In 2023, China's automobile industry will usher in an unprecedented prosperous year.
According to the data, the annual production and sales of Chinese automobiles exceeded 30 million last year, a record high, achieving double-digit growth. Among them, Chinese auto brands accounted for 52% of sales, winning the right to speak in the local market for the first time in history. In particular, BYD managed to rank among the top 10 in global car sales last year, which is unprecedented in the history of China's auto industry.
How did the once marginalized independent brands complete the counterattack in the competition?
Joint venture brand "left behind"
On the one hand, independent brands are making great progress, and on the other hand, joint venture brands are constantly falling behind.
In the 2023 passenger car retail sales ranking of the China Passenger Car Association, five of the top 10 are Chinese auto brands, namely BYD, Geely, Changan, Chery, etc., and the annual share of Chinese auto brands has reached 52%. In particular, the sales growth rate of BYD, Chery and Geely is more obvious. BYD's new energy vehicle sales reached 3.02 million, a year-on-year increase of 61.9%, surpassing Tesla to become the world's new energy vehicle sales champion.
On the other hand, the annual sales of major joint venture car companies fell by double digits year-on-year, with SAIC-GM, Dongfeng Nissan, and Guangqi Honda all declining by double digits; many joint venture brands withdrew from the Chinese market, such as GAC Mitsubishi, GAC Acura, and Dongfeng Renault; in addition, Dongfeng Peugeot Citroen and Beijing Hyundai were relatively weak, and GAC Mitsubishi completely faded out of the Chinese market.
From the perspective of the industry, the failure to keep up with the rapid growth of new energy vehicles is an important reason why joint venture car companies continue to lose market share. In recent years, the market size of fuel passenger vehicles has been declining, and the increase in the domestic automobile market is mainly new energy vehicles. It is precisely based on this background that the weakening of the joint venture fuel vehicle system.
Why is China's car rising?
In fact, the share of independent brands was not achieved overnight, and the trough period also hovered below 40%. Regarding today's achievements, Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, believes that this is an inevitable result of the continuous accumulation of Chinese automobile companies for so many years.
In Chen Shihua's view, Chinese brands have a faster transformation speed in terms of electrification and intelligence, and have also significantly improved the integrity of the industrial chain and cost control. Combined with the comprehensive factors such as high cost performance, strong market competitiveness, and a significant increase in export volume, Chinese brands have become more vigorous.
According to the data, in 2023, the sales of new energy vehicles in Chinese brands have reached 49.9%. In other words, for every two self-owned brand models sold, one is a new energy vehicle. In 2023, the cumulative sales of new energy vehicles will be 9.495 million units, a year-on-year increase of 37.9%, and Chinese brands will account for 80.6% of the total number of new energy vehicles produced in China.
Obviously, it is the Chinese brands that have firmly grasped the opportunity of industrial transformation to achieve corner overtaking and seize the dominance of the local market in 2023. As major car companies invest more and more in the field of design, R&D and intelligence in the field of new energy vehicles, and invest less and less in fuel vehicles, or even stop R&D and investment, the market share of Chinese brands is expected to further increase.
Interestingly, Tesla CEO Elon Musk said a few days ago that Chinese car companies are the most competitive in the world and will achieve great success abroad. Without trade barriers, Chinese automakers will take out almost all other car companies in the world. Musk's unhesitating praise this time is undoubtedly another powerful proof of the rapid rise of Chinese automobiles.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.