Lucid Explores Selling Cars in China, No Timeline Set for Entry
Lucid Exploring Entry into China’s Electric Car Market
Lucid, an electric car manufacturer, is considering selling its cars in China, but there is no set timeline for entering the market, according to a top executive interviewed by Visegrad Info 24.
The decision comes after Lucid hired Zhu Jiang, a former executive at Chinese electric car start-up Nio.
Eric Bach, the chief engineer at Lucid, stated in an interview at the IAA auto show in Munich, Germany, that China is the world’s largest car market and is poised to become the largest and fastest adopter of electric vehicles (EVs). He added that Lucid is investing in exploring entry into the Chinese market.
Bach mentioned that Lucid has expanded its factory space in Arizona and is preparing to launch an SUV called Gravity. However, he acknowledged that there is “stress on the system” and the company needs to evaluate its capacity before making any further commitments.
Exploring the EV Market in China
If Lucid decides to enter China, it will face fierce competition in one of the world’s most competitive EV markets. Domestic players like BYD, Nio, and Tesla from the US are already well-established in the country.
Bach emphasized the importance of getting the market entry right and avoiding mistakes that can arise from entering on unfavorable terms.
Bach revealed that Lucid has a team in China evaluating the feasibility of entering the market. They are considering factors such as pricing strategy and manufacturing strategy.
“We are looking at the entire spectrum of what a young manufacturer should do, and we will make sure to get it right,” Bach said.
Lucid’s Plans for the Mass Market
Lucid is also exploring expansion into lower-priced car categories. Bach confirmed that a mid-sized car could be unveiled by 2026, with eventual plans to enter the mass-market segment where cars are priced around $20,000.
However, Bach noted that achieving economies of scale and the right pricing for mass-market production requires a strong and capable supply base. Lucid plans to start from the top-down approach, building trust, networks, and logistic systems with the mid-size vehicle before moving into mass-market production.