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(Yicai) Aug. 13 -- Contemporary Amperex Technology, the world's biggest maker of electric vehicle batteries, has opened the first new energy experience center in Chengdu, China's southwestern Sichuan province, but it will not manufacture nor sell autos, according to its vice chairman.
"Some people would think that CATL will start selling vehicles," Li Ping noted at the NING Space's opening ceremony late last week. "We once said that we won't manufacture cars, and I want to emphasize that CATL does not sell cars either. NING Space is a platform that connects parties, and carmakers are its protagonists."
Li made these comments after the opening of NING Space quickly sparked speculations about CATL's future business, given that the firm's direct clients are not standard consumers.
NING Space is the world's first brand pavilion of EVs, covering 13,000 square meters. It houses nearly 100 models from around 50 brands, bringing a never-ending auto show to visitors with a full collection of the most popular models.
With the distinctive features of "completeness" and "innovation," the NING Space is dedicated to aiding automakers in showcasing their vehicles effectively, assisting consumers in selecting the right cars, and promoting a low-carbon lifestyle, said Luo Jian, general manager of CATL's marketing department.
In addition, Ningde-based CATL also launched its after-sales service brand NING Service. With a network of 112 professional service stations and a robust training system, it provides high-standard services, including battery maintenance, health checks, and mobile rescue, ensuring a worry-free experience for EV users.
CATL, traditionally a firm targeting business clients, has now set its sights on the consumer market by making moves such as helping automakers sell their cars and providing after-sales services for EV batteries.
These are not CATL's first steps as part of its "to-consumer" strategy. It previously invested a lot in related outdoor advertisement, including in high-speed rail stations, since the second half of last year, Yicai found. In addition, its slogan, "choosing EVs equipped with CATL's batteries," frequently appeared during commercial breaks of major sports events, including the European Soccer Championship and the Summer Olympics.
CATL's Chairman Zeng Yuqun also attended the launch event of the Stelato S9, a luxury electric sedan co-developed by Huawei Technologies and Bluepark New Energy Technology, to recommend batteries to car consumers on Aug. 6.
CATL directly advertising its products to consumers aims to strengthen the end market's recognition of its products and hike sales in the business-to-business market, Yu Qingjiao, secretary-general of the Zhongguancun New Battery Technology Innovation Alliance, told Yicai.
Battery brands, as key industrial intermediate products, likely directly affect consumers' vehicle purchase decisions, so suppliers have to build up their brand image in the 'to-consumer market,' also seen in the brand marketing and strategies of US chipmaker Intel's central processing units, Yu added.
Although CATL still holds the largest EV battery market share, it must overcome rivals' price competition and pressure from automaker’s recent trend of using their self-developed batteries, Yu said. The company must create a differentiated edge in consumers' minds to form a brand 'firewall,' he noted.
CATL's market share in China climbed to 46.5 percent in the first seven months of the year from 43.1 percent a year earlier, while use of its EV batteries reached 112.7 gigawatt-hours, according to the latest figures published by the China Automotive Power Battery Industry Innovation Alliance.
Its global market shares rose 2.1 points to 37.8 percent in the first half from a year ago, the latest data from South Korean battery and energy research firm SNE Research showed.
Editors: Tang Shihua, Martin Kadiev