China Auto Roundup: SAIC, Industry Group Rebut EV Tariffs at EU Hearings, Volkswagen and XPeng Deepen Collaboration

Welcome to the Auto Roundup, a weekly briefing on major developments in China’s automotive industry, including updates on electric vehicles (EVs), gas-powered cars, battery advancements, and autonomous technology.

At the European Commission hearings, SAIC Motor Corp. Ltd. and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products expressed opposition to the EU’s provisional anti-subsidy duties on Chinese EVs.[para. 1][para. 2][para. 3] During the Friday hearing, SAIC criticized the commission's actions in its anti-subsidy probe, alleging that it had been asked to provide commercially sensitive information beyond the investigation's standard scope.[para. 3]

XPeng Inc. announced a deeper technical collaboration with Volkswagen AG to develop a new electrical and electronic solution for VW's battery-powered cars in China.[para. 4] Both companies have set up project houses in Guangzhou and Hefei to facilitate close cooperation between their engineering teams. The first vehicle with the new jointly-developed architecture is expected to begin production within two years.[para. 4][para. 5]

In an effort to stimulate EV sales, Beijing will offer an additional 20,000 license plates specifically for EV purchases, its first relaxation of auto ownership restrictions in over a decade.[para. 6] These license plates will be allotted to families without a car and will only be valid for EV purchases.[para. 7] Beijing has maintained a stringent quota system on car purchases since 2011 to alleviate congestion and reduce air pollution in the city.[para. 7][para. 8]

Chinese auto manufacturer BYD Co. Ltd., once derided by Tesla’s Elon Musk, has emerged as a formidable global competitor, partly due to its expertise in automotive power cells, which Tesla requires.[para. 9] BYD is now focusing on smart driving technologies, an increasingly vital aspect in the competitive EV market. BYD Chairman and CEO Wang Chuanfu announced during a shareholder meeting that the company has established a team of around 4,000 individuals dedicated to advanced driver assistance systems, as part of the company's significant investment in this area.[para. 9]

Guangzhou Automobile Group Co. Ltd.'s EV brand Aion commenced operations at its first overseas plant in Rayong, Thailand. The plant will produce the second-generation Aion V compact SUV.[para. 10] This step underscores Aion's commitment to deepening its presence in the Thai market and aligns with GAC's broader strategy to sell 500,000 vehicles annually outside China by 2030.[para. 11]

Nio Inc. has made its charging infrastructure accessible to EVs produced under Huawei Technologies Co. Ltd.'s smart car alliance.[para. 12] The alliance allows Huawei a significant role in vehicle design, development, and marketing. This move is part of Nio's broader strategy to share its charging networks with other EV brands. Currently, more than 80% of Nio’s charging facilities are used by non-Nio car owners.[para. 12][para. 13]

In summary, significant strides have been made in the Chinese automotive industry this week: SAIC and an industry group defended against EU tariffs on Chinese EVs; XPeng and Volkswagen pledged deeper collaboration; Beijing released additional EV license quotas to boost sales; BYD ramped up its smart driving initiatives; Aion inaugurated its first overseas plant in Thailand; and Nio expanded its charging network to accommodate more EV brands.[para. 3][para. 4][para. 6][para. 9][para. 10][para. 12]