Reference news special manuscript | multinational car company giants are optimistic about the Chinese automobile market -the front line of the Changchun Automobile Expo

From July 15th to 24th, the 19th China (Changchun) International Automobile Expo was held in Changchun City, Jilin Province, China. This year's Changchun Automobile Expo has a total of 155 domestic and foreign brands and 128 companies participating in the exhibition. Major car companies around the world show their latest products and conceptual models, and strive to strive for more market share in fierce competition.

As the world's largest automotive market, the Chinese market has become a must -have place for major multinational car companies. New characteristics such as new energy vehicles have grown rapidly, the rapid rise of Chinese brands, and a large increase in exports, and other new features are particularly noticeable. Since the beginning of this year, multinational car companies such as Audi, BMW, and Volkswagen are accelerating the deployment of new production capacity and products in China. The "Nuggets" Chinese market, a number of "big" new energy projects have been started or completed.

On July 18th, at the 19th China (Changchun) International Automobile Expo held in Changchun, viewers visited FAW-Volkswagen New Energy models. (Photo by Zhang Jian)

Competition presents "white heat" situation

The automotive industry is an important strategic and pillar industry for the national economy, and it is an important area for steady growth and promoting consumption. In 2021, the retail sales of Chinese auto goods reached 4.4 trillion yuan, accounting for 9.9%of the total retail sales of social consumer goods, which is an important support for the consumer market. Since the beginning of this year, affected by factors such as the new crown pneumonia's epidemic, the Chinese automobile market has been under pressure and the decline in automobile consumption has declined significantly.

Driven by a series of policies and measures of the Chinese government, China's automobile industry production and sales are gradually recovering. According to the latest data from the China Automobile Industry Association, the production and sales of Chinese automobiles in the first half of the year reached 12.117 million and 12.057 million, respectively.

On April 22, workers were conducting production operations at the FAW Group Red Flag Prosperous Factory. (Shi Xinhua)

Affected by the epidemic, some auto shows have not been held successfully this year. This auto expo has become an important platform for major car companies to show its strength and increase car sales.

Entering the SAIC Expo, the reporter found that even luxury brands such as Audi, Mercedes -Benz, BMW, Lexus, etc., they have also increased their "price war" marketing and launched a series of preferential activities to attract the attention of exhibitors.

Ya Shengjie, a sales consultant of Lincoln Show, said that many people used to think that Lincoln's car must be expensive, but now some of Lincoln's models have realized domestic production and the price has room for the next explore.

There are also some sales consultants that in the context of current high oil prices and automotive products, consumers not only pay attention to prices, but also inquire about configuration and subsequent maintenance, insurance, fuel consumption, etc.

While fighting the "price war", "show muscle" interaction with the audience is also an important part. Not only new energy vehicle companies such as BYD have launched many models for consumers to experience, and brands of multinational car companies such as Mercedes -Benz, BMW, Audi, Porsche, Bentley, etc. also display the latest electrification products on the booth significant position.

Many models such as Hongqi H7, Red Flag HS5, Hongqi HS7, Hongqi H9, New Hongqi H5, Pentium T77, Pentium T99 and other models are fully exhibited. The car carnival event was also held on the spot, allowing viewers , R & D, manufacturing and other links have attracted many audiences to participate in interaction.

On July 15th, the 19th China (Changchun) International Automobile Expo was held at the Changchun International Convention and Exhibition Center. This is the exhibited full -size SUV red flag LS7. (Photo by Zhang Nan)

Chen Shihua, deputy secretary -general of the China Automobile Industry Association, said that in June, the supply chain affected by the epidemic affected by China's automotive industry has been fully restored, and enterprises have accelerated the rhythm of production to make up for losses. Driven by the national purchase tax reduction policy and the promotion of local governments' promotion of automobile consumption policies, the passenger car market wholesale volume performed well in June, and the terminal market also improved significantly. Overall showing significantly increased, showing the characteristics of "low season".

Foreign companies' investment in China continues to increase

At this year, new energy vehicles have become important contents of many car companies. Taking FAW Audi as an example, the brand brought 21 models such as the founder version of the new Audi A8L Horch, the Audi RS ERON GT, and the Audi Q4 E-TRON. A lot of viewers' attention. The successive launch of these models cannot be separated from Audi to continue to increase investment and capacity layout in China.

This year marks the 50th anniversary of the establishment of diplomatic relations between China and Germany, and the China -German automotive industry cooperation has also ushered in the wave of upgrading in this special year. On June 28, the cooperation between the Sino -German automobile industry ushered in another result. The Audi FAW New Energy Vehicle Project officially started in Changchun City, Jilin Province. The project planned investment exceeded 30 billion yuan. Important achievements of strategic cooperation.

