AutoLiv China, a subsidiary of automotive safety supplier
AutoLiv Inc. ( ALV Quick Quote ALV - Free Report) , and Nio, Inc. ( NIO Quick Quote NIO - Free Report) , a China-based multinational automaker, signed a strategic cooperation framework agreement. The alliance aims to develop safety technologies for electric vehicles (EVs), with an overarching focus on sustainable solutions. Per the agreement, AutoLiv and Nio will design safety products for electric vehicles, focusing primarily on sustainable technologies. The companies will develop a passenger airbag that deploys from the headliner using an eco-friendly inflator. Moreover, the allies are developing a airbag that will provide comprehensive protection to passengers in different seating positions. This innovation will provide superior protection and offer more liberty in designing the interior of the vehicles. Both airbag cushion and seatbelt webbing will be made up of biology-based materials, underscoring the alliance’s intent to provide sustainable solutions. Mikael Bratt, president and CEO of AutoLiv, believes that this collaboration will introduce safety and innovation to the market, and reshape the future of mobility. Nio’s vice president of Supply Chain Development, Yu Pan, hinted that the cooperation between AutoLive and Nio has the potential to extend to more areas as both companies are committed to improving the driving experience of all users across the globe. In 2022, Autoliv’s net sales totaled $8.8 billion, with organic growth of roughly 14%. In first-quarter 2023, organic sales grew more than 20%, outperforming light vehicle production significantly on product launches, higher prices and higher safety content per vehicle. The soaring popularity of electric vehicles is extending Autoliv’s exposure to this red-hot market, thereby opening growth avenues for the firm. In 2022, order win rates for new EV platforms were higher, with EVs accounting for roughly 45% of Autoliv’s order intake. As a result of strong order intake, the company expects an increase in overall product launches in 2023. Nio’s strong standing with the government of China offers it an advantage in the massive China market. China’s intense push for EV vehicles is a major booster for NIO. ES6, ES8 and EC6 models are enhancing the firm’s prospects. The firm’s latest offerings based on the NIO Technology Platform 2.0, including the EL7, ET5 and ET7 models, will further drive deliveries. Zacks Rank & Key Picks
NIO and ALV currently carry a Zacks Rank #3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Some better-ranked players in the auto space are BYD Company Limited ( BYDDY Quick Quote BYDDY - Free Report) and Wabash National ( WNC Quick Quote WNC - Free Report) , both of which currently sport a Zacks Rank #1. BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales implies year-over-year growth of 209.6%. Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 19.7%, respectively.