GAC Aion sells 3,239 units in February, down 56% from January

March 09, 2021 CV TECH INC

GAC Aion, GAC Group’s electric vehicle brand, sold 3,239 units in February, down 56 percent from 7,356 units in January, according to data released by the group on March 8.

GAC Aion sells 3,239 units in February, down 56% from January-CnEVPost

GAC Aion sells 3,239 units in February, down 56% from January-CnEVPost

(Graphic by CnEVPost)

GAC sold 105,000 vehicles in February, up 2.8% from February 2019 and down 52% from 217,000 in January.

The data previously released by car companies including NIO, XPeng Motors, Li Auto, and BYD showed that their February sales declined significantly compared to January.

This is mainly due to the fact that the Chinese auto market is traditionally off-season from January to February, and the Chinese New Year holiday during this period can also cause large fluctuations in deliveries.

Last year, the Chinese New Year holiday ran from Jan. 24 to Jan. 31, and this year, it ran from Feb. 11 to Feb. 17.

GAC Honda sold 41,064 units in February, down 48% from 78,000 units in January, the data showed.

GAC Toyota sold 41,500 vehicles in February, down 55 percent from 90,000 units in January. Hybrids boosted their share of GAC Toyota’s February sales to 15.08 percent, up 2.33 percent from January.

GAC Fiat Chrysler sales increased 691 percent in February and GAC Mitsubishi sales increased 757.7 percent in February due to the impact of COVID-19 in China last February.

Trumpchi sales in February were 13,711 units, down 60% from 34,400 units in January.

GAC’s new energy passenger car sales in February were 3,929 units, down 56 percent from 8,885 units in January.

Huawei, GAC Aion reportedly develop next-gen smart EVs

Huawei's share of global telecoms equipment market increases to 31%

March 09, 2021 CV TECH INC

Chinese technology giant Huawei has increased its share of the global telecom equipment market to 31 percent, edging out Nokia, Ericsson, ZTE, Cisco, Ciena, and Samsung for the top spot, according to a report released Tuesday by market research firm Dell’Oro Group.

This ranking remains stable between 2019 and 2020, with these seven suppliers having a combined market share of 80 to 85 percent. Nokia and Ericsson are tied for second place due to their 15 percent market share, and ZTE is in fourth place with a 10 percent market share.

Huawei's share of global telecoms equipment market increases to 31%-CnTechPost

Huawei's share of global telecoms equipment market increases to 31%-CnTechPost

The global telecom equipment market grew by 7% year-on-year for the full year 2020, the fastest growth rate since 2011, according to the report.

Revenue share continues to be influenced by the status of 5G deployments in highly concentrated markets. While Ericsson and Nokia boosted their RAN market share in regional markets outside of China, preliminary estimates indicate that Huawei’s share of the global telecom equipment market, including China, grew by 2-3 percentage points for the full year 2020.

The positive momentum in the overall telecom market continued from Q1 to Q4 2020, thanks to strong growth in several wireless segments (including RAN and mobile core networks) and moderate growth in the broadband access and carrier-grade switch markets, according to the report’s estimates.

Faster growth rates in the mobile core network and RAN markets helped drive the acceleration for the full year 2020, with growth in both segments exceeding expectations, the report said, adding that supply chain disruptions due to the Covid-19 outbreak, which affected some telecom segments early last year, had largely been mitigated by the end of last year.

As investment in China outpaces the overall market, Huawei and ZTE’s combined revenue share grows by 3-4 percentage points between 2019 and 2020, and together they account for more than 40% of the global telecoms equipment market, according to Dell’Oro’s estimates.

Even though the baseline has become higher, the Dell’Oro analyst team remains optimistic for the full year 2021 and expects the overall telecom equipment market to grow by 3-5 percent.

Huawei holds 15.4 percent of global 5G patents

NIO discloses patent related to wireless charging

March 09, 2021 CV TECH INC

Gap reportedly considering selling China business due to poor sales

March 08, 2021 CV TECH INC

US apparel group Gap Inc. is considering potential options, including selling its China business to restructure its operations in the country, Sina Finance said Tuesday, citing people familiar with the matter.

Gap is working with an advisory firm to examine options and has approached potential buyers to assess their acquisition interests, the report said, adding that discussions are in the early stages and the company may also decide to keep the business.

The company, which owns brands such as the Banana Republic and Gap, entered the Chinese market in 2010 and operates offline and on the App Tmall, a Chinese e-commerce platform owned by Alibaba Group.

Gap pulled its Old Navy brand out of China last year after scrapping plans to spin it off for an IPO.

Gap reported earnings last week showing net sales of $4.42 billion in the fourth quarter of 2020, down 5% from a year earlier and below analysts’ estimates of $4.66 billion.

It reported a net income of $234 million for the fourth quarter, compared with a net loss of $184 million recorded in the same period a year earlier. It reported diluted earnings per share of $0.61, compared with a loss of $0.49 per share recorded in the same period a year earlier.

By brand, same-store sales increased 26% year-on-year at Athleta, increased 7% year-on-year at Old Navy, decreased 6% year-on-year at the Gap brand, and decreased 22% year-on-year at the Banana Republic.

Looking ahead to fiscal 2021, the company expects net sales to grow about 15 percent and diluted earnings per share to be in the range of $1.20 to $1.35.

Gap shares were up 34 percent over the past two months amid a general sell-off in US technology stocks.

Gap reportedly considering selling China business due to poor sales-CnTechPost

Gap reportedly considering selling China business due to poor sales-CnTechPost

Little mention of China’s EV industry in Five-Year Plan bodes well: experts

March 08, 2021 CV TECH INC

China’s ambition to become a world leader in electric vehicles was barely mentioned in this year’s annual government work report, presented Friday—a good sign, experts said, that the market is maturing.

