2023 is about to pass, and for countless Chinese automakers, this is destined to be a year that cannot be forgotten. This year, there is a collective sail to the sea, and there is also the tragedy of the price war; brands can tear their faces and lift the table, and they will also huddle together for a win-win situation. On the new energy track, the mainland not only achieved the world's largest automobile export volume for the first time, but also exported the reverse technology to developed automobile countries, which is of epoch-making significance.
As the New Year's bell is about to ring, let's review the top ten most memorable keywords in the automotive industry in 2023.
1
"China VIB"
The implementation node of the National VIB standard was announced, and the price war of fuel vehicles began
On May 9, the Ministry of Ecology and Environment and other five departments jointly issued the "Announcement on Matters Concerning the Implementation of the National VI Emission Standards for Automobiles", which will fully implement the 6b phase of the National VI emission standards nationwide from July 1, 2023, prohibiting the production, import, and sale of vehicles that do not meet the 6b stage of the National VI emission standards. For some China VIB light vehicle models with the result of the actual driving pollutant emission test (i.e., RDE test) reported as "monitoring only", a six-month sales transition period will be granted, and sales will be allowed until December 31, 2023.
China VIB, which caused some car companies to significantly reduce prices and clear inventory, got a half-year sales transition period.
In fact, the concept of "China VIB" is not new to this year, and the government has already announced a timetable for its implementation several years ago. However, before the announcement of this announcement, many car companies "substandard" inventory products, are eager to clean up before the window closes, "National VI B" has become one of the most talked about topics in the first half of the year, it has also become an important driver of the price war of fuel vehicles.
2
"Price war"
Tesla's price cut pushed dominoes, and more than 40 car companies followed
At the beginning of the new year, as Tesla lowered the prices of its two best-selling models, Model 3 and Model Y, on the grounds of "cost pricing", some new domestic car-making forces and independent brands also began to follow suit, which triggered a "domino" price reduction effect throughout the year. In March, the government and enterprises in Hubei Province joined forces to launch a one-month car purchase subsidy measure, and a number of car companies based on Dongfeng launched the "strongest car purchase discount season in history", and then dozens of cities in China also joined the ranks of price reductions under different names.
According to statistics, there are more than 40 car companies participating in price reductions, with a wide range and a large range of price reductions, which are rare in the auto market in previous years, and the price war in the first half of the year has been pushed to a climax. With only a few days left before 2024, GAC Aion also launched the "three-foot price for digging the ground", officially announcing that all models can enjoy a financial policy of 100,000 interest for 3 years, and the total price of car purchase benefits is up to more than 30,000 yuan.
Dongfeng Citroen's "price reduction of 90,000" is the most classic scene in the price war in the auto market this year.
It is worth mentioning that due to the decline in the price of core materials for power batteries for new energy vehicles, there is ample room for car companies to reduce prices. As a "market vane", once Tesla takes action, it will naturally cause a chain reaction in the market: the strong rise of its own brand will make Tesla reduce prices to respond. Tesla's price reduction has forced the prices of many independent brands to fall. The overall price of new energy vehicles is low, which further squeezes the living space of fuel vehicles, resulting in fuel vehicles can only continue to increase the price reduction, coupled with the provisions of the national emission policy, which makes some brands of fuel vehicle products fall into the whirlpool of price wars.
3
Reverse Output
Auto giants recognize the new forces, and Chinese car companies have begun to export in reverse
On July 20, Audi announced that it had reached an agreement with SAIC. Audi intends to use the modular electric vehicle platform of SAIC's Zhiji brand and will enter segments that have not previously been covered in China by introducing new electric models.
On the evening of December 6, Xpeng Motors announced that it had signed a technical framework agreement with Volkswagen on strategic technical cooperation. In the initial phase of the partnership, the company plans to jointly develop two electrified models under the Volkswagen brand for the mid-size car market in China. Similarly, GAC Aion's pure electric platform technology has been reversely exported to the group's joint ventures, GAC Honda and GAC Toyota, and the FAW Toyota bZ3 is also equipped with BYD's blade battery and drive motor.
Xpeng Motors announced that it had signed a technical framework agreement with Volkswagen for strategic technical cooperation.
Compared with domestic brands and new forces that have already taken the lead, the aura of multinational brands in the field of fuel vehicles has begun to be unable to provide assistance for sales. Therefore, it makes sense to seek technical partners in China.
4
"Redundancy"
The knockout competition between new energy and intelligence has become more and more intense
On July 24, GAC Toyota was reported to have laid off thousands of employees. However, it was revealed that GAC Toyota has provided reasonable compensation conditions for the laid-off employees. Subsequently, GAC Toyota said that this is a normal phased adjustment, and the target is some labor dispatch employees, and does not involve regular employees.
