Under the chip crisis, domestic cars are emerging How can Chinese cars counterattack?

Mondo Workplace Updated on 2024-01-30

2021 seems to have been a tumultuous year. The global pandemic is spreading, the Middle East is in chaos, tensions between China and the United States, and even the automotive industry is in a trough due to chip shortages. The advent of the high-tech era has changed the competitive landscape, and the competition between enterprises in various countries has shifted to high-tech research and development. However, China's auto market has shown a strong performance in this crisis.

Since the 80s of the last century, China has entered the era of private cars. Although owning a car was a symbol of family status in the past, with the development of the country and the improvement of people's living standards, even ordinary families can afford to buy a car.

However, despite the emergence of domestic cars, people still believe that only imported cars are really good cars. At the beginning of 2021, a small chip put many large car companies in a difficult situation. The reasons for the chip shortage include the impact of the pandemic, the increased demand for other hardware devices due to working from home, and the miscalculation of future sales by auto companies.

The high cost of high-end chip research and development, the high manufacturing threshold, and the long time make it difficult or unwilling for most automobile companies to independently develop and can only rely on imports. With the change of the times, people's demand for automobiles has also changed, with more emphasis on internal structure, intelligent driving systems, and even increased demand for all-electric vehicles. This has led to the entire auto sales industry falling into a situation of shutdown and reduction of production under the influence of the chip shortage.

However, the crisis has brought a turnaround to China's auto market. Sales of domestic car brands continue to climb, accounting for 46% of the market share, nearly twice that of German cars. According to data from the China Association of China, the share of domestic auto brands has continued to rise since the beginning of the year, especially from May to July, accounting for almost half of the market.

The situation is puzzling, but the data clearly shows the change. In recent years, the market share of domestic car brands has continued to grow. Although it was in the first state after 2017, it climbed again to a peak of 46% within half a year after falling to the lowest point.

In the face of competition from foreign brands, domestic automakers intend to seize market share. In the past, companies with foreign investment have always been highly competitive, such as the joint venture of Volkswagen of Germany. However, the chip crisis has made it irretrievable, and sales have fallen sharply, especially in the mainstream market.

In contrast, China's emerging brands have risen rapidly, such as the Great Wall CS75 and Haval H6, the two best-selling SUVs in the market. Even in the sedan segment, models with very good sales, such as Geely Emgrand and Changan Yidong Plus, are gradually emerging.

The chip crisis has allowed domestic auto companies to deal with it calmly, while foreign automakers have been seriously affected. Although the annual sales volume of domestic brands is not as good as that of foreign giants, they have certain advantages in the balance of production and sales. At the same time, foreign-funded enterprises have always believed that foreign products are of higher quality, so they rarely used domestic chips before the chip crisis, which led to limited supply channels.

The future of China's auto market may be ushering in the full rise of domestic cars. Domestic auto brands have a stable advantage in the SUV field and have begun to make efforts in the sedan field. The excellent competitiveness and cost performance of each model have made domestic cars gradually win recognition in the market. At the same time, sales of foreign brands, including Japanese and Korean cars, decreased.

The rise of new energy and new technology car brands such as Tesla has also had an impact on the market. Overall, the chip crisis has given China's auto market a chance to reshuffle, while domestic auto companies are rapidly emerging to inject new vitality into future development.

The purpose of this article is to restate the original content, emphasize the rise of domestic cars in the chip crisis, and introduce the new trends in the Chinese car market.

The above article details the development and changes of the automotive industry in 2021, especially in the chip shortage crisis, when domestic auto brands are emerging. This change is a compelling trend that deserves to be in-depth**.

First, the article points out the multiple challenges facing the global automotive industry, including the pandemic, the war in the Middle East, Sino-US tensions, and chip shortages. The combination of these factors has led to the shutdown and reduction of production in the automobile sales industry worldwide, especially for some well-known car manufacturers. This is an accurate description of the state of the global automotive market, and the analysis of the current international situation is also in place.

Second, the article focuses on the performance of China's domestic automobiles in this crisis. Domestic car brands continue to grow in market share, especially in the SUV segment, and the momentum of gradually entering the sedan market. This change shows the rapid rise of China and the improvement of its competitiveness. Domestic car brands have not only made significant progress in product design and kinetic energy, but also demonstrated excellent sales performance, attracting the attention of consumers.

In addition, the article also explains the difficulties encountered by foreign-funded car companies in the chip crisis. Foreign-funded enterprises have been severely affected by the chip shortage crisis due to their greater dependence on imported chips. This also reminds automotive companies of the importance of independent R&D and industrial chain control in the future development, especially in key technologies.

Overall, this article provides a comprehensive introduction to the position and performance of China's domestic automobiles in the development of the automotive industry. However, it is worth pointing out that although domestic cars have made great progress in the market, there is still a certain gap between their technical level and brand awareness and some international brands. This is also one of the directions that domestic cars need to continue to strive for improvement in the future.

Overall, the article vividly describes the changing trend of the automotive industry, highlights the outstanding performance of domestic cars in the chip shortage crisis, and gives clear views and insights on the current pattern and future development trend of the automobile market.

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