After strong policy support over the past several years, the market is now evolving into a demand-driven model amid waning government stimulus, Cui Dongshu, secretary general of the China Passenger Car Association, wrote in a post published Saturday. “We expect auto consumption to grow robustly beginning this year,” (our translation) Cui added.

Growing the adoption of new energy vehicles (NEVs), a catchall term referring to all-electric, plug-in hybrid, and hydrogen cars in China, has been a major agenda item for the country’s annual parliament meetings since 2015. The government had set a sales target of 5 million NEVs in its 13th Five-Year Plan (FYP) ending in 2020 which propelled China to the top spot as the world’s biggest EV market by sales volume in 2015.

Beijing’s next goal is even loftier. It aims for NEV sales to account for 20% of overall new car sales in China by 2025 from the 2020 level of around 5%, according to a policy paper released November as part of the 14th FYP ending in 2025. In the report delivered by Chinese Premier Li Keqiang on Friday, policymakers plan to offer more targeted measures to remove barriers and allow for massive EV adoption in the next five years. Here are the key points.


Li said Friday during the annual meetings of the National People’s Congress (NPC) that Beijing will create a comprehensive regulatory structure for market access of industrial products such as automobiles, including enhanced after-deal scrutiny and cross-functional supervision. The path to reducing red tape is such regulation, Li said, which would benefit market competition.

The main purpose of such regulation is to cool investment in the EV sector and prevent the current supply glut from worsening, Fu Bingfeng, executive vice-chairman of the China Association of Automobile Manufacturers (CAAM) told Chinese media on Saturday. Fu called for “rational development” rather than the stoking of production capacity through investment plans from certain local governments and private investors.

China in April lowered the barrier for entry into the EV market after the Covid-19 pandemic took hold, removing requirements such as design and development capabilities for new entrants, reported China Daily.

EV infrastructure

China will also continue to help boost consumption via stimulus measures, including growing the number of public charging piles and swapping stations, according to Li. It was the first mention of EV battery swapping facilities in the annual government work report.

Fu expects the initiative will spur demand by providing charging facilities for those who do not have private parking spaces with home chargers, a major pain point that has deterred EV adoption. Prior to that, the central government had announced a RMB 10 billion ($1.5 billion) investment to expand the country’s charging network by 50% to more than 1.8 million public and private charging piles by 2020.

China’s power network for electric vehicles exceeded 1.67 million charging points and 555 swap stations as of December, according to figures from the China Electric Vehicle Charging Infrastructure Promotion Association.

EV battery recycling

EV battery second-life usage was also a key topic during this year’s meeting. Li noted that China will accelerate plans for a comprehensive recycling and reuse policy for electric vehicle batteries. Policymakers in the 14th five-year-plan pledged to “promote the use of second-life energy resources in less-demanding applications” (our translation).

China began its NEV initiatives in 2009 and most EV batteries are designed to have around a decade of use during the first life phase. Officials from the Ministry of Ecology and Environment had estimated in September that more than 200,000 tons of EV batteries would reach the end of the first life phase by 2020 and that number will more than triple in 2025, according to a Caixin report (in Chinese).

The central government in 2018 had made battery manufacturers responsible for addressing battery end-of-life issues, but the market is largely unregulated, lacking mandatory technical standards to ensure safety during the recycling process. This has also overburdened battery manufacturers, which have struggled to recoup the costs for repurposing batteries.

NIO, XPeng, Li Auto mull HK listings this year, Reuters reports

March 08, 2021 CV TECH INC

As more and more US-listed Chinese companies come to Hong Kong for secondary listings, Chinese electric vehicle (EV) trio NIO, XPeng, and Li Auto appear to be next in line.

NIO, XPeng, and Li Auto plan to list in Hong Kong as soon as this year to tap an investor base closer to home, Reuters reported Tuesday citing three people with direct knowledge of the matter.

They each aim to sell at least 5% of their enlarged share capital in Hong Kong, the people said. Based on their New York market capitalization on Monday, proceeds could total around $5 billion, the report said.

The EV makers have been working with advisors on the sales which could begin as early as mid-year, the report said, adding that the three are looking to take advantage of growing demand from prospective investors in Asia.

NIO and Li Auto both said “no comment” when contacted by CnEVPost.

Under Hong Kong rules, an issuer seeking a secondary listing must have had at least two financial years of good regulatory compliance on another qualifying exchange.

NIO went public in the US in September 2018. Li Auto and XPeng went public in the US in the middle of last year so will likely apply in Hong Kong for a dual primary listing, said two of the people as well as a separate person with direct knowledge of the matter.

As per Hong Kong’s dual primary listing rules, firms are subject to full bourse requirements in Hong Kong and a second exchange but are not bound by the two-year rule.

XPeng is also considering a third listing on Shanghai’s STAR Market for new-economy firms, said two other people.

With the general sell-off in US tech stocks, NIO and XPeng were down 40% and Li Auto was down 32% in the past two months.

NIO, XPeng, Li Auto mull HK listings this year, Reuters reports-CnEVPost

NIO, XPeng, Li Auto mull HK listings this year, Reuters reports-CnEVPost

NIO, XPeng, Li Auto mull HK listings this year, Reuters reports-CnEVPost

NIO, XPeng, Li Auto mull HK listings this year, Reuters reports-CnEVPost

(Source: CnEVPost)

OnePlus 9 series to be released on March 23 with camera system from Hasselblad

March 08, 2021 CV TECH INC