Facing the difficulties, Chinese car brands have finally risen!

Since the beginning of the 2017 Shanghai Auto Show, domestic independent brand car companies have begun to overtake in curves, not only launching a series of brands, but also starting to crush joint venture car companies in terms of price and configuration. From the appearance of Lynk & Co to the collision between The new forces of China's new energy car manufacturing and Tesla, each confrontation has burst out a different spark, and these bursts of "sparks" have also helped domestic independent brand car companies and new car manufacturing forces to begin to rise to a certain extent. It was the Shanghai Auto Show in 2017 that opened the curtain on the confrontation between independent brands and joint venture brands. It was this year that the State Council approved the first celebration of the "China Brand Day". Miao Wei, then minister of industry and information technology, published a signed article entitled "Treat every day as a "Chinese Brand Day"", pointing out that the brand is the carrier of value and credibility, and this process is like a "thrilling jump" for Chinese brands.

The transformation of car companies is aimed at joint venture car companies

And now, five years have passed since 2017, in this five-year period, the domestic independent brand traditional car companies led by Changan and Geely have begun the road of transformation, not only impacting the domestic high-end market again and again, but also paving the domestic low-end market with competing models, which have attracted more Chinese consumers with extremely low prices and higher configurations. Make more consumers pay more attention to Chinese brands when choosing vehicles, rather than paying attention to joint venture models as always. From here, we can see that independent brands and joint venture brands have also officially begun to fight, and a white-knife war has begun.

In five years, the white-knife war has intensified

In the past Chinese auto market, basically by Volkswagen, Toyota and Honda and other joint venture brands occupied, joint venture brands crazy occupation of the Chinese market, did not begin to transform, but the price of their own models continue to increase, along with the price increase at the same time, they also adopted a reduction policy, so that consumers in the purchase of joint venture brand models often can not choose low-end models, because the configuration of low-end models can be called "nothing".

With Geely and other car companies beginning to pounce on the low-end market, the sales share of independent brand car companies in the domestic auto market has increased significantly. In order to suppress the joint venture brand, Geely also began to actively expand, not only launching the Lynk & Co brand, but also taking advantage of the trend to acquire Volvo. And Geely also began to buy Volvo and began its own transformation road.

Not only have they used Volvo's technology in the models, but also borrowed Volvo's design in terms of appearance, making their own models more in line with the aesthetics of consumers, and sales soared for a time.

In the past five years, in addition to Geely Automobile, many Chinese brands have also continuously attacked the position of joint venture car companies. In this process, although some independent brand car companies either collapsed due to bankruptcy, or silently stepped down from the stage and were taken over by new car-making forces. It is not so much that Chinese brands are grabbing market share from joint venture brands, but rather that Chinese brands are constantly breaking the upward ceiling.

The rise of new energy, the complete rise of domestic production

With the gradual entry into the first year of electrification, major car companies have begun to develop their own new energy models, which are represented by BYD, Xiaopeng and other car companies, and gradually occupy China's low-end automobile market. BYD also announced that it would stop the production of its own fuel models and began to develop new energy models in an all-round way. BYD's DM-i technology has also begun to crush the models of many joint venture car companies, and BYD's hybrid models can now achieve a cruising range of more than 1,000km, which is enough to meet the needs of Chinese consumers.

And BYD starts from the low end, and now as long as it wants to choose new energy models in the 100,000 or even 200,000 levels, most of the first brands are BYD. In contrast, the joint venture new energy vehicle companies, represented by Tesla, have gradually lost their status in China, after all, Tesla's "practice" is also obvious to all.

According to terminal sales data, in the first quarter of 2022, domestic new energy vehicle sales reached nearly 1.257 million units, of which The terminal sales of Chinese brand new energy vehicles reached 679,000 units, with a market share of more than 50%. In the sales ranking of new energy manufacturers in the first quarter of this year, BYD surpassed Tesla, which ranked second with 108,300 sales, with sales of 282,000 vehicles.

Break through the cage and enter the high-end market

From the beginning of the Chinese car companies can only march to the low-end market, to now, independent brand car companies have played their own brands in the high-end market, of which ideal, Gaohe and other car companies as representatives, in 2021, the annual sales of more than 200,000 Chinese brands exceeded 900,000 vehicles.

Among them, Chinese brand new energy vehicles of more than 200,000 yuan accounted for 54%. Among them, the ideal ONE has gained a place in the sales ranking, and the reputation has maintained a high position, which makes many joint venture car companies have to think about their future, and if they want to beat the ideal car companies, they can only launch better competitors at the same level.

And this means that if you want to suppress the ideal of car companies in terms of price, then the joint venture car companies can only uphold the policy of small profits and high sales, but the joint venture car companies have liked to "harvest leeks", how can they make a change in a time.

Technical iteration, overtaking in curves

Today, BYD has DM-i technology, and Geely has the Thor Hi· X technology, ideal and other emerging car-making forces have their own exclusive range technology. With the iterative update of technology, the model function is also more and more perfect, not only can achieve long endurance, but also can be more than the joint venture car company model in terms of technology, just take the ideal, the ideal is about to be released on the L9 has been equipped with a lot of high-tech configurations, including the full self-developed platform, etc., are enough to prove their own strength.

And the joint venture car companies? At present, only Nissan's Xuanyi e-POWER can compete with it. But the price of nearly 200,000, who will choose?

Summary: Now that we have entered the first year of electrification, new energy models will surely be the future development trend, and with the advancement of science and technology, Chinese brands will only become more and more powerful. Foreign brands can only take Tesla in new energy, but its "cutting leeks and high quality" is believed to lose many consumers. Today, Chinese brands have entered a period of rapid development and have finally achieved cornering overtaking!