The global automotive landscape is undergoing a decisive shift toward new energy vehicles (NEVs). TrendForce reports that in 1H23, NEV sales—which encompass battery electricity vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs)—soared to an impressive 5.462 million units, reflecting a growth of 33.6% YoY. Specifically, Q2 sales reached 3.03 million units, a 42.8% YoY surge, constituting 14.4% of total car sales for the period, and playing a pivotal role in 1H23 growth.

In Q2, BEVs alone posted sales of 2.151 million units, marking 39.3% growth YoY. While Tesla maintains the lead with a market share of 21.7%, BYD trails closely behind with a boosted share of 16.2%. Moreover, GAC Aion, a brand that has been making waves primarily in the Chinese market with its high value-for-money proposition, clinched the third spot with a 6% market share. Recently, the company has launched high-end models priced above CNY 220,000, aiming to diversify its product range. The top 10 BEV brands in Q2 remained fairly consistent with Q1, with only a minor shuffling in ranks. However, compared to the same period in 2022, fewer Chinese brands made the list, likely due to the growing number of EV models from traditional automakers and fierce competition among Chinese brands.

PHEVs weren’t left behind, registering sales of 876,000 units in Q2—a striking 52.9% YoY increase. Astonishingly, about 66% these sales hailed from the Chinese market. In this segment, BYD continued its lead with a whopping 36.5% market share. Its high-end subsidiary Denza, recorded increasing sales, escalating its market share to 3.4% and climbing to seventh place. Another brand to watch, Li Auto, set a new Q2 record with 87,000 units sold, keeping its second-place position firm with 10% market share. Among international competitors, both Volvo and Jeep noted growth over the previous year, with Jeep crossing 30,000 units, an achievement that’s brought them into the top five for the first time.

While major markets including China, Western Europe, and the US continue to dominate NEV sales, emerging players like Thailand and Australia have made significant strides in 2023. Both nations exceeded 35,000 units in sales in 1H23, with Thailand quadrupling its 2022 figures and Australia experiencing a fivefold increase.

Although these figures are modest in comparison to global sales, they highlight the vast potential of these markets. Recognizing this growth trajectory, many major automobile brands are strategically planning their expansions into these burgeoning regions.

According to the news from Mydrivers.com, BYD has reached a groundbreaking milestone, producing its 5 millionth new energy vehicle. The company asserts that China now possesses critical new energy vehicle technology and a robust industry chain.

BYD contends that a globally recognized brand stands as a vital hallmark of an automotive powerhouse. Throughout the annals of automotive industrial history, every automotive giant has harbored a world-renowned brand. For instance, the United States boasts General Motors, Ford, and Tesla; Germany takes pride in Volkswagen, Mercedes-Benz, and BMW; Japan and South Korea have cultivated their own globally esteemed brands. Presently, China lacks a universally acknowledged world-class automotive brand.

Yet, recent reports from Mydrivers.com highlight that China has already ascended to the status of a new energy vehicle juggernaut, wielding pivotal core technology and a comprehensive industrial framework, thereby freeing the automotive industry from constraints. Objectively, China possesses the foundation and capability to forge a world-class brand. Subjectively, the emotional desire to establish such a global automotive brand exists.

BYD also anticipates that by 2025, the penetration rate of new energy vehicles in the Chinese market will surpass 60%. In 2022, Chinese brands forayed into over 50% of the market for the first time, with projections indicating that within 3 years, their market share will escalate to 70%. In a recent development, data from the China Association of Automobile Manufacturers (CAAM) indicates that in the first half of this year, China’s complete vehicle exports surged by 76.9% YoY, surpassing Japan and claiming the global lead for the first time.

(Source: https://news.mydrivers.com/1/928/928676.htm)

South Korean media reported that Samsung is set to manufacture a new generation of Full Self-Driving (FSD) chips for Tesla’s Level 5 autonomous vehicles. These chips will be utilized in Tesla Hardware 5 (HW 5.0) onboard computers, with production expected to commence after 2025. The chips will be manufactured using Samsung’s 4nm process.

TrendForce’s analysis:

Samsung May Competing with TSMC for Tesla HW 5.0 Chips

In the early stages of Tesla’s autonomous driving technology, the company collaborated with Samsung for FSD chips used in various vehicle models, including Model 3, Model 5, Model X, and Model Y. However, in 2022, Tesla chose to work with TSMC, citing TSMC’s better yield performance in 4nm process technology at that time.

In response, Samsung has been actively improving its 3nm and 4nm process technologies within a short period. While Samsung’s 4nm process yield has reached 75%, it still slightly lags behind TSMC’s 80%. Despite this difference, given their previous collaborations, it is not ruled out that Tesla might place orders with both TSMC and Samsung this time. The main reason being Samsung’s plan to advance to the 2nm-level SF2 process technology in 2025 and further progress to the 1.4nm-level SF1.4 process technology in 2027, aligning its overall roadmap with TSMC’s. This advancement will assist Tesla in accelerating the production plan of its DOJO supercomputer, facilitating the transition to Level 5 autonomous driving.

