With the accelerated development of the new energy field, the automotive market has ushered in the most drastic changes in history. This change has not only changed the car buying habits of consumers, but also has a significant change in the entire development of automobiles. In this change, some car companies have successfully seized the opportunities of the new energy market and achieved leapfrog development by virtue of their keen market insight and R&D strength. However, some car companies failed to keep up with the pace of the market in time due to various reasons, and eventually left the market.
GAC Mitsubishi's dilemma and the challenges of the joint venture brand.
In 2023, GAC Mitsubishi released a letter to all employees that candidly reflected the company's current predicament. The letter mentioned that the automotive industry is undergoing disruptive changes, and the market is rapidly transforming from traditional fuel vehicles to new energy vehicles. However, GAC Mitsubishi's product sales were far from meeting expectations, and its operation was in trouble, so it had to officially enter the temporary shutdown stage in June. In the end, Mitsubishi Motors decided to terminate its automobile sales and production business in China and withdraw from the Chinese market.
GAC Mitsubishi's plight is not unique. In fact, many traditional joint venture brands face similar challenges. On the one hand, the rise of new energy vehicles has squeezed the market share of traditional fuel vehicles; On the other hand, the rapid rise of independent brands in the field of new energy has also made joint venture brands feel unprecedented pressure.
GAC Mitsubishi's withdrawal from the Chinese market is a microcosm of the plight of traditional car companies under this new energy reform, and at the same time reflects the changes experienced by the entire automobile market under the impact of the new energy wave. In this change, both traditional car companies and new power brands need to re-examine their market positioning and development strategies.
The dilemma of new energy brands.
It is not only the traditional joint venture brands that are facing such a dilemma, but at the same time that GAC Mitsubishi has withdrawn from the Chinese market, some new automakers are also in trouble. Brands such as Skyline, Ziyoujia, Weimar, and Aiways have successively reported negative news such as suspension of work and production, suspension of services on official websites and apps, and closure of factories. These brands have entered the market with enthusiasm, hoping to get a piece of the pie in the field of new energy. However, the cruelty of reality makes them have to face problems such as tight capital chains, arrears of merchant payments, and factory shutdowns.
In fact, in the past year, the situation of most new car manufacturers has not been easy, and it is not easy to balance profits and losses. Even "Wei Xiaoli" has moved towards polarization;
Li Auto has continued its growth in many key figures such as revenue and net profit, with total revenue reaching 821 in the first three quarters of 2023200 million yuan, net profit reached 605.4 billion yuan, which has been profitable for four consecutive quarters; The revenue of NIO and XPeng in the first three quarters was 3852.2 billion yuan, 176200 million yuan, and is still in a loss-making situation, based on the net loss in the first three quarters, NIO's loss reached 154200 million yuan, Xiaopeng is 90300 million yuan, there is still a long way to go before turning around losses.
From this point of view, Weilai is the most loss-making enterprise in "Wei Xiaoli", not to mention how difficult it is for other niche new power brands to turn over!
At the root of the problem, the new EV brands do not have a deep accumulation of technology research and development capabilities and brand trust, and it is difficult for consumers to choose with confidence. If there is an unfortunate sales crisis, cash flow will be easily broken, and it will face a delisting crisis. In contrast, traditional car companies have a more stable product launch rhythm and more solid profitability. Taking BYD as an example, SDIC ** expects BYD's annual net profit in 2023 to reach 32 billion yuan. Only with more abundant funds as support, technology research and development and product planning can go further.
How existing brands are doing their own thing
So, when the existing car companies face the rapid changes in the market, how to re-examine their positioning and development strategy?! Take Chang'an, for example. First of all, brands need to keep up with market trends, increase investment and R&D efforts in the field of new energy, and launch new energy models that meet consumer needs, such as Changan Deep Blue, Changan Qiyuan, AVATAR, etc. Secondly, establish a strong brand endorsement as a strong support for word-of-mouth and image to attract more consumers' attention and trust.
Summary. The transformation of the automotive market is a war without gunpowder. In this war, some brands have left the scene, some brands are struggling to survive, and some brands are swimming against the current. Regardless of the outcome, however, this revolution presents an opportunity for us to take a fresh look at the automotive market.
In the future, with the advancement of science and technology and the continuous upgrading of consumer demand, the automobile market will show more diversified and personalized characteristics. OEMs need to keep up with market trends and innovate and upgrade to meet consumer needs and expectations. In short, the transformation of the automotive market is an inevitable challenge, but it is also full of opportunities. In this revolution, what excellent products will emerge?