Cenntro Electric Group Receives EU Compliance Certifications R155 and R156

Rhea-AI Summary

Cenntro Electric Group Limited (NASDAQ: CENN) has received cybersecurity and software update management certifications required for vehicle sales in the European Union, positioning the company to continue selling its electric commercial vehicles throughout the EU. The certifications address the growing technological complexity and interconnectedness of vehicles and are essential for OEMs to comply with new EU regulations. Cenntro's Chairman and CEO, Peter Wang, emphasized the critical nature of these certifications for the company's expansion in the European market and its commitment to meeting stringent requirements for vehicle sales.

Insights

Automotive Industry Analyst

The recent announcement by Cenntro Electric Group Limited regarding their achievement of the Certificate of Compliance for Cybersecurity Management System (UN R155) and Certificate of Compliance for Software Update Management System (UN R156) is a significant step for the company's operations within the European Union (EU). This development is particularly important as the EU is imposing stricter regulations on vehicle cybersecurity and software standards, which will become mandatory for all vehicle sales in the EU starting from the second quarter of 2024.

The compliance with these regulations ensures that Cenntro can maintain its market access and competitive edge in the EU, which is a substantial market for electric commercial vehicles. The certifications indicate that Cenntro's vehicles meet the necessary safety and security requirements, which could potentially increase consumer trust and demand for their products. Moreover, adhering to these standards may provide Cenntro with an opportunity to capitalize on incentives aimed at promoting zero-emission vehicles, further enhancing their value proposition in the market.

Cybersecurity Expert

With the increasing complexity and connectivity of modern vehicles, the importance of robust cybersecurity measures cannot be overstated. The UN R155 and UN R156 certifications obtained by Cenntro are critical in ensuring that the vehicles are equipped to protect against cyberattacks and manage software updates effectively. This is not only a technical requirement but also a strategic business move to instill confidence among stakeholders about the safety and security of Cenntro's electric vehicles.

For the automotive industry as a whole, these certifications set a precedent for what defines a secure and reliable vehicle in the digital age. By meeting these standards, Cenntro is positioning itself as a leader in the realm of electric vehicle cybersecurity, potentially influencing industry norms and customer expectations regarding vehicle safety and security.

European Market Analyst

The European market is known for its stringent regulatory environment, particularly concerning environmental and safety standards. By obtaining the necessary certifications well ahead of the 2024 deadline, Cenntro demonstrates foresight and commitment to compliance, which may be beneficial in terms of market positioning and sales strategy within the EU. The EU consists of over 60 participating nations and being able to operate within this jurisdiction without regulatory barriers is a considerable advantage for any automotive manufacturer.

Furthermore, the focus on zero-emission vehicles aligns with the broader EU initiatives to reduce carbon emissions. This compliance could enable Cenntro to leverage various EU incentives for electric vehicles, thereby potentially reducing the total cost of ownership for their customers and increasing the attractiveness of their product offerings.

New 2024 Cybersecurity and Software Regulations Required for Vehicle Sales in the European Union

FREEHOLD, N.J.--(BUSINESS WIRE)-- Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, today announced Cenntro has received a Certificate of Compliance for Cybersecurity Management System (UN Regulation number: R155) and a Certificate of Compliance for Software Update Management System (UN Regulation number: R156). Both certifications are required for vehicle sales in the European Union beginning in the second quarter of 2024.

Both certifications provide frameworks and standards for vehicle original equipment manufacturers (“OEMs”) requiring their vehicles to be designed with cybersecurity that maintains the safety and security of the vehicle and its passenger(s). Starting in the second half of 2024, OEM’s must be certified as a prerequisite for approval to sell vehicles in the European Union (“EU”) consisting of more than 60 participating nations. As vehicles become increasingly complex and digitally integrated, OEMs will need to consider highly intricate safety, security, and quality concerns in the EU and beyond. UN R155 addresses vehicles’ ability to withstand cyberattacks, and UN R156 provides a framework for dealing with this challenge. By implementing EU standards, Cenntro has satisfied vehicle cybersecurity requirements and can continue to sell its product portfolio throughout the European Union.

“These new certifications were obtained in response to the growing technological complexity and interconnectedness of today’s vehicles,” said Peter Wang, Chairman and CEO of Cenntro. “As mobility becomes more advanced with numerous external devices, networks and systems, OEMs face the challenge of addressing highly interrelated safety, security, and quality concerns. These certificates will be required by OEMs, which must be compliant with new EU regulations to sell road vehicles in the EU.

“Currently our LS100, LS200 and LS260 models are designated as vehicle Type N1, which are eligible to sell in all EU countries. Achieving certifications for these models as a qualified OEM is critical as our footprint in the European market continues to build in scale. Our customer base is seeking competitive products to meet their local commerce needs while allowing those customers to participate in zero emission initiatives. We will continue to seek to meet stringent requirements for sales of our vehicles and take advantage of incentives to lower the cost of ownership in the EU and around the world,” concluded Wang.

About Cenntro Electric Group Ltd.

Cenntro Electric Group Ltd. (or "Cenntro") (NASDAQ: CENN) is a leading designer and manufacturer of electric commercial vehicles. Cenntro's purpose-built ECVs are designed to serve a variety of organizations in support of city services, last-mile delivery, and other commercial applications. Cenntro plans to lead the transformation in the automotive industry through scalable, decentralized production, and smart driving solutions empowered by the Cenntro iChassis. For more information, please visit Cenntro's website at: www.cenntroauto.com.

Forward-Looking Statements

This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. Such statements may be, but need not be, identified by words such as "may,'' "believe,'' "anticipate,'' "could,'' "should,'' "intend,'' "plan,'' "will,'' "aim(s),'' "can,'' "would,'' "expect(s),'' "estimate(s),''"project(s),'' "forecast(s)'', "positioned,'' "approximately,'' "potential,'' "goal,'' "strategy,'' "outlook'' and similar expressions. Examples of forward-looking statements include, among other things, statements regarding assembly and distribution capabilities, decentralized production, and fully digitalized autonomous driving solutions. All such forward-looking statements are based on management's current beliefs, expectations and assumptions, and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed or implied in this communication. For additional risks and uncertainties that could impact Cenntro’s forward-looking statements, please see disclosures contained in Cenntro's public filings with the SEC, including the "Risk Factors" in Cenntro's Annual Report on Form 10K/A filed with the Securities and Exchange Commission on July 6, 2023 and which may be viewed at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231227810165/en/

Investor Relations Contact:

Chris Tyson

MZ North America

CENN@mzgroup.us

949-491-8235

Company Contact:

PR@cenntroauto.com

IR@cenntroauto.com

Source: Cenntro Electric Group Limited

FAQ

What certifications has Cenntro Electric Group Limited received for vehicle sales in the European Union?

Cenntro Electric Group Limited has received a Certificate of Compliance for Cybersecurity Management System (UN Regulation number: R155) and a Certificate of Compliance for Software Update Management System (UN Regulation number: R156), both required for vehicle sales in the European Union.

When are the certifications required for vehicle sales in the European Union?

The certifications are required beginning in the second quarter of 2024 for vehicle sales in the European Union.

What do the certifications address?

The certifications address the growing technological complexity and interconnectedness of vehicles, requiring OEMs to design vehicles with cybersecurity measures that maintain safety and security.

Why are the certifications important for Cenntro Electric Group Limited?

The certifications are critical for Cenntro's expansion in the European market, as they are essential for compliance with new EU regulations and meeting stringent requirements for vehicle sales.