[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ custom_padding=”||2px|||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||” theme_builder_area=”post_content”][et_pb_text admin_label=”Text” _builder_version=”4.27.7″ header_2_font_size=”25px” header_2_line_height=”1.2em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font_size=”20px” sticky_enabled=”0″]<\/p>\n
The success of Chinese electric vehicles is remarkable. Learn how this breakthrough is affecting risk premiums in the bond market and what implications this has for investors.<\/p>\n
[\/et_pb_text][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font=”Celias – medium||||||||” text_font_size=”21px” sticky_enabled=”0″]<\/p>\n
Bond Management in an Era of Technological Disruption<\/p>\n
[\/et_pb_text][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” global_colors_info=”{}” theme_builder_area=”post_content”]After three years of development, Xiaomi, the world\u2019s third-largest smartphone manufacturer, finally launched its long-awaited electric vehicle (EV) on March 28, 2024.
\nThe vehicle is the Speed Ultra 7 (SU7) sedan, with a starting price of RMB 215,900 (USD 30,000)\u2014about USD 4,000 cheaper than Tesla\u2019s Model 3 sedan. The launch was highly successful, with over 50,000 orders placed within 27 minutes of sales beginning. The company sold over 10,000 cars in June 2024, a figure already comparable to the 9,000\u201310,000 monthly EV sales of the China-based joint ventures of SAIC Volkswagen and SAIC General Motors.<\/p>\n
On May 23, 2024, Xiaomi\u2019s management confirmed that demand remained strong, with delivery times for new orders extending beyond seven months. Xiaomi\u2019s automobile plant was set to switch to two-shift operations in June 2024 to increase production capacity to 20,000 vehicles per month.<\/p>\n
Such volumes would make Xiaomi one of the largest Chinese automakers in terms of global EV sales, as shown in the chart.[\/et_pb_text][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font=”Celias – medium||||||||” text_font_size=”21px” sticky_enabled=”0″]<\/p>\n
May 2024: Global Sales Figures for Chinese EV Manufacturers<\/p>\n
[\/et_pb_text][et_pb_image src=”https:\/\/ha-gim.com\/wp-content\/uploads\/2024\/07\/Verkaufszahlen-chinesischer-EV-Hersteller.png” title_text=”Sales Figures for Chinese EV Manufacturers” _builder_version=”4.27.7″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” align=”center” sticky_enabled=”0″][\/et_pb_image][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” text_font_size=”14px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n
Source: China Association of Automobile Manufacturers<\/em><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text” _builder_version=”4.27.7″ header_2_font_size=”25px” header_2_line_height=”1.2em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font=”Celias – medium||||||||” text_font_size=”25px” sticky_enabled=”0″]<\/p>\n The successful launch of Xiaomi\u2019s EV could have several implications for investors:<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font=”Celias – medium||||||||” text_font_size=”21px” sticky_enabled=”0″]<\/p>\n Other Markets Are Also Vulnerable<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” global_colors_info=”{}” theme_builder_area=”post_content”]Xiaomi\u2019s stocks and bonds have already reacted to the news and outperformed the market in recent months. However, it is worth examining whether other companies with strong brands and R&D capabilities could achieve similar success by entering new markets. [\/et_pb_text][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font=”Celias – medium||||||||” text_font_size=”21px” sticky_enabled=”0″]<\/p>\n Risk Premiums Will Adjust to the New Industry Dynamics<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” global_colors_info=”{}” theme_builder_area=”post_content”]The automotive industry is undergoing significant changes, particularly with the rising share of new EV registrations in China, which is projected to reach 50% by 2025.\u00b9 Risks and Analysis: Lessons from History and Strategic Outlook<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” global_colors_info=”{}” theme_builder_area=”post_content”]Remember Nokia, a former market leader in its industry? The company, which was rated A- by S&P in 2011, was downgraded to B+ just two years later. It cannot be ruled out that something similar could happen to established players in the automotive industry. As EV manufacturers face growing competition in the Chinese market, many are shifting their focus to overseas markets.