Another New EV Maker Emerges

Another player is taking a seat at China’s new energy vehicle table for 2026.

On July 11, the first engineering prototype (ET) from Cornex New Energy rolled off the assembly line at the general assembly workshop of its Wuhan Research Institute. This milestone marks the debut model's transition from engineering data to physical verification. Cornex New Energy stated that the prototype will be used to validate vehicle performance, manufacturing processes, and quality standards. Testing will cover core systems including electronic architecture, the powertrain, smart cockpit, intelligent driving, chassis, and thermal management — laying a solid foundation for mass production performance and process optimization.

Image source: Cornex New Energy

Notably, this is the first time Cornex New Energy has officially released information about its vehicle manufacturing ambitions. Market rumors had previously circulated about its entry into complete vehicle production, but the company had remained silent until now.

Who is  Cornex New Energy?

 Cornex New Energy’s background is unique. It wasn't built from scratch; rather, it was jointly established by Hubei-based battery maker Cornex New Energy and Hengxin Automotive Group, one of China’s top dealership chains. Both companies share a common founder: Dai Deming.

Public records portray Dai Deming as a serial entrepreneur from Yichang, Hubei. He started his career in home appliance trading before pivoting to auto dealerships in 2000 to found Hengxin Automotive Group. Today, the group operates more than 300 dealerships across China, generating nearly 80 billion yuan in annual revenue and ranking among the nation’s top dealership groups.

In 2021, a 57-year-old Dai seized the opportunities presented by China's "dual carbon" goals, founding Cornex New Energy and diving headfirst into the energy storage and power battery sectors. Remarkably, in less than five years, the company pushed its energy storage cell shipments into the global top three. With a market share of roughly 7.5%, it trails only CATL and EVE Energy. Now, as Dai returns to vehicle manufacturing, his business empire has formed a complete closed loop: dealership channels, self-supplied power batteries, and vehicle production.

At the rollout ceremony, Dai’s comments hinted at Cornex New Energy’s product positioning. He noted that China’s new energy vehicle market is booming with broad prospects, stating that Cornex New Energy aims to "build safe, comfortable vehicles with extreme value and excellent performance." The phrase "extreme value" emerged as the key theme.

Industry analysts suggest Cornex New Energy holds a natural advantage in cost control. Its parent company, Cornex New Energy, boasts 110 GWh of battery production capacity. This allows for self-supply of the power battery — a core component accounting for roughly 40% of vehicle cost — significantly lowering procurement expenses. Meanwhile, Hengxin Automotive Group’s network of over 300 dealerships nationwide provides a ready-made sales and after-service system, saving on channel construction costs.

According to sources familiar with the matter, Cornex New Energy’s debut model will target the AITO M5. It is positioned as a range-extended SUV with a body length of 5 meters and a wheelbase of 3 meters. The price is expected to fall between 150,000 and 200,000 yuan, with a launch planned for June 2027. In terms of product planning, the company will pursue both range-extended and pure electric variants in parallel.

How will it solve the licensing hurdle?

For new EV startups, securing production qualifications is an unavoidable hurdle. Cornex New Energy appears to have found a solution.

Multiple sources indicate that Cornex New Energy plans to take over WM Motor’s "Xinghui Factory" in Huanggang, Hubei. The facility began production in January 2020 with a planned first-phase capacity of 150,000 units and holds complete new energy vehicle production qualifications. It ceased operations in October 2022 due to WM Motor’s financial struggles. Reports suggest the plant’s assets have been recovered by the local government with clear debt settlements. By taking over, Cornex New Energy can rapidly acquire both capacity and qualifications, significantly shortening the cycle from research and development to mass production.

Industry experts are cautiously optimistic about Cornex New Energy’s entry into the market.

Zhang Xiang, a researcher at the Automotive Industry Innovation Research Center at North China University of Technology, offered this assessment in an interview: "Cornex New Energy faces significant challenges by choosing to enter the market in 2026, but it is not without opportunity. The current new energy vehicle competition has entered an elimination stage, making it extremely difficult for new brands to break through. However, Cornex New Energy’s differentiated advantages lie in three areas: cost competitiveness driven by self-supplied batteries; user insight and service capabilities accumulated through its dealership network; and the ability to bypass the heavy-asset investment cycle by acquiring existing capacity."

However, Zhang also noted that Cornex New Energy must still address issues such as brand awareness, the accumulation of intelligent driving technology, and supply chain stability. He suggested the company focus on the 150,000 to 200,000 yuan price segment — the market with the largest volume — and differentiate itself through smart cockpits and user service, rather than engaging in direct competition with top-tier brands in the high-end market.

From the rollout of its first engineering prototype to its market launch in 2027, Cornex New Energy has less than a year. Whether this startup — born from a partnership between a dealership and a battery maker — can carve out a space in China’s new energy vehicle market remains to be seen. But one thing is certain: backed by Dai Deming’s two decades of experience in automotive distribution and Cornex New Energy’s technical expertise in batteries, Cornex New Energy  holds a more solid "entry ticket" than most new challengers. The next step is to let the products do the talking.