New energy vehicles are "hot

Author：DavisDate：2024-7-10

       At the beginning of July, many new energy vehicle companies showed off their sales "report cards" for June and the first half of the year, making the already booming automobile market "hot in July" again.

       Looking closely at the "report card" for June, BYD won the "sales champion" without any suspense, and many automakers such as Ideal Auto, NIO, and Zeekr Auto set new monthly sales records for the year. Leapmotor's monthly sales exceeded 20,000 for the first time, setting a record high, and Xiaomi's sales also exceeded 10,000. Particularly eye-catching is Hongmeng Zhixing, led by Wenjie. Wenjie's monthly deliveries exceeded 40,000 in June, setting a record high. Hongmeng Zhixing delivered a total of 46,141 vehicles in June, and a total of 194,207 vehicles in the first half of the year, topping the sales of China's new power brands in the first half of the year.

      China Passenger Car Association The estimated data released show that the domestic retail sales of new energy passenger vehicles in June are expected to reach 860,000 units, a year-on-year increase of 32.7%, and the penetration rate is expected to increase to 49.1%, further approaching the 50% mark. Some experts and institutions predict that there is no doubt that the sales of new energy vehicles will exceed 10 million units this year.

       The most important reason for the explosion of the new energy vehicle market is the implementation of the "old for new" policy. In March this year, the State Council issued the "Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-in". Since then, the "Action Plan for Promoting Consumer Goods Trade-in" and "Detailed Rules for the Implementation of Automobile Trade-in Subsidies" have been launched one after another, and local policies have also been accelerated. New energy vehicle companies have taken active actions, and multiple parties have worked together to allow "old for new" to continuously release the consumption potential of the automobile market. 

       The hot consumer market has also spread to all links of the automotive industry chain, and even the car recycling at the end of the industry chain has ushered in new opportunities. It is estimated that after a scrapped small car is carefully disassembled, it can be decomposed into about 36 kg of rubber, 70 kg of plastic, 740 kg of scrap iron, and 100 kg of aluminum. Effective recycling and recycling of these resources is equivalent to opening a "second mine". Relevant institutions predict that this year's car recycling will exceed 7 million vehicles, and the recycling and dismantling industry will move towards a market scale of 100 billion yuan.

       Chinese cars that have opened up the entire chain will usher in a broader market space. According to a recent report on the Deutsche Welle Radio website, the latest "Global Automotive Outlook 2024" report released by consulting firm AlixPartners pointed out that by 2030, new energy vehicles ( Including plug-in hybrid vehicles) will account for nearly half of the global market, while the share of fuel vehicles will drop below 40%. Chinese auto brands have established significant advantages in new energy technologies, especially battery production, which enables them to launch new products faster and dominate the global market. By 2030, Chinese auto brands will account for one-third of the international market.

       As Wakefield, co-leader of AlixPartners' global automotive and industrial practice, said, China is a new disruptor in the automotive industry, capable of making cars that are faster to market, cheaper, more technologically advanced and more efficiently designed, and traditional original equipment manufacturers need more than just adjusting their routes. Multinational automakers have now accelerated their technical cooperation with Chinese automakers. Recently, Volkswagen Group and SAIC Group officially announced a number of technical cooperation agreements, including the development of three plug-in hybrid models and two pure electric models in China. Chery and Jaguar Land Rover also signed a letter of intent for strategic cooperation. The two parties intend to jointly promote a new cooperation model-Chery Jaguar Land Rover will launch and manufacture a series of electric products equipped with Chery's electrification platform. Previously, Audi and Volkswagen Group have carried out similar cooperation with SAIC and Xiaopeng Motors respectively. It is revealed that since the first quarter of this year, the income from "platform and software technology services" has begun to become an important source of profit for Xiaopeng Motors.

      Although there are still "headwind" disturbances overseas, the general trend of global new energy vehicle development has not changed. The new energy vehicles that are "hot" at the "end" of the chain are about to open up a dimensional space worth looking forward to.