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CATL shares hit over one-year low on concerns over automakers' battery supplier diversification
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On September 16, CATL (Contemporary Amperex Technology Co.) shares continued their decline, with A-shares falling over 4% to 302.2 yuan, a new low since September 2025, and down 35% from a May high of 467.06 yuan. H-shares also dropped 5% to 490.2 Hong Kong dollars. Analysts attribute the sell-off to growing concerns that downstream automakers are accelerating efforts to reduce reliance on CATL, a trend dubbed 'de-Ningde-ization.' Reports indicate that Li Auto has shifted some models to rival Xinwangda and self-developed batteries, while Xiaomi's new Pengcheng N70 and N90 models use batteries from China Innovation Airlines and Xinwangda instead of CATL. The market fears that automakers' strategies of self-developing batteries and adopting multiple second-tier suppliers will erode CATL's pricing power and market share in China's high-end segment, potentially forcing a revaluation from a high-growth tech stock to a traditional cyclical manufacturing stock, despite the company's over 40% net profit growth in its latest half-year report.
Source report
Source: Caijing
On September 16, extending losses from the previous trading day, Contemporary Amperex Technology Co., Ltd. (CATL) (03750.HK / 300750.SZ) continued to decline during intraday trading.
- A-shares fell over 4% to 302.2 yuan, hitting a new low since September 2025 and representing a 35% pullback from its May high of 467.06 yuan.
- H-shares dropped 5% to 490.2 Hong Kong dollars, marking a new low since March this year and a 38% decline from its June high of 792.548 Hong Kong dollars.
Analysts attribute the recent sell-off primarily to concerns over order losses as downstream automakers accelerate their "de-CATL" strategy. Although the company's latest semi-annual report still recorded over 40% net profit growth, capital markets have begun to reassess CATL's future industry dominance and valuation logic.
The market has recently seen frequent reports of high-end automakers adjusting their supplier lists. According to media reports:
- Li Auto has shifted some of its models to Sunwoda and self-developed battery solutions.
- Xiaomi's newly launched Pengcheng N70 and N90 models have not used CATL batteries, which were previously selected for the SU7 and YU7. Instead, they are equipped with Xiaomi's Longjia battery system, with cells supplied by China Aviation Lithium Battery (CALB) (03931.HK) and Sunwoda (300207.SZ).
Both automakers have adopted strategies involving the introduction of second-tier suppliers such as CALB and Sunwoda, as well as co-development or in-house production, to divert some of CATL's market share. The market is concerned that downstream vehicle manufacturers are using "self-developed batteries + introducing multiple second-tier suppliers" to weaken CATL's pricing power. As a result, expectations are that CATL's domestic high-end market share will be eroded, forcing its valuation logic to shift from a "high-growth tech stock" to a "traditional cyclical manufacturing stock."
Source
新浪财经-股票列表Eastern
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CATL market cap erases over $100B as automakers shift battery supply to rivals