China EV sector

On 2nd Nov, China launches their new energy vehicle industry plan for 2021-2035 with the aim to have pure electric vehicle (PEV) as the mainstream option for car sales by 2035

3 key highlights as follows;

1. Upgrading public charging station technology from slow charge to high voltage fast charging.

2. Target of 80% of NEV public transportation and logistic vehicles in certain polluted area

3. Setting EV sales volume target at 20% of total vehicle sales (2025 target)

October sales volume for key Chinese EV makers is also encouraging. NIO delivery volume in oct was 5,055 units (+100% YOY), XPeng October delivery volume was 3,040 (229% YOY) and Li Auto also hit a high of 3,692 units in October.

This is probably another reason why Chinese EV companies like NIO +8.9%, Xpeng +6.9% and Li Auto +13.48% rallied during the last US trading hours.

It is expected that competitiveness in this sector will surge as China continue to promote efficient collaboration between the EV and other renewable energy sector.

China is also likely going to be focusing on the battery supply chain and this is likely to create opportunities in the battery raw material space. Perhaps raw material components like lithium, cobalt and nickel will be in focus.

Another area to consider looking into will be the China EV supply chain.

Listed in Shanghai, Huayu Automotive System (600741.SS) primarily engaged in design, R&D, manufacture and sales of vehicle components.

Published by Shawn Chow

Exploring opportunities in the web.

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