Sep 2, 2024

Shanghai-based carmaker aims to grow sales channels in the Middle East, Africa and Central Asia as price war at home erodes margins Chinese electric vehicle (EV) start-up Rox Motor has charted a new course into international markets after securing partnerships with distributors in a handful of markets amid cutthroat competition at home. The Shanghai-based carmaker aims to pick up its go-global pace by expanding sales channels in the Middle East , Africa and Central Asia, it said in a statement to the Post. Last week, Rox Motor signed agreements with dealers in Qatar, Kuwait, Azerbaijan, the Philippines and Egypt to distribute its electric cars and create local service systems. Founded in 2021 by Chinese entrepreneur Chang Jing, Rox Motor is viewed as a latecomer in mainland China’s EV race , where 50 or so players are now embroiled in a discount war to retain market share. The company has raised US$1.4 billion of capital from a clutch of investors such as IDG Capital and Tencent Holdings, according to data compiled by Crunchbase. “Rox Motor has fully embarked on its international journey,” the statement said. “We have always been committed to uncovering unmet real needs.” The company focuses on designing electric cars for people keen on outdoor activities such as fishing and camping. Its only model, the Rox 01, starts at 309,900 yuan (US$43,623) in a six-seat version and 299,900 yuan in a seven-seat variant. It takes on SUVs assembled by Beijing-based Li Auto , Tesla ’s nearest rival on the mainland. The hybrid car, launched in August 2023, has a small internal-combustion engine that generates additional power to charge the battery when needed. It has already been supplied to a police force in the United Arab Emirates. The company does not publish delivery data, nor does it appear among China’s top EV makers by monthly sales in data published by the China Passenger Car Association (CPCA). Moody’s Ratings said in a research report last week that Chinese EV makers will have a better chance of diversifying their revenue sources by expanding their geographical reach to emerging markets . Latin America, the Middle East and Southeast Asia are becoming key destinations for exports and production facilities, the rating agency said. Fierce domestic competition was eroding these companies’ profitability despite strong demand, it added. 02:36 Chinese EV maker Xpeng unveils budget car models priced under US$17,000 China’s EV sales during the first half of 2024 represented 65 per cent of the global total, CPCA data showed. To date, only BYD , the world’s largest EV assembler, and Li Auto are profitable among China’s home-grown EV builders. In May, the US announced a quadrupling of ­tariffs on Chinese-made EVs, which now stand at 100 per cent. In August, the European Union announced that additional duties of 9 to 36.3 per cent will be levied on EVs imported from China. Chinese carmakers have a huge cost advantage over their global rivals in building EVs, with a fully developed supply chain and strong manufacturing heft, according to Stephen Dyer, Greater China co-leader and head of the Asia automotive practice at global consultancy AlixPartners. Chinese-made EVs cost 35 per cent less to produce than those from other carmakers, he said in July. Post