<\/p>\n According to reports, Xiaomi is already working intensively on developing a second model to compete with the current bestseller in the global EV market, the Tesla Model Y.<\/p>\n In an environment of rapid industry changes and fierce competition, sound credit analysis is crucial for avoiding loss-making investments. HAGIM relies on in-depth fundamental analysis to successfully navigate such challenges. [\/et_pb_text][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” text_font_size=”14px” global_colors_info=”{}” theme_builder_area=”post_content”]1) https:\/\/www.iea.org\/reports\/global-ev-outlook-2024\/outlook-for-electric-mobility Price losses due to rising yields and\/or increased risk premiums are possible. Even a total loss cannot be ruled out. Past performance is not indicative of future results, nor can future performance be guaranteed.<\/p>\n [\/et_pb_toggle][et_pb_toggle title=”Disclaimer” open_toggle_background_color=”RGBA(255,255,255,0)” closed_toggle_background_color=”RGBA(255,255,255,0)” icon_color=”#000000″ open_icon_color=”#000000″ _builder_version=”4.27.0″ _module_preset=”default” border_width_all=”0px” border_width_bottom=”1px” border_color_bottom=”#93642e” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n This marketing communication, as defined by the Securities Trading Act, is provided solely for informational purposes and should not be construed as personal investment advice, a recommendation, or a solicitation to buy, sell, or hold a financial instrument, or to adopt an investment strategy.<\/p>\n The opinions and statements contained in this document reflect the current assessment as of the date of publication. The information provided does not constitute a complete analysis of all material facts relating to a country, region, or market.<\/p>\n Any statements regarding market developments, returns, price gains, or other capital appreciation, as well as risk metrics, are merely forecasts for which we assume no liability. In particular, past performance, simulations, or forecasts are not a reliable indicator of future performance. Asset values may rise or fall. [\/et_pb_toggle][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" The success of Chinese electric vehicles is remarkable. 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\nXiaomi\u2019s entry into the EV market has already prompted competitors to announce further price cuts and subsidies, which could accelerate the transition to EVs. Xiaomi\u2019s team of over 1,000 employees working on autonomous driving could also make a significant contribution to the development of this technology, even if the company itself does not become a major global automaker.[\/et_pb_text][et_pb_text _builder_version=”4.27.7″ _module_preset=”default” header_3_font=”|700|||||||” header_3_font_size=”20px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” text_font=”Celias – medium||||||||” text_font_size=”21px” sticky_enabled=”0″]<\/p>\n
\nImage credit: Unsplash[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.25.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.25.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.25.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_toggle title=”Risks” open_toggle_background_color=”RGBA(255,255,255,0)” closed_toggle_background_color=”RGBA(255,255,255,0)” icon_color=”#000000″ open_icon_color=”#000000″ _builder_version=”4.27.0″ _module_preset=”default” border_width_all=”0px” border_width_bottom=”1px” border_color_bottom=”#93642e” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
All information has been carefully compiled, in some cases based on information from third parties. Individual pieces of information may, in particular due to the passage of time, changes in the law, or current market developments, prove to be no longer accurate\u2014or no longer fully accurate\u2014even at short notice, and may change at any time without prior notice.
Therefore, no warranty is provided as to the accuracy, completeness, or timeliness of any information. The information is based on our assessment of the current legal and tax situation. To the extent that tax or legal matters are addressed, the recipient should discuss these with their tax advisor or attorney.
Investments in financial instruments involve both opportunities and risks. HAGIM\u2019s policy on handling conflicts of interest is published online at www.ha-gim.com\/rechtliche-hinweiserechtliche-hinweise.
The information contained herein is intended solely for professional clients or eligible counterparties. This information document is not intended for U.S. citizens or persons permanently residing in the United States, nor may it be distributed in the United States.<\/p>\n