Profits are declining year by year, products are broken, large-scale layoffs... Some foreign brands are in dire straits in China, and in recent years, they have nourished extremists, and their mouths are full of violent theories that "joint ventures must die". However, looking at the world, many foreign brands that we see as "exhausted" are not only living well, but also some are thriving.
In the first quarter of the past year, Toyota's global operating profit soared 77% to 1.11 trillion yen (51.89 billion yuan), making it the world's most profitable automaker. Net profit also nearly doubled to 997.6 billion yen (46.64 billion yuan) from 552.2 billion yen (25.81 billion yuan) in the same period last year.
If there is no suspense for Toyota to win the championship, then the performance of the runner-up will be impressive.
On May 14, Hyundai Motor Group announced its financial report for the first quarter of 2024, showing that the company's operating profit in the quarter reached 6.98 trillion won (about 36.854 billion yuan), surpassing the Volkswagen Group for the first time in operating profit and becoming the world's second most profitable automaker.
Japan and South Korea are booming, and Europe and the United States are not willing to be left behind. Although Ford's net profit declined and the electric vehicle division reported a loss, the overall revenue in the first quarter increased slightly year-on-year, and the adjusted EBIT was 2.76 billion US dollars, or about 19.942 billion yuan, ranking among the top ten global car companies.
Interestingly, back in China, the world's largest and most unique car market, they have been "marginalized".
In the first quarter of this year, Toyota's sales in the Chinese market were 374,000 units, a year-on-year decrease of 1.6%, and the two major joint venture brands in China decreased by 30% year-on-year.
In the first quarter, Hyundai's retail sales in the Chinese market fell by 7.9% year-on-year, and only 17,002 units were sold in March with multiple product lines across the line, and in April, Hyundai's Cangzhou plant in Beijing was revealed to have started layoffs and evacuations;
Changan Ford sold only 55,603 vehicles in the first quarter, an average of more than 10,000 vehicles a month, and even less than the monthly sales of some new power brands.
The performance of foreign brands is very different, and it is no wonder that inside and outside the siege, there are different public opinion winds.
The reason for this is that the technical differences are here, forming an impregnable barrier. Behind the city walls, there are elite soldiers who are recuperating.
In 2023, independent car companies such as Chery, SAIC, Geely, Great Wall, and BYD will all deliver considerable answers in terms of automobile exports.
According to the China Passenger Car Association, passenger car exports (including finished vehicles and CKD) in April totaled 417,000 units, up 38% y/y and 0.2% m/m, setting a record monthly export volume.
In the same month, BYD's passenger car exports reached a record high of 41,011 units. "The goal is to overtake Volkswagen, Tesla and Stellantis as Europe's largest seller of battery electric vehicles by 2030." Michael Shu, managing director of BYD Europe, said confidently.
Recently, Leapmotor and Stellantis joint venture Leapmotor International was officially announced, and it was sold to 9 European countries in September this year.
It is a foregone conclusion that independent brands will beat foreign brands in China, and what we are looking for is the global market. At present, there are advantages and resistance for independent brands to go global, the advantages are in the leading technology of battery electronic control and automotive intelligence, production and manufacturing costs, and perfect supply chains, etc., while on the other hand, there are also policy resistance such as the United States increasing 100% tariffs on new energy vehicles in China.
As the world's largest automobile market, Chinese's understanding and preference for automobiles still have a certain degree of persuasiveness for the global automotive industry to a certain extent, and the future of independent brands is still broad. Chinese cars, power up together.