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As global manufacturing accelerates its tech-driven evolution, Chinese factories are at a turning point, moving from scale-driven growth to efficiency-focused upgrades. Yet they remain constrained by three challenges: equipment that operates in isolation, fragmented technologies that are difficult to integrate, and rising energy costs that complicate decarbonization.
The sector’s response has been a shift from single-point automation to system-wide upgrades aimed at improving efficiency while adapting to market volatility.
In an interview with Chinese media, Inovance chairman Zhu Xingming predicted that wireless operations will become the norm on industrial floors within the next five years. Based on this trend, Inovance has outlined a strategy built on four pillars:
<ol>
<li aria-level="1">High-end manufacturing: With consumers demanding better quality of life, manufacturers must refine processes to deliver superior products and services.</li>
<li aria-level="1">Greener production: To align with global sustainability goals, factories need to cut energy use and waste while adopting more sustainable production models.</li>
<li aria-level="1">Intelligence: Smart manufacturing goes beyond task automation. It involves using <a href="/industry/ai">artificial intelligence</a> and <a href="/industry/robotics">robotics</a> to shift more work to machines that can learn and make decisions, enhancing efficiency and flexibility.</li>
<li aria-level="1">Internationalization: China’s manufacturing sector has advanced through three stages of globalization, first exporting goods made in China, then moving production capacity abroad, and now entering a “global for local” phase that integrates international R&amp;D talent, engineers, industrial workers, and supply chains to support localized operations.</li>
</ol>
<h3>Showcasing system-level solutions</h3>
At the China International Industry Fair on September 23 in Shanghai, Inovance departed from the equipment-heavy exhibits typical of industrial expos. Instead, it presented an end-to-end digital solution spanning design, manufacturing, energy, and operations.
In practice, factories face bottlenecks such as complex cabling, slow fault diagnostics, and difficult equipment maintenance. To address these, Inovance has developed four system architectures designed to drive automation upgrades toward greater flexibility and intelligence.
For decades, wired communication between machines has limited production flexibility and efficiency. Dense cabling raises installation costs and complicates maintenance. To overcome this, Inovance introduced its Ino Air wireless synchronized motion control system, which supports a one-millisecond communication cycle, microsecond-level synchronization jitter, and industrial-grade reliability. Already deployed in the world’s first wireless labeling machine, Ino Air is designed to eliminate cable constraints and shorten production line upgrade cycles.
On the energy and data side, Inovance launched an intelligent drive system that integrates flat-wire motors with wireless frequency conversion technology, linking energy and data flows. Its intelligent motion control system unifies data flow, control flow, and safety monitoring flow, enabling secure information exchange across production lines.
For maintenance, Inovance’s IPT210 valve island can reportedly compress fault detection from hours to milliseconds, reducing losses from unplanned downtime.
In precision operations, Inovance’s robots achieve a load-to-weight ratio exceeding 0.5. Its seven-axis bionic arm, built with full-joint torque sensing, delivers high-precision force control for complex remote tasks. These systems are already deployed in machine tool processing, injection molding, and new energy production lines.
<h3>Preparing for humanoid robots</h3>
As <a href="/industry/embodied-intelligence">embodied intelligence</a> moves from labs to industry, humanoid robots are emerging as a key technology to lower labor costs and handle high-risk tasks. Inovance is focusing on industrializing humanoid robotics with a full-stack solution spanning hardware and AI.
On the hardware side, it has developed integrated planetary joint actuators and high-torque-density frameless motors. These components, capable of operating continuously for tens of thousands of hours, provide compact but durable “muscles and bones” for humanoid robots. Their resilience makes them suitable for tasks such as automotive welding, chemical inspections, and machining in hazardous environments.
On the software side, Inovance has built the iFG platform, described as a “digital employee incubator.” It combines a data engine with low-code tools to transform raw data into training material and allows non-specialists to build task-specific AI agents. By coordinating large and small models, the system can interpret complex instructions while delivering millisecond-level responses, balancing intelligence with real-time performance.
“Looking ahead, the most promising application of AI will be in intelligent robots, especially humanoid robots,” Zhu said. “With sharper tactile senses, better vision systems, and the ability to perform complex tasks and make decisions, humanoid robots will increasingly take on human work. This may well become the most important direction for AI replacing human labor. In manufacturing, AI will permeate every stage—people, machines, materials, methods, and environments—but the biggest transformation will come from human-machine collaboration.”
He added, “As this shift unfolds, Chinese companies must adopt a more integrated, localized approach to internationalization. By aligning intelligent manufacturing capabilities with global industrial needs, they can help build the manufacturing ecosystems of the future.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3480608171367559">article</a> was written by Huang Nan for 36Kr.

