Every month it seems a new carmaker enters the local market, all being Chinese exports.
And another may be arriving here imminently; Zeekr. This is part of the Geely Automobile Holdings group which also owns Volvo, Polestar and Lotus.
It follows confirmation of the Zeekr X and 009 models entering RHD production.
The Zeekr X is a small SUV based on the same platform as the Volvo EX30. It will offer both single- and dual-motor models, the latter with up to 315kW, while the RWD will offer a range of up to 445km.
Zeekr X has some fairly nifty features, like a big touchscreen that can move from the centre of the dash to position itself in front of the passenger.
We’re not sure whether the 009 will make a big impact here, despite its massive size. This big MPV-style machine has room for up to seven people and measures over 5.2m long.
In China it can be had with a 140kWh battery delivering up to 822km of range. We’d rather not wait in line behind that at the local 50kW DC charger.
And there could be yet another new player for our market soon. While there is an oversupply of EVs in China, that hasn’t stopped new players entering the market.
Xiaomi has recently revealed its first EV, the SU7 (that’s Speed Ultra 7) sedan that looks quite a lot like the BYD Seal.
Xiaomi is a household name in China thanks to its smartphones and electronics range. Within 24 hours of the SU7 launching, the company had more than 88,000 pre-orders, which translates to a six-month wait list for prospective owners.
The firm’s stock price was up 16 per cent on the news, its market value up $US7 billion to $US55 billion, putting it a few billion ahead of Ford and GM.
Xiaomi is following an aggressive business strategy with its EV ‘side hustle’. It has launched the car with very aggressive pricing, listing it around $US4000 cheaper than the Tesla Model 3 in China.
Some analysts have said that Xiaomi will be selling them at a loss of nearly $US10,000 a unit.
The company is said to be able to make 60,000 cars a year (thanks to the state-owned car manufacturer, BAIC), which means it stands to make a loss of about $US560 million.
But the company is sitting on $US15 billion in cash reserves, so it can afford it.
And it’s the state backing of the Chinese EV makers that has the rest of the world worried.
Over the past few years, the Chinese government has handed out $US28 billion in subsidies to EV makers which has led to a proliferation of manufacturers and an EV oversupply in China.
Economies around the world, ones that still have car manufacturing industries, are worried about the Chinese dumping the excess supply in export markets.
European makers are nervous about the Chinese threat; a quarter of all EVs sold there this year will be made in China.
BYD apparently has plans to completely dominate the Indian market by taking 90 per cent of the EV sales come the end of the decade.
More Chinese EVs are arriving here too with Omoda launching its electric E5 SUV locally. And more will come with the aim of undercutting everyone else.
That’s not such bad news for us down here – buyers will gladly receive low-priced EVs, as long as the quality is sound and the safety package (both battery tech and crash protection) is up to the mark.
But the Chinese push, backed by state subsidies, will have some carmakers on the brink. That’s why most are calling for more punitive tariffs on Chinese EVs entering the US and European markets.
Tesla and Musk must be in a right state, especially after a disastrous quarter with sales, production and the all-important share price all on a downward trend.
The firm has lowered prices in some markets, here too with both the Model 3 and Model Y recently reduced by $2k to $63,900 and $65,900, respectively.
While local demand is off thanks to the binning of the Clean Car Discount, the savings on new EVs will keep coming because of oversupply, making it a buyer’s market out there.
This story first appeared in the May 2024 issue of NZ Autocar magazine.
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