Auto Market Scan - Issue 11, 2024 (03/18-03/24)

The main information comes from the daily news of the Passenger Association, etc

Website: http://www.cpcaauto.com

1. Overview of this week's auto market

1. Retail sales in the national passenger car market slowly recovered in March 2024

【2023.03.1-24 Passenger Association Market Analysis News】

From March 1 to 24, the wholesale of passenger car manufacturers nationwide was 1.207 million units, an increase of 17% year-on-year and an increase of 82% over the same period last month. Since the beginning of this year, a total of 4.607 million units have been wholesaled, an increase of 13% year-on-year. From March 1 to 24, the market retailed 1.028 million vehicles, an increase of 11% year-on-year and an increase of 25% over the same period last month. Since the beginning of this year, a total of 4.17 million units have been retailed, an increase of 16% year-on-year.

From March 1 to 24, the national passenger car manufacturers wholesaled 508,000 new energy vehicles, an increase of 33% year-on-year and an increase of 110% over the same period last month. Since the beginning of this year, a total of 1.644 million units have been wholesaled, an increase of 30% year-on-year. From March 1 to 24, the retail sales of new energy vehicles were 490,000 units, an increase of 39% year-on-year and an increase of 84% over the same period last month. Since the beginning of this year, a total of 1.55 million units have been retailed, an increase of 38% year-on-year.

In the first week of March, the national passenger car market sold an average of 35,000 units per day, an increase of 4% year-on-year in March last year and a decrease of 4% month-on-month.

In the second week of March, the national passenger car market sold an average of 49,000 units per day, an increase of 24% year-on-year in March last year and a 92% month-on-month increase.

In the third week of March, the national passenger car market sold an average of 47,000 units per day, an increase of 6% year-on-year in March last year and a 21% month-on-month increase.

From March 1 to 24, the market retailed 1.028 million vehicles, an increase of 11% year-on-year and 25% over the same period last month. Since the beginning of this year, a total of 4.17 million units have been retailed, an increase of 16% year-on-year.

After the Spring Festival is an important time point for the launch of new products, many manufacturers have launched a large number of new cars, product homogenization is becoming more and more serious, pure electric models are particularly prominent, and the competition of car companies is gradually extending upstream and downstream. The cumulative retail penetration rate of new energy vehicles in March was 47%, and the recovery of the fuel vehicle market was still slower than expected.

Although the continuous price cuts of some car companies have brought about a serious short-term wait-and-see phenomenon, the price reduction cycle has been gradually completed, so consumer confidence in the new energy vehicle market is gradually recovering. Driven by the national pro-consumption policy, many provinces and cities have introduced corresponding pro-consumption policies, and the full resumption of offline activities such as auto shows will also accelerate the gathering of popularity. Due to the recent low prices of lithium carbonate, it is conducive to manufacturers to launch new new energy models that are more cost-effective, and the attention of the auto market will continue to heat up.

Due to the strong sprint in March last year, the growth pressure in March this year is still greater.

2. In March 2024, the wholesale trend of passenger car manufacturers in China is not strong

In the first week of March, the average daily wholesale volume was 36,000 units, down 2% year-on-year from March last year and up 50% month-on-month.

In the second week of March, the average daily wholesale volume was 59,000 units, an increase of 38% year-on-year in March last year and an increase of 201% month-on-month.

The average daily wholesale volume in the third week of March was 63,000 units, an increase of 19% year-on-year in March last year and a 53% month-on-month increase.

From March 1 to 24, the wholesale of passenger car manufacturers nationwide was 1.207 million units, an increase of 17% year-on-year and an increase of 82% over the same period last month. Since the beginning of this year, a total of 4.607 million units have been wholesaled, an increase of 13% year-on-year.

Automobile is the pillar industry of the national economy, to stimulate the economy has high hopes, it is expected that the local government will further introduce a variety of incentives, March into the sales season, manufacturers will compete vigorously. There are 21 working days in March this year, which is 2 days less than the 23 working days in March 2023. Due to the sprint in sales in the first quarter and the sprint in sales of some manufacturers in the fiscal year, the month-on-month production and sales growth in March will be relatively rapid.

At present, most brands have many potential customers, and many fuel vehicle users are in a wait-and-see state, and it is expected that the market recovery will be jointly promoted when the trade-in policy of manufacturers and the country is clear and the market peak season in May and June comes.

On the one hand, car companies are caught in the whirlpool of price wars and continue to reduce their prices, and on the other hand, they have to continuously increase investment in product upgrading, and their profitability has been greatly tested, and they urgently need to adjust their profit models. The State Council requires a separate assessment of the new energy business of the three major central enterprises, and puts forward higher requirements for suppliers in the relevant industrial chain to reduce costs and increase efficiency, so as to improve product competitiveness, thereby increasing sales and promoting sustainable development.

3. China's auto imports from January to February 2024 will drop by 3% by 100,000

According to customs data, 103,000 vehicles were imported from January to February 2024, down 3% year-on-year. China's imported vehicle imports will continue to decline from 1.24 million units in 2017 to 800,000 units in 2023. The downward trend continues.

