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… struggled, with just 34 units sold in Germany during the same period.
Affordable models remain critical for Chinese automakers to overcome sales barriers in Europe. High-end models face stiff competition from established domestic brands like Mercedes-Benz, whose C-class is priced at EUR 45,000 (USD 47,085). Chinese automakers still grapple with brand recognition and pricing power compared to their European counterparts.
Xiaomi, however, may have a distinct advantage. While Apple dominates Europe’s smartphone market and Volkswagen, Mercedes-Benz, and BMW lead in automotives, these automakers are heavily investing in proprietary in-car operating systems instead of adopting Apple’s CarPlay updates. This focus creates an opportunity for Xiaomi’s unique selling point: its integrated ecosystem.
whereRelatedArticle
Leveraging its vast smartphone user base, Xiaomi is well-positioned to create seamless connectivity between phones, cars, and other smart devices. This integrated human-car-home ecosystem could be a critical differentiator for Xiaomi in overseas markets.
Despite its potential, Xiaomi faces challenges in executing this vision internationally. Data privacy regulations, compliance requirements, high tariffs, and logistics costs present significant hurdles. Successful localization in R&amp;D and marketing—areas where Xiaomi has shown strength—will be essential to overcoming these obstacles.
Xiaomi’s ultimate aim is to go beyond selling cars—its eventual goal is to introduce its human-car-home ecosystem concept globally. As one of the few companies capable of producing both smartphones and cars while maintaining a strong user base and brand influence, Xiaomi is uniquely positioned to pioneer premium Chinese EV exports. This strategy carries not just the promise of market entry but also the potential to redefine perceptions of Chinese automotive brands in the global premium segment.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3065496001815681">article</a> was written by Xu Caiyu for 36Kr.

Xiaomi readies for EV exports, bets on ecosystem to boost global reach

China

Electric Vehicles

Mobility

… digital economy revenues are expected to grow to USD 89 billion, a 14% annual growth rate, while profits are forecast to rise to USD 11 billion, a substantial 24% increase.
While e-commerce provides a cost-effective way to explore new markets, its overall scale in Southeast Asia remains constrained. Despite rapid growth, penetration rates are still relatively low, with Malaysia, Thailand, and Vietnam each below 6%. For now, offline channels continue to dominate the region's retail landscape.
According to Xu, cross-border e-commerce in Southeast Asia is still in its early growth phase. Brands entering the market through this channel may face growth limitations, often plateauing after achieving annual sales of several hundred million per country.
By contrast, offline channel development offers brands a viable pathway to overcome these growth barriers and sustain long-term expansion.
Offline channels hold a dominant share of the retail market in Southeast Asia. In Indonesia, the retail market reached a valuation of USD 191.3 billion in 2023, with traditional, modern, and e-commerce channels accounting for 37%, 30%, and 32% respectively. Within the modern segment, specialty stores, convenience stores, supermarkets, department stores, and hypermarkets accounted for 19%, 8%, 2%, 1%, and 1%, respectively. Convenience stores, like e-commerce, are seeing particularly notable growth.
A 2024 report on B2B retail in Southeast Asia by Ninja Van noted that as offline consumption rebounds, retailers are adapting their physical store strategies. Some are incorporating digital innovations like virtual try-ons and adopting tactics such as pop-ups and co-branding to optimize layouts and enhance the customer experience.
Ninja Van’s Han observed that brands aiming to cater to diverse socioeconomic groups in Southeast Asia must focus on expanding and diversifying their sales channels. The stark differences between urban and rural markets make offline channel growth in rural areas a critical priority.
For example, YOU Beauty has built its success on a robust offline presence. Since entering the Indonesian market in late 2018, the brand has expanded to the Philippines, Malaysia, and Thailand, establishing nearly 60,000 offline sales points. The brand prioritizes the image and layout of its store consultants, supported by a comprehensive training system. By leveraging offline data, YOU Beauty can adapt strategies in areas such as product packaging, formulations, marketing timelines, and brand positioning.
However, building an offline channel network places greater demands on a brand’s supply chain. When expanding into lower-tier cities, brands must consider supply chain efficiency and cost at every stage to avoid losing customers or damaging brand reputation due to infrequent product updates or stock replenishment.
The tea and coffee sector in Southeast Asia provides a compelling example of these challenges. Many brands in this space have chosen the region as their first base for overseas expansion. However, obstacles such as challenging terrain and underdeveloped transportation infrastructure complicate supply chain operations.
Pickup Coffee, a Philippine brand focusing on grab-and-go coffee, faced such challenges. Due to space limitations and the need for freshness, supplies such as coffee beans, milk, syrups, and packaging materials required constant replenishment. Previously, the brand relied on manually planned delivery routes, which proved both costly and inefficient.
To address these issues, Pickup Coffee partnered with Ninja Van to optimize deliveries to stores in the Greater Manila Area and beyond. Ninja Van provided monitoring and management of inventory levels, transportation routes, and restocking frequencies tailored to regional store characteristics. Over three months, Pickup Coffee expanded to 30 new outlets while reducing operating costs by 20%.
While rapid expansion is critical, maintaining operational efficiency is equally important. As online and offline channels increasingly converge in Southeast Asia, brands must strike a careful balance in their channel strategies, with a strong emphasis on supply chain stability.
"Brands venturing into Southeast Asia should focus on long-term development and strategic planning. For small and medium enterprises entering the region early, I would recommend testing the market’s suitability with low-investment methods, such as cross-border e-commerce,” Han said.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3054220407067009">article</a> was written by Chang Weiqian for 36Kr.

