Visitors look at Volkswagen AG vehicles at the carmaker’s booth at the Auto Shanghai 2021; this … [+]
U.S.-listed shares in Chinese electric vehicle makers climbed on Monday amid hopes that a closely watched auto trade show kicking off in Shanghai today will generate welcomed buzz at home and abroad for the country’s latest EV models.
Auto Shanghai, the biggest industry gathering in China since the winding down of its “zero-Covid” in December, runs through April 27. China boasts the world’s largest auto market; about one of four cars sold in the country last year were EVs.
Gains among U.S.-traded makers were led by XPeng Motors, after the Guangzhou-based company unveiled a new production platform that it said would lower manufacturing costs. XPeng, led by billionaire He Xiaopeng, is 3.9% owned by China e-commerce heavyweight Alibaba. Its shares soared by nearly 14% to a three-month-high of $11.43.
“We envision that this evolutionary intelligent architecture will lead smart EV technology development for the next three years,” He said in a statement. “It will make rapid advancements in technology available for our customers as standard, with faster software upgrades, stunning cost savings and elevated product experience.”
XPeng’s announcement is an example of an EV business with “digital DNA planning its technology roadmap,” said Bill Russo, founder and CEO of Shanghai-headquartered auto consultancy Automobility in written comments. “The foundation of smart EVs is built on integrated electronics and software that can be continually and frequently upgraded without changing the base hardware platform.”
“XPeng vehicles will succeed or fail based on whether the market assigns value to the unique user experience made possible with this software defined architecture,” he said.
Among other Chinese automakers listed in the U.S., Nio today rose by 6% to $9.83; Li Auto rose by 6.1% to $26.13.
“The China market is currently in a period of historic transition to new energy vehicles, the likes of which is unparalleled elsewhere on the planet,” Russo said in a research note this week. “This transition is not favorable for legacy carmakers who must now determine how they intend to get back into this new game.”
China’s rising industry clout isn’t only at home. The country exported a total of 994,000 vehicles in the first quarter of 2023, an increase of 70.6% from a year ago, according to the China Association of Automobile Manufacturers, Xinhua reported yesterday. Exports of new-energy vehicles more than doubled to 248,000 units during the period, it said.
BYD, China’s top local EV maker, is among the country’s auto suppliers looking to go global. Its … [+]
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