Passenger cars accounted for 98% of the absolute main position in the import structure of automobiles this year, of which 43,000 sedans were imported from January to February 2024, accounting for 43%, 32,000 four-wheel drive SUVs were imported, accounting for 32%, and 6,000 unspecified motor vehicles were imported from new energy vehicles, accounting for 6%, and the proportion of new energy continued to increase.

In 2024, Japan, South Korea, Sweden and other major countries in the early stage of import performance will be relatively strong, while Japan and Sweden will have a large increase in February.

According to the insurance data of the National Financial Administration, the import of ultra-luxury cars has continued to grow in the past few years, but it has declined by 14% since 2023 and accelerated by 33% from January to February 2024. The insurance data of imported luxury brands will increase by 9% in 2023 and 0 growth from January to February 2024, and the performance of the imported high-end market will be stable.

4. China's automobile export market from January to February 2024 will be 830,000 units

Since 2021, with the outbreak of the new crown epidemic in the world, the resilience of China's auto industry chain has been fully reflected, and China's auto export market has continued to grow super in the past four years. In 2021, the export market sales volume was 2.19 million units, a year-on-year increase of 102%. In 2022, the automobile export market sold 3.4 million units, a year-on-year increase of 55%. In 2023, China's automobile exports will reach 5.22 million units, with a sustained strong growth rate of 56%. From January to February 2024, China exported 830,000 vehicles, with a sustained strong export growth rate of 22%. From January to February 2024, automobile exports were US$15.7 billion, with an export growth rate of 12.6%. From January to February 2024, the average export price of automobiles was US$19,000, which was basically the same as that of US$19,000 in 2023.

The driving force of export growth is God's help, high quality, geographical changes, and people's efforts. The first is the help of heaven - China's automotive industry chain is resilient. The second is high quality, and the export contribution of new energy has increased. The third is people's efforts - independent brand enterprises work hard. Fourth, geopolitical changes -- the all-round development of China's exports.

In the past two years, developed countries such as Belgium, Spain, Slovenia and the United Kingdom in Western and Southern Europe have continued to become export highlights, and exports to Southeast Asian countries such as Thailand have strengthened this year. New energy models such as SAIC Motor Passenger Vehicle and BYD of its own brands performed strongly. Although the export of new energy vehicles to Europe has temporarily slowed down recently, it is expected that with the easing of the situation in the Red Sea and the gradual adaptation of the impact of European countervailing, China's exports to Europe should be able to rebound.

5. Lithium battery market analysis for new energy vehicles, February 2024

In February 2024, 18 GWh of lithium batteries were installed, down 18% year-on-year. The loading of ternary batteries was 6.9 GWh, accounting for 38%, an increase of 6 points, while the loading volume of lithium iron phosphate batteries was 11GWh, accounting for 61%, and the growth of ternary batteries improved. From January to February, the loading of lithium batteries was 50.3, a year-on-year increase of 32%.

From January to February 2024, 16% of the models with a battery energy density of more than 160 will be used, which is a significant decrease compared to 18% in 2023, which is mainly due to the decline in energy density caused by the ternary substitution of lithium iron phosphate batteries. Products with an energy density of less than 125 have risen from 9% in 2023 to 13% in 2024.

With the growth of long-lasting products, ternary batteries have picked up, and the total proportion of lithium iron phosphate batteries has dropped from 67% to 61%. With the promotion of policies, range extender and plug-in hybrid continue to strengthen, and the trend of pure electric vehicles is weak, and it is expected that the growth of battery installation demand for electric vehicles will continue to be slightly slower than the growth of total vehicles.

2. New cars will be launched this week

1. Hongqi EH7 was officially launched

On March 20, the Hongqi EH7 was officially launched, with a total of 5 configuration models. The Hongqi EH7 is the first model of the "new energy sub-brand", which is based on the new FMEs "Banner" super architecture. The new car is positioned as a medium and large sedan, and in the future, it may launch a battery swap version and a long-range fast charging version, with a maximum range of up to 800km.

2. BYD Corvette 07 Glory Edition was officially launched

On March 18, the frigate 07 Glory Edition of BYD Ocean Network was officially launched. The new model will be available in five models, DM-i and DM-p, with prices ranging from CNY 179,800 to CNY 259,800. Compared with the 2023 model, the Corvette 07 Glory Edition adds an elite model to the original model, with a price of 179,800 yuan, and the corresponding configuration of other models is reduced by 1.3-30,000 yuan.

1. Beijing BJ40 Glory Edition was launched

On March 18, the Beijing BJ40 Glory Edition was launched, with a total of 3 new models and a price range of 139,800-155,800 yuan. The new car is basically the same as the old model. It is equipped with a 2.0-liter gasoline and 2.0-liter diesel engine mated to an 8TIP gearbox.

2. The Tiguan L is a new outstanding model on the market

On March 18, the Tiguan L was launched, with a total of three new models and a price range of 186,800-217,000 yuan. The new car is basically the same as the old model. It is equipped with a 1.5-liter and 2.0-liter engine mated to a 7DSG transmission.

