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Budget-priced electric car brand Nezha sell more cars than bigger upstarts Nio, Li Auto, Xpeng in 2022

January 10, 2023 9:10 pm

Zhejiang-based Hozon New Energy Automobile, the owner of budget-priced electric car brand Nezha, outperformed bigger EV upstarts Nio, Li Auto, Xpeng in deliveries for 2022.

The eight-year-old EV startup, which started by targeting customers outside big cities with budget cars, delivered 152,000 vehicles in 2022, ranking third place only after BYD and Aion electric vehicle brand of Guangzhou Automobile Group, data from the China Passenger Car Association showed. 

Most deliveries came from Nezha V, a compact SUV whose post-subsidy price starts at 83,900 yuan ($12,000). By comparison, similar SUVs from Tesla, Nio, Li Auto price above 200,000 yuan.

Li Auto, Nio, Xpeng, ranked 4th, 5th, 6th place, with deliveries of 133,000, 122,500, 120,700 vehicles respectively.

In term of year-over-year growth rate, Nezha also surpassed rivals by a big margin. Nezha said its deliveries for the year grew by 118% to 152,000 vehicles. The year-over—year growth rate of Li Auto, Nio, Xpeng were 47.2%, 34%, 23% respectively.

Unlike domestic competitors include Nio, Li Auto, Xpeng, Nezha has low presence in major cities including Beijing, Guangzhou, Shanghai and Shenzhen, but it has gained a foothold in low-to-medium market and rural areas which are often overlooked by major EV brands. Nezha adopt the strategy of providing low-cost vehicles without compromising on quality or features.

EV sector is a capital-intensive industry where EV companies need consistent and sufficient capitals raised from investors to keep fast pace of research and development, Nezha said it had raised nearly 10 billion yuan for its Series D.

While bigger EV upstarts like Nio launches the more affordable model ET5 primarily to boost sales, Nezha entered the mid-to-high market with its new flagship mode, the NETA S sedan, which is scheduled for delivery in the fourth quarter of 2022.

Neta S has two model- pure battery electric vehicle model and mix model that allows drivers to charge their cars with electricity or gasoline. Neta S price between 199,800 yuan and 338,800 yuan, which is in  a similar price range with Tesla Model 3 and Xpeng G7.

Nezha also push beyond domestic market, entered into Southeast Asia since November, 2021.