Consumer Discretionary
This year, regulation of two-wheeled EVs has intensified, with strict oversight on battery usage, onboard chargers and major component modifications. As the transition period concludes, manufacturers are speeding up the clearance of old vehicle inventories and developing new models that comply with the revised standards. The updated national standard is expected to ease restrictions on speed and vehicle weight but will impose the highest production qualification requirements in history. Consequently, many lower-tier manufacturers will struggle to survive. Horizon Insights believes Ninebot, which has established a strong reputation for its high-end products, looks set to benefit, even at the expense of market leaders including Yadea and Aima.
Edition: 192
- 09 August, 2024
2022 China New Energy and Machinery Investment Strategy
1) Wind & Power installations to enter a high growth stage after 1Q22 (Ningbo Orient Wires, Luoyang Xinqianglian).
2) PV installations to see strong demand this year. Alpha opportunity re. granular silicon (GCL-Poly); industry beta opportunity of PV EVA film is also clear (Hangzhou First Applied Material).
3) EV Supply Chain: Upstream lithium sector will be the only area that can justify the high valuation due to unbalanced demand/supply dynamics (Keda Industrial).
4) Two-Wheel EVs: New safety standards will see leading companies further increase market share (Yadea).
Edition: 128
- 04 February, 2022