Produced by | Huabo Business Review

At the beginning of this year, GAC Aion aggressively entered Hong Kong, deploying over 300 1000V supercharging stations and planning six sales centers, aiming to further expand the Asia-Pacific new energy vehicle market through the Hong Kong platform. Following closely behind, Zeekr also announced that it would officially enter the Hong Kong and Macau markets in partnership with Jinlong Automobile Group in 2024, setting up stores and introducing new models. Additionally, numerous brands such as BYD, Beijing Automotive Group New Energy, NIO, Lixiang, Wuling, JAC Motor commercial vehicles, and more have rushed to enter the Hong Kong market, actively deploying their new energy vehicle businesses.

Hong Kong, with just over 7 million residents, has now become a crucial battleground for new energy vehicle companies looking to expand overseas. Why is this so?

01

Demonstration Effect of Hong Kong

According to Li Yaopei, President of the Hong Kong Automobile Association, due to Hong Kong's limited geographical area, large population, and traffic congestion, demand for car purchases is not robust, with around 40,000 new vehicles sold annually over the past five years. While independent new energy vehicle brands have not contributed significantly to overall sales in Hong Kong, they do have a strong demonstration effect.

As an international metropolis, Hong Kong gathers renowned car brands from around the world, and many of the models sold comply with European standards. This provides mainland automakers with an excellent platform to showcase their product quality and technological prowess. Establishing a foothold in the Hong Kong market signifies that a brand's quality and technology can withstand international standards, which is crucial for enhancing brand image and international recognition.

Moreover, as a right-hand drive market, Hong Kong poses a new challenge for mainland automakers. Approximately 30% of the global market is for right-hand drive vehicles. Successfully entering and establishing a presence in Hong Kong will provide mainland automakers with invaluable experience in this niche market, laying a solid foundation for further international expansion, especially into right-hand drive markets.

However, the competitive environment in the Hong Kong market is fierce, with international brands like Tesla having established a strong market position after years of cultivation. According to the Hong Kong Electric Vehicle Database, from 2017 to 2023, the number of newly registered electric private cars in Hong Kong was 62,458, with Tesla topping the list with 33,909 vehicles, accounting for 54.3% of the total. In comparison, the second-placed Mercedes-Benz had only 6,420 vehicles, less than one-fifth of Tesla's figure. Meanwhile, BYD, the top-selling new energy vehicle brand in mainland China, had only 3,727 first-time registrations in Hong Kong, accounting for less than 6% of the total.

02

Backed by the Motherland, Connecting the World

Apart from selling vehicles in Hong Kong, new energy vehicle companies are also competing to manufacture in the city. Hong Kong is gradually transforming from a single consumer market into a comprehensive platform integrating R&D, manufacturing, and international hubs.

On August 9, NIO Auto unveiled its HK$3.2 billion R&D center in Hong Kong and held a smart car innovation and development salon. The NIO Auto R&D center in Hong Kong will gather top global R&D talents, focusing on core technologies for new energy vehicles to promote intelligent technological innovation and breakthroughs. This includes, but is not limited to, intelligent driving technologies tailored for the global market, full-natural language multilingual voice interaction technologies, intelligent image processing, OTA software updates, AI big data models, in-vehicle supercomputing platforms, and other intelligent in-vehicle technologies, as well as smart connectivity ecosystem applications and services. Leveraging Hong Kong's sophisticated financial system and extensive overseas network, NIO Auto aims to collaborate with partners across the entire industry chain to promote in-depth and coordinated development of the global smart car industry chain.

NIO Auto emphasizes that its globalization strategy is accelerating with the help of Hong Kong's unique geographical advantage of "backed by the motherland, connecting the world." With strong support from the Hong Kong Special Administrative Region Government, NIO Auto will make full use of Hong Kong's international perspective and vibrant economic development vitality. Through the strategy of "technology going global," NIO Auto aims not only to promote the international dissemination and application of its technologies but also to stimulate and drive the innovative development of related local industries in Hong Kong. This strategic transformation marks NIO Auto's transformation from a "Chinese automaker" to a "globally leading technology enterprise," ushering in a new stage of development.

Concurrently, the electric vehicle brand BeyonCa officially announced its plans to establish an international headquarters and a complete vehicle assembly plant in Hong Kong, located in the Tseung Kwan O Innovation Park under the Hong Kong Science and Technology Parks Corporation. Future plans include establishing a complete vehicle R&D center, an AI center, a marketing center, a customer experience and smart health service center, and a big data center.

BeyonCa's founder and chairman, Su Weiming, expressed that choosing Hong Kong as the location for its international headquarters and complete vehicle assembly plant is intended to leverage China's leading supply chain system and the abundant international talent resources in the Guangdong-Hong Kong-Macao Greater Bay Area. He hopes to bring high-value-added IP R&D, AI development, and assembly operations to Hong Kong, achieving a breakthrough in local vehicle manufacturing and becoming the first international luxury electric vehicle brand with the label "MADE IN HONG KONG."

According to Caijing Magazine, the new energy vehicle industry is currently at a crucial stage of technological breakthrough, particularly in core technologies such as complex environment perception, intelligent decision-making, and human-computer interaction. Hong Kong, with its unique scientific research foundation and international perspective, demonstrates leadership in these areas. Hong Kong attracts top global talents, and local higher education institutions continuously produce high-quality R&D personnel, providing a solid foundation for the high-tech industry. Additionally, Hong Kong's R&D activities often have a higher level of internationalization and a deeper foundation of basic research. When effectively integrated with mainland industry chain scenarios, its potential is immeasurable.