3. 捷途X90 PRO上市

On March 20, the X90 PRO was launched, with a total of 10 new models and a price range of 127,900-172,900 yuan. It is equipped with a 1.6-liter and 2.0-liter engine mated to a 7DCT transmission. It adopts a 15.6-inch bezel-less large screen and a full LCD instrument cluster.

On March 22, the new model of Jietu X90 PLUS was launched, with a total of 2 new models and a price range of 122,900-125,900 yuan. The exterior is basically the same as the current model. It is powered by a 1.6-liter engine mated to a 7-speed transmission (DCT).

4. The new tank 400 Hi4-T was launched

On March 22, the new tank 400 Hi4-T was launched, with a total of 2 models and a price range of 285,800-289,800 yuan. The appearance is basically the same as the old model. It is equipped with a plug-in hybrid system consisting of a 2.0-liter engine and an electric motor, mated to a 9TIP gearbox.

On March 20, the new tank 500Hi4-T was officially launched, and the price of the new car remained the same as the old model, maintaining 335,000 yuan. By replacing the previous E20NA engine with the E20NB, the thermal efficiency of the new engine has been improved to 39.2%, and fuel consumption has been reduced from 9.55 L/100 km to 8.8 L/100 km in the WLTC mode. It has an all-electric range of 110 km and a combined range of 790 km.

5. The new Lelink 185T model was launched

On March 20, the new Lelink 185T model was launched, with a total of 2 new models and a price range of 129,800-135,800 yuan. The exterior is basically the same as the old model. It is powered by a 1.2-liter engine mated to a CVT transmission.

6. The new Changan model was launched

On March 20, the new Changan UNI-V was launched, with a total of four new models and a price range of 108,900 to 124,900 yuan. The exterior is basically the same as the old model. It is powered by a 1.5-liter engine mated to a 7DCT transmission.

On March 20, the all-new Changan Yidong was launched, with a total of 3 new models and a price range of 83,900-96,900 yuan. It is powered by a 1.5-liter engine mated to a 7DCT transmission. Equipped with 360-degree panoramic image, mobile phone interconnection, iFLYTEK Flying Fish OS, etc.

On March 20, the Changan CS75 PLUS Champion Edition was launched, with a total of 3 new models and a price range of 121,900-139,900 yuan. The exterior is basically the same as the old model. It is equipped with a 1.5-liter and 2.0-liter engine mated to an 8TIP gearbox.

7. The new Buick Envision S was launched

On March 21, the new Buick Envision S was launched, with a total of 3 new models and a price range of 214,900-239,900 yuan. It is equipped with a 1.5-liter and 2.0-liter engine mated to a 9TIP gearbox. Equipped with seat vibration safety tips, CarPlay, wireless charging, and more.

8. The new Tiggo 8 PLUS model is launched

On March 22, the Tiggo 8 PLUS new model was launched, with a total of 2 new models and a price range of 126,900-129,900 yuan. The exterior is basically the same as the current model. It is powered by a 1.6-liter engine mated to a 7-speed transmission (DCT).

3. Macroeconomics and policy

1. National Development and Reform Commission: Completely cancel the restrictions on foreign investment access in the manufacturing sector

On March 24, the 2024 Annual Meeting of the China Development Forum was held in Beijing. Zheng Shajie, director of the National Development and Reform Commission, said that the introduction of the 2024 version of the negative list for foreign investment access is being implemented, and the restrictions on foreign investment access in the manufacturing sector are being fully lifted. Carry out the upgrading of durable consumer goods such as automobiles, home appliances, and household appliances.

2. Ministry of Industry and Information Technology: Encourage domestic enterprises to actively expand overseas markets

The Foreign Affairs Work Symposium of the Ministry of Industry and Information Technology was held in Beijing on the 20th. It is necessary to give full play to the guiding role of industrial policies, build a platform for exchange and cooperation, encourage domestic enterprises to actively expand overseas markets, and support more foreign-funded enterprises to participate in China's new industrialization process.

3. National Energy Administration: Formulate relevant policies to accelerate the high-quality development of the hydrogen energy industry

On March 22, the National Energy Administration issued the "2024 Energy Work Guidance", compiling relevant policies to accelerate the high-quality development of the hydrogen energy industry, steadily carrying out hydrogen energy pilot demonstrations, focusing on the development of renewable energy hydrogen production, and expanding hydrogen energy application scenarios.

4. Yin Yong, Mayor of Beijing: We will continue to attract leading companies in autonomous driving

On March 18, Yin Yong, deputy secretary of the Beijing Municipal Party Committee and mayor, said at the press conference of the State Council Information Office: "We will continue to attract more leading enterprises and R&D institutions in the field of autonomous driving, improve the upstream and downstream supporting facilities of the industrial chain, and welcome all kinds of capital, especially long-term capital, to increase investment in this field." ”

5. Beijing will provide support to second-hand car dealers up to 2 million

On March 19, the Beijing Municipal Bureau of Commerce issued the "Notice on the Implementation of Second-hand Car Distribution Support Policies", announcing that enterprises with second-hand car dealerships of more than 5 million yuan from November 1, 2023 to October 31, 2024 will be given a financial reward of 0.5% of their second-hand car dealership. The maximum amount for a single enterprise is not more than 2 million yuan.