Chinese brands face mixed fortunes in Southeast Asia’s complex markets

On-demand Services

E-commerce

Logistics

Food Delivery

Grocery Delivery

Consumer Economy

Singapore

Malaysia

Thailand

Vietnam

Indonesia

Philippines

Southeast Asia

On December 12, Avatr and Huawei signed an agreement for deep collaboration spanning product development, marketing, and ecosystem services, focusing on Avatr’s next generation of products. This marks a continuation of Huawei’s growing partnerships in the automotive sector, following its agreement with GAC on November 30.
Huawei’s approach to the automotive sector began with Ren Zhengfei’s principle that Huawei does not manufacture cars but instead supports automakers with its technology. Accordingly, Huawei developed three collaboration models:
<ol>
<li aria-level="1">Components model: Huawei operates as a traditional supplier, providing parts to automakers.</li>
<li aria-level="1">Smart selection model: Huawei participates in product definition, design, marketing, and user experience. Huawei has yielded partnerships with brands such as Aito (Seres), Stelato (BAIC), Luxeed (Chery), and Maextro (JAC) using this model.</li>
<li aria-level="1">HI model: This middle-ground model allows usage of Huawei’s technology, including smart driving, intelligent cockpits, and electric drive systems, while automakers retain control over product definition, marketing, and manufacturing.</li>
</ol>
Avatr has collaborated with Huawei under the HI model since 2022, launching four models: Avatr 11, 12, 07, and the upcoming 06. These vehicles incorporate Huawei’s technologies for smart driving, connectivity, and electric systems, while Avatr oversees product definition and manufacturing.
<div style="width: 640px;" class="wp-video">
<video class="wp-video-shortcode" id="video-0-1" width="640" height="360" preload="auto" controls="controls"><source type="video/mp4" src="https://console.kr-asia.com/wp-content/uploads/2024/12/Avatr-06.mp4?_=1" /><a href="https://console.kr-asia.com/wp-content/uploads/2024/12/Avatr-06.mp4">https://console.kr-asia.com/wp-content/uploads/2024/12/Avatr-06.mp4</a></video></div>
Video previewing the upcoming launch of the Avatr 06, an electric vehicle developed in partnership with Chang’an Automobile, CATL, and Huawei. Video and header photo source: Avatr.
The new agreement between Avatr and Huawei represents an upgrade to their collaboration, with Huawei extending its involvement into marketing and ecosystem services. This shift signals the adoption of the HI Plus model, which broadens Huawei’s role without integrating its terminal retail channels, unlike the smart selection model.
Huawei’s retail success under the smart selection model is evident. Harmony Intelligent Mobility Alliance (HIMA) brands sold 395,000 vehicles in the first 11 months of 2024, with the Aito M7 leading new energy vehicle (NEV) sales at 185,600 units and the Aito M9 dominating the high-end segment with 141,100 units sold. These achievements highlight Huawei’s expertise in product definition, marketing, and ecosystem management, prompting deeper partnerships with automakers.
Avatr’s sales under the HI model have also shown steady growth. Monthly sales climbed from under 2,000 units early in the year to over 10,000 units in November, boosted by the Avatr 12 and 07 launches. The introduction of the HI Plus model is expected to amplify this growth trajectory, leveraging Huawei’s expanded support for Avatr’s upcoming models.
Under the enhanced partnership, Avatr will adopt Huawei’s new architecture and draw on its expertise across development, marketing, and ecosystem services. This collaboration is poised to sharpen Avatr’s edge in the increasingly crowded automotive market, bolstering both sales performance and brand growth.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3075619003396741">article</a> was written by Xu Caiyu for 36Kr.
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Avatr and Huawei deepen EV partnership under upgraded HI Plus model

