Li-related News/Articles/Reports, page-9178

Volkswagen is wisely betting on a diverse range of technologies, including ICE, BEV and PHEV. They are not putting all their eggs in one basket, which is a prudent strategy given the fluid nature of government regulations on vehicles and emissions. On the other hand, the future looks uncertain for the vast majority of unprofitable Chinese EV manufacturers. Many of these companies are known for imitating the technology, processes, and designs of others, with models like the XPeng G6 closely resembling the Tesla Model Y, and the Xiaomi SXU7 appearing as a clone of the Porsche Taycan. They are quite literally cheap Chinese knock-offs.

A recent report from a leading consultancy predicts that only 19 out of 137 Chinese EV manufacturers will be profitable by 2030. While China produces some stylish vehicles, they are still relatively new players in many aspects of the automotive industry. It will be interesting to see how these vehicles hold up in terms of after-sales support, especially once the warranty period ends. Unlike established brands like Volkswagen, these newer companies lack robust support systems, which many consumers highly value, especially given that a car is the second most expensive purchase most people will ever make.

For those considering purchasing vehicles from unproven brands entering markets like Australia, such as Zeekyr, it’s worth considering what might happen to the value of these cars if the manufacturers go bankrupt or exit the market. A recent example is Fisker, a U.S.-based EV maker that went bankrupt, leaving almost-new cars with just a few hundred miles on the odometer selling for a quarter of their original price.

Moral of the story - Be careful what you wish for........

On a related note, it's surprising to see the support here for Chinese EVs, given that these companies and their supply chains are largely responsible for the recent manipulation of lithium prices. It's somewhat ironic that you're cheering on the very people that are destroying your investment.