(Photo credit: Tesla)

Tesla’s Shanghai factory has reportedly initiated layoffs among its battery assembly workforce. Industry sources suggest that the majority of the layoffs will affect employees in the first phase of battery assembly, with the reduction expected to exceed 50%. While most of the affected individuals will be offered compensation through negotiations, a small number will be reassigned to other positions. Additionally, the equipment in the first phase of battery assembly will either be dismantled or relocated.

From a production capacity standpoint, Tesla’s Shanghai factory currently operates at a capacity of approximately 100,000 vehicles per month. In order to maintain product scarcity and brand image, the output is expected to be controlled within the range of 75% to 85%.

According to TrendForce’s understanding, the layoffs in the first phase of battery assembly are expected to be related to US government policies. The US government has imposed restrictions on subsidizing batteries imported from China and requires the use of locally manufactured batteries. As a result, export orders for batteries from Tesla’s Shanghai factory have been cut, leading to excess production capacity. Tesla, known for its efficiency-driven corporate culture, is intolerant of resource wastage.

On another note, the reduction in capacity and production volume of the first phase of battery assembly by Tesla may indicate preparations for transferring some of the capacity to the United States. By completing the battery pack manufacturing process in the United States, Tesla aims to increase the proportion of the value chain related to battery production in the US, in order to qualify for the full subsidy of USD 7,500 per vehicle in the United States.

(Photo credit: Tesla)

The global automotive industry is pouring billions of dollars into SiC semiconductors, hoping that they could be key to transforming vehicle power systems. This shift is rapidly changing the supply chain at all levels, from components to modules.

In the previous piece “SiC vs. Silicon Debate: Will the Winner Take All?,” we explored SiC’s unique physical properties. Its ability to facilitate high-frequency fast charging, increase range, and reduce vehicle weight has made it increasingly popular in the market of electric vehicles (EVs).

Research from TrendForce shows that the main inverter has become the first area for a substantial penetration of SiC modules. In 2022, nearly 90% of all SiC usage in conventional vehicles was in main inverters. As demand grows for longer range and quicker charging times, we’re seeing a shift in vehicle voltage platforms from 400V to 800V. This evolution makes SiC a strategic focus for automotive OEMs, likely making it a standard component in main inverters in the future.

However, it is common for now that SiC power component suppliers fail to meet capacity and yield expectations – a challenge that directly affects car production schedules. This has led to a struggle for SiC capacity that is impacting the entire market segment.

Device Level: Burgeoning Strategic Alliances

Given the long-term scarcity of SiC components, leading OEMs and Tier 1 companies are vying to forge strategic partnerships or joint ventures with key SiC semiconductor suppliers, aiming to secure a steady supply of SiC.

In terms of technology, Planar SiC MOSFETs currently offer more mature reliability guarantees. However, the future appears to lie in Trench technology due to its cost and performance advantages.

Infineon and ROHM are leaders in this technology, while Planar manufacturers like STM, Wolfspeed, and On Semi are gradually transitioning to this new structure in their next-generation products. The pace at which customers embrace this new technology is a trend to watch closely.

Module Level: Highly-customized Solutions

When it comes to key main inverter component modules, more automakers prefer to define their own SiC modules – they prefer semiconductor suppliers to provide only the bare die, allowing chips from various suppliers to be compatible with their custom packaging modules for supply stability.

For instance, Tesla’s TPAK SiC MOSFET module as a model case for achieving high design flexibility. The module employs multi-tube parallelism, allowing different numbers of TPAKs to be paralleled in the same package based on the power level in the EV drive system. The bare dies for each TPAK can be purchased from different suppliers and allow cross-material platform use (Si IGBT, SiC MOSFET, GaN HEMT), establishing a diversified supply ecosystem.

China’s Deep Dive into SiC Module Design

In the vibrant Chinese market, automakers are accelerating the investment in SiC power modules, and are collaborating with domestic packaging factories and international IDMs to build technical barriers.

• Li Auto has collaborated with San’an Semiconductor to jointly establish a SiC power module packaging production line, expected to go into production in 2024. 
• NIO is developing its own motor inverters and has signed a long-term supply agreement with SiC device suppliers like ON Semi.
• Great Wall Motor, amidst its transformation, has also focused on SiC technology as a key strategy. Not only have they set up their own packaging production line, but they’ve also tied up with SiC substrate manufacturers by investing in Tongguang Semiconductor.

Clearly, the rising demand for SiC is redrawing the map of the value chain. We anticipate an increase in automakers and Tier 1 companies creating their unique SiC power modules tailored for 800-900V high-voltage platforms. This push will likely catalyze an influx of innovative product solutions by 2025, thereby unlocking significant market potential and ushering in a comprehensive era of EVs.