Batteries not being listed into Directory, JAC Alternative Energy Vehicle’s Foreign Funds Strategy may meet obstacles

Recently, news of Samsung SDI battery, used by JAC iEV6S, not being listed into Directory caused a great sensation in the market. Therefore, JAC is facing an embarrassment of halted national subsidiaries. But JAC has denied rumor that it will halt the production of iEV6S and announced that iEV6S will reload domestic batteries. In fact, none of the 57 battery companies listed in the fourth batch of Power Battery Company Directory is Japanese or Korean companies. It’s learned that models loading unlisted batteries will have one-year buffer time to reload listed batteries.
News comes around that iEV6S began to sell by order. Statistic data shows that JAC alternative energy vehicles are selling 10,521 units in the first half of year, increasing 338%, among which iEV6S accounts for more than 20% in terms of sales volume. However, iEV6S’s monthly sales volume decreases from 958 units in April to 331 units with the introduction of order sales.
Reporters find out that iEV6S is now in short supply. In fact, JAC always takes the lead in the alternative energy vehicle market. JAC iEV6S electric SUV sets an official guidance price of RMB 234,800, while the terminal sales price is set at RMB 109,800 under the favorable policy in Beijing District. “The actual price will be unacceptable in the market without the favorable policies.” Yan Jinghui, an auto expert said.
JAC sets its annual sales target of 20,000 units this year, increasing 100% with the target of last year. However, the battery disturbance forces JAC to put more hope on iEV5 rather than iEV6S. It’s learned that iEV5 car contributes nearly 60% of the total sales volume. However, the combustion incident in Sanlitun has caused customers’ great suspicion on its future. “No matter whether the subsidiaries on foreign batteries will be cancelled or not, JAC alternative energy vehicles will meet some obstacles in its sales volume this year.” Limited by capacity and batteries, it may be difficult for JAC alternative energy vehicles to achieve the target this year. Under the background of decreasing subsidiaries, it may face a weakening price advantage and further miss the good opportunity of promoting iEV6S.


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