During the process of listing in the US, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, sponsor, and other professional intermediary institutions in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with NASDAQ and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on industry-related issues from NASDAQ, etc.
Investment highlights
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The company is the first UAE new energy vehicle company to go public in the US;
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The company is committed to providing products centered around the 'passenger-centric' design philosophy, breaking away from traditional vehicle interior designs. By integrating them with intelligent systems, it transforms vehicles from traditional means of transportation into mobile living spaces.
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The company redefines electric vehicles with its fashionable, spacious cabin space and leading technology. Its products feature modern and unique designs to attract a global customer base that loves aesthetics and embraces technology;
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The company collaborates with world-class manufacturers and suppliers to provide passengers with a first-class travel experience that meets the needs of business travelers;
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The company boasts an experienced and visionary management team: It has a diverse workforce with backgrounds in different industries, nationalities, genders, ages, and occupations. At present, the company has attracted a large number of industry veterans from electric vehicle and traditional automakers.
Overview of the Global Passenger Vehicle Market
Affected by the increasing demand for automobiles in China and the COVID-19 pandemic, the sales volume of passenger cars in China dropped from 24.7 million units in 2017 to 21.5 million units in 2021, with a compound annual growth rate of -3.4%. It is expected that by 2027, the sales volume will reach 26.2 million units with a compound annual growth rate of 3.3%.
Similarly, under the negative impact of the pandemic, the sales volume of passenger cars in the Middle East decreased by a compound annual rate of -2.1% from 2.1 million units in 2017 to 1.9 million units in 2021. As the pandemic was brought under control globally and transportation demand continued to recover, it is expected that the sales volume of passenger cars in the Middle East will reach 2.6 million units with a compound annual growth rate of 5.1% by 2027.
In 2021, global passenger vehicle sales reached 64 million units. China is the largest passenger vehicle market, with sales of 21.5 million units, accounting for 33.6% of the global market.
Global passenger vehicle sales are expected to grow steadily but at a slower pace. By 2030, sales will reach 82.7 million units, and after 2030, global sales are expected to gradually reach saturation.
Source: Frost & Sullivan report
Global Overview of Electric Passenger Vehicle Market
Electric passenger vehicles are mainly divided into BEVs and PHEVs. Over the past few years, BEV sales have witnessed rapid growth, increasing from 779,000 units in 2017 to 4.291 million units in 2021, with a compound annual growth rate of 49.4%. Meanwhile, PHEV sales increased from 383,000 units in 2017 to 1.91 million units in 2021, with a compound annual growth rate of 53.2%.
During the forecast period, BEVs are still expected to grow most strongly with a compound annual growth rate of 13.8%. Generally speaking, due to government support for zero-emission travel, incentives for BEVs are greater than those for PHEVs, and it is projected that by 2027, the sales volume of BEVs will reach 21.73 million units.
Source: Frost & Sullivan report
Overview of China's Electric Passenger Vehicle Market
The vast majority of the Chinese electric vehicle market consists of BEVs. With strong government support and the introduction of various BEV models by many automakers, Chinese consumers have shown a willingness to purchase BEVs. As a result, BEV sales increased from 468,000 units in 2017 to 2.734 million units in 2021, with a compound annual growth rate of 52.5%. In the future, China's BEV sales are expected to reach about 9.54 million units by 2027.
The sales volume of PHEVs in 2017 was 111,000 units, reaching 600,000 units in 2021, with a compound annual growth rate of 55.5%. In the coming years, due to limited government support for this specific type of new energy passenger vehicle, production costs may remain relatively high, making their prices relatively expensive. It is expected that by 2027, the sales volume will reach 1.06 million units, with a compound annual growth rate of 23.2%.
Source: Frost & Sullivan report
Overview of China's MPV Market
It is expected that driven by favorable policies such as the 'three-child policy' and the emerging demand for cars with more seats and comfort for families, China's MPV market will grow rapidly. Under the strong momentum of electric vehicles, China's BEV MPV sales reached 38,000 units in 2021, with a compound annual growth rate of 57.1% from 2017 to 2021. During the forecast period, BEV MPVs are expected to reach 184,000 units by 2027, with a compound annual growth rate of 30.3% from 2021 to 2027.
Source: Frost & Sullivan report
Frost & Sullivan has extensive research experience in the automotive and transportation industries, assisting well-known companies in successfully listing on capital markets. Successful listings include: Zoomlion (3931.HK), Leapmotor (9863.HK), DBS China (2418.HK), Kuaidou Taxi (2246.HK), NIO (NIO.SGX), NIO (9866.HK), Canggang Railway (2169.HK), YGMZ (YGMZ.NASDAQ), Asia Express (8620.HK), InfinityL&T (1442.HK), TOMOHOLDINGS (6928.HK), EH (EH.NASDAQ), Aodima (8418.HK), Xiangxing International (8157.HK), CIMC Vehicle (1839.HK), Xunlong (1930.HK), CSSC Leasing (3877.HK), Chengdu Expressway (1785.HK), Tianrui Automotive Interior (6162.HK), PBC Holdings (2885.HK), Huazi International (2258.HK), Pulin Chengshan (1809.HK), NIO (NIO.NYSE), Wanli Da (8482.HK), Qilu Expressway (1576.HK), Yingheng Technology (1760.HK), Asia Industry (1737.HK), Ruifeng Power (2025.HK), Gaomeng Technology (8065.HK), Hebei Yichen (1596.HK), Zhengli Holdings (8283.HK), Junao Holdings (8035.HK), Yade Group (1585.HK), iHi Rental (EHIC.NYSE), Xinchen Power (1148.HK), Zhengxing Wheels (ZX.NYSE), Shuanghua Holdings (1241.HK), Changfeng Axles (1039.HK).
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*The above order is not sequential and is arranged in reverse chronological order based on listing time.
