When the flames of war sweeping the automobile industry are no longer extinguished, what will be the beginning of the advancement of those established car companies? Whether you admit it or not, China’s auto market in 2024 is already pointing out to the outside world in an extreme way: this seemingly promising road has become narrower and narrower.
We don’t know when the environment of public opinion in China has become what it is now, but the cruelty of the truth is that no matter whether the world is divided or not, all stories about traditional brands are no longer malleable in the world’s largest car market.
To put it simply when more and more Chinese consumers think that the auto industry will be restructured around China it will be very difficult for those established car companies.
Over the past two years, the deteriorating performance of global car companies such as Volkswagen, GM, Toyota and Honda in China also seems to be telling us that this situation has gradually come true.
Nowadays, in the trend of great progress in the automobile industry, no one is willing to judge whether the establishment of this kind of emotion is good or bad.
The shock brought by the killing of new brands is always high enough.
However, it is important to see that Chinese car companies that once relied on big brands to build advantages are indeed not as good as they used to be in terms of earning power.
For the whole of last year, as long as there was a significant decline in the performance of its joint ventures, the overall revenue status of the auto group fluctuated more or less.
With the release of the financial statements of various groups in the first quarter of this year, I dare say that due to the pain of industry transformation, the situation of “no reduction in sales and a decline in profits” is difficult to alleviate in a short period of time.
The pain of the joint venture has hit the whole industry.
Everyone in the industry must know how outrageous the market changes are this year and how much pressure the price war has put on enterprises.
When everyone is saying that the future belongs to electric cars, the enterprises that focus on fuel cars are tight on their heads one by one, and there are no people inside and outside.
when spoilers like Xiaomi and Huawei participate in the competition deeply, what the traditional car companies with a solidified system can do is just guard their own one-mu and three points nervously.
In the first quarter, with the exception of BYD, no one must have been able to stand out in this precarious era.
This is not only out of the judgment of the whole ecological change, but also because in the outside world, the damage caused by this sudden change to the former kings is irreversible.
At the end of April GAC GROUP also released his own quarterly report.
Although you have previously given positive feedback on your shipments.
During the reporting period, the group’s production and sales volume reached 403000 and 410000 respectively.
GAC exports reached 26000 vehicles in the first quarter, an increase of 155.
1 per cent over the same period last year.
But on the whole, the data of “single-quarter revenue of 21.
346 billion yuan, down 19.
12% from the same period last year.
net profit of 1.
22 billion yuan, down 20.
65% from the same period last year” inevitably exposed the unhappy side of the market.
In the first quarter of this year, the increasing inventory pressure in the automotive industry and a new round of price war are the main reasons why it is difficult for every enterprise to maintain its past situation in the storm, and it has naturally become the key for GAC to keep at the same level as the revenue-generating side in the same period.
By contrast, regardless of how these market changes have put everyone in the predicament of “hurting the enemy and damaging 800”, for GAC, as said at the beginning, the great hostility of the end market to foreign brands makes it difficult for it to stick to its previous standards.
Since last year the abuse and attacks on brands including Honda and Toyota have never abated because of the impact of the electrified transformation on consumer trends.
So, GAC Toyota and GAC Honda, once the group’s profit cows, are finally in trouble “on how to recover their development disadvantage”.
Over the past 20 years under the influence of regional culture and market environment the whole GAC joint venture business has always undertaken the natural mission of the whole group to move forward at a high speed.
It is so easy to make money and manipulate the market.
The brand moat built by Toyota and Honda brands serves as a solid background for GAC’s independent business in dry land, which continues to this day.
There is no better opportunity for development than in the past two decades.
” When China’s car market entered a real inflection point two years ago, it lamented the many helplessness of the people in the bureau, but it should have made everyone deeply understand that the future Chinese car market will be a shortcut and a struggle position to earn money entirely on the basis of real ability.
In the 2023 Annual report released by GAC GROUP as early as the month before last GAC GROUP achieved an operating income of 128.
757 billion yuan in 2023 an increase of 17.
48% over the same period last year The performance summary of net profit of 4.
429 billion yuan, down 45.
08% from the same period last year, has in fact told us very clearly that even if we win a short respite in the first quarter, when the era of winning joint ventures has passed, there is still nothing worth living on our own in order to fill the gap.
Under the changing situation, GAC has to take on a great responsibility on its own.
if we want to set a tone for 2024, apart from summarizing all the chaos with “inner volume”, “death is like life” is almost the first impression we can give.
Too many enterprises are lost in contemplation or anxiety in a wave of destruction.
Faced with the uncertain future, no one knows where to go.
GAC GROUP is also a personal witness of this change, which means that when the brand images of Toyota and Honda become more and more negative assets in the current public opinion environment in China, in order to maintain their geographical advantages and market position, it is better to keep up with the pace of industrial transformation, or to place yourself in the multi-dimensional war set off by emerging forces, nothing is more important than to change your style of play as soon as possible.
In the past few years when the joint venture was under increasing pressure, Chuanqi and Ian have indeed become the new pillars to help GAC move forward.
In the past April, from Guangzhou Auto Science and Technology Day 2024 to Beijing Auto Show 2024, GAC launched China’s leading picture-free pure visual smart driving system, as well as high-safety and high-capacity all-solid-state power batteries that achieve key technological breakthroughs.
Look forward to achieving absolute transcendence on the technical side On the other hand, in response to the “Zhixing 2027” action plan, Guangzhou Automobile officials announced that on the basis of the existing intelligent advantages, through intelligent driving, the upgrading of intelligent cockpits and the creation of intelligent three-dimensional travel scenes, achieve the lead in the product experience and travel scene, so as to complete the self-transition.
The implication is that based on the existing achievements GAC seems to be betting on its own business.
The huge impact of industry transformationPressure, in fact, also forced GAC to completely electric as an anchor, to increase investment in Chuanqi and Ian, in order to better adapt to the pace of the rapid upgrading of China’s auto market.
According to the financial report, at present, GAC GROUP has made a comprehensive layout from private travel to shared travel, individual travel to group travel, land travel to low-altitude travel, and three-dimensional travel mode– including its Ruqi Travel has started the commercial operation of L4Robotaxi Andi Technology, a joint venture with Didi, will launch its first commercial L4 self-driving model in 2025, and Qidi’s first L4Robobus will be mass-produced by the end of this year.
Therefore, no matter where the focus of the future development of the car market will be, GAC’s positive statement also caters to the general direction of market development.
At the same time GAC has made great progress in export since 2024.
Relying on the electric car industry, the Southeast Asian market has become the first stop for GAC’s expansion.
On April 29th, GAC MOTOR and Huashan Chenzheng Automobile Co., Ltd. also held the completion and mass production ceremony of the CKD plant in Malaysia at the Segambut plant in Kuala Lumpur, Malaysia.
Diversified development is something that everyone is pursuing in this era.
But for GAC, seeing that the performance of the joint venture is not as good as before, the trend of public opinion in the Chinese car market has been led by emerging car companies to a field with no sense of boundary, all of which seems to have become a logical means.
The only thing to consider is whether the landing of some ideas can be perfectly suited to the development of the situation, as the enterprises that dominate the trend of China’s auto market increasingly tilt towards non-traditional forces.
For the grasp of current consumers, none of Geely, Great Wall, BYD and other private enterprises are vegetarian, and the addition of Huawei and Xiaomi has made the reshaping of the entire market pattern more complicated, which means that for the established state-owned enterprises represented by GAC and SAIC, when the dividend period of joint ventures gradually fades, new plans and plans can no longer be as ethereal as “satellite”.
“based on the present, focus on the future” requires a concrete expression, not just talk about it.
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