The glory days of foreign car manufacturers in the Chinese market are gone!
In just four years, they have fallen from "half the kingdom" to "one third of the world," with losses amounting to 300 billion yuan.
This dramatic shift has shocked the entire automotive industry.
Once upon a time, foreign brands dominated the Chinese car market.
In 2020, their market share was still over 50%, a posture of a "dominator."
Who could have thought that by April 2024, this figure would drop to 31%?
This drop directly led to a loss of about 2.4 million market shares for foreign car manufacturers.
Do the math, that's over 30 billion yuan!
Do you know what this means?
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It means that foreign car manufacturers are losing more than 200 million yuan every day!
This is not just a "path of frustration," it's a "path of blood and tears"!
So, what force has made these once "overlords" so embarrassed?
The answer is hidden in the wave of electrification.
In 2020, the Chinese electric vehicle market saw explosive growth.
Recall that before 2020, electric vehicles in the Chinese market were still "small potatoes," with a share of less than 10%.
But by 2024, this figure soared to over 50%.
Have you seen such growth speed?
In this electrification revolution, Chinese domestic brands can be said to be "catching up late."
BYD is a typical example.
They bet on electric vehicles early on and even set a record of selling 300,000 vehicles a month.
You're not wrong, it's 300,000!
This achievement even made BYD a global top four car manufacturer for a while.
Not only BYD, but also traditional independent brands such as Geely, GAC, and Changan are also making great strides in the electric vehicle market.
Data for the first quarter of 2024 shows that among the top five electric vehicle markets, four are Chinese companies except for Tesla.
This "Chinese speed" is astonishing, isn't it?
Faced with such a "bleak" situation, can foreign car manufacturers sit idly by?
Of course not!
They have started to lower their stance and actively seek cooperation with Chinese companies.
Look at Volkswagen, the former "big brother," who now has to bow down to seek cooperation.
They chose to take a stake in XPeng Motors, hoping to regain their position in the Chinese market with the technical advantages of XPeng.
Renault also chose to cooperate with Geely, trying to find new opportunities in the wave of electrification.
What's more interesting is Toyota's approach.
This Japanese automotive giant was "late to the party" in the field of electric vehicles.
In order to catch up with this "last train," Toyota is also fighting.
Their electric vehicles, except for the body shell, from the three-electric system to the automatic driving algorithm and chips, are almost all provided by Chinese suppliers.
Is this approach a bit like "a warrior cutting off his own arm"?
Even the "founder of electric vehicles" Tesla has to bow down to the Chinese supply chain.
They gave up their long-term cooperation with Panasonic and chose to cooperate with Chinese power battery companies.
This choice is undoubtedly the best affirmation of China's automotive industry chain.
Did you know?
Among the top ten power battery companies in the world, China has six seats, and the top two are Chinese companies.
This advantage forces foreign car manufacturers to re-examine their strategies and seek cooperation with Chinese companies.
First of all, we must see that foreign car manufacturers still have advantages in technological accumulation and brand influence.
Their fuel car technology is still leading, and they still have a certain competitive edge in the high-end market.
Secondly, by cooperating with Chinese companies, foreign car manufacturers are also quickly making up for their shortcomings in electrification.
The cooperation between Volkswagen and XPeng, and the deep binding between Toyota and Chinese suppliers, are all manifestations of their efforts to catch up.
However, the challenges are also huge.
Chinese domestic brands have established considerable advantages in the electric vehicle market, especially in terms of cost-effectiveness.
If foreign car manufacturers want to regain the market, it is not a matter of a day or two.
More importantly, the Chinese car market is undergoing a profound transformation.
Consumer demand is changing, the industry chain is changing, and the technical route is changing.
Under these circumstances, whether foreign car manufacturers can adapt quickly is a big problem.
So, can Chinese brands continue to take the lead?
Don't be too happy too early.
Although Chinese brands now have an advantage, the competition has just begun.
With the rise of foreign car manufacturers, Chinese brands will also face greater pressure.
Moreover, as the electric vehicle market continues to mature, the competition will become more intense.
How to continue to innovate, how to provide a better user experience, and how to show competitiveness in the global market are all challenges that Chinese brands need to face.
Don't forget that the automotive industry is also developing towards intelligence and networking.
On these new tracks, who can take the lead is still unknown.
So, whether it's foreign car manufacturers or Chinese brands, they can't be complacent.
This automotive revolution is far from over.
Finally, let's look to the further future.
With the continuous development of new energy, artificial intelligence, autonomous driving and other technologies, what changes will the automotive industry's pattern undergo?
Will there be new disruptors?
Will the way consumers use cars change fundamentally?
The answers to these questions may be hidden in the next few years.
In any case, the wonderful "big play" of the Chinese car market has just begun.
Let's wait and see how this play will be staged in the future!