Huawei

Chang'an Automobile

Avatr

East Asia

In 1995, well before BYD ever made a single car, founder Wang Chuanfu placed a globe in his office. It remains a fixture even today, according to Wang, as China's top electric vehicle company tries to make a name for itself worldwide.
BYD, which marked its 30th anniversary in November, is the global leader in combined sales of electric and plug-in hybrid vehicles.
From January to November, sales volume jumped 40% on the year to 3.75 million vehicles, with monthly sales topping 500,000 in October. BYD projects it will top 4 million vehicles this year, which would put it within striking distance of Honda Motor's 4.1 million vehicles sold in the fiscal year ended last March.
BYD is closing in on Tesla in sales volume, surpassing its US rival in EVs alone during the fourth quarter of 2023.
In February, BYD cut prices of EVs and PHEVs by as much as 20% in a bid to expand market share in China. Rivals soon followed, in a sign of BYD's influence over the world's biggest auto market.
Emboldening BYD's pricing decision is its ability to make batteries in-house. In 2020, the company unveiled the "Blade Battery." This lithium iron phosphate (LFP) battery keeps costs down compared to conventional batteries that use nickel, cobalt, and other rare metals.
By making its own batteries, BYD is able to bring down procurement costs of the component, which accounts for 30–40% of an EV's price. Those savings are transferred to EVs and PHEVs that sell for under roughly RMB 100,000 (USD 14,000).
Economies of scale have further lowered production costs. In the first half of 2024, BYD's automotive segment earned a gross profit margin of 24%, up three percentage points from a year earlier.
BYD has become one of the world's biggest suppliers of batteries for cars. It held a 16% global market share in EV batteries through September, according to South Korea's SNE Research, placing it second behind Chinese leader CATL.
BYD's market share is up eight points from 2021. It supplies batteries for Xiaomi and Toyota Motor EVs.
BYD began as a small factory developing and making batteries for mobile phones.
"On November 18, 1994, we began our fight as a small organization of 20 people," Wang, now chairman and president, said at an anniversary event held last month in Shenzhen.
Wang was born in 1966 as the youngest of eight children in a farm village in China's Anhui province. His father died when Wang was just 13 years old, followed by his mother three years later.
Wang was able to enter university with the aid of his only brother. He studied batteries and eventually went on to graduate school.
Wang started BYD in space rented on the third floor of a building outside of Shenzhen. The company later branched out into other components for phones. BYD first made the leap into the auto industry by purchasing Xi'an Tsinchuan Auto, a state-owned enterprise, in 2003.
"China's population is over one billion, so I knew it would become a big market," Wang said.
State-owned companies once held a monopoly on automaking in China. That changed in 2001, when Zhejiang Geely Holding Group became the first privately owned company to gain a license to manufacture vehicles. BYD seized the opportunity.
In 2005, BYD released its first BYD-branded gasoline vehicle, the F3. Production volume was small at the time and the company was unable to access steady supplies of high-quality components.
It was at that point that Wang decided to produce major components like engines and transmissions in-house, repurposing the metalworking expertise built up with phone parts. This marked the beginning of BYD's do-it-yourself approach to automaking.
BYD released its first plug-in hybrid, the F3DM, in 2008, and an EV for taxi services rolled out two years later. Warren Buffett's investment firm Berkshire Hathaway acquired a stake in BYD in 2008, in a bet on China's new energy vehicle market.
BYD struggled to grow sales up until 2019, when it only sold around 460,000 vehicles. At the time, Japanese and other foreign makers of internal combustion engine vehicles still dominated the Chinese market, leaving little room for the company to expand.
China's national policy of promoting new energy vehicles ignited BYD's rise. In 2019, the government set rules that in principle only approved new vehicle assembly plants if they made EVs. It also began doling out subsidies for buyers of new energy vehicles.
BYD has become a huge employer. Although its revenue was only about a quarter of Toyota's in the previous financial year, its workforce numbered over 700,000, nearly double Toyota's 380,000 workers.
"What really makes us strong is an engineer's attachment to a dream," said Wang, who still considers himself an engineer. BYD's team of engineers is now developing artificial intelligence and self-driving technology.
Outside of China, BYD's brand recognition remains low. It generates only around 10% of its sales volume abroad, well below the roughly 80% at Toyota and Honda. Its test will be transplanting the development and production foundations it has built up in China overseas.
From 2022, BYD accelerated its moves into Southeast Asia, Europe, the Mideast, Africa, and other regions. In July, it started up its first full-fledged assembly plant for passenger vehicles in Thailand. The company plans to build plants in Hungary and Turkey by 2026.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Spotlight/Electric-cars-in-China/China-s-BYD-marks-30th-year-by-chasing-4m-car-milestone" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

