Seizing the “matching point”, the automotive industry accelerates towards “new”
2024-08-20
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The domestic automobile market has reached a milestone: the penetration rate of new energy vehicles has exceeded 50%.
Seizing the “matching point”, the automotive industry accelerates towards “new”
Image source: Visual China
Not long ago, the domestic automobile market ushered in a "historic moment": according to the latest national passenger car market analysis report released by the China Passenger Car Association, in July this year, the retail sales volume of China's passenger car market was 1.732 million vehicles, and the wholesale sales volume was 1.956 million vehicles; during the same period, the retail sales volume of new energy passenger cars was 878,000 vehicles, and the monthly retail sales volume exceeded that of fuel passenger cars for the first time. The penetration rate of China's new energy vehicle retail market has reached 51.1%, which has exceeded half.
At present, my country's automobile industry is facing tremendous changes. Jiangsu is not only a major province for new energy vehicle consumption, but also a strong province for new energy vehicle manufacturing. The automobile industry is constantly accelerating towards "new" - in the first half of the year, driven by policies such as "old for new" and "equipment renewal", the retail sales of new energy vehicles increased by 35.5%, driving the overall recovery of the automobile market and continuous upgrading of the industrial chain.
Breakthrough: Passenger cars and special-purpose vehicles "two-wheel" drive
As early as last year, the output of new energy vehicles in our province exceeded 1 million for the first time, reaching 1.047 million, ranking fourth in the country. Since the beginning of this year, the new energy vehicle industry has continued the performance of "galloping all the way" last year. In the first half of the year, the province's automobile manufacturing enterprises above designated size achieved operating income of 543.1 billion yuan, a year-on-year increase of 9.9%, and the invoice sales in the sub-sectors such as intelligent network systems achieved double-digit growth; the proportion of new energy vehicle production in the province reached 49.3%, and the output remained fourth in the country.
Great Wall Motor Co., Ltd. Taizhou Branch mainly produces new energy vehicles including Ora. "Since the beginning of this year, Great Wall Motors has made great progress. Its Haval, Wei brand, Tank, Ora, and Great Wall pickup trucks have ushered in a number of new products, covering all categories of new energy vehicles. Its core advantages and market position in the fields of intelligence and off-road are becoming increasingly prominent." Feng Hua, the company's deputy general manager, showed a set of data: In the first seven months of this year, Great Wall Motors sold a total of 156,500 new energy vehicles, a year-on-year increase of 28.1%, of which overseas sales hit a new high.
In addition to passenger cars, new energy heavy-duty trucks made in Jiangsu can now often be seen in mines, docks, and factories at home and abroad. Since last year, new energy heavy-duty trucks and other special vehicles have entered a steady growth stage, and this year has continued this trend.
On August 14, the reporter saw several pure electric mining trucks that had just rolled off the production line parked neatly in the parking lot of XCMG Automobile Manufacturing Co., Ltd. They would be delivered to customers in Shanxi in a few days.
"In the past, mining development has always relied on oil-powered mining trucks, but in recent years, more and more mines have begun to order electric mining trucks from XCMG. Efficiency and economic benefits are the two main factors." Chen Peng, director of XCMG's automotive supplier development department, gave an example, saying that the XCMG XDR80TE pure electric mining truck exported to Indonesia uses high-energy lithium iron phosphate batteries and all-weather power battery systems, and also uses a variety of temperature control technologies, which can better adapt to local high temperature, humidity and rainy working conditions; and in the "Shenzhen Blue" muck truck project, the 1,200 new energy heavy-duty trucks put into operation have traveled a total of 320 million kilometers, saving a total of 176 million liters of fuel, saving customers 640 million yuan, generating huge social and economic benefits, and being recognized by customers.
From January to June this year, XCMG's new energy heavy trucks sold a total of 4,957 units, up 148% year-on-year, maintaining the first place in the industry. "We focus on the two core technologies of fast charging and energy saving, and will promote the application of high-horsepower, long-range, fast-recharge products, and continue to maintain technological leadership." Feng Jiajia, general manager of XCMG New Energy Automobile Company, optimistically predicted that XCMG will achieve sales of new energy products exceeding 15,000 units in 2025, and sales of new energy products of 30,000 units in 2027, with a market share of more than 20%.
