The pink Nezha V and black Nezha U Pro electric car models are on display at the Shanghai store on November 7, 2021.
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BEIJING—Another affordable electric vehicle brand has taken off in China, this time selling a compact SUV.
Named after a feisty Chinese mythological character, Nezha claims deliveries have more than doubled to over 152,000 in 2022. Most deliveries have been his Nezha V, a compact SUV whose post-subsidy price starts at 83,900 yuan ($12,000).
In contrast, NioLarger SUVs with longer range and many other features start at around RMB 400,000.
but, Nio will deliver over 122,000 electric vehicles in 2022, A mere 34% increase year-on-year. This includes the company’s premium-priced sedans.
Nio has emphasized its focus on a more niche, high-end segment, but has hinted at plans to launch a mass-market brand.
On an earnings call in early November, CEO William Lee said the company had a meeting with its mass market team that day, according to FactSet records.
This could be 600,000 units per year per model.
The Hongguang Mini, a low-budget electric vehicle, is the best-selling new-energy passenger car in China in a category that includes hybrids. According to the China Passenger Car Association, as of November, sales have exceeded 370,000 since the beginning of the year.
That said, the Red Light Mini is a small car compared to Neza’s SUVs and sedans.
Nezha also said it has exported about 3,500 vehicles in 2022. Since the second half of 2021, the company has expanded into Southeast Asia, starting with a partnership in Thailand. His Nezha, also known as Neta, has his website in English that states he is looking for partners in the Philippines and Cambodia.
The company is a brand under the startup Hozon Auto. As of July 2022, Nezha says he has raised nearly 10 billion yuan in Series D, the fourth stage of funding after the initial investment.
China’s EV market shakes off economic slowdown
The Chinese government has supported the development of the domestic electric vehicle industry. Cities have preferential policies to encourage people to switch to electric vehicles.
And despite the impact of COVID-19 restrictions on China’s retail sales in 2022, electric vehicle sales remained in pockets of growth.
According to the China Passenger Car Association, from 2022 to the end of November, more than a quarter of passenger cars sold will be new energy vehicles. Monthly numbers from the association usually come out mid-month.
However, competition is fierce.Chinese battery and car manufacturer BYD continues to be a giant, selling over 911,000 electric vehicles in 2022, about 180% more than a year ago.
The company has a wide range of models. BYD’s new luxury brand Yangwang is set for a detailed launch on Thursday.
Electric vehicle brand Aion, a spin-off of state-owned GAC Motor, has announced that sales will more than double in 2022, reaching a record high of 271,000 units.
The new brand “Aito” jointly developed by Huawei has delivered more than 75,000 vehicles by the end of the year since delivery began in March 2022.
Li Auto offers better features than Nio
Nio’s growth in 2022 too lee autoanother US-listed Chinese electric vehicle company, has SUVs in a similar price range.
According to Li Auto, annual deliveries increased by 47% to over 133,000 units.