Despite the events in the car ring, the years revolve around the dimensions of products, executives and capital. But in 2024, “rolls” became the main melody, and the stories thus extended were more varied than in previous years, with far-reaching implications even for future movements in the car market。
Ipos are co-opted by smart-driving firms, and flying cars are “up to heaven”, showing that capital hotspots are beginning to shift and that everyone is looking for new tracks. The new power of car-making speeds up the race, and new players, represented by rice and music, are on the ground, and so on. The chinese are still growing up. Formerly high brands have not only encountered waterloos in their sales, but have also given rise to debate over price storms, triggering an iterative thinking of consumption. The “low-price” boom that has engulfed the entire industry has re-emerged, and the government's “old-for-new” car policy, unprecedented in its strength, continues to play a crucial role in sustaining car consumption in 2024。
The new players are in, the old players are out
In 2024, the automobile industry witnessed the decline of old and new players. The addition of new forces, such as mi and moido, has injected new dynamism into the market. This brings not only innovative products but also new patterns of industrial competition. Mi cars have gained attention by the performance of the su7 ultra prototype on the new north track, while music road has attracted a great deal of attention with its first car type l60。
At the same time, some old cars are facing challenges such as high-altitude, long-range flights, what kind of a cap and how much more. The goi vehicles had applied for pre-reorganization because they were unable to pay their debts as they fell due, and they faced a similar fate. Despite having been the champion of new power sales, sales declined in 2023, factory production stalled and ceo retreated. As one of the new players, ultra-turkish cars also face severe market tests。
On the whole, in 2024, the car industry showed a combination of the rise of new forces and the loss of traditional carsMarket competitionMore intense, the business shuffles faster。
Superb brands are selling waterloo
In mid-2024, a news of a million dollar drop in rolls-les-culinan triggered debate in the market. While the brand authorized distributors to respond to “price reductions” not on the basis of an official flat price reduction, but on the basis of preferences for customized content selection, it is clear that the overall sales of the hyperbole brand fell in 2024. In the porsche, where sales fell sharply, there were three “couples” of distributors, which subsequently subsided, but the porsche was exposed to a plan to optimize its network of distributors over the next two years and it is expected that some 100 dealers will be retained by the end of 2026。
According to the chinese association of automobile circulation data, in the first three quarters of 2024, the cumulative sales of such brands as masarti, bintley, aston martin, rolles, lamborghini and ferrari fell by the smallest 44 per cent and the largest 79 per cent in china. The collective cold of ultra-luxurious cars is a reflection of the decline in the purchasing power of the country's “rich people” and of the new generation's perception of car purchases。
The circle of cars has increased dramatically
In 2024, china continued to expand its “circle of friends” in the automobile industry, establishing deep-seated partnerships with a number of automobile companies. The launch of the s9 and the s800 in partnership with north air marked the height of chinaSmart carFurther layout of the field. In addition, china is the first mpv to carry china's technology-enabled mpv by launching a pic dreamer in collaboration with the car tutu. China has also entered into strategic cooperation with east wind day, making the latter the first full-fledged joint-venture car brand to introduce the hung mon cabin, which is expected to accelerate the application of the east wind day smart technology. At the same time, china's cooperation with the group has been further deepened, with new energy brands and the expansion of the smart car market. Recently, there have been rumours that china is also in contact with the upper gas group to explore potential cooperation。
China's cooperation with a number of automobile companies has accelerated the application and diffusion of smart car technology, boosted the transformation of industries into electric and intelligent, and brought new dynamism and innovation to the entire automotive chain。
Automobiles are up, low-lying economies are high
In 2024, an industry that is expected to reach $6 trillion in 10 years' time was included for the first time in the government's report on its work, the “low-air economy”。
Evolt, aircraft, flying vehicles... These terms, originally found in science fiction, suddenly accelerate to reality. The economic potential of this sector has been unleashed by the collective efforts of the industrial chain up and down, the rapid advances in technological development, the active configuration of local governments and the successive policies of planning and support。
According to the national civil aviation authority, the market size of our low-lying economy will reach 1. 5 trillion yuan by 2025. According to the national stereophone network planning programme, that figure would exceed $6 trillion by 2035, 26 million commercial and industrial drones and 630,000 drone pilots。
In the face of this game, different cities have different “playing methods”. As china's innovative highlands, the great bay region is working on a policy package + improving infrastructure + industrial chains in an effort to gain the status of the “low-altitude economy, region 1”; beijing, as a commuter city, is making use of existing scientific resources to explore new applications in low-altitude applications; and the “cities of production” is bringing together more than 100 related enterprises, building clusters of industries that combine r & d, manufacture, sell, operate and service. The future of this industry may be destabilizing the way we travel and the way we live。
Ipos are entwined by smart driving companies
The frequency of “listed” movements is the most visible feature of the self-driving circle in 2024. Collectively involved in intelligent race lanes, the drive-by technology of l2 and above has almost turned into a product “speculation”, with high-end cars up to hundreds of thousands of dollars, and entry-level cars down to 100,000, covered by this wave. And the application of the big ai model has brought new growth and imagination to the intelligent driving industry in the event of a phenomenon-level outbreak of chatgpt。
In the future, as more and more cars enter self-driving, survival will be possible only if innovation is sustained, creating sufficiently high barriers to competition。