Inovance maps four-pillar strategy as Chinese factories face upgrade era

China

36Kr has learned that from August 2024 to July 2025, Douyin E-commerce’s gross merchandise value (GMV) grew 34% year-on-year. The main driver was shelf-based <a href="/industry/e-commerce">e-commerce</a>, where GMV rose 49%, outpacing overall platform growth.
Earlier, the media outlet reported that <a href="/company/douyin">Douyin’s</a> GMV reached RMB 3.5 trillion (USD 490 billion) in 2024, about 30% higher than the year before. This suggests that even as China’s broader e-commerce market slowed, Douyin managed to sustain steady expansion.
Shelf-based e-commerce has grown rapidly in part due to subsidies. During this year’s 618 shopping festival, the category generated RMB 200 billion (USD 28 billion) in GMV, nearly half of total sales, per 36Kr. Douyin declined to comment on the figures.
The company has been laying the groundwork for this shift since mid-2022, when it introduced a dedicated mall tab and later a standalone app. At the time, president Wei Wenwen said Douyin would focus on search and mall functions, with the goal of having shelf-based e-commerce account for more than half of sales.
A source close to the company said Douyin had set a three-year plan for shelf-based e-commerce: 30% of GMV in the first year, 40% in the second, and 50% in the third. So far, the plan has held. Shelf e-commerce contributed 30% of GMV in 2023, 40% in 2024, and, based on results from this year’s 618 festival, appears to have reached 50% in 2025.
Douyin has also adjusted its broader strategy. It now emphasizes supporting merchants by lowering costs and improving profitability. “The platform can only grow if merchants grow,” the company said in a statement. By the end of 2024, reducing merchant operating costs had become its central goal for 2025.
This focus has driven structural changes. In March, 36Kr reported that Ocean Engine, Douyin’s advertising arm, was merged into Douyin E-commerce as a secondary division. Two separate algorithm teams, one for Ocean Engine and the other for e-commerce, were also combined.
As a result, Ocean Engine is no longer focused solely on ad revenues. It must now work alongside product and operations teams to improve GMV, merchant performance, and user experience. The challenge lies in balancing merchants’ advertising returns, user satisfaction, and platform efficiency.
By consolidating product and algorithm teams, Douyin can better align its two major traffic streams. For instance, user coupons once limited to paid ad placements can now also be distributed through organic channels, broadening their reach and extending subsidies to more merchants.
In January, Douyin rolled out nine new merchant support policies. A central priority was refining its algorithms, with more investment in technology to optimize traffic distribution, raise exposure for quality products and content, and lower return rates—all aimed at cutting merchant costs.
ByteDance later reassigned sales and industry operations teams specializing in performance ads to Douyin E-commerce, streamlining merchant engagement.
Subsidy policies have shifted as well, from consumers to merchants. By the end of August, Douyin reported disbursing more than RMB 19 billion (USD 2.7 billion) in subsidies to help merchants lower costs and improve margins. Competitors have also been offering subsidies, reduced commissions, and advertising rebates.
On September 21, at its annual creator conference, Douyin introduced new platform rules and enforcement standards. Over the past year, it reportedly removed more than 13 million pieces of noncompliant content and revoked 470,000 selling privileges. Influencers who engaged in traffic-grabbing stunts were also sanctioned, with some receiving permanent bans.
Despite the visibility of influencers with sizable followings, their contribution to sales is modest. Accounts with more than one million followers generate about 9% of GMV, while those with fewer than one million followers contribute around 21%.
At the same time, instant retail, dominated by food delivery platforms, is intensifying in China. A source told 36Kr that Douyin plans to limit its investment in this competition and instead focus on strengthening its core e-commerce services and improving user experience.
On September 16, the company launched its Mid-Autumn Festival and Singles’ Day promotions, marking its next major push for growth.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3480136952077441">article</a> was written by Li Xiaoxia for 36Kr.

