BAIC’s EV arm BJEV has lowered its manufacturing capability by 62.5 p.c by lowering the variety of manufacturing websites from three to at least one.
BAIC BluePark New Power Know-how Co Ltd’s electrical automobile (EV) subsidiary, Beijing Electrical Car (BJEV), has introduced a reduce in its manufacturing capability, highlighting the struggles the corporate is going through.
In a inventory alternate announcement right this moment, BAIC BluePark mentioned that BJEV’s manufacturing location has been modified from Beijing, Qingdao in Shandong province, and Cangzhou in Hebei province to only Beijing, and that the Beijing location is a brand new one.
Following the change, BJEV’s design capability has been revised right down to 120,000 models from the earlier 320,000 models, a 62.5 p.c discount, in line with the announcement.
The transfer is uncommon amongst native EV makers, as many different gamers are often increasing their manufacturing capability in response to rising client demand for EVs.
BAIC BluePark was the primary carmaker in China to be licensed to provide EVs, and was the No. 1 vendor of pure electrical passenger automobiles in China for a few years since 2013.
Nonetheless, the corporate’s gross sales have been regularly declining since 2019, and it bought solely 26,127 models in 2021.
Within the first half of this yr, BAIC BluePark bought 28,011 models, in line with its semi-annual report.
BAIC BluePark has continued to face losses over the previous few years. The corporate’s income within the first half of the yr was RMB 3.74 billion ($530 million), down 35.16 p.c year-on-year.
It reported a web loss attributable to shareholders of RMB 2.57 billion within the first half of the yr. It had a lack of RMB 1.98 billion in 2023.
The corporate presently owns three manufacturers — Arcfox, Stelato and Beijing — with Stelato being a collaboration between BAIC BluePark and Huawei.
($1 = RMB 7.0608)
BAIC BluePark shares plunge as orders for joint mannequin with Huawei seem to disappoint traders
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