Luxury electric vehicle (EV) maker from the U.S., Lucid Group, signals a decisive move in its global strategy by preparing to launch operations in China, the world’s most substantial automotive market. Zhu Jiang, Lucid’s Head of China Operations, unveiled this plan on Thursday.
Aligning with its goal to tap into the Chinese market, Lucid plans to import and sell cars initially, alongside evaluating the feasibility of local production. The details of this strategy, while still unconfirmed, come from an unauthorised source with knowledge of the matter.
Zhu Jiang, carrying an impressive track record in the Chinese EV market, confirmed Lucid’s market entry plan to Reuters. Yet, he remained tight-lipped about the specifics of local production. Before his tenure at Lucid, Jiang held prominent positions at Jidu Motor, the EV subsidiary of China’s tech giant Baidu, and steered Ford Motor’s Mach-E project in China.
Lucid recently declared its intention to raise an estimated USD 3 billion through a stock offering. Notably, nearly two-thirds of this funding is anticipated to come from the Saudi Arabia’s Public Investment Fund (PIF).
Jiang believes that the forthcoming funds will help Lucid speed up the global spread of cutting-edge EV technology and offer an enriching product experience to users worldwide. He also hinted at the eagerness of the Chinese market to welcome Lucid’s advanced offerings.
Facing the heat of the industry, Lucid, much like its counterparts, grapples with significant losses and shrinking cash reserves. The situation is complicated further by potential recession concerns and an aggressive price war initiated by Tesla, the market leader.
Despite these adversities, Lucid made a cautious move last month by downsizing its 2023 production forecast and disclosing a lower than anticipated revenue for the first quarter. Rising interest rates pose a significant challenge to the market, CEO Peter Rawlinson admits. Interestingly, Lucid has chosen not to lower the prices of its Air luxury sedan, priced at a starting point of USD 87,400, in the U.S.
The industry awaits Lucid’s next steps with bated breath as it sets foot into the Chinese market. Lucid’s success in making a mark in this expansive and growing market could be a game-changer for its global reputation.
