Q2 2021 China AV Industry Recap
The summary for Q2 is a list of funding events followed by key trends identification.
1. Auto OEMs launching new EV models
The Shanghai auto show was a center stage throughout April. Among new generation OEMs, Nio brought ET7, Xpeng had P5 and Leapmotor had C11, whereas Li Auto waited till later in May to introduce the new Li ONE.
In the traditional OEM space, BAIC introduced the Arcfox Alpha S HI version, SAIC brought ES33 and IM L7, Geely had Geometry A Pro and Zeekr 001, SERES debuted its first model SF5, etc.
As for international brands, there were EQS from Benz, iX from BMW, the made-in-China Ford Mustang Mach-E, etc.
Reference read: 6 “Autonomous Vehicles” out of Auto Shanghai 2021
2. More AV technologies entering commercial operations
In May, Meituan, JD and Neolix became the first group to receive licenses for trials of autonomous mini-vans on designated public roads in Beijing under specific rules. Meituan and JD have each deployed a fleet to run last mile deliveries while Neolix’s vehicles act like mobile vending machines with three meals at specific hours serving office buildings.
Yutong, a leading commercial vehicle brand in China, has started trial run its L4 bus in the Changsha airport of Hunan province. The robobus named “Xiaoyu 2.0” was designed with no steering wheels and not relying on infrastructures for perception and localization. It is currently used to shuffle airport employees, airline crews and small amount of passengers.
3. AI chipmakers stepping up offerings for L4
Horizon Robotics revealed on May 9 that the Journey 5 (J5) family would become available ahead of schedule via social media. The J5 chip series is the 3rd generation automotive grade products by Horizon that supports level 4 autonomous driving, which could be an alternative to the Nvidia Orin.
Meanwhile, Horizon co-launched the “front perception” ADAS solution by Freetech built on J2 chips. The new Li ONE model from Li Auto carries 2 J3 chips enabling “Navigation on Autopilot” and 1 J2 chip for voice interactions in the cockpit. Horizon was also reported to be seeking an IPO on the US market.
Black Sesame launched A1000 Pro at the auto show, which is its newest generation AI chip for high level autonomous driving. It is expected to provide engineering samples in Q3 and development platform in Q4. Besides, Black Sesame has reached strategic agreement with Lan-You, Nullmax, China Automotive Innovation Corporation respectively that are down the supply chain to collaborate on intelligent driving solutions.
Cambricon Technologies announced the plan to develop automotive chips through its subsidiary and was in process of raising capital and building team.
4. Tech giants pacing fast in auto plans
JiDU, Baidu and Geely’s joint EV venture, held its first press conference on June 1. It revealed the first offering would be a premium model catered to younger users with price above RMB 200,000 due to high cost of smart features. A concept model will be presented at the Beijing auto show next year.
On the other side, Baidu introduced a new generation robotaxi model, Apollo Moon, which costs RMB 480,000 per unit in mass production. Apollo Moon is co-developed with Arcfox for ride sharing services and the lowered cost will facilitate operations in scale.
Huawei demonstrated its autonomous driving technologies by doing public road tests in Shanghai followed by co-branding the Arcfox Alpha S HI from BAIC and SERES SF5, a lesser-known brand under Sokon Group (SHA: 601127). It claims to have secured similar in-depth cooperations with Changan Automobile and Guangzhou Automobile Group.
Huawei has started to sell the SERES SF5 cars in its flagship stores since April, which was interpreted as a strategy to make up for the loss from smartphone sales. However, as the traditional sales model is being challenged by companies like Tesla and NIO, Huawei does bring additional value as a Tier 1 with its retail network across China.
5. More players joining the auto landscape
Qihoo 360 (SHA: 601360), a security software company, OPPO, another smartphone maker, Bytedance, the owner of TikTok and a list of other popular social apps, and Kuaishou (HKG: 1024), a short video social platform rivals TikTok, have all been reported with automotive related moves but no official announcements yet.
DJI, the drone maker for consumers with over 70% market share globally, introduced a new “DJI Auto” brand that focuses on the R&D, production and sales of intelligent driving systems and core hardware components. The first batch of vehicle models carrying DJI solutions will be available this year.
Midea (SZ: 000333), the home appliance giant, first appeared at the auto show as auto parts supplier and then held a press conference in May to give further details. Through its subsidiary Welling established in 2018, Midea has production lines ready for actuator systems, thermal management systems and ADAS. It aims to adapt its specialties in home appliances (particularly air conditioners) to the EV sector.
Skyworth (HKG: 00751), the leading TV maker, officially announced the “Skyworth Auto” brand, behind which is in fact Skywell, an EV manufacturer for passenger vehicles. Skywell has been covered in an earlier post. With Skyworth and Skywell founded by the same Mr. Huang, the vehicles can now share the TV brand name and hopefully carry on the glory.