China's BYD marks 30th year by chasing four-million-car milestone

… href="https://kr-asia.com/how-minisos-global-expansion-and-ip-strategy-are-driving-record-profits-in-2024">Miniso’s global strategy</a>, alongside localization and supply chain advantages.
Miniso’s venture into collectibles goes deeper with its sub-brand, <a href="https://kr-asia.com/top-toy-targets-southeast-asia-with-first-store-in-thailand-expanding-minisos-footprint">Top Toy</a>, launched in 2020. Targeting premium collectors, Top Toy features an array of offerings, including blind boxes, figurines, doll models, and building kits. Collaborating with high-profile IPs such as Bandai and Disney, Top Toy further cements Miniso’s position in the global collectibles arena.

Blind boxes take center stage at Miniso’s festive pop-up in Singapore

Miniso

Entertainment

Creative

Retail

Consumer Services

… challenges.
The Biden administration’s roadmap aims to deploy 200 gigawatts of nuclear capacity by 2050 through new reactors, restarts, and facility upgrades, with a short-term goal of adding 35GW within the next decade. Yet historically, US nuclear energy policies have often fallen short, failing to deliver substantial progress.
TMI’s 1979 meltdown remains a pivotal moment in US nuclear history. Though no casualties resulted, the incident shattered public confidence in the “absolute safety” of nuclear energy.
Since then, infrastructure-building capabilities in the US have declined significantly. Between 1979 and 1988, construction plans for 67 reactors were canceled. Georgia’s Vogtle Unit 3, which went online in July 2022, was the first new US reactor in over three decades. It remains the only commercial nuclear project actively pursued in the current century.
This stagnation has pushed tech companies toward decommissioned nuclear plants. However, facilities like TMI are rare exceptions, and reactivating retired plants won’t solve the underlying issues.
Another concern is the aging fleet of operational reactors. As of April 2024, the average age of US commercial nuclear reactors is 42 years. Aging equipment increases safety risks, reduces efficiency, and raises maintenance costs. Replacing outdated reactors and accelerating next-generation builds are critical challenges for the US nuclear industry.
<figure id="attachment_151131" aria-describedby="caption-attachment-151131" style="width: 540px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-151131" src="https://console.kr-asia.com/wp-content/uploads/2024/12/Nuclear-Generators-Capacity-US-1024x512.jpg" alt="Diagram shows the changes in the capacity of US nuclear generators over the decades, with most units constructed and activated in the 1970s." width="540" height="270" srcset="https://console.kr-asia.com/wp-content/uploads/2024/12/Nuclear-Generators-Capacity-US-1024x512.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/12/Nuclear-Generators-Capacity-US-300x150.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/12/Nuclear-Generators-Capacity-US-768x384.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/12/Nuclear-Generators-Capacity-US.jpg 1280w" sizes="(max-width: 540px) 100vw, 540px" /><figcaption id="caption-attachment-151131" class="wp-caption-text">Diagram shows the changes in the capacity of US nuclear generators over the decades, with most units constructed and activated in the 1970s. Graphic source: US Energy Information Administration (EIA).</figcaption></figure>
Beyond technical and financial hurdles, nuclear projects face regulatory complexities and public concerns over safety and waste management, making new construction exceedingly difficult.
The road to a nuclear-powered future remains fraught with uncertainty.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3054046406021506">article</a> was written by Geng Chenfei for 36Kr.