On November 3, Li Bin, CEO of NIO, issued an all-staff letter to officially respond to the news of layoffs previously spread on the Internet. Li Bin made it clear in the all-staff letter that according to the plan, the company will reduce the number of jobs by about 10%. Not long after NIO adjusted its internal organization, Chery Jaguar Land Rover was rumored to have completed a new round of layoffs in October. According to reports, the layoff ratio is 15%-20%, involving multiple departments such as product engineering, quality management, manufacturing, and even director-level personnel, but the company has not publicly responded to this news.
Some industry insiders said that the knockout competition of new energy and intelligence has become more and more intense. Many car companies need to make strategic adjustments according to their own conditions, and it is believed that this phenomenon of layoffs will continue unabated in the future.
5
"Pinching each other in the circle"
Geely VS Chang'an, Great Wall VS BYD, the "mouth cannon" can't be stopped
In today's world where traffic is king, car companies are also changing their public relations thinking, and compared with the result-oriented "secret competition", this year's car circle, each company is more willing to show the process of verbal swords to the public.
On February 23, Geely's mid-to-high-end new energy brand Galaxy was officially released, and the prototype of the "Galaxy Light" displayed on site was widely acclaimed. Unexpectedly, a few days later, they received a lawyer's letter from Changan Automobile. Changan Automobile believes that Geely's "Galaxy Light" infringes on Changan's concept car, UNI-V VISION-V. Geely then responded, saying that the content of the lawyer's letter was seriously untrue, the accusations against the company were groundless, and caused serious damage to Geely Automobile's brand and goodwill. Intriguingly, on May 9, Geely Automobile and Changan Automobile signed a strategic cooperation framework agreement. The two parties will carry out strategic cooperation around new energy, intelligence, new energy power, overseas expansion, travel and other industrial ecology. A-for-tat car company pinched each other and was able to shake hands and make peace.
The following pair of "enemies" have further torn apart.
On May 25, Great Wall Motor announced that in April this year, it submitted reporting materials to the Ministry of Ecology and Environment, the State Administration for Market Regulation, and the Ministry of Industry and Information Technology, reporting on the use of atmospheric fuel tanks by BYD Qin PLUS DM-i and Song PLUS DM-i, which are suspected of failing to meet the emission standards of evaporative pollutants from the whole vehicle. BYD Auto shot back, saying that the Great Wall test vehicle did not meet the inspection status required by the national standard. Therefore, the test report is considered invalid and cannot be used as a basis. Subsequently, the total market value of the two sides evaporated by more than 10 billion. According to public information, the two models reported by Great Wall to BYD this time are both its hot-selling models.
Great Wall Motor's whistleblower announcement.
Industry insiders pointed out that at present, PHEV models other than BYD use high-pressure fuel tanks. Compared with atmospheric fuel tanks, the cost of high-pressure fuel tanks is higher. Since the BYD Qin PLUS DM-i and Song PLUS DM-i were launched in early 2021, once the report is true, BYD's two hot-selling models will have the possibility of recalling and will face huge losses. There is also a view that according to the invention patent application documents submitted by BYD, the company has mastered the innovative technology of oil and gas emission control of atmospheric fuel tanks, so the vehicle does not need to use high-pressure fuel tanks. So far, there is no latest conclusion on this "report".
Another debate about "AEB" took place at the end of the year, with Yu Chengdong and He Xiaopeng in the protagonists. In an interview with the media in early November, He Xiaopeng, the founder of Peng Motors, publicly said, "Friends talked about AEB (automatic emergency braking system), and I think 99% of it is fake" and "the speed of longitudinal AEB should be within 60km/h when triggered". He Xiaopeng's friends are the Wenjie series under Huawei's Hongmeng Zhixing ecosystem, and Yu Chengdong, chairman of Huawei's smart car, said that "some people don't understand what AEB is." The follow-up public shouting of the two attracted a lot of attention, and the unfamiliar concept of AEB was forcibly popularized to the public. In the end, the "technical discussion" between the executives was in full swing along the "steps" given by He Xiaopeng, and He Xiaopeng posted on November 9, "This morning I discussed the technical route with Lao Yu, and I believe that the contention of this technology will finally benefit users." Thanks to Lao Yu's advice and generosity, sometimes it is easier to become good friends after misunderstandings. ”
6
"Protection of the rights of car companies"
Car companies have taken a tougher stance to attack online rumors
Since the beginning of this year, more and more car companies have begun to fight back against "cyber blacks" with a tougher and more high-profile posture to defend their legal rights and interests. In the middle of the year, well-known car companies such as NIO, Xpeng, Leap, and BYD successively opened exclusive accounts of the "Legal Department" on Weibo, disclosing the company's series of rights protection actions in the face of online infringement. On the other hand, Geely, Great Wall and other car companies have set up online reporting centers to crack down on online rumors.
