Lucid Motors’ interim chief executive Marc Winterhoff said the US luxury electric-vehicle maker will expand into Asian markets but has no plans to enter China, where he described the industry as “heavily subsidized” and oversupplied.
Speaking at the Morgan Stanley 13th Laguna Conference, Winterhoff said the the IAA Mobility show held earlier in the week in Germany was dominated by discussions around the rise of Chinese automakers in Europe.
“What I took away from the IAA, obviously, the big elephant, the big topic was about the Chinese onslaught. That really was a big topic,” the interim CEO stated.
“I have to say what I saw from us, but also from the other Western automotive manufacturers, my fellow country — I’m born and raised in Germany — I think they got it now, and they focus on the right things,” Winterhoff added.
“I think that from a technology point of view, they [Western carmakers] show things that are definitely competitive,” Winterhoff said as BMW, Mercedes-Benz, and other brands presented new fully electric models.
“I don’t think they have to be afraid or we have to be afraid of the Chinese,” Winterhoff stated.
The interim chief said Chinese manufacturers have improved, but he argued they are not yet industry leaders in innovation.
“Not only when it comes to the products, yes, they are – first of all, they definitely came of age. There’s no doubt about it. The technology is good, but it’s not leading edge,” he warned.
“And that’s what we are focusing on, innovation, differentiation by innovating, being best-in-class, but not only in one area, but really package this in one, in the car so that you can get everything that you want really on the leading edge,” the executive added before showing no concerns on the Chinese competitors.
“And I think that still has absolutely a future. And I’m not really concerned about the Chinese,” he said.
He also emphasized that Lucid is not pursuing the low-cost segment of the EV market.
“Obviously, that’s very different in different price segments, but we are not planning to go down into, let’s say, $25,000, $30,000 price range.
“And even our next platform that we will bring and then start end of next year will start around the $50,000, and I’m very confident that we are competitive in that area,” Winterhoff said, referring to the brand’s mid-size platform, which will underpin three models.
Asked about Xiaomi’s upcoming YU7 SUV and the broader Chinese competitive threat, Winterhoff dismissed the idea of Lucid competing directly in China.
“We are not playing in China, and I have no intention to go to China. It’s a [indiscernible] competition right now,” he asserted.
“It’s also highly subsidized, a lot of overcapacity,” the interim CEO added. “That’s actually why you can get from – even from suppliers very good prices right now, but we’re not there.”
Later in the answer, Winterhoff pointed to the price difference when Chinese carmakers sell their models in Europe.
“The prices that you see and that are going around in the media are – and that are so low, they are Chinese prices,” he said. “When they come out, go to Europe into other markets, it’s not the same prices.”
“It’s not so far away — It’s actually on a similar level where we are going to be as well,” he added. “And when I look at the costs, our costs right now for the midsized platform is not even on the same planet for where we are with…”
Lucid is preparing to expand its footprint in Asia in the coming years, but its chief executive made clear China will not be part of those plans.
In the same interview, Winterhoff said Lucid aims to close the gap with Tesla in advanced driver-assistance technology next year.
Winterhoff confirmed that autonomous capabilities is “a very big focus” for the EV maker.
The comments were made less than two months after the company rolled out a major update to its DreamDrive Pro suite of Advanced Driver Assistance Systems (ADAS).
Winterhoff also reiterated that Lucid is still aiming to build 20,000 vehicles this year, despite lowering its official 2025 production outlook in August to between 18,000 and 20,000 units.
The interim CEO said the team is pushing hard to reach the higher target, stressing that employees are “giving everything to make that happen.”