XCMG's new energy heavy trucks are "shipped to the world", which is the epitome of the continuous "rise" of new energy vehicles in our province. Our province has vigorously promoted the transformation of automobile electrification, networking and intelligence. At present, it has gathered a number of advantageous vehicle companies such as Ideal, BYD, Changan, Great Wall, and XCMG. It has a product spectrum of passenger cars, commercial vehicles, special vehicles, and a relatively complete automobile industry chain. The supporting capacity of automobile parts is leading in the country, and the annual output of power batteries ranks first in the country, which ensures that the new energy automobile industry in our province can "break through" strongly in the fierce competition.
Pressure resistance: multi-chain support of industrial chain and supply chain
With the rapid development of new energy vehicles, my country's automobile industry is "changing lanes and overtaking", but in this process, it continues to be "suppressed" by a few Western countries. The European Union, which has always regarded itself as a "pioneer" in the global green transformation, has imposed tariffs on my country's new energy vehicles, affecting the continued progress of the world's new energy vehicles.
However, my country is still able to develop strongly under such a big environment. Jiangsu, a major automobile manufacturing province, is bucking the trend despite the "suppression", thanks not only to market demand and policy support, but also to the mature industrial chain and the gradual emergence of economies of scale. From battery raw materials to new energy vehicle parts and components, to the Internet ecosystem, Jiangsu and its surrounding areas have formed a complete new energy vehicle supply chain system.
In particular, Jiangsu's auto parts industry impressed Yan Jianlai, deputy secretary-general of the China Society of Automotive Engineers, and he gave it a thumbs up. "Jiangsu has a good foundation and obvious advantages. It is an important domestic automobile industry base, with a complete automobile industry system covering vehicle R&D and manufacturing, power systems, transmission systems, body systems, automotive electronics, interior and exterior decoration, general components, new energy, and intelligent network-specific components. The industry chain is the most complete in the country, the supporting system is complete, and there are a number of competitive enterprises with international competitiveness." Yan Jianlai, who has visited Jiangsu many times, talked about them one by one. For example, Huichuan Power Electronic Control's installed capacity ranks second in the country, Xingyu Auto Lighting ranks first in the domestic auto light industry, and Yapu Co., Ltd., which focuses on thermal management systems, has long been ranked first in China and third in the world.
In the province, the agglomeration effect is becoming more and more obvious. Take Jingjiang, a small city in Jiangsu, as an example. After more than 40 years of industrial development, the local area has become an important auto parts industry base in the Yangtze River Delta region. "Our city's auto parts industry has actively integrated into the new track of new energy and intelligent networked vehicles, and currently has gathered more than 300 auto parts companies of various types." Du Zhengyu, director of the Jingjiang Municipal Bureau of Industry and Information Technology, explained the city's industrial development model: relying on the driving advantages of the Yangtze River Delta region, the auto parts industry takes lightweight, intelligent and networked as the transformation direction, strives to achieve the development, design and modular supply capabilities synchronized with vehicle manufacturers, and create a key auto parts cluster industry with core competitiveness.
With industrial clustering and shortened supply chains, enterprises have become direct beneficiaries.
On July 17, Changan Mazda's first pure electric flagship sedan MAZDA EZ-6 officially rolled off the production line at its "Mazda's Best Overseas Factory" in Nanjing. "Jiangsu's perfect supply chain system has benefited Changan Mazda a lot." Zhang Changjie, director of Changan Mazda and director of the Executive Committee Office, introduced that Changan Mazda has 87 suppliers in Jiangsu, accounting for 22% of the number of suppliers nationwide and 43% of the purchase amount. With good cooperation and stable delivery, the product quality index R/1000 (maintenance frequency per thousand vehicles) is as low as 4.7. "By 2027, Changan Mazda plans to invest 10 billion yuan to quickly achieve the goal of breaking through 300,000 new energy annual production capacity and 90% of new energy vehicle sales, which is inevitably inseparable from the support of Jiangsu's complete supply chain."
