Some positions in the factory in Ningde era are forced to take two days off, and some workers disrelish their low wages and leave their jobs.
CTOnews.com August 3 news, Ningde era is the world's leading power battery enterprises, has occupied half of the domestic market by virtue of rapid production expansion and technological advantages. However, since the beginning of this year, as the demand for new energy vehicles has slowed and the price of raw materials for power batteries has fallen, Ningde era is facing the dual pressure of overcapacity and declining market share.
According to the financial report, in the first half of this year, Ningde Times achieved revenue of 189.246 billion yuan, an increase of 67.52 percent over the same period last year, and a net profit of 20.717 billion yuan, an increase of 153.64 percent over the same period last year. Despite the outstanding performance, the market's concern about its overcapacity has not abated. CTOnews.com noted that data from the China Automotive Power Battery Industry Innovation Alliance showed that in the first half of this year, the domestic market share of the Ningde era was 43.4% in 2022, which was 48.2% in 2021 and 52.1% in 2021.
According to China Entrepreneur Magazine, Wang Peng (not his real name), an employee of Sichuan Times, a subsidiary of Ningde Times, said that there were a lot of orders in Ningde era last year, when they were paid seven or eight thousand a month for overtime work. But by the end of the year, the situation took a sharp turn for the worse. In November and December 2022, factories began to cut wages, and some jobs began to restrict working hours or force two days off, and even introduced a "five-day and eight-hour" working system. Many workers choose to leave because their wages are too low. Until the first half of this year, his job was often subject to limited working hours: from 11 hours a day to eight hours, fewer night shifts and a half-month break in April. For Wang Peng, the impact of restricted working hours is a reduction in income-this year's monthly salary is an average of one or two thousand yuan less than last year.
In order to cope with the changes in the market, Ningde era has taken a variety of measures, including speeding up inventory removal, launching lithium mine rebate plans, laying out new technical routes and overseas markets, and so on. But at the same time, Ningde era is also facing fierce competition from second-line battery companies such as BYD, China New Airlines and Yiwei Lithium Energy. These enterprises use decentralized procurement and low-price strategies to constantly snatch the core customers of the Ningde era.
In the context of the adjustment of supply and demand in the power battery industry, it remains to be seen whether Ningde era can maintain its status as "roll king".
