China Auto Roundup: Xiaomi Gets to Make Its Own Cars, Official Warns of Cutthroat Competition in Auto Industry

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Xiaomi’s car factory in Beijing on March 25. 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.

Xiaomi approved to make its own cars

Xiaomi Corp. received the green light to independently produce its own electric vehicles (EVs), marking a departure from its reliance on a state-owned auto partner and another milestone in its rapid expansion into the EV market.

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Xiaomi has received approval to independently produce electric vehicles in China.
A report predicts that 80% of China’s current new energy vehicle brands will disappear by 2030.
Chery Automobile has become China’s top auto exporter, surpassing SAIC Motor Corp. in the first half of 2024 with 532,000 cars exported.

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Who’s Who

Xiaomi Corp.: Xiaomi Corp. has been approved by China’s Ministry of Industry and Information Technology (MIIT) to independently produce electric vehicles (EVs). This approval allows Xiaomi EV Technology Co. Ltd., Xiaomi’s carmaking subsidiary, to manufacture vehicles in China, marking a significant step away from its previous reliance on a state-owned auto partner.

Xiaomi EV Technology Co. Ltd.: Xiaomi EV Technology Co. Ltd., a subsidiary of Xiaomi Corp., has received approval from China's Ministry of Industry and Information Technology (MIIT) to independently produce electric vehicles (EVs). This approval marks a significant shift from its previous reliance on a state-owned auto partner and represents a major milestone in Xiaomi's rapid expansion into the EV market.

BAIC Motor Corp. Ltd.: BAIC Motor Corp. Ltd., a state-owned automaker, was listed as the manufacturer of Xiaomi’s electric vehicles in the November 2023 catalog. However, Xiaomi Corp. has now received approval to independently produce its own EVs, marking a shift away from its partnership with BAIC Motor.

Baidu Inc.: Baidu Inc. operates autonomous robotaxis under its Apollo Go platform. A recent accident in Wuhan involving a Baidu robotaxi and a pedestrian has raised concerns about the safety of unmanned cars. The pedestrian, who crossed on a red light, sustained no apparent external injuries. This incident has cast doubts on Baidu's claims that self-driving technology will significantly reduce traffic accidents.

Chery Automobile Co. Ltd.: Chery Automobile Co. Ltd. has become China's top auto exporter, surpassing state-owned SAIC Motor Corp. Ltd. In the first half of 2024, Chery's auto exports increased by 35% year-on-year to 532,000 cars, while SAIC's overseas shipments fell by 9% to 439,000 vehicles. This shift reflects Chery's growing prominence in the international market.

SAIC Volkswagen Automotive Co. Ltd.: SAIC Volkswagen Automotive Co. Ltd. has reduced the prices of several main models by up to 59,000 yuan ($8,100) amid fierce market competition. This includes lowering the starting prices for the Lavida, Tiguan, and ID.3 models. This marks their second price cut this year, aimed at boosting sales. The company reported a 9.6% year-on-year sales growth in the first quarter of 2024, with 248,000 vehicles sold.

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What Happened When

November 2023：: A subsidiary of state-owned automaker BAIC Motor Corp. Ltd. is listed as the manufacturer of Xiaomi’s EVs in the MIIT catalog.

Wednesday, July 10, 2024：: AlixPartners’ annual Global Automotive Market Outlook predicts eight out of 10 of China’s new energy vehicle (NEV) brands will disappear by 2030.

Wednesday, July 10, 2024：: Chery Automobile Co. Ltd.'s auto exports jump 35% year-on-year to 532,000 cars in the first half of 2024, making it China’s top auto exporter.

Wednesday, July 10, 2024：: SAIC Volkswagen Automotive Co. Ltd. announces price cuts for several main models, including the Lavida, Tiguan, and pure electric ID.3.

Friday, July 12, 2024：: The Ministry of Industry and Information Technology (MIIT) publishes its latest catalog, which includes Xiaomi EV Technology Co. Ltd.

Friday, July 12, 2024：: Xin Guobin, vice minister at MIIT, talks about cutthroat competition in the auto industry at the China Auto Forum in Shanghai.