Cenntro Electric Group’s LS400 Approved for California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project

Rhea-AI Summary

Cenntro Electric Group Limited (NASDAQ: CENN) announced that its all-electric class 4 Logistar 400 received approval from the California Air Resources Board to participate in California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, providing a $60,000 point-of-sale voucher for the Company’s customers. The approval is expected to drive sales in California and propel commercial fleet electrification across the US and worldwide.

Insights

Financial Analyst

Assessing the implications of Cenntro Electric Group Limited's recent HVIP approval for its Logistar 400 in California, it is evident that this development could potentially bolster the company's sales in the state. The $60,000 point-of-sale voucher acts as a substantial financial incentive for fleet operators to transition to electric vehicles (EVs), thus potentially increasing demand for the LS400. This approval aligns with California's aggressive environmental policies and could serve as a catalyst for Cenntro's growth in the commercial EV sector.

From a financial perspective, the HVIP's voucher system effectively lowers the barrier to entry for potential customers, which may lead to an uptick in sales volume. In the short term, this could result in increased revenue and market share within California. Long-term effects could include strengthening the company's competitive position and contributing to the normalization of EVs in commercial fleets, which might have positive implications for the company's stock performance.

However, investors should consider the scalability of such incentives and whether they can be sustained without governmental support. Additionally, the impact of increased sales on the company's production capacity and supply chain should be monitored.

Industry Analyst

The HVIP approval received by Cenntro Electric Group Limited signals a strategic advantage in the commercial EV market. The certification by CARB and the subsequent eligibility for HVIP suggest that the company's LS400 model meets stringent zero-emission standards. This not only enhances the product's reputation but also positions Cenntro favorably in a market that is increasingly driven by environmental regulations and sustainability goals.

Given the growing emphasis on reducing carbon emissions in logistics and transportation, this development could attract new business partnerships and foster customer loyalty. Companies that prioritize sustainability may view Cenntro's offerings as aligning with their corporate social responsibility objectives. Consequently, this could lead to an expanded customer base and potentially improve the company's long-term financial sustainability and investor appeal.

It is important to note that while the HVIP incentive is a significant benefit, it is also subject to government funding and policy changes. Stakeholders should be aware of the potential risks associated with regulatory shifts that could affect the availability of such incentives.

Environmental Policy Expert

The HVIP approval of Cenntro's LS400 model is a reflection of the broader policy landscape favoring zero-emission vehicles, particularly in states like California with stringent emissions targets. This policy support is designed to reduce greenhouse gas emissions from the transportation sector, which is a significant contributor to air pollution. By incentivizing the adoption of electric commercial vehicles, California aims to expedite the transition to a cleaner fleet.

For businesses operating within California, the financial incentives provided by HVIP can make the prospect of fleet electrification more economically viable. This could lead to a reduction in operational costs over time due to lower fuel and maintenance expenses associated with electric vehicles. Additionally, by adopting zero-emission vehicles, companies can enhance their environmental credentials, which can be beneficial for branding and customer trust.

While the environmental benefits are clear, the success of such programs depends on the continued commitment of state and federal agencies to fund and support them. Organizations considering investment in electric fleets should also evaluate the availability of charging infrastructure and the total cost of ownership when leveraging such incentives.

Project Provides $60,000 Point-of-Sale Vouchers for All-Electric Class 4 Logistar 400 Sales in the state of California

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 that its all-electric class 4 Logistar 400 (“LS400”) received approval from the California Air Resources Board (“CARB”) to participate in California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (“HVIP”) in the state of California, providing a $60,000 point-of-sale voucher for the Company’s customers.

Preceding the HVIP approval, Cenntro’s LS400 received certification from CARB as a zero-emission vehicle in the state of California in June of this year. The zero-emission vehicle certification is awarded to vehicle manufacturers that meet specific emissions standards in compliance with CARB regulations. The LS400’s certification as a zero-emission vehicle cleared the way for the LS400 to be approved for participation in the HVIP. In December 2022, the LS400 also received a certificate of conformity from the United States Environmental Protection Agency.

The approval to participate in the HVIP program is awarded to vehicle manufacturers, like Cenntro, that meet specific on-road zero-emission powertrain standards in compliance with CARB regulations. California’s HVIP incentive program is intended to advance adoption and commercialization of fleet vehicles, helping to reduce the total cost of ownership of hybrid and zero-emission commercial vehicles in the state of California.

“HVIP approval not only accelerates our commercialization of the LS400 but makes the model more affordable and attractive to our customers by offering point-of-sale vouchers in California,” said Peter Wang, Chairman and CEO of Cenntro. “Through our California dealer network, Cenntro is now providing our fleet customers with the ability to electrify their fleet, reduce their carbon footprint, and significantly lower their cost of operations. With HVIP approval, LS400 customers will now immediately benefit from product vouchers valued at $60,000 at the point-of-sale. We expect this incentive to drive sales in California as we propel commercial fleet electrification across the US and worldwide.”

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/20231219897418/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 did Cenntro announce regarding its all-electric class 4 Logistar 400?

Cenntro announced that its all-electric class 4 Logistar 400 received approval from the California Air Resources Board to participate in California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, providing a $60,000 point-of-sale voucher for the Company’s customers.

What is the ticker symbol for Cenntro Electric Group Limited?

The ticker symbol for Cenntro Electric Group Limited is NASDAQ: CENN.

What is the purpose of the HVIP program in California?

The HVIP program in California is intended to advance adoption and commercialization of fleet vehicles, helping to reduce the total cost of ownership of hybrid and zero-emission commercial vehicles in the state of California.

Who is the Chairman and CEO of Cenntro Electric Group Limited?

Peter Wang is the Chairman and CEO of Cenntro Electric Group Limited.