China Auto Trending Hashtag| Chery to ally with DS/ Harvests in production and sales in 1st half

1. Harvests in production and sales in 1st half of 2019

In June 2019, the added value of industries above a designated scale increased by 6.3% year-on-year, an increase of 1.3 percentage points from that in May, National Bureau of Statistics of the PRC released those data on Monday.

The output of NEVs was 143,000 sets, up by 50.5 percent year-on-year. From January to June, the output of NEVs reached 638,000 sets, a year-on-year increase of 34.6%. In terms of sales volume, the statistics from China Passenger Car Association (CPCA) showed that, from January to June, the cumulative sales of NEVs reached 575,000 sets, a year-on-year increase of 65%.

As a strategic emerging industry, NEVs have shown rapid growth in production and sales. NEV segment is expected to continue to expand in size and provide environmental protection for more users.

2. Chery is to ally with DS

Some people familiar with the matter revealed that French luxury brands DS and Chery Automobile have started to contact and are discussing to establish a joint venture. The reason why DS chose to cooperate with Chery is that DS values the strength of Chery EV.

In June, the sales of Chery’s NEVs reached 7,253 sets, an increase of 74.1% month-on-month and an increase of 14.2% year-on-year. To cooperate with a mature brand in the Chinese market is beneficial for DS to save time and cost.

Among the veteran Chinese automakers, Great Wall Motor has already opened up the market in Russia. The Proton acquired by Geely has also blossomed in Malaysia. Therefore, Chery, who is also a veteran automaker, certainly wants to go abroad. The PSA Group to which DS belongs is one veteran car company in the European market. If the two sides can reach a cooperation in the future, PSA would allow the EXEED to take a lot of detours when entering the European market.

3. Didi opens the door to third-party ride-hailing players

Didi Chuxing, China’s largest car-hailing provider, has opened its platform to third-party mobility service providers on Monday, allowing more users to hail cars from third-party service providers.

Didi has successively reached agreements with a number of car companies such as GAC, Dongfeng, and FAW, allowing third-party service providers such as “OnTime”, “DF-Go”, and FAW-operated providers will also be connected to Didi’s platform.

According to relevant forecasts, the car-hailing market will continue to grow in the next few years. At present, not only Didi adopts an open platform, car-hailing platforms such as Meituan and Amap have been opened to the third-parties. With the light assets and multi-platform mode, it will further facilitate people's mobility life.

4. The upgrading of Desay SV and FAW cooperation.

Recently, Desay SV, one of the leading automotive electronics companies, signed strategic agreements with FAW. Desay SV will provide innovative and intelligent products and services around the two business segments of intelligent driving and intelligent cockpit, helping FAW Group and FAW Hongqi to create more competitive advantages.

As a core supplier of FAW Group, Desay SV has been providing FAW Group with automotive electronic products and services such as air-conditioning controllers and driver information display systems since 1989, and has developed technologies such as intelligent driving and car networking.