The landscape of the electric vehicle (EV) market in China is undergoing a fascinating transformation as key players in the industry begin to unveil their expectations for 2024. Recent reports indicate an impressive trajectory of growth among leading companies in the supply chain of the new energy vehicle sectorFor instance, Saiyu Technology, a prominent name in the industry, has projected a staggering revenue increase of over 300% for the coming year, anticipating a net profit ranging between 5.5 billion to 6 billion yuan, marking their first-ever profit after years of financial struggleAnother heavyweight, CATL (Contemporary Amperex Technology Co., Limited), expects their net profit to reach between 49 billion to 53 billion yuan, representing a year-on-year growth of approximately 11.06% to 20.12%.

The optimism extends beyond just individual companies, as traditional automobile manufacturers such as GAC Group and Changan Automobile have also set ambitious sales targets for 2025. Many of these companies aim for a growth rate of 10% to 30% compared to the total sales figures of 2024. Interestingly, tech giants like Xiaomi and Huawei are also diving into the EV realm, projecting even more ambitious sales increases of over 120% by 2025, leading the charge among emerging automotive playersThis is in line with forecasts from the China Association of Automobile Manufacturers, which believes that the overall sales of new energy vehicles in China could hit a historic high of 16 million units by 2025, fueled by advancements in technology and the rising popularity of electric vehicles.

The successful collaboration between Saiyu and Huawei has emerged as a notable factor in Saiyu's turnaroundRecently, Saiyu disclosed a preliminary profit forecast for 2024, projecting revenues between 144.2 billion to 146.7 billion yuan, with a significant leap from losses to profits thanks to the strong market performance of their Wenjie product line, developed in partnership with Huawei

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After four consecutive years of losses that had accumulated to about 9.8 billion yuan, this turnaround is monumental for SaiyuAccording to their data, the company’s sales of new energy vehicles soared to 426,900 units in 2024, reflecting a remarkable 182.84% growth.

The Wenjie M9 model has made waves in the luxury electric vehicle sector, surpassing 200,000 orders within just a year and maintaining a dominant position in the Chinese market for luxury vehicles priced over 500,000 yuan, outperforming established international brands like Audi, BMW, and Mercedes-BenzWith the new Wenjie M7 also achieving deliveries of 200,000 units, the model has claimed the title of the best-selling new energy vehicle for 2024.

In light of these achievements, Saiyu announced a plan in August 2024 to acquire a 10% stake in Jiangxiang for about 11.5 billion yuanAs a major growth partner for Huawei's automotive business unit, Jiangxiang has recently onboarded new investors, including Aviator, a subsidiary of Changan Automobile.

Meanwhile, CATL, a leader in the power battery industry, is anticipating significant growth as wellThe company estimates its net profits in 2024 will range from 49 billion to 53 billion yuan, driven by increased battery sales and a drop in raw material costs like lithium carbonateThe numbers reflect a robust upward trend: the first three quarters showed profits of 10.51 billion, 12.355 billion, and 13.136 billion yuan appositely, with the fourth quarter projected to be particularly promising.

The increasing profits for CATL can be partially attributed to the company's enhanced production capabilities and technological advancementsIndustry analysts note that CATL holds a considerable competitive edge, estimating its battery shipments to reach around 500 GWh in 2024, as the fourth quarter traditionally marks a peak in production and sales.

CATL's business spreads across two significant sectors: power batteries and energy storage batteries

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According to the China Automotive Power Battery Industry Innovation Alliance, CATL's battery installation volume for the domestic market was reported at 246.01 GWh for 2024, achieving a remarkable market share of 45.08%, up 1.89 percentage points compared to last yearMoreover, data from the Zhongguancun Energy Storage Industry Technology Alliance confirmed that CATL ranks first in global market shipments for energy storage batteries in 2024.

As domestic automotive brands set their sights on 2025, the excitement in the market is palpableSeveral major manufacturers have announced ambitious sales goals that reflect their confidence in the burgeoning electric vehicle marketCompanies like GAC and Changan have set 2025 as a target for sales growth of typically between 10% and 30%, indicating that new energy vehicles are expected to serve as critical drivers of growth.

Changan Automobile, for instance, has targeted a total sales volume of 3 million vehicles by 2025, representing a 12% increaseTheir electric brand, Aviator, is aiming for an ambitious sales target of 220,000 units, signifying a whopping growth of 197%. Another of Changan's electric brands, Deep Blue, has also set goals exceeding 100% growth.

Notably, tech companies venturing into the realm of electric vehicles like Huawei and Xiaomi have set their sights even higher, with Huawei's HarmonyOS Smart Travel brand aiming for a total sales volume of 1 million units—achieving an astounding growth expectation of 125%. Xiaomi has also outlined a sales target of 300,000 units for its vehicles, with an anticipated increase of around 122%.

Officials from the China Association of Automobile Manufacturers expressed confidence in the market's future, attributing the expected growth to a combination of favorable macroeconomic policies, the sustained impact of new energy policies, and the extension of tax exemptions for electric vehiclesIn addition, advancements in technology and increased consumer acceptance of smart vehicles reinforce this optimism, suggesting that the electric vehicle segment in China could expand to an impressive total of 16 million units sold by 2025, a staggeringly robust increase of 24.4% from the previous year.

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