6. Pudong New Area opened the second batch of autonomous driving test roads

On March 19, the second batch of autonomous driving open test roads in Pudong New Area was revealed at a press briefing that the entire Jinqiao Economic and Technological Development Zone and Pudong Shenjiang Road, Hunan Highway, Lianggang Highway and other "north-south science and technology innovation corridor passages" were opened as autonomous driving test roads. So far, Shanghai has opened a total of 1,003 test roads, with a total mileage of more than 2,000 kilometers.

7. The auction results of Shanghai Pai in March were announced, with a winning rate of 19.4% and an average transaction price of 93,497 yuan

On March 23, the results of the Shanghai auction in March were released: the total number of individual auctions was 9,595, and the number of participants in the auction was 49,498, with a winning rate of 19.4%. The lowest transaction price was 93,400 yuan, and the average transaction price was 93,497 yuan, an increase of 655 yuan from the previous month.

8. Shanghai: Accelerate the construction of vehicle-road coordination facilities in key areas such as the Lingang New Area, and build exclusive edge computing power pools

The Shanghai Municipal Communications Administration and 11 other departments recently jointly issued the "Implementation Plan for the High-quality Development of Intelligent Computing Infrastructure in Shanghai (2024-2025)". Accelerate the construction of vehicle-road coordination facilities in key areas such as the Lingang New Area, and build exclusive edge computing power pools. Strengthen the innovation and development of technologies in the fields of L4 and above high-level autonomous driving, 5G-V2X, and strengthen the construction of autonomous driving training datasets and the training of large visual models.

9. Tianjin will target 10,000 passenger cars for citizens who have been shaken for a long time

On March 20, according to the Tianjin Municipal Transportation Commission, this year will be targeted to 10,000 individual ladder lottery indicators for citizens who have not been successful for a long time. Citizens who are still in the lottery and have participated in more than 25 periods (including 25 periods) can participate in the index configuration.

10. Eight districts in Zhengzhou will issue a subsidy of 50 million yuan for car purchases

Zhengzhou Zhengdong New District, Economic Development Zone, High-tech Zone, Zhongyuan District, Jinshui District, Erqi District, Guancheng District, Huiji District and other eight districts in the city jointly carry out car purchase subsidy activities, the subsidy standard for the purchase of new energy vehicles is not higher than 5,000 yuan, and the subsidy standard for each fuel vehicle is not higher than 3,000 yuan. A total of 50 million yuan of subsidy funds will be issued.

Fourth, enterprise information

11. Baojun will launch six new models this year and next

On March 20, it was reported that Zhou Yu, deputy general manager of SAIC-GM-Wuling brand division, said on his personal Weibo that Baojun "has laid out 6 new cars such as PHEV SUVs and B-class sedans this year and next." He said that Baojun will launch new cars in April.

1. Beijing Benz's revenue in 2023 is 22.484 billion euros

BAIC Motor announced Beijing Benz's 2023 results, with revenue of 22.484 billion euros, profit after tax of 2.999 billion euros (about 23.531 billion yuan), and total comprehensive income of about 2.997 billion euros (about 23.515 billion yuan).

2. BYD will invest an additional 83% in its plant in Brazil

On March 19, Bloomberg reported that BYD had increased its investment in the Brazilian plant to R$5.5 billion.

3. GAC Group: It intends to transfer 100% of the equity agreement of Zhixiang Company to its subsidiary GAC Aion

On March 20, GAC Group announced that the board of directors agreed that the company would transfer 100% of the equity of Hunan Zhixiang Automobile Management Co., Ltd. to GAC Aion, a holding subsidiary, at a transfer price of 190 million yuan, and at the same time agreed that GAC Aion would acquire 100% of the equity of Zhixiang Company and inject 1.858 billion yuan into it.

4. Geely Group announced its 2024 new energy product plan and will launch nine new models

On March 20, Zhejiang Geely Holding Group announced the group's new energy product plan for 2024. The Geely brand, the Zeekr brand, and the Lynk & Co brand will each launch three new energy models in 2024.

5. Geely Automobile: ZEEKR has publicly filed Amendment 3 to its registration statement

On March 21, Geely Automobile announced the latest progress on the proposed spin-off of Zeekr and its independent listing. On March 20, ZEEKR publicly filed its registration statement with the SEC in accordance with the U.S. Securities Act of 1933, Amendment No. 3 to its registration statement. The updated registration statement includes the audited and selected financial information of ZEEKR Group for 2023.

6. Geely Automobile's net profit increased by 51% in 2023

On March 20, Geely Automobile disclosed its 2023 financial report, showing that the company achieved operating income of 179.2 billion yuan, a year-on-year increase of 21%, a record high, a net profit attributable to the parent company of 5.308 billion yuan, compared with a net profit attributable to the parent company of 3.511 billion yuan after excluding the one-time bargaining acquisition income in 2022, a year-on-year increase of 51%, a year-on-year increase of 31% in gross profit to 27.4 billion yuan, a gross profit margin increased from 14.1% in 2022 to 15.3% in 2023, and a net cash level increased by 46% to 28.4 billion yuan, the reserves are abundant and stable.

