China Auto Roundup: Great Wall to Shutter European HQ, EV Sales Defy Spending Slump

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Visitors look at Great Wall Motor’s Poer Sahar electric pickup truck during the 45th Bangkok Motor Show in Thailand on March 26. Photo: VCG

Welcome to the Auto Roundup — a weekly briefing on the biggest headlines in China’s automotive industry covering electric vehicles, gas-powered cars, battery and autonomous technology, and more.

China’s Great Wall Motor to close European HQ and lay off workers

Chinese carmaker Great Wall Motor Co Ltd. plans to close its European headquarters in Munich in August and lay off about 100 workers.

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Great Wall Motor is closing its European HQ in Munich and laying off about 100 workers due to challenging market conditions and potential EU tariffs.
China has established a 6 billion yuan ($828 million) fund to develop solid-state batteries, aiming to boost EV technology.
Despite a consumer spending slump, leading Chinese EV manufacturers like BYD, Nio, and Seres reported significant sales growth in May.

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Who’s Who

Great Wall Motor Co Ltd: Great Wall Motor Co Ltd., one of China's largest independent auto manufacturers, plans to close its European headquarters in Munich in August and lay off about 100 workers. The decision comes as the company adjusts its strategy in response to the challenging EV market in Europe, partly due to the threat of higher import tariffs from the European Union and reduced EV subsidies in countries like Germany and France.

BYD Co. Ltd.: BYD Co. Ltd. is China's best-selling EV brand, having sold 330,488 passenger vehicles in May, marking an increase of just over a quarter compared to last year. The company is among the leading manufacturers that overcame a consumer spending slump through price cuts and new model launches, contributing to strong sales growth in the domestic market.

Nio Inc.: Nio Inc. reported a substantial 234% increase in units sold in May. This growth comes despite a general spending slump in China, as manufacturers of electric vehicles, including Nio, benefited from price cuts and new model launches.

XPeng Inc.: XPeng Inc., a Chinese electric vehicle manufacturer, experienced a 35% sales increase in May. The company specializes in battery-powered cars and continues to perform well in China's expanding EV market despite a general slump in consumer spending.

Li Auto Inc.: Li Auto Inc. saw its deliveries rise by 24% in May, reflecting strong sales growth despite a slump in consumer spending in China. The company benefits from the broader trend in the Chinese EV market, where price cuts and new model launches have helped boost demand.

Zeekr Intelligent Technology Holding Ltd.: Zeekr Intelligent Technology Holding Ltd. saw a significant rise in electric vehicle sales in May, more than doubling their numbers compared to the same period last year. This indicates strong performance amidst China's challenging EV market.

Seres Group Co. Ltd.: Seres Group Co. Ltd., in collaboration with Huawei Technologies Co. Ltd., manufactures popular Aito electric vehicles. The company reported significant sales growth in May, delivering 34,100 cars, which is almost triple the number from the same period last year. This surge helped them capitalize on the persistent demand in China's EV market despite a general slump in consumer spending.

Eve Energy Co. Ltd.: Eve Energy Co. Ltd. is a Chinese battery maker facing challenges due to the EU's proposed methodology for calculating the carbon footprint of EV batteries. Xiao Zhongxiang, the assistant to the chairman, highlighted that China's reliance on fossil fuels results in a grid emission factor about 30% higher than that of Japanese and South Korean competitors, complicating compliance with the new rules.

Sunwoda Electronic Co. Ltd.: Sunwoda Electronic Co. Ltd. is a Chinese battery manufacturer. According to Liang Rui, a vice president at the company, the EU's proposed carbon footprint calculation rules pose challenges due to the difficulty in gathering reliable data from upstream suppliers. This is because China has not yet established a complete carbon footprint calculation system.

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What Happened When

April 30, 2024：: The EU published draft rules for calculating the carbon footprint of EV batteries for public feedback.

May 2024：: Leading Chinese EV manufacturers including BYD Co. Ltd., Nio Inc., Seres Group Co. Ltd., Zeekr Intelligent Technology Holding Ltd., XPeng Inc., and Li Auto Inc. reported strong sales growth.