Chinese battery electric vehicle (BEV) manufacturer Hozon New Energy Automobile Company said it aims to sell 50% of its vehicles in overseas markets by 2026, as the company continues to struggle with the fierce price war in its domestic market.
Fang Yunzhou, the founder and chairman of the ten-year-old Shanghai-based automaker, confirmed the target this week – adding that the company also aims to become profitable by 2026.
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The cut-throat price war in the Chinese market is forcing the company to downsize its operations in order to cut costs and help secure its survival. The company is expected to announce staff layoffs in the near future, ahead of a possible initial public offering (IPO) in Hong Kong.
Industry analysts expect the price war in China to continue to escalate next year, after BYD sent letters out to its suppliers demanding price cuts of up to 10%. The price war is beginning to spill over into overseas markets, while in China it has already claimed a number of casualties this year, including the WM Motor and Human Horizons startups.
Fang Yunzhou told local reporters earlier this month: “Through optimisation and reorganisation, the company’s management structure will be simplified and operations will become more efficient. Administrative costs will be reduced and a team of young professionals will be built up.”
Hozon’s vehicle sales fell by 12% to 86,000 units in the first ten months of 2024, while the overall BEV market in China continued to expand.
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By GlobalData
