EV Roundup: NSANY’s $1.4B Spending, China’s VWAGY EV Platform and More

EV Roundup: NSANY’s $1.4B Spending, China’s VWAGY EV Platform and More

Chinese EV operator New Company NIO announced its cooperation with Changan Automobile to replace batteries. Electric scooter manufacturer in China New Technologies NIU posted a loss per share and reported a year-over-year revenue decline in the third quarter of 2023. BYD LIMITED BYDDY achieved a historic record of selling 6 million new energy vehicles with the latest Fang Cheng Bao Leopard 5 SUV and unveiled its flagship sedan Han in the UAE amid the growing electric vehicle scene in the Middle East. Automotive giant in Japan April NSANY has announced a $1.4 billion investment in Sunderland to produce the electric Qashqai and Juke, accelerating its steps into electric vehicles. Based in Germany Volkswagen In a strategic move to regain its foothold in China’s competitive automotive market, VWAGY has announced a bold plan centered around an innovative and affordable electric vehicle platform.

The most important news of the past week

New Changan signed an agreement on battery exchange. The two companies will come together to formulate standards for swappable batteries, build and share a battery swapping network, develop swappable vehicles and establish an efficient battery asset management mechanism. Changan has 39 years of vehicle production experience and operates 12 manufacturing bases and 22 factories globally. NIO is the world’s leading operator of battery swapping networks for smart electric vehicles. It has more than 2,100 power switching stations worldwide. This year, NIO has plans to install 1,000 new stations in China. It has provided more than 32 million battery swaps to users as of November 20, 2023.

Chinese authorities are actively promoting the establishment of battery swapping networks for electric vehicles. They have issued documents and guidelines to encourage widespread adoption of this model, and support the development of battery swap architecture standards, global platforms, and swappable batteries. The documents and guidelines include the NEV Industry Development Plan, the Implementation Plan to Further Enhance Service Capacity in Charging and Switching Infrastructure, and the Notice on Launch of the NEV Pilot Program. The partnership between NIO and Changan Auto meets the requirements of these guidelines.

New It reported an adjusted loss in the third quarter of 2023 of 14 cents per share versus a profit of 1 cent per share in the same period last year. Total revenues were $127 million, a decrease of 19.6% year over year. Gross profit margin for the quarter under review was 21.4%, down from 22.1% in the corresponding period in 2022. Total e-scooters sold by the company were 265,923 units (including 230,455 units in China and 35,468 units in international markets), down 17.1% from Q3 2022, mainly due to China’s conservative spending on the company’s premium series products.

Total operating expenses were $39 million, up 9.5% year over year. As of September 30, the total number of franchised stores in China reached 2,834 and the international sales network has been strengthened to 55 distributors in 53 countries. At the end of the quarter under review, the company had cash and cash equivalents of $104.4 million. NIU expects Q4 revenue to be between CNY490-612 million, implying a 0-20% year-on-year contraction.

BYD It reached a milestone when the 6 millionth new energy vehicle, the Fang Cheng Bao Leopard 5, rolled off the production line at the Zhengzhou factory. This hybrid SUV, which is slightly smaller than the Toyota Land Cruiser Prado, debuted last August, with production and deliveries starting in November. BYD’s new energy vehicle (NEV) sales are on the rise, with the company taking 13 years for the first million NEVs, just one year for the second million, and just six months for the third million. Subsequently, 2 million new new cars were produced in the next nine months, and the six million figure was reached in just three months, primarily due to increased production capacity.

BYD highlighted its aggressive global expansion, particularly in the electrification of public transportation, with new energy buses and taxis operating in more than 400 cities in more than 70 countries. In addition, it recently launched its flagship Hahn sedan in the UAE, with the ATTO 3 model also on sale. The move aligns with growing interest in electric vehicles in the Middle East, as countries such as Saudi Arabia implement multi-year plans to reduce reliance on fossil fuels.

BYD currently has a Zacks Rank of #1 (Strong Buy). you can see The complete list of today’s Zacks #1 Rank stocks is here.

April It is set to spend $1.4 billion to upgrade its plant in Sunderland in northeast England. The investment aims to convert the facility to produce electric versions of its best-selling models – Qashqai and Juke Cross. Currently, the Sunderland plant, which employs around 6,000 workers, manufactures petrol and gas-powered hybrid versions of these models. The $1.4 billion investment will not only facilitate the production of subsequent electric vehicles for Qashqai and Juke, but will also stimulate broader investments in related infrastructure projects and supply chain. The Sunderland plant will also see the development of a new massive electric vehicle battery factory as part of this investment, reflecting Nissan’s commitment to electric vehicle production.

The British government welcomed this step by Nissan, especially amid efforts to revitalize the country’s economy. The company plans to produce the next generation of its long-range Leaf electric car at the Sunderland plant, strengthening its commitment to the electric car market. Nissan’s Sunderland plant faced uncertainty following the Brexit vote in 2016, but this investment indicates a strong future for the plant. The company has set a goal to electrify its entire European passenger car range by 2030, and this latest announcement is a major step in achieving this vision.

Volkswagen (VWAGY) intends to develop a new China-specific platform, tentatively called the “Main Platform.” This platform will be drawn from the existing Modular Electric Motor Kit (MEB) but will emphasize cost effectiveness, primarily through increased use of locally sourced components. This approach aims to make electric vehicles more accessible to the Chinese market, where price sensitivity is a key consideration. Volkswagen’s turnaround comes amid changing market dynamics, with the brand losing its best-selling position in China to BYD in late 2022, largely due to declining sales. Selling gasoline cars. Despite this, Volkswagen saw success with the ID.3, which saw a significant increase in sales volumes after price cuts.

The new platform targets the entry-level segment, with vehicle prices ranging between $19,570 and $23,760. Volkswagen plans to offer four models based on this platform, which are manufactured through existing joint ventures with SAIC and FAW. In addition, starting in 2026, the company aims to launch two more all-electric models in cooperation with XPeng, bringing the total to six new models. This latest development is part of Volkswagen’s broader global strategy, which includes launching 10 all-new electric vehicles worldwide by 2026 and accelerating the pace of new vehicle launches.

Price performance

The following table shows the price movement of some of the major players in the electric vehicle space over the past week and the past six-month period.

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Image source: Zacks Investment Research

What’s next in space?

Stay tuned for announcements on upcoming electric vehicle models and any important updates from the hot industry.

Zacks calls it the No. 1 semiconductor stock

It’s only 1/9000 the size of NVIDIA which has risen over +800% since we recommended it. NVIDIA is still strong, but our new chip inventory has much more room to thrive.

With strong earnings growth and an expanding customer base, it is positioned to meet the growing demand for artificial intelligence, machine learning and the Internet of Things. Global semiconductor manufacturing is expected to rise from $452 billion in 2021 to $803 billion by 2028.

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