More and more auto companies from other provinces are coming to Jiangsu to find "partners on the chain". "We are promoting the green, energy-saving, low-carbon and environmentally friendly transformation and development of the commercial vehicle industry in accordance with the strategic path of 'expanding commercial vehicles, refining special vehicles, strengthening parts and components, and cultivating new growth points'. Jiangsu's complete supply chain system has attracted us, and cooperation with Jiangsu suppliers is an inevitable choice for the development of enterprises." Zhang Xiaoning, project manager of the Strategic Development Department of Shaanxi Automobile Group, said that in 2023, Shaanxi Automobile's procurement of parts in Jiangsu will exceed 1.5 billion yuan. At present, there are 89 companies in Jiangsu that provide supply chain services for Shaanxi Automobile, accounting for more than 20%. Shaanxi Automobile has invested in building factories in Wuxi, Changzhou, Danyang, Yancheng and other places.
Layout: Focus on both domestic and international markets
With the continuous increase in the penetration rate of new energy vehicles, the domestic automobile market has ushered in a new stage of development.
"Under the wave of electrification, the rapid development of intelligent technology has brought unprecedented impact and changes to the industry. In the next step, we will be based in China and accelerate the improvement of the local new energy supply chain." Zhang Changjie revealed that in the supply chain of Changan Mazda's new energy vehicles, the supply amount of Jiangsu enterprises accounts for 35%, which has a lot of room for improvement. It also means that the supply chain layout needs to be optimized, and new cooperation can be launched in the direction of smart cockpit, smart driving, smart chassis and so on.
Faced with increasingly fierce domestic competition and the "crowding" of the segmented track, Great Wall Motors continues to choose the globalization strategy and proposes the "four new internationalizations" of localized production capacity, localized operation, cross-cultural branding and secure supply chain. "Great Wall Motors has established 10 full-process vehicle production bases abroad and has more than 1,300 overseas sales channels. The goal is to exceed one million overseas sales by 2030," said Feng Hua.
Industry insiders believe that accelerating the "ecological overseas expansion" is also a general trend. Last year, my country's automobile exports ranked first in the world. In the next stage, automobile companies, especially new energy automobile companies, will gradually shift from export orientation to global production capacity layout, realizing the transition from "local manufacturing and global sales" to "global manufacturing and global sales".
Whether it is deepening the domestic market or continuing overseas layout, new opportunities have arrived. According to the "Action Plan for Accelerating the Construction of a Strong Manufacturing Province" and other documents, our province has included the "new energy vehicle industry cluster" in the 16 advanced manufacturing clusters, including four industrial chains of electric vehicles, power batteries, auto parts, and hydrogen fuel cell vehicles.
At a provincial automobile industry matchmaking event held not long ago, Wang Songqing, a fourth-level researcher at the Investment Department of the Provincial Department of Industry and Information Technology, said that the Provincial Department of Industry and Information Technology and seven other departments jointly issued the "Implementation Plan for Promoting Equipment Renewal in the Industrial Field in Jiangsu Province" at the end of May, proposing the implementation of a high-end equipment leap action. For industries such as power batteries and new energy vehicles, it encourages companies to adapt to technological innovation and industry development trends, and update and upgrade a batch of high-tech, high-efficiency and high-reliability advanced equipment, which will become a new opportunity for the automobile industry to accelerate "renewal".
Thanks to the "two new" policies of equipment renewal and old-for-new, the investment in automobile manufacturing increased by 17% in the first half of the year, 2.4 percentage points higher than the provincial industrial investment. The data shows that companies in the industry are also looking for "opportunities".
Towards "new" and improve quality, a relevant person in charge of the Second Equipment Industry Division of the Provincial Department of Industry and Information Technology (Provincial Automobile Office) said that all regions in the province need to continue to focus on emerging directions and further promote the transformation of the new energy vehicle industry to "higher" - on the one hand, support traditional fuel vehicle manufacturers to accelerate the launch of new energy vehicle products with market competitiveness, achieve steady growth in production and sales, and improve production capacity utilization; on the other hand, encourage parts companies to speed up the development of applicable products for new energy vehicles, carry out service days for key vehicle manufacturers, whole-parts docking conferences and other industrial chain docking activities, help more local parts companies integrate into the supply chain of mainstream new energy vehicle companies, achieve transformation and quality improvement of the entire chain, and consolidate Jiangsu's advantageous position as a major automobile province.
Xinhua Daily·Jiaohuidian reporter Fu Qi and Yao Zhengyu