7. The price of Cadillac XT5 is reduced by 100,000 yuan

On March 22, it was reported that the price of SAIC-GM Cadillac's 2024 Cadillac XT5 models was reduced by 100,000 yuan, and the adjusted price was 252,700 yuan.

8. Li Xiang issued an internal letter to all employees: Ideal MEGA has misjudged the strategic rhythm and paid too much attention to sales

On March 21, Li Xiang, CEO of Li Auto, issued an internal letter to all employees, reviewing the problems that occurred in Li Auto in March and proposing solutions. Li Xiang believes that Ideal MEGA has misjudged the strategic rhythm and mistakenly treated Ideal MEGA from the 0 to 1 stage as the operation from 1 to 10 stages. Li Auto focuses too much on sales and competition from top to bottom, allowing desire to override value.

9. Nezha Automobile signed a contract with the Hong Kong government to build a factory in Hong Kong

On March 20, the "Key Enterprise Partner Signing Ceremony" was held in Hong Kong, and Nezha Automobile became a key enterprise partner of the Hong Kong government. The Hong Kong government will provide a HK$200 million subsidy for Nezha Automobile and assist in the investment of US$200 million in Cornerstone Wheel. Nezha Automobile is building an intelligent R&D center and a big data center in Hong Kong as planned, and developing localized intelligent new energy vehicles around different user characteristics. At the same time, the company plans to build a production plant in Hong Kong.

10. The registered capital of Nezha Automobile increased to 2.76 billion yuan

Recently, Hezhong New Energy Automobile Co., Ltd., an affiliate of Nezha Automobile, has undergone industrial and commercial changes, and its registered capital has increased from about 2.66 billion yuan to about 2.76 billion yuan.

11. Tesla Model Y price increases "against the market".

Tesla China announced on March 20 that the price of its main model Model Y, which is made in China, will be raised by 5,000 yuan from April 1. At the same time, Tesla's limited-time official car insurance subsidy policy of 8,000 yuan and the maximum 10,000 yuan car paint reduction policy will also expire on March 31.

12. Tesla's China charging scope has been expanded to more than 800 charging stations

On March 19, Tesla announced that it has opened its charging network to more than 800 charging stations, including more than 450 Superchargers and more than 350 destination charging stations. In addition, from now on, the Tesla Mini Program supports charging non-Tesla vehicles.

13. NIO launched the recruitment of intelligent driving pilots in 10,000 urban areas for Banyan platform model users

On March 21, Ren Shaoqing, vice president of intelligent driving R&D of NIO, posted in the user community that it would open a recruitment of 20,000 users for the intelligent driving experience on urban roads. This urban intelligent driving user experience recruitment is aimed at users of Banyan platform models. During the same period, nearly 300 NIO stores across the country can also make appointments to experience the intelligent driving function in urban areas.

14. Li Bin of NIO confirmed that the development of the new mobile phone has been completed

Li Bin, founder of NIO, said: "NIO has completed the research and development of the NIO Phone 2 generation, which has entered the manufacturing stage and will be released soon. At the same time, Li Bin said: "NIO will only launch one new mobile phone every year."

15. Li Bin of NIO visited Gotion Hi-Tech for in-depth exchanges on potential cooperation such as battery swap business and platform opening

On the morning of March 23, Li Bin, founder, chairman and CEO of NIO, and his delegation visited Guoxuan Hi-Tech and had in-depth exchanges with Chairman Li Zhen on potential cooperation such as battery swap business and platform opening.

16. OTA upgrade for all models of Wenjie Wenjie M9 has added NCA in urban areas without maps

On March 19, HarmonyOS announced the OTA upgrade of all models in the world, including 6 major capability upgrades and 15+ experience optimizations.

17. Wuling Binguo launched a limited-time event with a maximum discount of 10,000 yuan

On March 22, Wuling Motors officially said that Wuling Binguo launched a sincerity price of 55,800 yuan, with a maximum discount of 10,000 yuan. From now until April 30, users can order Wuling Binguo for 99 yuan through the official channels of Wuling on the whole network, and enjoy the triple gifts of car purchase, including no pressure gifts: financial discount or replacement policy of 2000 yuan/unit (choose one of the two); worry-free gifts: 3.5kW AC charging piles (with installation conditions); guarantee gifts: the first non-operating owner of the three electric lifetime warranty.

18. Hyundai's 5 car push promotions will be discounted by up to 36,800 yuan

On March 19, Hyundai Motor launched preferential activities for its 5 models, including Elantra 75,800, ix35 Musa 99,800, Tucson L 134,800, Shengda Traveler 166,000, and Kusitu 148,000.

19. Xiaomi will invest 6.7 billion yuan in innovative businesses such as smart electric vehicles in 2023

On March 19, Xiaomi Group released its 2023 financial report. The annual revenue for 2023 was 270.97 billion yuan, down 3.2% year-on-year, and the adjusted net profit was 19.273 billion yuan, up 126.3% year-on-year. 6.7 billion yuan was invested in innovative businesses such as smart electric vehicles.

