and the $4,000 credit for used electric vehicles by the end of September. These subsidies have significantly boosted electric vehicle sales in the US in recent years. Dealers and analysts anticipate that consumers will rush to benefit from the credits before they expire. Rivian's CFO, Claire McDonough, mentioned that 'now is undoubtedly a good time to consider buying an electric vehicle. Once the tax credit policy ends, Rivian may introduce additional incentives, including loan benefits, depending on the industry's response.' Since 2020, US electric vehicle sales have surged, though market demand has recently slowed. Industry executives and analysts warn that without the subsidies, electric vehicle sales may further decline. GM CEO Mary Barra previously stated, 'The $7,500 tax credit is driving demand, and demand will slow without this policy.' Another study indicated that without the tax credit, US electric vehicle registrations could drop by 27%. The electric vehicle market in the US is currently transitioning from a 'policy-driven' to a 'market-driven' model, which may lead to fluctuating sales in the short term. Li Auto announced that pre-orders for its first pure electric SUV, the Li One, will open on July 17, with an official launch on July 29. CEO Li Xiang described the new vehicle as redefining the pure electric SUV segment, offering superior space utilization. The design merges elements from the MEGA and L series, featuring a streamlined 'bullet nose' front and a rear with LED tail lights and a dual-layer spoiler similar to the L9. The Li One will come with a host of technological features including custom laser radar, air suspension, dual screens, and AR-HUD. It will be powered by a dual-motor intelligent all-wheel drive system with a total output of 400 kW. The vehicle will also feature a new 5C ternary lithium battery technology offering two capacity options, with ranges of 670 km and 720 km under CLTC conditions. Li Auto plans to introduce five extended-range models and five pure electric models by 2025, with the Li One being the first. In another incident, the cargo ship Morning Midas, which was carrying over 3,000 Chinese vehicles including electric models from Chery and Great Wall Motors, caught fire and sank, leading to an estimated loss of $560 million. This is the third serious incident of its kind in three years, raising alarms about the risks associated with transporting electric vehicles. Industry experts emphasize the need for improved fire monitoring systems and regulations regarding vehicle spacing during transport. The accident highlights the vulnerabilities and systemic risks within the global automotive supply chain. On July 8, the Guangzhou Planning and Natural Resources Bureau announced the reclamation of land owned by Evergrande Auto in Nansha due to it being deemed idle. The company has not developed the land since June 2021, leading to its retrieval by authorities. This situation serves as a cautionary tale for the industry, indicating a shift from 'capital frenzy' to 'rational development' in the new energy vehicle sector. Lastly, at a recent event, the new logo for the Xiangjie brand was unveiled, inspired by the concept of 'universal stars.' Huawei's Yu Chengdong revealed that the brand's second model would be a station wagon, expected to launch in the fall. This move reflects Huawei's deepening market segmentation strategy and responsiveness to consumer demands, as they aim to innovate within the premium segment of the market.