At the end of August, Dongfeng Nissan sued Beijing Cheqianli Interactive Technology Co., Ltd. in the second trial of the infringement case of 5 million yuan, setting a record for the same type of case; in November, Weilai Automobile sued the holder of the "Maverick Talking Car" infringement case in the first trial and paid more than 60 yuan in compensation and published an apology statement for 90 consecutive days; in the same month, Weilai Automobile sued the "Car Affair Discipline" infringement case and awarded 300,000 yuan in compensation for life and published an apology statement for 30 consecutive days; in early December, automobile blogger Wang publicly questioned the inconsistency of the charging power of SAIC-GM-Wuling Nano and received the "Lawyer's Letter" , asked Wang to apologize for 15 days, and then Wang apologized until the fifth day, and the two sides reached a settlement.
7
"Go to Sea"
In the first 11 months, China's automobile exports were 4.76 million units, a growth rate of more than 50%
According to the data of the China Association of Automobile Manufacturers, from January to November 2023, China's automobile exports have reached 4.76 million units, with a growth rate of more than 50%.
Among them, new energy vehicle companies have been particularly active this year. Since February this year, Xpeng Motors has started the sales of the international version of the pure electric coupe P7i and the SUV G9 to four European countries, and has been recognized by the local authorities for its strong technology and intelligent level; since March this year, DENZA has frequently appeared at the Bangkok, Munich and Tokyo Motor Shows, paving the way for the future strategy of going overseas; in September this year, GAC Aion exported vehicles to Thailand for the first time; in October, Leap "sold itself" In December, Changan Automobile announced the establishment of the Southeast Asia Division, and also set up three local companies and localized operation teams of Changan Automobile Southeast Asia, Changan Thailand Sales, and Changan Thailand Parts, and the construction of a new energy vehicle production base in Thailand has also begun......
Under the "Eight Immortals Crossing the Sea" of car companies, the Federation of Passenger Cars predicts that the export volume of mainland automobiles will reach 5.2 million units in 2023. The China Association of Automobile Manufacturers (CAAM) forecasts that vehicle exports will reach about 5.5 million units in 2024.
8
"Purchase Tax"
The three departments issued a document to extend the purchase tax reduction
On June 21, the Ministry of Finance and other three departments issued an announcement on extending and optimizing the vehicle purchase tax reduction and exemption policy for new energy vehicles, extending the vehicle purchase tax reduction and exemption policy for new energy vehicles to the end of 2027, and the reduction and exemption gradually declined. Among them, from January 1, 2024 to December 31, 2025, a tax reduction limit of 30,000 yuan will be set, and from January 1, 2026 to December 31, 2027, a tax reduction limit of 15,000 yuan will be set.
Experts believe that with the increase in the penetration rate of new energy vehicles and the gradual equalization of the cost of fuel vehicles, this may be the last purchase tax reduction policy.
9
"Knockout"
Suspension of production, bankruptcy and wage arrears are frequent, and new car companies have shrunk by half
Around 2017, "car building" became a trend. According to He Xiaopeng, the founder of Xpeng Motors, there were about 300 new car companies at that time. However, after more than five years of market screening, this number has dropped to 50 as of last year.
On October 24, Mitsubishi Motors Corporation announced that it will cease local vehicle production in China and sell its stake in GAC Mitsubishi Motors to GAC Group, completely withdrawing from the Chinese market. GAC Group also announced on the same day that the board of directors deliberated and approved the "Announcement on Related Party Transactions on the Restructuring of GAC Mitsubishi", and intends to implement equity adjustment and other restructuring matters for GAC Mitsubishi and GAC Mitsubishi Motors Sales Company (hereinafter referred to as "GAC Mitsubishi Sales Company"), and GAC Mitsubishi will become a wholly-owned subsidiary of GAC Group after the completion of the restructuring. GAC Aion will use the GAC Mitsubishi plant to increase production capacity and start mass production in June 2024.
Since the beginning of this year, new car-making forces such as Hengchi Automobile, Tianji Automobile, and Aiways have successively reported news of suspension of production and operational difficulties...... The knockout rounds of new EV makers are still ongoing.
On many public occasions this year, He Xiaopeng boldly predicted that around 2030, there will be only a few surviving private auto companies.
10
"Countervailing Investigations"
The EU launched a countervailing investigation into China's imports of electric vehicles
On October 4, 2023, the European Commission issued a document on its official website, deciding to launch a countervailing investigation against electric vehicles imported from China. As soon as this move came out, China's Ministry of Commerce strongly protested, pointing out that this is a naked protectionist act, which will seriously disrupt and distort the global automotive industry chain and supply chain, including the EU, and will have a negative impact on China-EU economic and trade relations.
A number of car companies have also spoken out publicly on this matter. Li Ke, executive vice president of BYD, once said, "I'm not worried." Yang Xueliang, senior vice president of Geely Holding Group, said that he respects free trade and advocates fair competition. Great Wall Motor said that it needs a fair and just trade environment and respect for the market rules of each region. As of the end of the month, Great Wall Motor had submitted materials for the EU countervailing investigation.
Written by: Nandu Bay Finance Society reporter Liang Luozhe Chen Jing'an