20. Xpeng Motors released its fourth-quarter financial report: revenue increased by 154% year-on-year

On March 19, Xpeng Motors released its financial results for the fourth quarter of 2023. In the fourth quarter, a total of 60,158 smart electric vehicles were delivered, with revenue of 13.05 billion yuan, an increase of 53% quarter-on-quarter and 154% year-on-year, a significant improvement in gross profit margin of 6.2%, an increase of 9 percentage points quarter-on-quarter, and a gross profit margin of automobiles of 4.1%, an increase of more than 10 percentage points quarter-on-quarter, and a significant decrease in net loss quarter-on-quarter and year-on-year. As of the end of the fourth quarter, Xpeng's cash reserves reached 45.7 billion yuan, a net increase of 9.2 billion yuan quarter-on-quarter and a net increase of 7.5 billion yuan year-on-year.

21. Xpeng Motors will introduce a new dealer cooperation model to increase sales and control inventory

On March 19, Xpeng Motors announced that it will implement an innovative dealer cooperation model from the second quarter. This model aims to speed up vehicle deliveries by establishing a channel inventory of about half a month. At the same time, Xpeng Motors will use the system and monitoring mechanism to strictly control inventory and ensure a unified user purchase experience across the country.

22. Xpeng Motors and Taobao China terminate the agreement Alibaba executive Hu Xiao resigned as a director of Xpeng

After the Hong Kong stock market closed on the 20th, Ali sold about 33 million ADSs of Xpeng at a discount of 1.4%-2.9% in the market, cashing out up to $322 million. On March 20, Xpeng Motors announced the "Termination of the Relevant Agreement with Taobao China and the Resignation of Non-Executive Director". The relevant agreement shall be terminated in its entirety and shall cease to have any effect as of March 19, 2024 (termination of the Agreement). The Board of Directors of Xpeng Motors announced that Hu Xiao has submitted his resignation to the Board of Directors as a non-executive director of the Company, effective March 19, 2024.

5. Industry information

1. From January to February 2024, the export value of lithium-ion batteries in mainland China decreased by 14.9% year-on-year

On March 21, the cumulative export value of lithium-ion batteries in China from January to February 2024 was US$8.724 billion, a year-on-year decrease of 14.9%, and the cumulative export volume of lithium-ion batteries in China from January to February 2024 was 595 million, a year-on-year increase of 10.4%. Among them, the export value of lithium-ion batteries in January 2024 was US$5.016 billion, a year-on-year decrease of 11.1% and a month-on-month decrease of 5%, the export value of lithium-ion batteries in February 2024 was US$3.708 billion, a year-on-year decrease of 19.5% and a month-on-month decrease of 26.1%, the number of lithium-ion battery exports in January 2024 was 354 million, a year-on-year increase of 17.6% and a month-on-month increase of 18%, and the export volume of lithium-ion batteries in February 2024 was 241 million, a year-on-year increase of 1.3% , a decrease of 31.9% from the previous month.

2. Polestar is connected to Tesla's China charging network

On March 20, Polestar announced that from now on, Polestar's pure electric models can be charged at Tesla's Supercharger and destination charging stations open in Chinese mainland.

3. The registered capital of Zhidou New Energy Vehicle increased to 36.46 million

Recently, Nanjing Zhidou New Energy Automobile Co., Ltd. has undergone industrial and commercial changes, and the registered capital has increased from 25 million yuan to about 36.46 million yuan, an increase of about 45.8%.

4. SAIC Motor established a joint venture with an Indian steel giant to produce and sell MG brand electric vehicles in the country

On Wednesday local time, India's largest steel producer JSW Group announced the establishment of a joint venture with SAIC Group, JSW MG Motor India. The joint venture plans to launch a new product every three to six months, with a focus on new energy vehicles, and will also enter the high-end passenger car market in the future.

5. Passenger Association: Sales of new energy commercial vehicles increased by 97% year-on-year from January to February

On March 21, Cui Dongshu, secretary general of the Passenger Car Market Information Association, said that the domestic sales of commercial vehicles from January to February this year reached 336,000 units, a year-on-year decrease of 20%. Among them, commercial vehicle sales in February were 145,000 units, a year-on-year decrease of 50%. From January to February 2024, the sales volume of new energy commercial vehicles was 41,000 units, a year-on-year increase of 97%.

6. NVIDIA: The next generation of smart car chips has reached cooperation with three Chinese car companies

On March 19, Nvidia founder and CEO Jensen Huang announced that Nvidia's next-generation smart car chip, Thor, has reached cooperation with three Chinese automakers. NVIDIA's next-generation automotive smart chip, DRIVE Thor, is designed for the Transformer engine and will be adopted by BYD. Nvidia and Haobo jointly announced that they will join forces to mass-produce Level 4 autonomous vehicles in 2025. Xpeng will also adopt DRIVE Thor as the AI brain for its next-generation model.

7. Didi's net profit in 2023 will be 535 million yuan, and the net loss in the same period last year will be 23.783 billion yuan

On March 23, Didi announced that its revenue in the fourth quarter of 2023 was 49.4 billion yuan, a year-on-year increase of 55.4%, the annual revenue in 2023 was 192.4 billion yuan, a year-on-year increase of 36.6%, the net profit in the fourth quarter of 2023 was 1.1 billion yuan, compared with a net loss of 704 million yuan in the same period last year, and the net profit for the whole year of 2023 was 535 million yuan, compared with a net loss of 23.783 billion yuan in the same period last year.

