Lucid Group is preparing to enter China, its head of China operations, Zhu Jiang, said today (June 8). It’ll start off by selling imported cars as it weighs local production options, Reuters reported.
The move isn’t totally unexpected. Last December, the California-based auto company was recruiting for 14 positions in Shanghai, according to its LinkedIn posts at the time. These roles, such as product management, public policy, and supply chain management, largely hinted at imported car sales.
The possibility of local production is also been in the works for a while. In November, Lucid’s chief executive and tech officer Peter Rawlinson himself said the carmaker planned to have plants in China and the Middle East by 2025.
The Chinese EV Market: By the Numbers
To understand the landscape that Lucid is entering, let's take a look at some key statistics:
- 300: The number of EV models offered by 94 brands collectively, spanning a price range from $5,000 to over $90,000, indicating intense competition in the market.
- 81%: The market share held by local Chinese brands in the EV market, underscoring the challenges faced by foreign players attempting to establish a foothold.
- 9%: The percentage by which Tesla reduced its prices in China last year to maintain its competitive edge.
- Three-quarters: The share of the global manufacturing capacity for EV batteries controlled by China, with a single Chinese company, CATL, commanding one-third of that capacity. China's strong position in EV battery production is a significant advantage, which is why even US automakers are seeking to manufacture their vehicles in China.
- 50 years: The lease agreement duration for Tesla's Shanghai gigafactory, which commenced production in late 2019. This long-term commitment highlights the company's confidence in the Chinese market.
