Tesla Inspired List in China is Longer than Nio, Li Auto and XPeng
With Li Auto and Xpeng’s listing in the US this year following Nio’s IPO in 2018, the three names are known to the world racing to be the Chinese version of Tesla. However, the actual landscape is much more competitive. A list of lesser-known EV players is featured below.
HOZON Auto
Hozon New Energy Automobile Co., Ltd. was established in 2014. The founder has been involved in the R&D of new energy vehicles (NEV) since the 90s with the traditional automaker Chery. Core members in the team also possess extensive experience in the NEV sector.
The company aims to create cost-effective intelligent electric vehicles through independent R&D, intelligent manufacturing and multi-channel sales services. The first model NETA N01 was launched in Q4 of 2018 followed by the second model HOZON U in Q4 of 2019. Another model EP40 is expected later this year and the plan is to launch a new model every year to cover the mainstream market. Hozon was top 5 in sales volume among new generation OEMs during the 1st half of 2020.
In April 2019, Hozon completed B round financing of RMB 3 billion. The company is currently raising series C and targets a listing on the Science and Technology Innovation Board (STAR market) in 2021, which is often phrased as the Nasdaq of China.
WM Motor
WM Motor was founded in 2015 by former VP of Geely alongside a team of automotive industry veterans. The company aims to offer reliable, high-quality, long-range, smart electric vehicles with its own manufacturing facility in Wenzhou, Zhejiang Province.
The first model EX5 was launched at the end of 2018 and the second model EX6 was launched in Q4 2019 with a larger interior space and a redesigned sporty exterior shape compared to EX5, while both are electric SUVs. In 2019, WM’s sales volume was right behind Nio among new generation OEMs. During 1st half of 2020, WM ranked the 3rd.
WM Motor completed C round financing of RMB 23 billion in March 2019. It was just announced on September 22 that the company raised RMB 10 billion in series D. A STAR board listing is being weighed for early 2021.
Nio China
Once on the edge of bankruptcy, Nio has turned around in 2020 generating over RMB 21 billion investments from all sorts of channels (including a big chunk from the Hefei government). With funding in place, Nio is investing heavily on the R&D of NioPilot and trying battery-as-a-service model. As part of the deal with Hefei government, Nio has set up the China headquarter in Hefei, Anhui province and is planning to list on the STAR market with its China entity in 2021.
Evergrande Auto
The Evergrande Group is one of the largest real estate developers in China listed on HKSE. Its ambition on electric cars started 2 years ago. In August, the company announced the plan to launch 6 models by the brand name Hengchi including various body styles from sedans to SUVs and even a seven-seat van. The first model called Hengchi 1 is supposed to enter mass production in 2021.
In September, Evergrande revealed the plan to raise about HKD 4 billion from a group of high profile investors like Tencent, Sequoia, Jack Ma-backed Yunfeng Capital, Didi, etc. for the company’s EV unit. Shortly after, the EV unit was reported to be preparing for a STAR board listing.
Country Garden
As another property development company listed on HKSE, Country Garden invaded the robotics space in 2018. One of its subsidiaries Bright Dream Robotics is developing and manufacturing AGVs for construction sites. Another subsidiary Qianxi Robot is building autonomous food retailer machine and catering service robots. Lately, sources report that the company is hiring automotive talents possibly for a new NEV business.
Baoneng Motor
Baoneng Group is a conglomerate with business in property development and management, financial service, logistics, tourism, etc. In 2017, the group set up an independent company Baoneng Motor and secured a vehicle production certificate by strategically investing in and wresting control of Qoros Auto. Ever since, Baoneng has focused on founding new companies and institutions to do R&D on NEV technologies and building manufacturing facilities across China.
Most recently, Baoneng took over the Changan-PSA China joint venture through 2 investments totally amounted RMB 323 billion (one made in December 2019 and one in May 2020), and renamed the JV to Shenzhen Baoneng Motor Co., Ltd.
Changan Nio
Back in 2018, Changan Nio New Energy Vehicle Technology Co., Ltd. was established as a joint venture between Changan and Nio just like the name suggested. The mission was to explore a new model of cooperation between traditional auto companies and new carmakers. The JV has barely been seen with updates until recently.
On the one hand, Changan’s stake in the JV has increased to 95.38% from 50%. On the other hand, sources say Huawei might invest in Changan Nio through its subsidiary funds. It has not been confirmed yet but the new Changan Nio will aim for a high-end NEV brand.
Skywell
Earlier in July, Skywell showcased the ET5 model, an electric SUV equipped with L2.5 autonomous driving features. ET5 is currently open for pre-order and delivery will start in 2021. It may seem late to launch the very first vehicle in 2020 but Skywell’s history in NEV production can date back to 2010.
The founder Hongsheng Huang is a legendary man started his first venture in color television in the 1980s, which is now Skyworth Group. In 2010, he stepped into the automotive industry by acquiring Nanjing Jinlong, a NEV manufacturer on commercial vehicles at that time. He turned it into a profitable business by 2014, which later ranked the 3rd in terms of new energy bus sales in China. Since 2017, he started a new business line for passenger vehicles under the brand name Skywell. Skywell is funded entirely by Huang with no externally investment.
Speaking of the fact that no commercial vehicle OEMs have successfully transitioned to the passenger vehicles business, Huang of Skywell once said he would enjoy taking risks and striving to create the first instead of the second.