8. Tianqi Lithium and CATL established a joint venture company to jointly build a power supply project in the methyl card mining area

On March 18, Tianqi Lithium officially announced that Sichuan Tianqi Shenghe Lithium Co., Ltd., a holding subsidiary of the company, Yajiang County Snowway Mining, a wholly-owned subsidiary of CATL, and Yajiang County Huirong Mining, a shareholding company of Shengxin Lithium Energy, held a signing ceremony for a tripartite joint venture, and the three parties signed the "Cooperation Agreement on Co-construction and Sharing of 220kV Power Transmission and Transformation Project in Methyl Card Mining Area".

9. Sinopec released the first group standard for hydrogen production and hydrogenation integrated station

On March 19, Sinopec News Office revealed that Sinopec, together with dozens of leading hydrogen energy companies in China, issued China's first group standard of "Technical Guidelines for Integrated Hydrogen Production and Refueling Stations". At present, Sinopec has covered all the mainstream routes of distributed hydrogen production, and has developed a total of 128 hydrogen refueling stations, becoming the enterprise with the largest number of hydrogen refueling stations in the world.

6. Multinational groups and international markets

1. Audi Group revenues in fiscal 2023 reach €69.9 billion, up 13.1 percent year-on-year

On March 19, the official website of the Audi Group disclosed that revenue in fiscal 2023 increased by 13.1% year-on-year to 69.9 billion euros, operating profit was 6.3 billion euros, operating profit margin was 9.0%, and net cash flow was 4.7 billion euros, basically the same as the previous year. Revenues in fiscal 2024 are expected to be between 63 billion and 68 billion euros, with an operating margin of between 8 and 10 percent. Starting at the end of 2024, Audi FAW New Energy Automotive Co., Ltd. will produce electric vehicles specifically designed for the Chinese market in Changchun.

2. Edgarne Hormack steps down as CEO of Bentley Motors and will move to Aston Martin

A few days ago, Bentley Motors officially announced that Adrian Hallmark (Adrian Hallmark) has decided to step down as chairman and CEO of Bentley Motors, and he will leave the Volkswagen Group. Aston Martin has announced the appointment of Ardern Hormack as the company's new CEO.

3. BMW's sales in the fourth quarter were 42.97 billion euros

On March 21, BMW announced that its sales in the fourth quarter of 2023 were 42.97 billion euros. BMW expects an EBIT margin of 8 to 10 percent in 2024.

4. ZF will increase sales to EUR 46.6 billion in 2023 and will invest EUR 18 billion in technology by 2026

On March 21, the ZF Group announced that its sales in 2023 increased to 46.6 billion euros, meeting its 2023 performance expectations. Adjusted EBIT amounted to EUR 2.4 billion, with an adjusted EBIT margin of 5.1 percent. By 2026, ZF will make targeted investments of 18 billion euros in future-oriented technologies.

5. Volkswagen will strengthen its cooperation with Mobileye, an Israeli autonomous driving company

On March 20, Mobileye announced that it will strengthen cooperation with Volkswagen in the field of autonomous driving, jointly introduce new autonomous driving functions into mass production, and provide them to Volkswagen's Audi, Bentley, Lamborghini and Porsche brands in the future. This includes automatic overtaking on multi-lane highways in permitted areas and conditions, as well as automatic stopping at red lights and stop signs.

6. The Cupra, a member of the Volkswagen Group, will enter the U.S. market

Wayne Griffiths, CEO of the Volkswagen Group's SEAT and Cupra, said a few days ago that the brand is advancing its plan to enter the U.S. market by 2030 and will use the group's production base in North America for production. Two models will be introduced in the U.S. first, an electric Formentor crossover and an as-yet-unnamed "larger electric crossover SUV," a move designed to make Cupra a global brand.

7. Qualcomm halted its acquisition of AutoTalks due to an antitrust investigation.

Qualcomm recently said: "Qualcomm has terminated the acquisition of Autotalks due to the failure to obtain regulatory approvals in a timely manner." It is understood that Qualcomm previously announced that it would acquire Israeli automotive chip manufacturer Autotalks, and then in September last year, the British Competition and Markets Authority (CMA) announced that it would review whether Qualcomm's acquisition of Autotalks would weaken competition in the British market.

8. South Korea's exports of new energy vehicles in February showed negative growth for the first time in more than three years

On March 20, according to data released by the Korea Automotive and Mobility Industry Association (KAMA), South Korea exported 53,369 new energy vehicles in February this year, a year-on-year decrease of 13.8%, the first negative growth since December 2020. On March 19, a data released by the Ministry of Trade, Industry and Energy showed that automobile exports in February this year decreased by 7.8% year-on-year to US$5.16 billion. Single-month exports have declined for three consecutive months, the lowest in nearly 13 months since January 2023 ($4.98 billion). Vehicle exports in the same period decreased by 11% y/y to 198,653 units.

