New Energy Vehicles (NEVs) in China

tphuang

tphuang

Lieutenant General
Staff member
Super Moderator
VIP Professional
Registered Member
https://twitter.com/i/web/status/1664971990820704257

Alright, pricing for Dolphin in HK is out. Pricing here looks more reasonable than what you have in NZ & EU. Makes sense given lack of tariffs, local dealer costs & shipping. It seems like this higher spec'd Dolphin (490km for extended range version) is just targeting richer countries with dealer networks and tariffs.
 
S

sndef888

Captain
Registered Member
Chinese auto sector needs to consolidate fast.

This is a once in a lifetime opportunity to take over the global market but China is held back because nobody (other than arguably BYD) is really large enough to build up a global network.

Changan, Wuling, Geely, GAC, Chery, JAC, GWM (+FAW, Dongfeng, SAIC) are all busy getting protectionism subsidies from their state governments and fighting price wars and keyboard wars with each other while selling basically the same cars. Thus keeping each other down.

The central government should stop local protectionism and help Changan absorb all the other companies' market share, especially for family car segment. Changan has strong enough brand name and good-looking enough design that nobody will really miss those companies absorbed. Like, someone who wants a Chery Arrizo 5 will likely be just as happy getting a Changan Eado, or JAC EV3 > Changan Lumin 5 seater version etc etc...
 
Last edited:
coolgod

coolgod

Colonel
Registered Member
sndef888 said:
Chinese auto sector needs to consolidate fast.

This is a once in a lifetime opportunity to take over the global market but China is held back because nobody (other than arguably BYD) is really large enough to build up a global network.

Changan, Wuling, Geely, GAC, Chery, JAC, GWM (+FAW, Dongfeng, SAIC) are all busy getting protectionism subsidies from their state governments and fighting price wars and keyboard wars with each other while selling basically the same cars. Thus keeping each other down.

The central government should stop local protectionism and help Changan absorb all the other companies' market share, especially for family car segment. Changan has strong enough brand name and good-looking enough design that nobody will really miss those companies absorbed. Like, someone who wants a Chery Arrizo 5 will likely be just as happy getting a Changan Eado, or JAC EV3 > Changan Lumin 5 seater version etc etc...
Click to expand...
Why Changan? Why not GAC or SAIC? The central gov can't pick and choose winner, there are lots of regional interests involved.
 
K

KYli

Brigadier
Changan, FAW and Donfeng have been asked to merge for many years with no available as there are too much interests involved. However, in a few years, these companies might have no choice but to merge their passenger cars divisions and Changan might emerge to be a winner for small and medium cars division. Both FAW and Donfeng have a very strong commercial vehicles divisions which are unlikely to merge. FAW's Hongqi is another division that won't likely to be merged with others due to its uniqueness.

GAC and SAIC are local government state owned companies which mean these companies are unlikely to merge with each others or to the central government state owned companies such as FAW, Donfeng or Changan.

JAC and Chery can merge but both companies don't want to and it doesn't look like there is any will to do so even though both companies are local state owned companies from Anhui.

Geely and GWM are both private owned companies that won't have any interests or incentives to merge with other companies. Many of the new EV companies such as Nio, Xpeng or even Li Auto can be acquired by bigger rivals with weak EV lineups. Of course, Li Auto is doing well enough to be remained as a contender by itself.
 
S

sndef888

Captain
Registered Member
coolgod said:
Why Changan? Why not GAC or SAIC? The central gov can't pick and choose winner, there are lots of regional interests involved.
Click to expand...
Behind BYD, Changan is probably the most successful Chinese brand in terms of brand recognition. GAC is split between Trumpchi and Aion, while SAIC's MG and Roewe are basically dead in China. Same goes to Geely, GWM, Chery etc.

But the main reason is because Changan is a central govt company, while GAC and SAIC are owned by provincial governments. I'd assume any such consolidation move by Beijing would favour Changan.

Provincial governments will be pissed but they'll have to deal with it. They can try converting factories to parts suppliers, etc. Do whatever they have to do. It's not like GAC and SAIC are doing very well under the current situation anyway, since BYD is destroying the profitability of their joint ventures (Toyota, Honda, VW, GM) while their factories for their own brands are way underutilised.

KYli said:
Changan, FAW and Donfeng have been asked to merge for many years with no available as there are too much interests involved. However, in a few years, these companies might have no choice but to merge their passenger cars divisions and Changan might emerge to be a winner for small and medium cars division. Both FAW and Donfeng have a very strong commercial vehicles divisions which are unlikely to merge. FAW's Hongqi is another division that won't likely to be merged with others due to its uniqueness.

GAC and SAIC are local government state owned companies which mean these companies are unlikely to merge with each others or to the central government state owned companies such as FAW, Donfeng or Changan.

JAC and Chery can merge but both companies don't want to and it doesn't look like there is any will to do so even though both companies are local state owned companies from Anhui.

Geely and GWM are both private owned companies that won't have any interests or incentives to merge with other companies. Many of the new EV companies such as Nio, Xpeng or even Li Auto can be acquired by bigger rivals with weak EV lineups. Of course, Li Auto is doing well enough to be remained as a contender by itself.
Click to expand...
Yeah, it's a very hard thing but I think it has to happen eventually. The central govt needs to put in more effort even if it pisses off regional actors. So many SOEs in other industries have already been merged to form competitive megacorps while the car industry is still a mess of small uncompetitive (globally) companies.
 
Last edited:
K

KYli

Brigadier
I understand the needs to consolidate. However, when SAIC gobbled up Nanjing Auto many years ago, it left Nanjing with nothing. No local government would want any merger unless they are desperate. Even though Changan, FAW and Donfeng are owned by the central government, these companies also have many regional interests. As for private owned auto companies, the government has no say in them.

Unlike highly polluted steel giants, auto sectors provide a lot of employment with very good pays and much less pollution. No one is going to give them up easily.
 
M

Michael90

Junior Member
Registered Member
KYli said:
I understand the needs to consolidate. However, when SAIC gobbled up Nanjing Auto many years ago, it left Nanjing with nothing. No local government would want any merger unless they are desperate. Even though Changan, FAW and Donfeng are owned by the central government, these companies also have many regional interests. As for private owned auto companies, the government has no say in them.

Unlike highly polluted steel giants, auto sectors provide a lot of employment with very good pays and much less pollution. No one is going to give them up easily.
Click to expand...
Agree, but they will have to one way or another. They can't keep on like this even for 2 more years, it will only make things even worse for them as BYD , Li Auto and other more competitive auto companies totally dominate the Chinese car industry . So it's either they consolidate or die a natural painful slow death.
There is no way China can have dozens of auto companies for the long term. Its a total waste of resources and capital. Better for them to to cut their losses and move on.
 
You must log in or register to reply here.
Top