ECARX Holdings Inc. (NASDAQ:ECX) Q2 2024 Results Conference Call August 8, 2024 8:00 AM ET

Company Participants

Rene Du - IR
Ziyu Shen - Chairman and CEO
Peter Cirino - COO
Phil Zhou - CFO

Conference Call Participants

Jiaqi Zhang - CICC
Megan Jin - Macquarie
Xiaoyi Lei - Jefferies

Operator

Good day, and thank you for joining us. Welcome to the ECARX Second Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. After managements’ give their prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded.

I would now like to turn the call over to your host for today, Rene Du, Head of Investor Relations at ECARX. Please proceed, Rene.

Rene Du

Thank you, operator. Good morning, and welcome to ECARX second quarter 2024 earnings conference call. With me today from ECARX, our Chairman and Chief Executive Officer, Ziyu Shen; Chief Operating Officer, Peter Cirino; and Chief Financial Officer, Phil Zhou. Following their prepared remarks, they will all be available to answer your questions during the Q&A session that follows.

Before we start, I would like to refer you to our forward-looking statements at the bottom of our earnings press release, which also applies to this call. Further information on specific risk factors that could cause actual results to differ materially can be found in our filings with the SEC. In addition, this call will include discussions of certain non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to GAAP financial measures can be also found at the bottom of our earnings release.

With that, I'd like to hand the call over to Ziyu. Please go ahead.

Ziyu Shen

Thank you, Rene. Hello, everyone, and thank you for joining our second quarter earnings call today. We maintained robust growth momentum during the second quarter, building upon the strong performance we had at the start of the year. The automotive industry continues its rapid evolution towards software-defined vehicles, which ECARX remains at the forefront of.

Let me start with a brief market update here. While the sector faces some global headwinds, the overall trajectory remains positive, particularly for electrical vehicles and intelligent car technologies. Global car sales were mixed but remain on track, on which around 88 million vehicles in 2024, an increase of almost 2% to 3% year-over-year.

China's automotive sector was similar with mixed sales during the first half of the year but restarted exports. China vehicle sales were [12 million] during the first half of the year with exports reaching [3.8 million], up 6% and over [30%] year-over-year. Respectively, Chinese electrical vehicle sales, in particular, were robust, [84.9 million] during the same period, a 32% year-over-year increase.