Douyin reshapes strategy to cut merchant costs as GMV grows

Douyin

East Asia

On-demand Services

E-commerce

Consumer Economy

… directed toward supply chain optimization, product upgrades, and channel development. Cyanine Tech develops flexible transport robots and dispatch systems for unstructured industrial settings. In 2022, it secured angel funding from Toppan, the Japan-based printing giant. —<a href="https://36kr.com/p/3477581258840455">36Kr</a></li>
<li aria-level="1"><a href="https://www.mova.sg/">Mova</a>, a power tool developer, has raised an eight-figure RMB sum in an angel round of financing. Investor details were not disclosed. The company plans to use the capital to strengthen R&amp;D, expand its innovation pipeline, and accelerate development across its industrial ecosystem. —<a href="https://36kr.com/p/3470694113777029">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Carro, Dat Bike, Atomionics, and more made recent headlines:</h3>
<ul>
<li aria-level="1">Carro, an online automotive marketplace in the Asia Pacific, raised USD 60 million in a round led by Cool Japan Fund, Japan’s sovereign wealth fund, with participation from new investors.</li>
<li aria-level="1"><a href="https://dat.bike/en">Dat Bike</a>, a Vietnamese electric motorbike manufacturer, raised USD 22 million in a Series B round led by Japan-listed clutch manufacturer FCC and venture firm Rebright Partners, with participation from Jungle Ventures, Cathay Venture, and AiViet Venture.</li>
<li aria-level="1"><a href="https://www.atomionics.com/">Atomionics</a>, a Singapore-based startup developing quantum sensors for subsurface exploration and navigation, raised USD 12.7 million in a pre-Series A round led by Paspalis, with participation from BHP Ventures, IQT, Wavemaker Partners, VU Venture Partners, SG Growth Capital, and others.</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>.

Deals in brief: Nvsion secures funding from Cambrian, Naver invests in GravityLabs, five China startups raise capital, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Malaysia