9. Renault Korea will invest more than USD 500 million in its Busan, South Korea plant

On March 20, it was reported that Renault Korea Automobile Company will invest about 700 billion won (about 523 million US dollars) to establish hybrid vehicle production facilities at the existing plant in Busan. The company is also considering producing new electric vehicle models at the plant.

10. Renault and Volvo officially form a joint venture, Flexis, to produce a new generation of all-electric vans

Renault and Volvo announced on March 22 that they have received the necessary regulatory approvals to formally form a joint venture, Flexis SAS, to provide a new generation of all-electric vans and dedicated services. The first van is scheduled to start production in 2026. The new company will be headquartered in France, and Renault and Volvo plan to invest 300 million euros each over the next three years.

11. Bangladesh intends to cut tariffs to encourage the development of electric vehicles

To reduce emissions, the Bangladeshi government is currently working on a roadmap to reduce tariffs and provide incentives to encourage the import, assembly and local production of electric vehicles from next fiscal year, with the vision of having 30% of Bangladesh's transportation powered by electricity to reduce emissions, according to Bangladesh's Business Standard newspaper.

12. The U.S. government launched the "strictest automobile emission standards in U.S. history"

On March 20, the U.S. government moved to curb polluting emissions from U.S. cars and light trucks, imposing so strict tailpipe emission limits that it is set to force automakers to rapidly ramp up sales of electric and plug-in hybrid models.

13. New car sales in the EU increased by 10.1% year-on-year in February, and the market share of pure electric vehicles remained stable at 12%

The European Automobile Manufacturers Association said on March 21 that new car sales in the European Union increased by 10.1% year-on-year to 883608 units in February 2024. Petrol models remain the most popular choice among buyers, followed by hybrid models. The market share of pure electric vehicles is stable at 12%, the market share of hybrid vehicles is close to 29%, and the total market share of gasoline and diesel vehicles is 48.4%.

14. The EU is considering following the US in reviewing the risk of dependence on China for mature process chips

On March 19, Bloomberg reported that the European Union is considering launching a formal review to assess the degree to which European companies rely on mature processes or low-end chips from China.

15. The European Union will implement the "Euro 7" standard on July 1, 2025

Recently, the plenary session of the European Parliament finally adopted the "Euro 7" emission standard with 297 votes in favor, 190 votes against and 37 abstentions, and the new standard is scheduled to be implemented on July 1, 2025. It is reported that for passenger cars and vans, the current "Euro 6" test conditions and exhaust emission limits will remain unchanged, and for buses and trucks, tighter limits will be applied for exhaust emissions measured in the laboratory and under actual driving conditions, while maintaining the current "Euro 6" test conditions.

16. Shell plans to pivot to expanding the EV charging network

On March 19, Shell said in its latest energy transformation strategy that it is upgrading its retail network and expanding electric vehicle charging and convenience services, "We plan to divest about 500 Shell's gas stations every year this year and next year." Emphasis will be placed on public charging stations. Shell expects the number of public charging terminals worldwide to increase to 200,000 by 2030, up from 54,000 today.

17. Nissan and Mitsubishi Corporation sign a partnership agreement for e-mobility business

On March 18, Nissan Motor and Mitsubishi Corporation announced that they have signed a memorandum of understanding (MOU) to jointly explore new solutions for the use of electric vehicles to provide next-generation transportation and energy-related services.

18. Stellantis has an agreement with the California government to agree to the state's strict emissions requirements

Stellantis agreed to strict rules on electric vehicles introduced by California in a deal that could protect the state's clean car program from attacks by the U.S. government.

19. Tesla: The weekly output of 4680 batteries at the Texas Gigafactory can equip more than 1,000 Cybertrucks

Tesla announced on the evening of March 20, Beijing time, that the weekly output of 4680 batteries at the Texas Gigafactory is enough to equip more than 1,000 Cybertruck electric pickups.

20. Isuzu Motors will produce an electric version of the D-MAX pickup truck in Thailand

On March 21, a Thai government spokesman said that Japanese automaker Isuzu Motors plans to produce its electric D-MAX pickup truck in Thailand. The company plans to invest 1 trillion yen ($6.62 billion) in research and development by 2030. The electric D-MAX pickup truck will be exported from Thailand to Norway, the United Kingdom, Australia and other countries starting in 2025.

21. Volvo: Received an order from DFDS for 100 electric trucks

On March 18, Volvo Trucks announced that it had received an order from logistics company DFDS for 100 electric trucks. DFDS, one of the largest shipping and logistics companies in Northern Europe, has previously purchased 125 heavy-duty electric trucks from Volvo.

22. Nvidia released a new GPU chip B200

On March 18, NVIDIA founder and CEO Jensen Huang unveiled the latest GPU chip, the Blackwell B200, at NVIDIA GTC 2024, calling it "the world's most powerful AI chip."

23. The U.S. government announced $19.5 billion in subsidies for Intel

On March 20, local time, U.S. President Joe Biden announced that the U.S. Department of Commerce and Intel Corporation reached a preliminary agreement that Intel Corporation's computer chip factories in Arizona, Ohio, New Mexico and Oregon will receive $19.5 billion in subsidies, including $8.5 billion in direct funding and $11 billion in loans.