On September 20, 2023, France unveiled new incentives for purchasing electric vehicles, offering cash subsidies ranging from €5,000 to €7,000 for qualifying models. The subsidy criteria now take into account the carbon footprint during both the electric vehicle and battery manufacturing processes.

Given that China’s electric vehicle production relies more on coal-fired power generation, there’s a strong possibility that Chinese-made electric cars may not qualify for these subsidies. The French government plans to announce the list of eligible models in December 2023.

TrendForce’s point:
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According to data from Tianyancha, a website for querying various information about Chinese companies, Xiaomi Auto, has recently unveiled its “Electric Vehicle Charging and Charging Method” patent.

The patent abstract reveals a charging vehicle and method, featuring a battery compartment for housing batteries, a wireless charging device for wirelessly transferring energy from the batteries to the electric vehicle, and an autonomous driving system. The autonomous driving system guides the charging vehicle to a predetermined relative position in relation to the electric vehicle, enabling wireless energy transmission from the batteries to the electric vehicle.

This disclosure signifies a significant advancement in the automation of electric vehicle charging while simplifying the overall charging process.

It is worth noting that Xiaomi Auto has amassed over 300 authorized patents, with issued more than 700 patents.

Apart from its strides in automotive patents, Xiaomi’s ambitions extend to the broader automotive industry. Tianyancha’s data reveals that Xiaomi has recently established Jingming Technology in Wuhan and Shenzhen, both encompassing automotive sales and services. Xiaomi holds 100% ownership in both companies, each with a registered capital of 10 million RMB.

As per insider information from September, Xiaomi Auto is in the trial production phase, currently producing approximately 50 test vehicles per week. Xiaomi anticipates receiving the approval from the Ministry of Industry and Information Technology by the end of this year, paving the way for full-scale electric vehicle production.

According to Xiaomi’s earlier public plans, the official mass production of Xiaomi vehicles is set for the first half of next year, a timeline that some deem as somewhat delayed. However, at Xiaomi’s Investor Day earlier this year, CEO Lei Jun emphasized that Xiaomi views the auto industry as a century-long endeavor. He expressed confidence in launching Xiaomi vehicles in 2024 and aspired for Xiaomi Auto to rank among the world’s top five automakers within 15-20 years.

Since Lei Jun’s announcement of Xiaomi’s foray into the automotive sector more than two years ago, the electric vehicle market has witnessed significant changes. Evolving government policies regarding new energy vehicles and increased market competition present formidable challenges to new entrants.

Explore More

• Xiaomi’s Tongzhou Auto Production Base in Reportedly Final Production Testing

(Photo credit: Xiaomi)

A global supplier in materials, networking, and lasers, Coherent announced that DENSO  Corporation and Mitsubishi Electric Corporation have agreed to invest an aggregate $1 billion in its silicon carbide business (the “Business”). The transaction results from the strategic review process announced in May 2023 for the Business.

Under the terms of the transaction, DENSO and Mitsubishi Electric will each invest $500 million in exchange for a 12.5% non-controlling ownership interest in the Business, with Coherent owning the remaining 75%. Prior to the completion of the transaction, Coherent will separate and contribute the Business to a subsidiary. Coherent will control and operate the Business, which will continue to be led by Sohail Khan, Coherent’s Executive Vice President, New Ventures & Wide-Bandgap Electronics Technologies.

In connection with the transaction, the Business will enter into long-term supply arrangements with DENSO and Mitsubishi Electric that support their demand for 150 mm and 200 mm silicon carbide (“SiC”) substrates and epitaxial wafers.

“We are excited to expand our strategic relationships with DENSO and Mitsubishi Electric to capitalize on the significant demand for silicon carbide,” said Dr. Vincent D. Mattera, Jr., Chair and CEO, Coherent. “After a thorough review of strategic alternatives for our Silicon Carbide business, we determined that the creation of a separate subsidiary and the strategic investments from DENSO and Mitsubishi Electric, two leaders in SiC power devices and modules, is the best path forward to maximize shareholder value and position the Business for long-term growth. The investments from our strategic partners will be used to accelerate our capacity expansion plans and help sustain our leadership position, while ensuring the development of a robust and scalable supply for the rapidly growing market for SiC-based power electronics, largely driven by the explosive growth of the global electric vehicle market.”

“We are very pleased to establish a strategic relationship with Coherent, which has a world-class track record in SiC wafer manufacturing. Through this investment, we will secure a stable procurement of SiC wafers, which are critical for BEVs, and contribute to the realization of a carbon-neutral society by promoting the widespread adoption of BEVs,” said Shinnosuke Hayashi, President & COO, Representative Member of the Board at DENSO.

Dr. Masayoshi Takemi, Executive Officer, Group President, Semiconductor & Device of Mitsubishi Electric, said: “Demand for SiC power semiconductors is expected to grow exponentially as the global market for electric vehicles increases in line with the transition to a decarbonized world. To capitalize on this trend, we have decided to expand our SiC power semiconductor production capacity, including by constructing a 200 mm wafer plant in the Shisui area of Kumamoto Prefecture. We are delighted to strengthen our partnership with Coherent by investing in this new SiC company, which will provide us with a stable supply of high-quality SiC substrates essential for our increased supply capacity.”

Explore More

• Why Are Japanese Companies Targeting Coherent in the SiC Field?
• Under the Hood: How is SiC Reshaping the Automotive Supply Chain?
• The M&A battle for SiC: Who’s the Top Acquirers?

(Photo credit: Coherent)

According to Taiwan’s Economic Daily, Hon Hai Precision Industry Co., also known as Foxconn, is set to begin mass production of its electric vehicle Model C in the fourth quarter. With electric vehicles offering higher profit margins compared to iPhone assembly, this move is expected to further boost Hon Hai’s profit margins and strengthen its overall profitability structure as it continues to pivot towards a higher proportion of higher-margin products.

Based on the Model C, developed by Hon Hai’s subsidiary Foxtron, the company is also working on the electric vehicle “n7” for its customer, Yulon Group’s Luxgen brand. It has already received pre-orders for approximately 25,000 units and plans to start mass production in the fourth quarter of this year, with gradual deliveries starting in January next year. The company is aiming to export these vehicles as early as 2025, contributing to Hon Hai’s electric vehicle business achievements and expanding its electric vehicle manufacturing footprint.

The Luxgen n7 electric vehicle will offer three different versions, all equipped with Level 2 advanced driver-assistance systems (ADAS). These three versions include the standard model with a range of 420 kilometers, the long-range version with a range of up to 700 kilometers, and the performance version, capable of accelerating from 0 to 100 kilometers per hour in under 3.8 seconds. The prices range from TWD 999,000 to TWD 1,299,000, making it the only pure electric vehicle priced below one million New Taiwan Dollars in the Taiwanese market.

(Photo credit: Luxgen)

Several Chinese new energy vehicle manufacturers disclosed their delivery and sales data for September on Sunday, October 1. GAC Aion, in particular, reached a significant milestone by surpassing 50,000 in sales, while Li Auto Inc. experienced a remarkable 200% surge in deliveries.

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