Cenntro Receives California Air Resources Board Executive Order Certifying Its Logistar® 300 Model

Rhea-AI Summary

Cenntro Inc. (NASDAQ: CENN) has received a California Air Resources Board (CARB) Executive Order and a Certificate of Conformity from the U.S. Environmental Protection Agency (EPA) for its Logistar® 300 (LS300) model. These certifications confirm that the all-electric, light-duty, class 3 LS300 meets zero-emissions standards in California and EPA emissions requirements under the Clean Air Act.

The LS300, which debuted at CES 2023, offers versatility as a cab and chassis or optional delivery van body, with a mileage range of 194-217 miles. Production will take place at Cenntro's facility in Ontario, CA. These certifications position Cenntro's California customers to apply for end purchaser incentives, such as the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).

Positive

• Received CARB Executive Order and EPA Certificate of Conformity for LS300 model
• LS300 qualifies as a zero-emissions vehicle in California
• California-based customers eligible for end purchaser incentives (e.g., HVIP)
• LS300 has a mileage range of 194-217 miles
• Production of LS300 to take place at Cenntro's Ontario, CA facility

Negative

• None.

Environmental Policy Expert

The recent certifications from the California Air Resources Board (CARB) and the Environmental Protection Agency (EPA) for the Logistar® 300 (LS300) model are significant milestones for Cenntro. These certifications affirm that the LS300 meets rigorous environmental standards, which can lead to broader acceptance and integration of the vehicle in markets particularly sensitive to emissions regulations, like California. Moreover, the CARB certification allows Cenntro's customers to benefit from various incentives aimed at reducing greenhouse gas emissions, which can help offset the initial costs of adopting electric vehicles. In essence, these certifications not only validate the environmental compliance of the LS300 but also enhance its marketability in the U.S. market.

From an investor's perspective, this positions Cenntro as a strong contender in the electric commercial vehicle sector, where regulations and environmental incentives play a important role. The certifications can potentially drive sales growth and market share, particularly in states with stringent emissions standards. However, it's essential to remain cautious about the long-term impact and ensure continual innovation to stay ahead in the rapidly evolving EV market.

Market Research Analyst

The CARB and EPA certifications for Cenntro's LS300 are pivotal for its entry and competitiveness in the U.S. market, particularly in California, which is known for its stringent emissions standards. The certifications not only bolster the vehicle's credibility but also open doors to financial incentives that can make it more attractive to fleet operators. The mention of potential participation in the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) is particularly noteworthy, as such incentives can significantly lower the cost barrier for fleet operators considering electrification.

From a market dynamics perspective, the LS300's entry into the last-mile delivery segment is timely, given the increasing demand for efficient and environmentally friendly delivery solutions. Its versatile design and mileage range of 194-217 miles make it suitable for a variety of applications, potentially broadening its market appeal. However, investors should monitor the competition in this segment, as several players are vying for market share in electric commercial vehicles.

Financial Analyst

For Cenntro, the CARB and EPA certifications of the LS300 model signify more than just regulatory compliance—they represent a strategic advantage in the competitive electric vehicle market. The ability to leverage these certifications for consumer incentives can enhance the company's sales pipeline and revenue potential. Specifically, the opportunity for customers to access HVIP can reduce the total cost of ownership, making the LS300 a more financially viable option for fleet operators.

From a financial standpoint, this development is a positive indicator for Cenntro’s growth prospects. It may lead to increased sales volume and market penetration in the coming quarters. However, investors should keep an eye on production capabilities and potential supply chain challenges that could impact the timely delivery and scaling of operations. Additionally, it’s important to consider the broader economic factors that might influence fleet operators' investment in new vehicles, such as interest rates and fuel prices.

FREEHOLD, N.J.--(BUSINESS WIRE)-- Cenntro Inc. (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric commercial vehicle company with advanced, market-validated, and purpose-built vehicles, today announces Cenntro received a California Air Resources Board (“CARB”) “Executive Order” and a “Certificate of Conformity” from the United States Environmental Protection Agency (“EPA”) for the Logistar® 300 (“LS300”) model.

LS300DV (Photo: Business Wire)

On June 21, 2024, Cenntro received the CARB Executive Order certifying the all-electric, light-duty, class 3 LS300 model meets the standard to be considered zero-emissions vehicles in California. Similarly, the Certificate of Conformity confirms that the LS300 meets the EPA's emissions requirements under the Clean Air Act. The LS300 model is the latest addition to Cenntro’s product portfolio for the U.S. market. The CARB and the EPA certifications position Cenntro’s California-based customers to apply for end purchaser incentives such as participation in the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (“HVIP”).

Cenntro first debuted the LS300 at the Consumer Electronics Showcase in 2023. The versatile all-electric, light-duty, class 3 vehicle comes as a cab and chassis or optional delivery van body and has the ability to be upfitted as needed for broader applications. With a mileage range of 194-217 miles, the LS300 makes last-mile delivery efficient for drivers.

“Deploying the LS300 in the U.S. last-mile delivery market allows Cenntro customers to experience the benefits of electrification of their fleet, both large and small, with a versatile, multi-functional commercial EV,” said Peter Wang, Chairman and CEO of Cenntro. “Production of the LS300 in both cab-chassis and delivery van models, will take place at our recently established facility in Ontario, CA.”

About Cenntro

Cenntro (NASDAQ: CENN) is a leading maker and provider of electric commercial vehicles (“ECVs”). Cenntro's purpose-built ECVs are designed to serve a variety of commercial applications inclusive of its line of class 1 to class 4 trucks. Cenntro is building a globalized supply-chain, as well as the manufacturing, distribution, and service capabilities for its innovative and reliable products. Cenntro continues to evolve its products capabilities through advanced battery, powertrain, and smart driving technologies. 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 10-K filed with the Securities and Exchange Commission on April 1, 2024 and which may be viewed at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240716023158/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 Inc.

FAQ

What certifications did Cenntro (CENN) receive for its Logistar® 300 model?

Cenntro received a California Air Resources Board (CARB) Executive Order and a Certificate of Conformity from the U.S. Environmental Protection Agency (EPA) for its Logistar® 300 (LS300) model on June 21, 2024.

What is the mileage range of Cenntro's (CENN) Logistar® 300 electric vehicle?

The Logistar® 300 (LS300) electric vehicle has a mileage range of 194-217 miles, making it efficient for last-mile delivery.

Where will Cenntro (CENN) produce the Logistar® 300 model?

Cenntro will produce the Logistar® 300 (LS300) model at its recently established facility in Ontario, California.

What incentives are available for California-based customers of Cenntro's (CENN) Logistar® 300?

California-based customers of Cenntro's Logistar® 300 may be eligible to apply for end purchaser incentives, such as participation in the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).