Preface
The first half of this year saw fierce competition in the auto market, with intense "involution" permeating every sector of the industry, from pricing and configuration to service, technology, and strategy. As we enter the second half of the year, what will define the automotive industry's competitive landscape? Will the ongoing price war continue? During the 27th Chengdu Motor Show (CDMS 2024), which kicked off on August 30, automotive executives shared their insights on these pressing issues and other industry hot topics. Let's take a look!
MARKET COMPETITION
Adrian van Hooydonk, Senior Vice President of BMW Group Design
The rapid development and innovation capabilities of the Chinese market are a source of inspiration for BMW;
BMW's design will not become homogenized due to competition; instead, we will continue to stand out in the global market with our unique brand DNA and style.
SAIC Motor will not initiate a price war but will respond by offering consumers products with higher cost performance.
Amid fierce competition in the auto market, Geely has strengthened industry self-discipline to prevent vicious competition;
Price wars are not conducive to the auto industry's long-term and innovative development. We must adhere to technological innovation, high safety, high value, high quality, and outstanding service.
Automakers should enhance product competitiveness and management efficiency through technological innovation. This kind of competition enhancement is what leads to long-term success;
The current automotive market is a saturated one and companies need to improve their competitiveness within tight market conditions. However, competition should adhere to ethical and legal boundaries.
Beijing Hyundai welcomes healthy competition and opposes competition that does not create value.
The current automotive market is characterized by diverse user needs. Some users favor battery electric vehicles (BEVs), while others prioritize the long-range capabilities and driving quality offered by plug-in hybrids. Car companies can only secure greater room for survival and development prospects in the fiercely competitive landscape if they are able to cater to the needs of a broader range of customers and swiftly adapt to market changes.
On the question of whether the price war will come to an end, NETA is more focused on how to provide customers with higher-value product experiences amid the current market situation.
ELECTRIFICATION
In the future, we will implement some product-related OTA upgrades to further enhance the intelligent experience and narrow the gap with top-tier EVs.
Qiu Bei, Deputy Director of Customer Growth Department at Changan Mazda
Changan Mazda plans to launch 1-2 NEVs every year, and invest over RMB 1 million in the field;
By 2027-2028, the proportion of NEV sales is expected to exceed 90% of Changan Mazda's total sales, with the annual production capacity reaching 300,000 units.
The production of the Neue Klasse will get underway in 2025, and the Neue Klasse will be locally produced in 2026 in Shenyang;
BMW is currently making preparations for the arrival of the Neue Klasse. We will launch 6 variants over 24 months, including a sedan car and an SUV.
SAIC-GM will accelerate its new energy transformation, releasing more pure-electric, plug-in hybrid, and range-extended models, and strengthen localized R&D to enhance product competitiveness.
Roewe is planning to apply polymer solid-state batteries to its products, further improving the safety and performance of its models.
Despite the huge pressure facing the Chinese auto market, Volvo has long foreseen this trend and has formulated a comprehensive electrification strategy in advance;
Volvo will achieve full electrification by 2025, with pure EVs accounting for 50% of its sales, while the remaining models will be hybrids. To achieve this goal, Volvo will launch four new BEVs within the next 18 months to enrich its product lineup.
In the future, the BEV market will be increasingly stable and larger;
The development of new energy technologies has significantly alleviated customers' anxiety regarding pure electric models.
INTELLIGENCE
Fu Qiang, Executive Deputy GM of Sales & Marketing at SAIC Volkswagen
SAIC Volkswagen will accelerate its pace in the field of intelligence and internet connectivity in the future.
Mercedes-Benz has been consistently investing in technological innovation, while leading industry innovation with "Chinese speed" ; Regarding intelligent driving, Mercedes-Benz has conducted over one million parking scenario training sessions specifically for the Chinese market and has launched intelligent driving features tailored to local conditions; The company is developing a new generation of L2++ autonomous driving system, which is expected to be equipped on models built on the MMA platform next year, providing a more intelligent driving experience suitable for Chinese road conditions.
Against competitors, IM Motors leverages deep intelligence with LiDAR and advanced intelligent driving across all models;
IM Motors aims for end-to-end intelligent driving and enhanced automation by 2025;
The company will optimize algorithms and hardware to ensure vehicle stability and safety in various scenarios.
Sean Green, President and CEO of BMW Group Region China
In the application of digitalization and intelligent technologies, BMW is committed to providing customers with mature and safe technologies; BMW is also collaborating with outstanding Chinese technology companies to improve its strength in intelligence.
STRATEGIES AND PLANS
Fu Qiang, Executive Deputy GM of Sales & Marketing at SAIC Volkswagen
SAIC Volkswagen will enhance its brand competitiveness through precise competitor targeting, product strategy upgrades, and broad price coverage;
SAIC Volkswagen will boost market share with effective planning and strategies.
In the second half of this year, SAIC Motor will announce a series of transformation measures to accelerate its strategic transformation.
We see great potential in the Southwest market. At the Chengdu Motor Show, The Durant Guild will further expand its investment and presence in this market.
Beijing Hyundai will increase brand exposure through interactive marketing, live streaming, and short videos to activate 12 million retained users and further enhance its brand influence.
Rox Motor has established business partnerships in 28 countries, expanding its market steadily. It plans to expand into Latin America and Southeast Asia in the future.
Roewe aims to sell over 200,000 units this year, with further plans to adjust its structure, personnel, and methods.
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AUTOMAKERS' STRATEGIC DANCE IN PRICE WAR
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