Large-scale price battles to stir up cars
In 2024, the qin plus dm-i glorious edition, launched by biadi, introduced the concept of “low power compared to oil”, whichNew energy vehicleThe price is under $80,000. After that, a number of cars, including changan, mitsubishi and hoang, followed suit by introducing lower-priced models for entry-level cars, or by lowering the prices for cars. Modernity in the joint venture brand calls for a “oil-to-power” slogan. The price battle began and even the brands of luxury cars such as mercedes and bmw were reduced and sold in the second half of the year。
Ifac data show that the cost reduction in january-november 2024 was more than 220, affecting mainly new energy models such as pure electric power and interpolation, and gradually increasing fuel vehicle prices. Of these, in 2024, the largest reduction was in the pure electric vehicle type, with an average reduction of about $20,000 and a 10 per cent reduction in prices; the largest reduction was in the number of vehicles, with a cumulative reduction of 80 units。
The distributor's losses have increased, the stores have been withdrawn, and some dealers have switched from bba to new energy
In 2024, the car dealer industry faced unprecedented difficulties in terms of inefficient consumption, overcapacity-induced supply and demand imbalances and intense price overlaps. According to the emergency report issued by the chinese association of automotive industries on the current financial distress and the risk of closure for car dealers, in january-august 2024, price wars led to cumulative losses of $138 billion in retail sales in the new car market as a whole, with a total discount rate of 17. 4 per cent for the new car market and a maximum of 22. 8 per cent for sales by dealers, an increase of 10. 7 per cent over the same period the previous year. The data are a direct reflection of the liquidity constraints and the risk of financial chain fragmentation faced by distributors。
In order to reduce inventory and financial pressure, dealers had to sell at low prices, resulting in increased losses. At the same time, the relationship between distributors and the mainframe has become increasingly tense and satisfaction has fallen to a new low. Faced with the dilemma, some distributors have begun to move from traditional luxury brands such as “bba” to new energy automobile brands in search of new living space. However, many challenges remain in the transition process, such as the loss of customers as a result of brand changes and competitive pressures in new energy markets. Overall, the automobile dealer industry is undergoing profound changes and adjustments。
Cars are "old for new" at an unprecedented level
At the beginning of 2024, the ministry of commerce proposed that the year 2024 be dominated by the year of consumption promotion, with a view to promoting sustained growth in consumption, with a clear focus on driving cars, household electricity, etc. In exchange for old ones, as a priority in promoting consumption throughout the year。
In april 2024, 14 departments, including the ministry of commerce, jointly launched the new action programme for the promotion of consumers for the past, which implements deployment. This action programme covers all aspects of the trade in used cars in exchange for new ones, end-of-life recycling, the post-car market, and automobile finance. According to the ministry of finance's 2024 budget for the central fiscal fund for old-for-new subsidies, the total annual funds for old-for-new subsidies amounted to $11,197. 75 billion。
In august 2024, the ministry of commerce, the ministry of finance and others issued a circular on the publication of rules for the implementation of the old and new subsidy for cars. Subsequently, the people's government of guangdong province increased its efforts to support individual consumers in the replacement and renewal of cars. Not only was the overall subsidy the highest in previous years, but all brands were involved。
According to the department of commerce data, at 2400 hours on 9 december 2024, the total number of applications for old-for-new subsidies nationwide exceeded 5 million, with more than 2. 44 million end-of-life updates and 2. 59 million replacements. State subsidies thus continue to provide an irreplaceable boost to stimulating the car market。
The eu is imposing tariffs on new energy vehicles, and it is challenging to adjust its approach to the sea
The chinese automobile industry, which exported 4. 91 million cars in 2023, tops japan and tops the world, demonstrated a more ambitious sea-to-sea pace in 2024, with a double-digit increase in export size. However, the european union, which is the base of the world's old automobile industry, can no longer afford to sit on the market。
On 29 october 2024, the european commission declared that it had concluded a countervailing investigation of electric cars in china and decided to impose a countervailing duty of 17-35. 3 per cent on pure electric cars imported from china for a period of five years. This has given rise to considerable global controversy, and has also exposed chinese motor companies to short-term price erosion, reduced market shares and increased risks of going out to sea. Motor companies have adjusted their approach to the sea, and some have responded to challenges by increasing product value addition, strengthening branding and finding new markets. At the same time, chinese motor companies are seeking to circumvent trade restrictions by setting up plants in europe and radiation the surrounding market。
New energy vehicles have a penetration rate of over 50%
In 2024, china's new energy car market ushered in a historic moment, with penetration rates exceeding 50 per cent for four months in a row, marking the mainstreaming of new energy vehicles from the edge of the market. In november, for the first time, new energy car production and sales broke 10 million tariffs, an achievement that not only demonstrated the rapid development of china’s new energy automobile industry, but also highlighted china’s leadership in the global automobile industry. From the birth of the first new energy truck in 1995 to the production and sale of 10 million units, china has spent only 27 years, a rate that is unprecedented on a global scale。
This milestone has meant a shift in the chinese automobile industry from “china speed” to “china quality”, and the growth of the new energy automobile industry has given strong impetus to economic development, increasing confidence in china's economic prospects. At the same time, it bodes well for the gradual movement of china’s new-energy cars from the big to the big ones, playing an increasingly important role in the global green wave, providing strong support for sustainable development and green energy transformation in china and beyond。
Narrator: nandu bay bank, reporter, liang ryong, chen sung an, hu jin
