New Energy Vehicles (NEVs) in China

sndef888

Captain
Registered Member
SAIC still has MG, which they are exporting a lot to Europe. The Shanghai government and SAIC should step up, by building a gigafactory for Nio, the same way that they did for tesla.
MG is really SAIC's greatest asset. Despite being totally Chinese (much more so than something like Volvo) many buyers in western countries still link MG to UK and buy it for the nostalgia.

That gives them a lot of advantage among the western buyers who are put off by "Chinese brands". Their MG4 is a step in the right direction. It's what I would expect a Tesla Model Q to look like. That's exactly what they should position themselves as, a cheaper Tesla
 

mossen

Junior Member
Registered Member
Among NEV leaders, I would say BYD and Li Auto are the brightest stars. I think GAC AION also does okay. Generally speaking the state-owned car companies aren't doing too well. I wonder if there will be political pressure to bail out the weakest of them (SAIC or Dongfeng) a few years from now.

The US bailed out GM and in hindsight it isn't clear that was a good idea. They have continued to lag in the EV transition. Letting the market decide is controversial even in Western capitalist countries when very big and politically connected companies are on the line. Does anyone think the German govt would sit idly by if VW was in trouble? A big political headache for Beijing if current trends stand.
 

Michael90

Junior Member
Registered Member
Joint ventures with foreign partners are really more of a handicap than help. Automakers got complacent getting free money from their 50% stake without having to do any brand building of their own

Ironically the most successful state owned brand is Changan because they don't have successful joint ventures and stuck with their own name.
Lol Those state owned behemoths should be disbanded and their huge factories sold to BYD or other more promising cbinese companies with better sales/brand value to aid in their expansion. .I don't see the point of the state getting involved in building cars..leave that to private companies and focus on more important sectors. The state shoyld just be regulating the car industry and encouraging local champions..no point in them wasting resources to build cars which are not in demand and with zero brand value. It's a waste.
 

Michael90

Junior Member
Registered Member
Among NEV leaders, I would say BYD and Li Auto are the brightest stars. I think GAC AION also does okay. Generally speaking the state-owned car companies aren't doing too well. I wonder if there will be political pressure to bail out the weakest of them (SAIC or Dongfeng) a few years from now.

The US bailed out GM and in hindsight it isn't clear that was a good idea. They have continued to lag in the EV transition. Letting the market decide is controversial even in Western capitalist countries when very big and politically connected companies are on the line. Does anyone think the German govt would sit idly by if VW was in trouble? A big political headache for Beijing if current trends stand.
Yes but China is different. China has other more promising and innovative car companies who will be the biggest car brands in the world this coming decade, especially ones like BYD Li Auto etc..So letting those old incompetent state owned auto companies to fail will only allow those big private Chinese car brands to pick up the slack and fill the vacuum and provide them even more space to grow. That will be filled by private car companies who are more intense with changing world trends and technology and building theirnown brand value. Those state owned behemoths are behind the times and have no incentive to even build.their own brand, they have been relying on western to brands to make easy quick money and its hard to change that..afterall who doesn't like easy money?
It's up to the Chinese government to keep waiting their resources in keeping this tate owned car companies into business when they could have invested that money into more needed sectors in other Chinaese industries.
 

pevade

Junior Member
Registered Member
Lol Those state owned behemoths should be disbanded and their huge factories sold to BYD or other more promising cbinese companies with better sales/brand value to aid in their expansion. .I don't see the point of the state getting involved in building cars..leave that to private companies and focus on more important sectors. The state shoyld just be regulating the car industry and encouraging local champions..no point in them wasting resources to build cars which are not in demand and with zero brand value. It's a waste.
Why create such chaos in the market when the government can just let the market decide whether those SOEs are competitive with their products?
 

FairAndUnbiased

Brigadier
Registered Member
Joint ventures with foreign partners are really more of a handicap than help. Automakers got complacent getting free money from their 50% stake without having to do any brand building of their own

Ironically the most successful state owned brand is Changan because they don't have successful joint ventures and stuck with their own name.
they'll be fine being parts suppliers and OEMs to BYD, Geely, Li Auto, etc. in the future. Dongfeng also has its own branded commercial vehicles.
 
Top