New Country Start-ups
Model Range VinFast
(Mit freundlicher Genehmigung/Courtesy of VinFast Germany GmbH [Homepage])
Management Summary
BEV start-ups also exist in countries that have not yet had their own car industry or car brands.
In Vietnam, the VinFast brand was founded on the initiative of a private entrepreneur, while all other new BEV brands were launched at the instigation of the political administration of the respective country. These include Togg–Auto in Turkey, Izera in Poland, and Ceer in Saudi Araba.
The most advanced in terms of BEV development and sales is VinFast. In 2022, the company sold nearly 23,000 vehicles in Vietnam, and sales organizations are also being established in Europe and the United States. However, with this number of units, Vinfast is still well behind its BEV competitors from China and the U.S., and a significant increase is only possible through exports. We are curious to see whether VinFast will succeed in this in the future.
Togg–Auto has already developed a BEV model, and series production is to start soon. The online sales channel has been activated since March 2023, and nearly 180,000 vehicles were pre-ordered within 12 days. For further success, ramping up production as smoothly as possible is crucial, and the key to long-term success here also lies in exports.
Izera has already developed pre-production BEV models, but the production start originally scheduled for 2023 cannot be maintained. Reasons could be a lack of financing or a product that is not yet ready for series production.
In the meantime, Izera has licensed the so-called Sustainable Experience Architecture (SEA) from Geely, which necessitates a redesign of the pre-series models. Production is now not scheduled to start until 2025, leaving Izera with little chance in the BEV market in our estimation .
Ceer has not yet developed a BEV model, but has very financially strong investors in the form of the Saudi Arabian sovereign wealth fund. Development has only recently started, and production has been announced for 2025. Given the political will, Ceer can survive for a long time even with very high investment costs, but it remains to be seen whether a viable business model can ever be established.
Vietnam
VinFast-Modell VF8
(Mit freundlicher Genehmigung/Courtesy of VinFast Germany GmbH [Homepage])
VinFast-Modell VF9
(Mit freundlicher Genehmigung/Courtesy of VinFast Germany GmbH [Homepage])
VinFast was founded in 2017 by Pham Nhat Vuong, who previously worked very successfully in the food industry in Ukraine and subsequently built up the conglomerate Vingroup in Vietnam. VinFast is closely linked to German suppliers, thanks mainly to former BMW manager Quang-Hue Vo and his good contacts in the German automotive industry.
VinFast initially began producing internal combustion vehicles with BMW technology; the company is now developing its own battery-electric SUV models, which will also be sold in Germany from 2023. For battery and cell production, Vingroup has founded its own subsidiary called VinES; for cell production, VinES cooperates with the Chinese cell manufacturer and VW partner Gotion.
Turkey
Togg Model T10X
(Mit freundlicher Genehmigung/Courtesy of Türkiye’nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş [Homepage])
Interieur T10X
(Mit freundlicher Genehmigung/Courtesy of Türkiye’nin Otomobili Girişim Grubu Sanayi ve Ticaret A.Ş [Homepage])
Turkish BEV startup Togg Auto Auto was founded in 2018 at the initiative of President Erdoğan; the name is an acronym for Türkiye’nin Otomobili Girişim Grubu, which translates as “Turkish Automotive Joint Venture Group.”
Togg Auto’s first model is a mid-size SUV called the T10X, with the design coming from Pininfarina. The vehicle has already been available for reservation via the Togg website since March 16, 2023, and ~177,500 vehicles have already been pre-ordered within 12 days. For cell and battery production, Togg-Auto has founded the battery joint venture Siro together with Farasis; the production of classic NMC cells in pouch format is planned.
Poland
Izera Hatchback – Exterieur
(Mit freundlicher Genehmigung/Courtesy of ElectroMobility Poland S.A. [For Media])
Izera Hatchback– Interieur
(Mit freundlicher Genehmigung/Courtesy of ElectroMobility Poland S.A. [Homepage])
Izera is a Polish BEV start-up founded by the state-owned company ElectroMobility Poland. ElectroMobility Poland was created by the merger of several state-owned energy companies, all these activities were initiated by Polish government circles. The aim is to strengthen the Polish automotive industry and to develop its own BEV brand for passenger cars.
The German development service provider EDAG is involved in the development, and the Italian company Torino Design has been commissioned for the design. In July 2020, the first two models were presented, which are primarily intended to address the Polish middle class. A hatchback and a mid-size SUV were shown, which according to the announcement will be sold with 2 battery sizes and a maximum range of 400 km.
The production start originally set for 2023 can probably not be kept, reasons could be a lack of financing and/or a product not yet developed ready for series production. Production is now not scheduled to start until the end of 2025.
Fittingly, there was a press release in November 2022 on the licensing of the so-called Sustainable Experience Architecture (SEA) of the Chinese Geely Group, which requires a revision of the previous development models.
The SEA contains a complete chassis including HV battery and drive electronics and is available in various configurations. The cell supplier for the SEA platform is CATL, which is why we assume that CATL cells will also be installed in Izera.
Saudi Arabia
Ceer is a Saudi Arabian BEV start–up launched at the initiative of the Saudi Arabian royal family. The original plan was to locate a Tesla plant in Saudi Arabia, but this fell through due to disagreements between Elon Musk and a Saudi investment fund that owned a large block of Tesla shares.
The creation of Ceer is part of a major initiative to transform Saudi Arabia’s economy from a petroleum-based industry to one that is more sustainable and CO2-free.
The best known and certainly the most ambitious project of this initiative is the planned city “The Line”, which will stretch as a 170 km long ribbon through the desert. In the final stage of development, the city is to provide a new home for 9 million people; despite these dimensions, the city is planned without cars and roads.
Foreign investors such as contract manufacturer Foxconn are also involved in the start-up Ceer. In total, $150 million is expected to be raised from foreign investors. The start-up is expected to lead to 30,000 jobs at Ceer or Ceer suppliers by 2030.
Ceer’s development partner is BMW, which is providing licenses for its vehicle technologies. The CEO is James DeLuca, who has a long career in the automotive industry, including responsibility for global production at General Motors and being the first CEO of Vietnamese BEV startup VinFast. There is a certain parallel here because VinFast had also used BMW technology in its internal combustion models.
Series production is scheduled to start in 2025 in the “King Abdullah Economic City”, concrete details are not yet available.