Exports currently account for roughly 20 percent of Svolt’s capacity, but overseas orders come mainly from Great Wall Motor, Caixin’s report noted.
Taking into account that some of the batteries are loaded in China before being exported, Svolt’s actual capacity for exports is less than 20 percent, the report said.
Chinese power battery prices have seen a sharp decline over the past two years as growth in the new energy vehicle (NEV) sector has slowed and raw material prices, such as lithium carbonate, have fallen.
Smaller battery makers originally relied on low prices to gain customers, but leading players, including CATL, are no longer as assertive as they used to be amid fierce competition.
In February, Svolt chairman and CEO Yang Hongxin said on Weibo that the company had initiated deep changes since January in response to overcapacity and price competition in the industry, including increased elimination of poorly performing employees.
In addition to Svolt, Great Wall Motor itself is scaling back its operations in Europe.
Great Wall Motor planned to close its European headquarters in Munich at the end of August and fire all of its roughly 100 local employees, German media outlet Manager Magazin said in a May 28 story.
According to the Caixin report yesterday, Great Wall Motor adjusted its European business strategy in June, closing its German office and laying off all of its employees, and taking back management of its European dealerships and customers.
Svolt Energy’s Thailand plant sees 1st battery pack roll off line
Source link : https://cnevpost.com/2024/10/25/svolt-suspends-battery-factory-projects-germany-report/
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Publish date : 2024-10-25 03:32:00
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