Indonesia

Japan

South Korea

Southeast Asia

GEM, a leading enterprise in the resource recycling sector, has submitted an application to the Hong Kong Stock Exchange for a proposed IPO. JPMorgan, CITIC Securities, and China Securities International are acting as joint sponsors.
The proposed listing comes against a backdrop of intensifying resource scarcity and growing ecological pressures, factors that are pushing recycling and recovery to the forefront of global sustainability strategies. The recycling industry is increasingly viewed as a central pillar in efforts to secure critical resources and meet environmental targets.
<h3>Global footprint and integrated business model</h3>
GEM has built its reputation as a pioneer in recycling critical metals and lithium-ion batteries, and as a leading manufacturer of new energy materials. Its dual business model—combining urban mining with new energy materials manufacturing—is designed to reduce pollution, regenerate resources, and create a closed-loop approach to material use. In doing so, the company aligns its growth with international carbon reduction and neutrality goals while advancing the principles of green development.
The company has expanded its international reach, building a cost-competitive global supply chain network that supports both resource security and market growth. Among its milestones, GEM was one of the first Chinese new energy material enterprises to establish large-scale production in Indonesia. There, it has developed a full industrial chain covering laterite nickel ore, mixed hydroxide precipitate (MHP), nickel sulphate crystals, electrolytic nickel, ternary precursors, and cathode materials.
By adapting its China-based integrated model to Indonesia’s local resource conditions, market needs, and policy environment, GEM has reinforced production efficiency while laying the foundation for broader global competitiveness. As of June 30, the company operated 13 production bases across China, Indonesia, and South Africa. In addition, it holds equity interests in production facilities in China, Indonesia, and South Korea.
<h3>Use of proceeds and strategic initiatives</h3>
GEM intends to use proceeds from the proposed IPO to strengthen its business in several key areas:
<ul>
<li aria-level="1">Expanding production capacity at its Jingmen base, with a focus on critical metals and lithium-ion battery recycling.</li>
<li aria-level="1">Enhancing global R&amp;D and technological innovation capabilities to drive advances in recycling technologies and new energy materials.</li>
<li aria-level="1">Building out international sales and marketing networks to support its global customer base.</li>
</ul>
Beyond these priorities, the company plans to pursue strategic investments, mergers, and acquisitions aimed at optimizing resources, diversifying its business, and creating new profit drivers. A portion of the proceeds will also be reserved for working capital and general corporate purposes to ensure steady operational support.
These initiatives are expected to expand GEM’s production capabilities to meet accelerating global demand for new energy materials, while consolidating its leadership in resource recycling and advanced battery R&amp;D. By extending its sales reach internationally, GEM also aims to strengthen its brand influence and capture additional market share, providing momentum for long-term global growth.
<h3>About GEM</h3>
Founded in 2001, GEM is a global leader in the circular economy and new energy materials. Its operations span the recycling of end-of-life batteries, electronic waste, and vehicles, as well as the production of cathode and precursor materials for lithium-based batteries. The company generates more than RMB 33 billion (USD 4.6 billion) in annual output and, as of the end of 2023, has applied for 3,767 patents, with 1,755 globally authorized and valid.
GEM is dual-listed on the Shenzhen Stock Exchange and the SIX Swiss Exchange, and it is committed to advancing sustainable, low-carbon development while building responsible and resilient global supply chains.
This press release was published in partnership with <a href="https://en.gem.com.cn/">GEM</a>.

GEM files for Hong Kong IPO to strengthen capacity, innovation, and international expansion

