New Energy Vehicle Weekly NIO received an investment of US 2.2 billion

**Star New Energy Vehicle Industry Weekly: According to Shanghai Nonferrous Metals Network, as of December 22, battery-grade lithium carbonate was 94-10.50,000 tons at an average price of 9950,000 tons, down 0 from the previous working day050,000 tons;Industrial grade lithium carbonate 88-9.30,000 tons, the average price is 9050,000 tons, down 0050,000 tons;Recently, the procurement demand for lithium carbonate from downstream cathode material companies is still weak, while individual lithium salt companies in the market are still willing to ship, and the lithium carbonate spot ** in the market is still running weakly under the supply and demand game. In addition, the recent shipment situation of ** enterprises is also not optimistic, and some ** enterprises have the idea of delivery in the future.

Institutional Perspectives:

Tianfeng ** believes that in the first two weeks of December, the orders & deliveries of the four independent car companies fell slightly, and the terminal demand in December did not show a tail as in 22**. Deliveries of car companies fell in tandem with orders, which were greatly affected by the decline in the popularity of facelifted models, and deliveries in the first two weeks fell by more than 10% compared with the same period in November. In terms of inventory, the C D inventory of car companies is high, and the C inventory-to-sales ratio of car companies exceeds 2, so it is necessary to be vigilant against the high risk of excessive inventory. According to the China Passenger Car Association and the China Automobile Dealers Association, the inventory of passenger cars increased more at the end of November and the output of automobiles hit a record high in order to stock up for the peak sales before the Spring Festival. It is expected that 12 car companies will increase orders by 550-56.00,000 units, +2% to +7% from November;In terms of deliveries, 58-590,000 new units are expected to be delivered in December, +9% to +14% from November. It is recommended that domestic independent brands BYD, Guangzhou Automobile Group, Changan Automobile, Geely Automobile, Great Wall Motor, and new car-making forces Li Auto and Xiaopeng Motors are recommended.

Yongxing** maintains an "overweight" rating on the automotive industry. On the demand side, downstream demand was good, and the retail sales of passenger cars in November increased year-on-year. On the supply side, BYD Song L and Cialis Wenjie M9 are expected to be launched in December, and the supply continues to be abundant. We continue to be optimistic about the development prospects of the domestic automobile industry chain, and recommend paying attention to the following main investment lines:

1) On the vehicle side, it is recommended to pay attention to the resonance of the technology cycle and the model cycle, such as Changan Automobile, Celis, Li Auto, Xiaopeng Motors, BYD, etc.;2) On the component side, we are optimistic about the incremental link of electric intelligence. From the perspective of high value of bicycles, low localization rate or penetration rate, we recommend paying attention to wiring harness connectors, domain control, lightweight, wire-controlled chassis, seats and other tracks, and it is recommended to pay attention to Huguang Co., Ltd., Keboda, Joyson Electronics, iKedi, Tuopu Group, Bojun Technology, Baolong Technology, Bethel, Jifeng Shares, etc.

Macro events

1.Zhejiang regulates the electricity consumption of electric vehicle charging and swapping facilities**.

On December 20, Zhejiang Provincial Market Supervision Bureau and State Grid Zhejiang Electric Power Company further optimized and standardized the electricity consumption of electric vehicle charging and swapping facilities, and the trough period of operational centralized charging and swapping facilities was from 22:30 to 8:00 the next day, and the proportion of peak electricity price was reduced from 80% to 50%, and the proportion of trough electricity price was expanded from 53% to 60%. The policy will be implemented on January 1, 2024, and the average electricity consumption of charging and swapping facilities in Zhejiang will be reduced by 10%-15%.

2.Chongqing: Expand the scale of automobile import and export with a focus on new energy vehicles and implement the "Chongqing Automobile to Sea" action plan.

On December 19, the General Office of Chongqing Municipality issued the "Several Measures for Chongqing to Promote the Stable Scale and Optimal Structure of Foreign Trade". These include: stabilizing the import and export scale of the electronic information industry;Support electronic terminal processing enterprises to carry out intelligent cockpit, electronic controller and other automotive electronics cooperative research and development and commissioned production;Expand the scale of automobile import and export with a focus on new energy vehicles. Implement the action plan of "Chongqing Automobile Going to Sea" to support new energy vehicle brand enterprises to increase their efforts to develop the international market. Encourage domestic and foreign banks to carry out cooperation and strengthen the support for consumer credit for export vehiclesSupport qualified automobile manufacturers to apply for temporary export authorization qualifications.

3.Hefei to carry out new energy vehicles to the countryside activities: each subsidy of 5,000 yuan 1,000 places.

On December 19, Hefei organized the 2023 Hefei New Energy Vehicle Countryside Activity, and gave a 5,000 yuan rural promotion subsidy to individual consumers who paid a deposit on the platform and completed the offline car purchase and registration process according to the requirements of the notice (online registration and booking and payment of deposit + offline store payment to pick up the car). There are 1,000 places for this new energy vehicle to go to the countryside, on a first-come, first-served basis.

