Has BAIC New Energy Stopped Production?

[AuroraMarie]

BAIC New Energy has not stopped production. Below is more information about new energy vehicles: 1. Overview: New energy vehicles refer to automobiles that use unconventional vehicle fuels as power sources (or use conventional vehicle fuels with new types of on-board power devices), integrating advanced technologies in vehicle power control and driving, resulting in advanced technical principles and featuring new technologies and structures. 2. Others: New energy vehicles include pure electric vehicles, range-extended electric vehicles, hybrid vehicles, hydrogen engine vehicles, etc. Among them, pure electric vehicles are those that use a single battery as the energy storage power source.

[MadelineAnn]

I previously followed the developments of BAIC New Energy. At the beginning of 2024, they indeed suspended production lines for models like the Arcfox and Mofang, leaving many workstations vacant at their Beijing factory. Sales plummeted severely in the first half of the year, with only about 2,000 units sold per month—keeping the production lines running was losing money. They are now fully focused on the Xiangjie project in collaboration with Huawei, and it's said that the new model won't start production until the end of the year. Currently, most of the new car reservation pages on their official website are grayed out, though you can still see last year's Arcfox models running on Beijing roads. If you're considering buying a car, it might be worth waiting to see the direction they take after their adjustments in the second half of the year.

[Matthew]

My friend works in Yizhuang and mentioned that it's eerily quiet when passing by the BAIC New Energy factory. Last week, when I went to the dealership for maintenance on my old EU5, the salesperson privately revealed that they're currently focused on clearing out inventory cars. The showroom has half as many new cars as before, and the sales staff are all promoting hybrid models. The after-sales service is still operating normally, and the upgrade of my car's infotainment system wasn't affected. Their warehouse is stocked with many battery packs produced last year, giving the impression that they're preparing for a major transformation. Rumor has it they're testing a high-voltage fast-charging platform, and the next model they release might be capable of charging for ten minutes to run 400 kilometers.

[BradleyAnn]

Traditional automakers have been pivoting and transforming over the past two years. The pressure BAIC New Energy is facing now is something BYD experienced three years ago—back then, they halted all fuel vehicle production and were written off, but now they’ve become the leader in new energy. ARCFOX’s battery tech is actually solid, but their marketing always seems a step behind. Recently, test vehicles at their factory have been spotted with Huawei HI badges, and engineers say LiDAR installations have doubled compared to last year. This adjustment phase is unavoidable for any automaker—didn’t Tesla just cut 10% of its workforce last month? The key is whether they can drive down the price of the Enjoy S9 in the second half of the year.

[CoraRose]

The market competition is too brutal. Five years ago, BAIC BJEV was still the domestic sales champion, but now it has not only been left behind by BYD and Tesla, but even GAC Aion has overtaken it. The problem lies in the slow model updates—the EU series only got a bumper change in five years. After Huawei entered the scene, it took full control of the smart systems, and the factory is now busy revamping production lines. I heard at their supplier conference that they will launch a new 800V high-voltage platform vehicle in October, with an 18% reduction in the cost of the electric drive system. The current production halt seems like a halftime break, similar to how smartphone manufacturers clear inventory before launching new products.

[AddysonDella]

My buddy bought an Arcfox Alpha T last year and was really nervous when he went for maintenance last week. Actually, there's no need to worry. The 4S store's spare parts warehouse is operating as usual, and the maintenance booking channels are still open. The sales manager mentioned that the factory's technical team is fully occupied with new projects, and camouflaged test vehicles are coming in and out of the testing ground every day. His used car valuation did drop, but the lifetime battery warranty clause remains valid. BAIC New Energy's orders for official vehicles are still being delivered, and there are newly licensed EU5 taxis on the road. Such strategic adjustments are quite common in the automotive industry, and things should return to normal once their new platform models are launched.