<a href="https://beatbot.com/">Beatbot</a>, a Chinese company that develops high-end robotic pool cleaners, has raised around RMB 1 billion (USD 140 million) in a new funding round led by DragonBall Capital, the investment arm of <a href="/company/meituan">Meituan</a>. Existing backers including Hillhouse Capital, Shunwei Capital, Cathay Capital, Source Code Capital, Anker Innovations, Monolith, and Yunmu Capital also increased their stakes. Yunmu Capital remains the company’s long-term financial advisor.
The proceeds will be used for R&amp;D and product iteration, international expansion, recruitment of global talent, and exploration of new applications for its technology.
Founded in July 2022, Beatbot has developed proprietary systems such as high-speed brushless pumps, autonomous underwater vehicle motion control, and sonar- and laser-based SLAM (simultaneous localization and mapping) navigation. Its pool cleaning robots are designed to combine efficiency, autonomy, and ease of use.
CEO Wang Shengle, who previously worked at a leading Chinese consumer <a href="/industry/robotics">robotics</a> company, brings more than a decade of R&amp;D and product development experience. He helped launch robotic vacuum cleaners and window cleaning robots before founding Beatbot.
The global swimming pool market is projected to grow from USD 8.9 billion in 2025 to USD 11.54 billion by 2030, at a compound annual growth rate of 5.3%, according to <a href="https://www.mordorintelligence.com/industry-reports/global-swimmingpool-market">Mordor Intelligence</a>. North America accounts for about one-third of the market due to its large number of residential pools and higher discretionary spending.
Traditional pool maintenance is labor-intensive and costly. Robotic pool cleaners are being adopted at a rate of roughly 25% annually, though innovation has been limited. Beatbot is positioning itself as a premium provider, with an average selling price above USD 2,000.
In 2024, the company introduced the AquaSense and AquaSense Pro, which together generated a nine-figure RMB sum in sales within six months. Beatbot reported an 85% share of China’s online market for robotic pool cleaners priced at USD 1,400 and above during its first year of commercialization.
In January, Beatbot introduced the AquaSense 2 Ultra, which it describes as the world’s first <a href="/industry/ai">artificial intelligence</a>-powered pool cleaning robot with five-in-one capabilities. The model is equipped with 27 sensors, including an AI-compatible camera, infrared, ultrasound, depth, and temperature detectors. Its self-developed brushless motor and buoyancy control system enable wall climbing, precise waterline scrubbing, surface floating, and autonomous docking, and it is designed to adapt to different pool structures and materials.
<figure id="attachment_157519" aria-describedby="caption-attachment-157519" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-157519" src="https://console.kr-asia.com/wp-content/uploads/2025/09/Beatbot-AquaSense-2-Ultra.jpg" alt="Image of the AquaSense 2 Ultra robot, developed by Beatbot for pool cleaning." width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2025/09/Beatbot-AquaSense-2-Ultra.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/09/Beatbot-AquaSense-2-Ultra-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/09/Beatbot-AquaSense-2-Ultra-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/09/Beatbot-AquaSense-2-Ultra-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/09/Beatbot-AquaSense-2-Ultra-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/09/Beatbot-AquaSense-2-Ultra-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-157519" class="wp-caption-text">Image of the AquaSense 2 Ultra robot, developed by Beatbot for pool cleaning. Image and header image source: Beatbot.</figcaption></figure>
The robot’s software runs on a quad-core processor with Beatbot’s proprietary visual mapping system. Unlike cleaners that rely on random movement or basic navigation, it employs multi-sensor SLAM to map pools, detect debris, and adjust cleaning paths in real time. AI-driven motion control enables the device to operate closely along walls and corners.
User feedback played a role in the design process. Earlier models were heavy and difficult to retrieve after climbing walls. To address this, Beatbot added buoyancy controls, lighter builds, one-click recall, and surface docking. A companion app lets users track cleaning progress remotely.
“Ultimately, the products we bring to market depend on the depth of our user insights and the limits of our technical capabilities,” CEO Wang told 36Kr. He added that Beatbot aims to focus on unmet user needs rather than incremental upgrades: “Differentiated innovation based on real pain points is the path we’ve chosen.”
Beyond pools, Beatbot is extending its robotics expertise to lawn care. The company has started developing robotic lawn mowers, leveraging its work in mobility, sensing, and AI-driven navigation for outdoor applications.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3477953694079616">article</a> was written by Huang Nan for 36Kr.

Beatbot secures funding from Meituan and co to take premium pool cleaning robots global

Robotics

Deep Tech

… src="https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen.jpg" alt="" width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-157515" class="wp-caption-text">Image and header image source: Hanvon Ugee.</figcaption></figure>
Building on its strengths in responsiveness and display technology, XPPen is focusing on integrated, intelligent workflows in its upcoming product line.
In AI, the company is developing a proprietary creative system that interprets user intent in real time, analyzes composition, and generates visual suggestions tailored to individual styles. It is also planning a digital copyright platform to record and encrypt creative processes, safeguarding authorship rights.
Regional preferences shape product design as well. East Asian users tend to favor smaller, more refined devices, while users in Europe and the US prefer larger formats with minimalist aesthetics. XPPen tailors its SKUs accordingly.
On the distribution side, the company has built overseas warehouses and sells online through its website, Amazon, and regional e-commerce platforms, including those in smaller-language markets. Offline, it engages users through anime conventions, training centers, electronics retailers, and branded stores.
<figure id="attachment_157516" aria-describedby="caption-attachment-157516" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-157516" src="https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-Tablet.jpg" alt="" width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-Tablet.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-Tablet-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-Tablet-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-Tablet-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/09/XPPen-Tablet-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-157516" class="wp-caption-text">Image source: Hanvon Ugee.</figcaption></figure>
While the user base remains limited in size, it continues to pay for quality. Rather than pursuing mass market success, XPPen focuses on long-term relationships within the creator economy by iterating on professional products, fostering communities, and providing comprehensive support.
As hardware performance converges, differentiation depends on a brand’s ability to deliver reliable, efficient, and engaging creative experiences.
XPPen’s trajectory reflects the strategy of focused hardware companies: sustainable advantages stem not only from technical specifications but also from addressing the evolving needs of specialized users and growing in step with the creator ecosystem.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3450952450004610">article</a> was written by Huang Nan for 36Kr.