4.Shenzhen plans to relax the requirements for license plate applications

On December 18, according to the "Shenzhen Release" WeChat *** news, the Shenzhen Municipal Transportation Bureau recently issued the "Shenzhen Automobile Incremental Regulation and Management Implementation Rules (Draft for Comments)". According to its content, Shenzhen will appropriately relax the scope and conditions of the application object of the incremental index of ordinary cars, and add a special incremental index, which will be configured by ladder lottery. This means that the lottery winning rate is expected to increase. The number and time of the index configuration shall be studied and formulated by the municipal transportation department, and shall be announced and implemented after the approval of the municipal people. At the same time, the Consultation Paper intends to adjust and improve the time for determining the tax quota of enterprises, the situation where the applicant's residence is in Shanghai, and the validity period of the application for incremental index codes, and appropriately relax the scope and conditions for the application of incremental indicators. In addition, in terms of the validity period of the code, the Draft for Comments proposes that the validity period of the valid code of an entity or individual is 6 months.

Industry news

1.Passenger Car Association: December 1-17 passenger car market retail 9420,000 units, up 11% m/m

On December 20, according to the news of the Passenger Association, from December 1 to 17, the passenger car market retailed 9420,000 units, up 4% year-on-year and 11% month-on-month, with a total of 2,028 retail sales since the beginning of this year70,000 units, up 5% year-on-year;National passenger car manufacturers wholesale 9640,000 units, up 13% y/y and 4% m/m, and 23.78 million units have been wholesaled year-to-date, up 9% y/y.

2.The Flash Charging Committee of the China Charging Alliance was formally established.

On December 20, at the 2023 China Automobile Charging and Swapping Ecological Conference, China's first charging service platform organization for luxury car brands - China Charging Alliance Flash Charging Committee was officially established. Jaguar Land Rover, Volvo Cars, Polestar Technology, Lotus Technology and Lightning Technology are founding members of the Flash Charging Committee.

3.China Association of Automobile Manufacturers: In the first 11 months of this year, the sales of Chinese brand passenger cars increased by 23% year-on-year8%

On December 21, according to the statistical analysis of the China National Association, in November 2023, the market share of Chinese brand passenger cars will grow rapidly. In November 2023, a total of 155 Chinese brand passenger cars were sold60,000 units, up 4% month-on-month8%, a year-on-year increase of 379%, accounting for 59 percent of total passenger car sales7%, an increase of 5 percent over the same period last year4 percentage points. From January to November 2023, a total of 1,297 Chinese brand passenger cars were sold80,000 units, a year-on-year increase of 238%, accounting for 558%, an increase of 6 percent over the same period last year6 percentage points.

Company dynamics

1.Sold 22Starting from 580,000 yuan, Xingtu Star Era ES was listed.

On December 20th, Xingtu Star Era ES was officially launched, with a guide price of 22580,000-33980,000 yuan. The Epoch ES is positioned as a pure electric medium and large sedan, equipped with 30 active safety configurations such as automatic emergency braking assist and lane departure assist. Epoch ES is the world's first mass production of the LIONS AI large model, which can realize the valet parking function. In terms of range, the MAX+ ultra-long range CLTC has a range of 905 km.

2.NIO: CYVN will make strategic equity investments with a total cash investment of US$2.2 billion.

On December 18, NIO announced that it has entered into a share subscription agreement with CYVN Holdings, a professional investment institution headquartered in Abu Dhabi that invests in the field of advanced and intelligent mobility, through its affiliate CCYVN. Under the share subscription agreement, CYVN will invest a total of US$2.2 billion in cash at a price of 7.2 billion per share$50 purchase price to subscribe for 29.4 billion new Class A ordinary shares of the Company. Upon completion of the transaction, CYVN will beneficially hold approximately 201%。

3.BYD equals Tesla and is expected to become the world's top seller of pure electric vehicles.

According to a recent report released by Counterpoint Research, a global market research agency, in the third quarter of 2023, global pure electric vehicle sales increased by 29% year-on-year, and China accounted for 58% of the market share, still the world's largest pure electric vehicle market. At present, Tesla, BYD and Volkswagen are the world's best-selling pure electric car brands, with a combined market share of 42%. It is worth noting that BYD's pure electric vehicle market share (excluding Denza) has caught up with Tesla, with both having a market share of 17% in the third quarter. Judging from the data, in the third quarter of 2023, Tesla delivered a total of more than 4350,000 units, BYD pure electric vehicles delivered a total of 43160,000 units, only about 3,500 units lower than Tesla, almost the same.

4.Lei Jun: 3,400 engineers were invested in the first car, and the entire R&D investment exceeded 10 billion.

On December 18th, Lei Jun, chairman of Xiaomi Group, said that Xiaomi has many natural advantages in making cars, because the essence of today's smart electric vehicles is the integration of the consumer electronics industry, which is a big integration, so entering the automotive industry is a challenge for Xiaomi, and the overall difficulty is controllable. Lei Jun said that Xiaomi's first car invested 3,400 engineers, and the entire R&D investment exceeded 10 billion, using more than 10 times the investment. "With that in mind, I'm going to do it anyway in a way that I want to get. Lei Jun said.

Secondary market

Industry performance