AI’s energy appetite revives nuclear ambitions in the US

Deep Tech

Energy

Artificial intelligence

… Venture Partners, and Alumni Ventures.</li>
<li aria-level="1"><a href="https://www.pixxel.space/">Pixxel</a>, a hyperspectral imaging startup based in the US and India, raised USD 24 million in a Series B extension, pushing the round’s total to USD 60 million. M&amp;G Catalyst and Glade Brook Capital Partners joined existing backers like Google and Lightspeed in the latest tranche.</li>
<li aria-level="1"><a href="https://rebelfoods.com/">Rebel Foods</a>, a leader in India’s cloud kitchen space, reportedly received USD 210 million in its Series G funding round, led by Temasek Holdings with support from existing investor Evolvence.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: B Capital leads Series A investment in Eureka Robotics, Cove attracts new funding, True Global Ventures backs US-based Prezent, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Central Asia

… brand told 36Kr that expansion in China will focus on finding trustworthy partners.
Birkenstock’s 60% gross margin matches Dior and Louis Vuitton. A 2.2% drop last quarter, attributed to overexpansion, shook stock prices. Reichert reassured investors, emphasizing that profitability per shoe matters more than distribution methods.
Confidently, he pointed to diversification. While its bestsellers remain open toe sandals, closed toe styles grew by 30%, and high-priced models outpaced lower-priced ones twofold.
Birkenstock is even making strides in athletic and golf footwear, unveiling detachable footbed clogs for the Paris Olympics to help athletes recover post-activity. Some products have even made their way into high-end golf shops. Birkenstock shoes or insoles mitigate the discomfort of prolonged standing and walking.
To support its growth, Birkenstock opened a new factory in Germany this year. Most products remain handcrafted—a hallmark of luxury.
European luxury giants have historically thrived on Asia’s middle class, often embracing regional manufacturing, riding the “Made in America” and “Made in China” policies. Will Birkenstock follow suit in the future? Reichert denies this possibility, but the company’s chief administration officer Sean Harris is pragmatic, saying that, if managed well, anything is possible.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3045779107531653">article</a> was written by He Zhexin for 36Kr.

How LVMH turned “ugly” Birkenstock into a luxury brand

Fashion

Europe

Dongfeng Honda has opened its first production plant dedicated to new energy vehicle (NEV) production in Wuhan, now operational and accessible for public tours since early October. This facility marks a significant milestone in Honda’s EV roadmap, boasting an annual production capacity of 120,000 units. Its initial output includes the Lingxi L and Ye S7 models.
Designed with advanced automation and intelligent systems, the factory is said to feature over 400 robots and 260 automated guided vehicles, alongside state-of-the-art automated quality inspection technologies. During a site visit, 36Kr observed these innovations in action, highlighting the factory’s integration of eight general systems and five workshop-specific digital systems. Together, they enable a seamless, fully traceable digital workflow, from logistics to production, enhanced by intelligent scheduling tools.
One standout innovation is the water-based dual-color coating process applied to the Lingxi L. This method delivers a thicker coating with superior resistance to scratches and corrosion. Quality control is reinforced by a multifunctional detection system that is claimed to ensure a 100% paint defect detection rate, eliminating substandard products. In chassis production, a blend of visual inspections and advanced detection algorithms has significantly reduced false and missed defect identifications, targeting zero-defect outputs.
Looking to the future, Gou Tiansheng, Dongfeng Honda’s deputy general manager, announced plans to launch two new pure electric models, the Ye S7 and Ye GT, in 2025. Updates and reintroductions of popular models like the CR-V, Civic, Inspire, and Elysion are also in the pipeline. By 2027, Honda aims to offer ten pure EV models in China, building on its e:N series launched in 2022 and the new Ye series debuting in 2024. By 2035, the company envisions pure EVs comprising 100% of its sales portfolio.
The Ye S7, produced at this new facility, leverages Honda's innovative W architecture. This platform integrates a high-power "three-in-one" drive motor and an aluminum die-cast casing that houses a high-density battery with a split-isolated cooling system. Offering rear-wheel single-motor and all-wheel dual-motor drive configurations, it provides users with customizable driving modes tailored to their preferences.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3074151803220873">article</a> was written by Li Qin for 36Kr.

Honda ramps up EV ambitions with state-of-the-art Wuhan plant

Japan

Honda