XPPen’s steady hand: How the Chinese pen display brand became Wacom’s main rival

A fierce price war continues to engulf China's automotive sector despite stricter measures aimed at curbing what officials call "disorderly" competition, underlining the challenge of tackling the country's chronic overcapacity.
Passenger car sales rose 16.5% on the year in August to 2.54 million vehicles, up from 14.7% in July, according to data released by the China Association of Automobile Manufacturers on September 11. The growth was fueled by government subsidies, the launch of more affordable models, and rising demand abroad.
<a href="/company/byd">BYD</a> remained firmly at the top of the market, but its sales growth showed signs of slowing. Its total sales of new energy vehicles (NEVs), which include pure <a href="/industry/ev">electric vehicles</a> as well as plug-in hybrid cars, inched up just 0.1% from a year earlier to 371,501 vehicles.
"We think vehicle volume growth will slow down this year, due to a high 2024 base and a lack of attractive new model launches in a competitive market," research specialist Morningstar said in a recent report.
<a href="/company/geely">Geely</a> ranked second, nearly doubling its NEV sales to 147,347 vehicles and overtaking <a href="/company/tesla">Tesla</a>, whose sales fell 4% to 83,192 vehicles, according to separate data released by the China Passenger Car Association (CPCA).
Chinese carmakers dominated the NEV market, which accounted for 55.1% of domestic sales, but their long-term survival is far from guaranteed.
<a href="/company/li-auto">Li Auto</a>, which ranked fifth last August, dropped out of the top ten following a lackluster customer response to its new i8 SUV launched in July. The company quickly replaced three variants of the SUV with a single version priced at RMB 339,800 (USD 47,572) just a week after the launch in an effort to soften the blow.
<a href="/company/nio">Nio</a> boosted its sales by more than 50%, helped by strong demand for its new L90 SUV, which came out around the same time as Li Auto's latest model. The L90 retails for as little as RMB 179,800 (USD 25,172) for buyers who opt for an additional monthly battery rental subscription. On September 10, Nio announced plans to raise USD 1 billion through a share sale, partly to fund the expansion of its battery swapping network.
<a href="/company/leapmotor">Leapmotor</a> and <a href="/company/xpeng">Xpeng</a> also more than doubled their sales, helped by brisk demand for affordable models. Leapmotor's B01 electric sedan, was also launched in July. Its price starts just RMB 89,800 (USD 12,572), while Xpeng's Mona M03 starts at RMB 119,800 (USD 16,772).
Promotions and price cuts on older models were rampant in August amid sluggish consumer confidence, with 23 models, including 14 pure EVs, seeing reductions, according to the CPCA.
The competitive landscape highlights how little has changed despite government calls in July to rein in excessive competition.
So far, regulators have cracked down on things like exaggerated advertising claims about EV functions, including assisted driving technology and battery range. In a "rectification campaign" announced on September 10, the Ministry of Industry and Information Technology and other government agencies said they will target online attacks against carmakers, including those by rival companies and their executives.
Carmakers have pledged to shorten payment periods for their suppliers, but chronic overcapacity remains a key challenge. China's car factories are estimated to have the capacity to produce nearly twice the 27 million vehicles shipped in 2024, while the industry's utilization rate stands at about 70%, according to government statistics.
"Regulators are discouraging some of the more aggressive discounting, and they're tightening the payment rules," said Bill Russo, founder and CEO of Shanghai-based consultancy Automobility. "But with so much capacity chasing demand that while growing is finite in size … tactical price cuts are still inevitable."
Russo noted that sluggish domestic demand has failed to meet earlier rosy expectations, even as the industry rapidly shifts from gasoline-powered cars to EVs, leading to "overinstalled [capacity] for vehicles that are no longer in demand."
That overhang means exports will continue to be a priority for Chinese automakers. A record 116 companies from China flocked to the IAA Mobility 2025 show in Munich, Germany, more than the combined number of exhibitors from South Korea, Italy, and the US.
This article first appeared on <a href="https://asia.nikkei.com/business/automobiles/china-auto-price-war-rages-on-despite-regulatory-crackdown">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China's automotive price war rages on despite regulatory crackdown

Xpeng Motors

Transportation

Electric Vehicles

Mobility

<a href="https://www.mova.sg/">Mova</a> has raised an eight-figure RMB sum in an angel funding round to expand its R&amp;D capacity, strengthen its innovation pipeline, and accelerate the development of its upstream and downstream ecosystem. The financing will also support the company’s broader industrial strategy. Investors in this round were not disclosed.
Founded in January, Mova develops, manufactures, and sells power tools. It operates R&amp;D centers and offices in Suzhou, Dongguan, and Nanjing. The core team is made up of graduates from leading Chinese and international engineering universities such as Harbin Institute of Technology, Jilin University, Tongji University, and Southeast University. Many members previously worked at established power tool companies, contributing expertise in technology development, commercialization, and industry applications.
Power tools have gone through more than a century of evolution, from electrification to cordless adoption and lithium-ion integration. Recent improvements in battery density and cost have accelerated the transition to cordless devices. Compact design and ease of use are now major selling points, driving steady growth in the market.
According to <a href="https://www.grandviewresearch.com/horizon/outlook/power-tools-market-size/global">Grand View Research</a>, the global power tools market was valued at USD 32.9 billion in 2024 and is projected to reach USD 54.4 billion by 2030, growing at a compound annual growth rate of 9.4% between 2025–2030.
The market is divided into two main categories. Consumer power tools, led by brands like Ryobi, Black+Decker, and Bosch, are used for household repairs and small renovation projects. New entrants such as Hoto and Fantikk have already surpassed USD 100 million in annual sales. Professional and industrial users, including those in construction, energy, railways, mining, shipbuilding, and advanced manufacturing, form the other segment.
The professional tools market is currently dominated by Milwaukee, Dewalt, Bosch, Hilti, and Makita. While these companies maintain strong positions, their pace of innovation has slowed. Some challenges remain unresolved, such as performance issues in low-temperature outdoor environments where batteries in high-torque impact wrenches often underperform, reducing torque and endurance.
Mova plans to build a full range of tools across both professional and consumer segments. On the professional side, it is focusing on standardized tools designed for cross-scenario applications, emphasizing high performance and intelligent features. Its entry point is fastening tools, with plans to expand into additional categories.
“Our professional users are highly confident in their skills and often dislike oversimplified ‘foolproof’ designs,” a Mova executive told 36Kr. “When we talk about intelligence, it’s not about reducing the skill threshold. It’s about using smart algorithms to improve tool efficiency and silently empower skilled workers. The professionals remain in control.”
Mova’s ecosystem draws on upstream expertise in motor engineering, electromagnetic simulation, and design to develop high power-density motors in-house. Combined with proprietary control algorithms, these enable tools to adapt to varied scenarios while improving safety and usability.
On the consumer side, the company is targeting the growing DIY trend among younger buyers. Its approach emphasizes industrial design and CMF (color, materials, and finish), borrowing from consumer electronics aesthetics to produce visually distinctive tools. Smart algorithms are integrated to ease use for hobbyists, while compact storage features are tailored to apartment living.
“From the first day of electrification, the core purpose of power tools has been to extend human capabilities and liberate productivity,” the Mova executive said. “Beyond our standard product roadmaps, we are channeling resources into three frontier applications: tools for humanoid robots, power tools evolving into intelligent robotic systems tailored to industry scenarios, and human-machine symbiotic tools.”
Within six months, Mova has commercialized its consumer line in several European markets. Shipments began in September, with plans to expand through retail stores, Amazon, and independent <a href="/industry/e-commerce">e-commerce</a> platforms. By the fourth quarter of 2025, the company expects its gross merchandise value to exceed RMB 100 million (USD 14 million).
Its professional product line is scheduled for release in the first quarter of 2026. With continued investment in deep tech R&amp;D, Mova aims to penetrate the high-end market and strengthen its global positioning.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3470694113777029">article</a> was written by Huang Nan for 36Kr.

Mova raises funding to build power tools for professionals and hobbyists

Hardware

… guided Q3 deliveries at 87,000–91,000 units and revenue at RMB 21.8–22.9 billion (USD 3.1–3.2 billion), or about RMB 251,000 (USD 35,140) per car. For Q4, it projects deliveries of over 150,000 units with a gross margin of 16–17%. Assuming similar per-unit revenue, that implies quarterly revenue of about RMB 37.7 billion (USD 5.3 billion).
Nio also aims to cap Q4 non-GAAP R&amp;D spending at RMB 2 billion (USD 280 million) and keep SG&amp;A below 10% of revenue, or about RMB 3.8 billion (USD 532 million). On paper, that points to a net profit margin of around 0.7%, suggesting breakeven is within reach—but only if it sustains deliveries above 50,000 units per month, maintains gross margins of at least 16%, and keeps costs tightly controlled.
<h3>Following in Xpeng’s footsteps?</h3>
Even if Nio turns a profit, investors may focus more on whether it can sustain margins over time. <a href="/company/xpeng">Xpeng’s</a> rebound offers a comparison.
Xpeng’s recovery combined efficiency gains with strong product launches and aggressive pricing. In 2024, the <a href="https://kr-asia.com/xpeng-ramps-up-production-as-mona-m03-orders-surpass-expectations">Mona M03</a> and <a href="https://kr-asia.com/after-mona-m03s-breakout-xpeng-eyes-another-ev-win-with-the-p7">P7+</a> became breakout hits, and discounts spurred sales, boosting economies of scale and gross margins. Though still unprofitable, its long-term outlook improved, lifting its stock.
For Nio, scale is even more critical. Heavy R&amp;D, marketing costs, and investments in battery swapping and Nio Houses make higher volumes essential. Larger fleets also improve utilization of its swapping network.
Meanwhile, its multi-brand strategy is starting to deliver. The Onvo L90 exceeded 10,000 deliveries in its first full month, helping the group surpass 30,000 in August. The ES8, supported by BaaS-based pricing, also shows potential as a high-volume model.
This suggests Nio may be entering a stronger product cycle, combining lower entry prices through BaaS with new launches. The challenge is sustaining that momentum. The company plans to release the Onvo L80, Nio ES9, and Nio ES7 in 2026, but its rollout pace lags rivals, a cautious approach that could hinder growth in a crowded EV market.
For investors, the question is not just whether Nio can post a profit this quarter, but whether it can chart a sustainable path forward. Scale, margins, and consistent product cycles will matter more than a single profitable quarter.
To secure a lasting position, Nio must grow volumes, lift margins, and sustain momentum. In the end, proving it can build a durable business will count more than short-term profitability.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3473484456352137">article</a> was written by Ding Mao for 36Kr.

Why investors keep backing Nio despite RMB 100 billion in losses