Home » China’s new energy vehicles cool down and overcapacity may cause layoffs in the industry | Power battery | China Innovation Aviation | Ningde era

China’s new energy vehicles cool down and overcapacity may cause layoffs in the industry | Power battery | China Innovation Aviation | Ningde era

by admin
China’s new energy vehicles cool down and overcapacity may cause layoffs in the industry | Power battery | China Innovation Aviation | Ningde era

On April 19, 2021, at the International Automobile Industry Exhibition held in Shanghai, a Weilai car was unveiled. (Hector Retamal/AFP via Getty Images)

[The Epoch Times, March 12, 2023]In the past two years, China’s new energy vehicle industry has shown signs of cooling down. According to reports, many power battery manufacturers have revealed that there are insufficient orders, production line shutdowns, and staff reductions. According to industry insiders, the current situation is just the beginning. Overcapacity will spread from the low-end market to the high-end market, and the industry may experience layoffs on a certain scale.

Times Finance reported on March 10 that Yang Hai (pseudonym), a middle-level person in a leading battery company, revealed that the lack of orders has led to a decline in capacity utilization, or the current problem faced by most power battery manufacturers. Another headhunter focusing on the lithium battery industry said that compared with the same period in 2021 and mid-2022, the current prosperity of the power battery industry has dropped significantly.

The industry believes that the cooling of the power battery industry is mainly due to the slowdown in the growth rate of the downstream new energy vehicle industry.

According to data from the China Automobile Association, in January this year, the production and sales of new energy vehicles were 425,000 and 408,000 respectively, down 46.6% and 49.9% from the previous month and 6.9% and 6.3% from the same period last year. According to the data from the China Automotive Power Battery Industry Innovation Alliance, the installed capacity of power batteries in China in January was 16.1GWh, a year-on-year decrease of 0.3% and a month-on-month decrease of 55.4%.

See also  Nuclear deterrence in the German perspective

Wang Xiao (pseudonym), an engineer at a third-line power battery company, revealed that the company has basically no social recruitment plan in the first half of this year, and feels that the market is worse than the previous two years.

In the eyes of industry insiders, the current cooling of the power battery industry is partly due to the slowdown in the sales growth of downstream new energy vehicles.

According to a report by China Business News on March 6, the lack of orders for China Innovation Aviation caused some employees to resign; another person close to Ningde Times said that the production capacity utilization rate of Ningde Times has also declined. According to the annual report data, by the end of 2022, the capacity utilization rate of CATL’s battery system will be 83.4%.

A middle-level person in a battery company revealed that since the beginning of this year, some production bases of many battery companies have been shut down. Even if they are in operation, most of them are for energy storage batteries. There is a certain flow of personnel on the production line.

Mo Ke, the founder of the True Lithium Research Institute, said that many battery companies are currently destocking and shrinking production capacity. It is normal for production capacity utilization to drop, production line shutdowns, and personnel turnover to occur. If there is no accident, the power battery industry will face overcapacity this year. The current situation is just the beginning. Overcapacity will spread from the low-end market to the high-end market. Small and medium-sized battery manufacturers without scale and strength will face greater risks. In this context, there may be a certain scale of layoffs in the industry, from front-line production personnel to general functional positions. If the situation is serious, it may also affect the core R&D and middle and high-level management of some enterprises.

See also  The anti-system push weakens. Declining refusal towards politics

Responsible editor: Li Bing#

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy