Major players in China's automotive industry are ramping up their efforts for growth and innovation as the year 2024 approaches, with ambitious plans and substantial investments aimed at both domestic and international markets.
On February 24, Xpeng, the Chinese electric vehicle manufacturer, announced its commitment to accelerate its global expansion. The company has set its goals firmly, aiming to enter 60 countries and regions by 2025. By 2027, Xpeng aspires to rank among the top three exporters of new energy vehicles worldwide, and by 2033, it projects international markets will account for half of its sales. To facilitate this global push, Xpeng stated it would launch its Turing AI for intelligent driving on the international market by 2025, leveraging over ten years of experience from China. Alongside, Xpeng plans to deploy its fast-charging network worldwide, indicating its readiness to cater to growing global demand.
Notably, Xpeng recently shipped its first batch of 300 right-hand drive Xpeng X9 vehicles to Thailand, marking its entry point to the Southeast Asian market. This move signifies the manufacturer’s strategic approach to adapting its products for diverse markets.
Meanwhile, UNT is also making headlines, having released its preliminary financial results for 2024 on February 24. The results indicated significant improvements, with the company’s net loss reduced by over 50% compared to the previous year. It has anticipated gross revenue of approximately 6.509 billion yuan, representing a 22.25% increase year-on-year. Revenue growth has been bolstered by its automotive sector, projected to reach about 3.253 billion yuan, up 41.02% from last year. UNT now provides nearly 70% of automotive chips for fully assembled vehicles, focusing on power chips and modules as well as sensory devices, which enhances its contributions to the automotive supply chain.
UNT is also enhancing its research investments, targeting growth engines across four primary sectors: automotive, consumer, industrial, and artificial intelligence. Its commitment to innovation and sustainable growth reflects the overall trend of Chinese companies adapting to the ever-evolving automotive market.
Further developments include Chery’s announcement to establish the Chery Smart Auto Industrial Park at Beringin High-Tech Auto Valley, Hulu Selangor, Malaysia. The initiative, officially launched with groundbreaking ceremonies attended by local dignitaries, is slated to occupy 200 acres of the 800-acre industrial park and aims to produce 100,000 smart vehicles annually once operational. The facility's production capacity is expected to expand to 300,000 vehicles over time.
The Chery Smart Auto Industrial Park aims to be fully constructed by 2026, underpinning Chery’s commitment to penetrating the international market with advanced manufacturing capabilities. The company currently operates an assembly plant in Shah Alam, Malaysia, where it produces models like the Jaecoo J7 and Omoda C9.
Adding to the exciting developments, Tesla has confirmed updates for its Model S and Model X later this year. Lars Moravy, Tesla's Vice President of Engineering, teased improvements during a recent podcast, stating, "Wait for it. We’ll do it." While he did not divulge specifics, hints point to updates mirroring features from the latest Model 3 and Model Y.
Lastly, on February 25, ONVO unveiled spy photos of its flagship model L90. This new offering, along with its three-row seating design, is aimed at accommodating large families as a spacious SUV. Expectations for the L90 include its launch during Q2 2024, with sales commencing by Q3. Anticipation is also building around its pneumatic suspension system and sleek design, featuring hidden door handles for optimal aerodynamics, which highlights ONVO’s modern aesthetic approach.
WeRide is also making significant strides with its GXR Robotaxi, which recently gained approval for driverless commercial services within Beijing’s economic and technological zones. This second generation of autonomous taxis can accommodate five passengers, providing flexibility for operational services, including the key transport hub of Daxing International Airport. Targeting increased service availability, WeRide plans to expand its fleet substantially, potentially deploying hundreds more Robotaxis by 2025.
The developments across these diverse entities within the Chinese automotive industry not only signify the competitive nature of the market but also demonstrate how innovation, strategic planning, and commitments to sustainability are shaping its future as we approach 2024 and beyond.