According to reports, the above project is Audi, the first production base for producing pure electric models in China, and settled in the Changchun Automobile Economic and Technological Development Zone, with a planned annual production capacity of 150,000 units, and was completed and put into operation in 2024. Du Siman, chairman of the Audi Automobile Co., Ltd., who is responsible for the Chinese market, said: "Changchun New Factory ushered in construction and became another important milestone in China. Through Audi FAW New Energy Automobile Co., Ltd., we will be a high -end pure electric platform. (PPE) Introduce China and will create a pure electric model based on the platform based on the platform. This will enrich the Audi lineup of pure electric models in the Chinese market. "

On June 28, the Audi FAW New Energy Vehicle Project started construction in Changchun, Jilin. (Send of Xinhua News Agency) Wen Zeyue, president of Audi China, revealed that the first batch of PPE models will be the three models of the Audi A6 E-TRON and the Audi Q6 ERON series. Audi FAW New Energy Vehicle Co., Ltd. is the first joint venture with Audi with a majority of equity in China, which is responsible for the implementation of the project. While the project helps China -Germany industrial cooperation and China -Europe economic and trade cooperation, it will also strongly promote the revitalization of the Northeast.

Volkswagen is also accelerating the transformation of electrification. On June 27, the ID.AERO concept car ushered in the global first show in the form of online release in China. Electric car. Feng Sihan, CEO CEO of Volkswagen Group (China), said that the mass production version of the ID.Aero China market will be available in the second half of 2023 to provide users with more car purchase options.

Transnational car companies seize new opportunities

Analysts said that Audi and other "big conclusions" invest in new energy vehicle projects in order to seize the Chinese new energy vehicle market in the rapid development period.

Since the beginning of this year, China's automotive market has accelerated, new energy vehicles have continued to increase significantly, and Chinese independent brand car companies such as BYD have risen rapidly, causing high attention at home and abroad. According to the latest data released by the China Automobile Industry Association, China's new energy vehicles in the first half of the year reached 2.661 million and 2.6 million, respectively, an increase of 118.2%and 115%year -on -year, and the market share reached 21.6%.

On July 18, visitors experienced Audi new energy models at the 19th China (Changchun) International Automobile Expo. (Photo by Zhang Jian)

According to Cui Dongshu, secretary general of the National Passenger Vehicle Market Information Joint Association, the Chinese people's requirements for the quality of the car are getting higher and higher. The car brand of "abuse" must be eliminated. The Chinese automobile market is saying goodbye to the era of "lying down to make money". Taking new energy vehicles as an example, the new energy performance of China's current mainstream passenger car companies has become increasingly stronger. Most of the mainstream car companies' sales of new energy vehicles have exceeded 20,000 monthly sales, forming a certain scale manufacturing advantage. If car companies at home and abroad cannot seize this opportunity to accelerate change, it is likely to lose relevant market share.

Volkswagen Groups and other companies are seizing rare opportunities, comprehensively strengthening the layout of electrical infrastructure in China, laying a solid foundation for the market for the market. In 2019, Volkswagen Group (China) and Xingxing Charging, FAW Group and JAC Motors jointly established Kamisz New Energy Technology Co., Ltd. At present, Kamis has covered 100 cities across the country, established about 760 super charging stations, and launched over 7,000 charging terminals. By 2025, Kamis plans to build more than 17,000 charging terminals to cover most cities across the country. At the cities that are fully covered in the charging point of the Kamis, the distance between the user and the charging station will not exceed 5 kilometers, and further helps the electric car owner to say goodbye to "charging anxiety".

Despite multiple challenges, Volkswagen Group (China) still shows financial toughness and leading market position in the first half of the year. In the first half of the year, the sales of pure electric vehicles of Volkswagen's brand increased by 462%, and the overall sales of pure electric vehicles under the group's brands increased by 247%. Volkswagen Group and Volkswagen brands (including the Jetko brand) continue to maintain a leading position with a market share of 15.5%and 11.4%, respectively.

FAW-Volkswagen's new energy models exhibited at the 19th China (Changchun) International Automobile Expo. (Photo by Zhang Nan)

Cui Dongshu said that the consumption trend of new energy vehicles in northeast China, including the Northeast, has a strong potential and great potential. This has also created opportunities for global car companies, including multinational car companies to expand the market.

At the same time, China's automobile companies exported 1.218 million in the first half of the year, an increase of 47.1%year -on -year. Chinese brands have been recognized in the international market, especially new energy vehicles have become the highlights of the current export. Some Chinese and foreign joint ventures have also stated that they are also studying the feasibility of expanding the exports of Chinese production joint venture brands, in order to fully release China ’s capacity and become bigger and stronger in China.

People in the industry believe that although the development momentum of the Chinese automobile market is still good, there are also some shortcomings that need to be supplemented, which also created business opportunities for the majority of car companies and component companies. At present, the shortage of chip in the industry, the price of power battery raw materials generally maintain high levels, high energy prices, and uncertain factors still exist. The task of steady growth and stable industry in the industry is still arduous.

Edit: Zhou Zhou

Source: "Reference News"

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