(Image source: Photo.com)
Recently, Zhou Hongyi, the founder of 360 Group, delivered a speech at the spring conference of Nezha Automobile, praising China's supply chain and satirizing Jia Yueting, the founder of Faraday Future.
In his speech, Zhou Hongyi mentioned the rapid development of the current new car-making forces, especially taking Xiaomi as an example, the speed of car manufacturing is rapid, and the first car will be on the market in three years. He expressed his sincere gratitude for the integrity and completeness of China's supply chain, which is an important factor driving the rapid rise of China's automotive industry.
When talking about Jia Yueting and his Faraday Future company, Zhou Hongyi bluntly pointed out that one of the key reasons why Jia Yueting's FF91 failed to succeed was that he chose to build a car in the United States. Zhou Hongyi believes that Jia Yueting's decision is a mistake, because even car giants like Musk are well aware of the advantages of China's supply chain and have chosen to set up factories in China. "China's supply chain is not only complete, but also efficient. You run to the United States, where supply chains are expensive and scarce. Look at the Gaohe car, they succeeded in building a car, but Jia Accountant (referring to Jia Yueting) sued Gaohe in turn, which is entirely because he did not understand where China's advantages are. ”
Jia Yueting's Faraday Future company has been controversial in recent years, and on May 31 last year, Faraday Future officially released its flagship model FF91, but according to Faraday Future data, by 2023, Faraday Future has only completed the delivery of 10 FF 91 2.0 Futurist Alliance, which means that Jia Yueting burned nearly 22 billion but only delivered 10 cars. It is worth noting that among the owners of Faraday Future's FF91 model, Jia Yueting himself and a number of FF employees are also included. Due to lack of funds, Jia Yueting sold Faraday Future's Los Angeles headquarters for $12 million, chose to continue to work there on a rented basis, and was sued by the landlord for rent arrears.
The level of the automotive industry chain and supply chain in mainland China is constantly improving, and the level of manufacturing industry ranks in the forefront. At present, six major automobile industry clusters have been formed in China, including the Beijing-Tianjin-Hebei automobile industry cluster in North China, the Yangtze River Delta automobile industry cluster in the Yangtze River Delta region, and the Pearl River Delta automobile industry cluster in the Pearl River Delta region. These industrial clusters bring together a large number of automobile manufacturers and parts enterprises, forming a complete industrial chain and supply chain system.
In these industrial clusters, a number of parts and components enterprises with comparative advantages continue to expand in scale, continuously improve their technical level, and enter the global supporting system. By continuously improving their R&D and manufacturing capabilities, these companies have become important suppliers to domestic and foreign automobile manufacturers, and have played an important supporting role in stabilizing the domestic and foreign automotive supply chain systems.
China's new energy vehicle industry chain
From the perspective of the industrial chain, the new energy vehicle industry chain includes three main links: upstream, midstream and downstream. The upstream mainly includes the supply of core raw materials and parts such as batteries, motors, and electronic controls, the midstream refers to the manufacturing of new energy vehicles, which can be divided into passenger cars and commercial vehicles according to their uses, and the downstream includes new energy vehicle charging services, new energy vehicle aftermarket services and other application fields. In general, the core competitiveness of new energy vehicles is reflected in battery performance, so the upstream battery manufacturing link is the core link of the new energy vehicle industry chain.
Layout map of China's new energy vehicle enterprises
From the perspective of regional distribution, mainland new energy vehicle companies are mainly concentrated in the eastern and southern regions, especially in Jiangsu Province, Shanghai City, Anhui Province, Zhejiang Province and Guangdong Province. It can be seen that the eastern region has a relatively dense distribution of automobile production plants, and there are also many headquarters of new car manufacturers. At the same time, traditional automakers prefer to set up headquarters in the southern region, while layout production plants and R&D centers in the eastern region.
New energy vehicle value chain analysis
In general, the value-intensive links in the value chain of China's automotive industry are mainly concentrated in the fields of aftermarket services, innovation models, and digital transformation and informatization of the whole industry chain driven by scientific and technological information. In addition, the value in the R&D link is also relatively intensive. In contrast, manufacturing and assembly are the least valuable, less technology-intensive, and less valuable, and are also the most priority for competitors when entering the industry.
Zhang Jingwei, procurement business representative of Yuanyuan New Energy Commercial Vehicle Group, pointed out that with the launch of Industry 4.0, informatization, digitalization and intelligence, all-round technological changes have put forward new requirements and challenges for the supply chain and the supply relationship or cooperation model of OEMs. At the same time, intensifying global competition and increasing complexity of the internal and external environment are driving innovation in the models of OEMs and supply chains. Digital construction is an important foundation for collaborative innovation between OEMs and suppliers.
The continuous improvement of the automotive industry chain and supply chain in China has made the automobile manufacturing industry occupy a more important position in the global market. With the continuous progress of technology and the continuous improvement of the industrial chain, the automotive industry of Continental will play a greater role in the global market, injecting new vitality into the domestic economic development and the continuous prosperity of the automobile industry.
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For more research and analysis of this industry, please refer to the "Analysis Report on Market Prospect and Investment Strategic Planning of China's New Energy Vehicle Industry" by Qianzhan Industry Research Institute
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