XIAOMI(HK:01810) Qian Zhan Wang·2025-10-24 09:27Core Insights - The article highlights the increasing interest of American electric vehicle (EV) companies, particularly Rivian, in China's automotive technology, as evidenced by Rivian's CEO dismantling a Xiaomi SU7 to study its technology and cost structure [2] - It emphasizes China's robust automotive supply chain, particularly in the EV sector, which has led to significant cost advantages and technological advancements [2][6] Group 1: Industry Development - China's automotive industry has evolved rapidly, achieving a per capita vehicle ownership of approximately 225 vehicles by 2020, compared to the longer time taken by countries like the US to reach similar levels [5] - As of mid-2024, the number of new energy vehicles (NEVs) in China reached 24.72 million, with pure electric vehicles accounting for over 73% of this total [5] Group 2: Cost Structure and Market Dynamics - The average price of Chinese NEVs has dropped below 160,000 yuan, a decrease of over 8% from the previous year, while battery costs have fallen by 15% compared to 2022 [6] - The reduction in prices is attributed to the maturity of the supply chain and favorable government policies, including subsidies and tax exemptions, which have made NEVs more accessible to consumers [6] Group 3: Competitive Advantages - China's NEV sector benefits from a strong supply chain, high industry concentration, and a large market scale that fosters rapid technological iteration [8]