The pattern opened, and new energy vehicles entered the hinterland of fuel vehicles

Source of this article: Time Weekly Author: Liao Wei

Since the beginning of this year, China's new energy vehicle market has shown a rapid development trend.

At the end of 2020, the penetration rate of domestic new energy vehicles just crossed the 5% dividing line, but by November this year, the data had climbed to 20%, and the industry's development speed far exceeded industry expectations. According to the data of the Federation, the wholesale sales of new energy passenger vehicles reached 429,000 units in November, an increase of 17.9% month-on-month and 133% year-on-year.

With the sharp increase in sales, the new energy vehicle market has also blossomed. A number of new power car companies have successively exceeded the 10,000 monthly sales mark, of which "Wei Xiaoli" reached a mass production milestone of 100,000 during the year, the sales of new energy models under joint venture brands such as Volkswagen continued to rise, and traditional car companies such as Geely, Dongfeng, and SAIC rushed to split or incubate the new Zhidian brand to accelerate the transformation.

"Although there is a situation of 'lack of core and less electricity' in the new energy automobile industry during the year, and now it is facing a situation of subsidy decline, these will not have any impact on the development of the industry." On December 31, Cui Dongshu, secretary general of the Association, told the Times Weekly reporter that "at present, the new energy vehicle market is already in the transition from policy-driven to market-driven, and a smooth transition can be achieved."

For the future development of the industry, Wang Chuanfu, chairman of BYD Co., Ltd., recently said, "From 2021, the average monthly penetration rate of new energy vehicles has increased by 1.3 percentage points." According to this calculation, in December 2022, the penetration rate should increase by 1.3% per month on top of 20%, and this data should be 35% in the end."

The new energy vehicle market is full of flowers

"I can't understand why everyone still buys a gas car now, to be honest, this is how nostalgic it is to buy a gas car, in addition to being able to smell some gasoline, what else is good?" Listen? At the recent NIO Day 2021, Li Bin, founder and chairman of Weilai Automobile, said.

In the industry's view, its ridicule of fuel vehicles and related purchasing groups, in addition to the continuous improvement of new energy vehicle market, energy replenishment and other facilities, is also closely related to its own rapid development this year. According to official data, WEIO delivered 10,878 units in November, a record high, with a cumulative delivery of 80,940 units in the first 11 months, an increase of 120.4% year-on-year.

Not only Weilai, Xiaopeng and Ideal, who have eaten the dividends of the times, have exceeded 10,000 deliveries in November, and have reached the 100,000 delivery milestone in the second half of this year. Traditional car companies also frequently exert efforts in the field of new energy, blowing the clarion call of transformation. For example, Volkswagen's ID. series and GAC Aeon' new car deliveries exceeded 14,000 units in November, and BYD's sales of new energy models reached 90,121 units in the month.

In this new energy vehicle feast, the real top stream is Wuling Hongguang and Tesla. With its small and cute shape and extremely close to the people's price, Wuling Hongguang MINI EV accurately detonated consumer demand for micro-electric vehicles at the beginning of its listing, and was jokingly called "the people's scooter" by netizens. According to data from third-party data platforms, the cumulative sales of Wuling Hongguang MINI EV in the first 11 months have reached 333,900 vehicles, and its sales in October once surpassed Xuanyi, becoming the first model in the monthly sales volume of the car list of the Association.

With the advantages of brand and product strength, Tesla is very popular in the Chinese market. The data shows that in the first 11 months, model Y sales reached 130,000 units, surpassing model 3 (121,100 units). In September this year, the Model Y sold 33,033 vehicles, once surpassing the SUV segment overlord Haval H6 and topped the list.

It is worth mentioning that today's new energy vehicles to replace fuel vehicles have a strong momentum, but they are mainly concentrated at both ends, that is, the price of electric vehicles below 100,000 and more than 200,000 is hot, and it has not really penetrated into the hinterland of the fuel vehicle market - 100,000 yuan to 200,000 yuan market.

In this regard, some insiders said that the main reason is that there are more choices for fuel vehicles in the price range of 100,000-200,000, and the cost performance of new energy vehicles is relatively low, which is mainly manifested in expensive prices, short mileage and slow charging speed.

But with the passage of time and the advancement of technology, this situation is gradually changing. Anxin Securities previously issued a research report that with the continuous decline in the cost of pure electric vehicles, the accelerated launch of 600km endurance models and the gradual solution of charging anxiety, pure electric vehicles of 100,000-200,000 yuan are expected to accelerate the replacement of fuel vehicles. Zheshang Securities Research Report pointed out that before the domestic new energy vehicles were mainly BEV, PHEV sales were mainly concentrated in the price range of 160,000-280,000 yuan. In the future, with the launch of cost-effective, low-fuel consumption hybrid models launched by BYD and Geely, it is believed that the penetration rate of PHEV is expected to increase.

Traditional car companies open trumpets to impact the high-end market

The wave of intelligent electrification is not only regarded as an opportunity for national cars to overtake in curves, but also helps the road to high-end of independent brands.

According to the Times Weekly reporter, at present, a number of traditional car companies have split or incubated the establishment of new smart electric brands, including Changan's Avita Technology, Dongfeng Lantu, Geely Krypton, SAIC Feifan Automobile, Xiaokang shares AITO and so on.

"This is mainly to prevent the adverse impact of the original traditional car system on the mechanism brought about by the development of new energy vehicles." In this regard, Cui Dongshu pointed out to the Times Weekly reporter. Some independent brand insiders told the Times Weekly reporter that compared with the traditional fuel vehicle era, consumers' pursuit of engine displacement, as well as power, torque and other parameters, the competition in the era of electrification, mainly falls on the degree of intelligence and the convenience of battery life and energy replenishment. In its view, compared with the old car companies, the so-called "small boat is good to turn around", and independent brands without baggage will usher in the best time for development.

"Huawei's consumer business, mobile phone industrial design team, software and user experience team to create this product (Q&A M5) to help car companies build products that can truly lead this era, and (provide) leading product solutions that can solve the pain points of fuel vehicles and electric vehicles." At the recent Huawei Motivation Flagship New Product Launch Conference, the AITO Q&I M5 jointly created with Xiaokang Co., Ltd. was officially unveiled, and Yu Chengdong, Managing Director of Huawei, CEO of Consumer BG, and CEO of Smart Vehicle Solution BU, said at the press conference.

The head of its own brand to open a "trumpet" to launch an impact on the high-end market, trying to complete the more difficult tasks in the era of fuel vehicles, but new brands will inevitably encounter problems and challenges on the road to growth.

Take, for example, the extreme krypton that has been mass-produced and delivered. In April this year, the Krypton brand was officially released, and its first model, The Krypton 001, was also unveiled at the same time. With the sports and fashion hunting style, quite good product strength and relatively high cost performance, at the beginning of the release, The Extreme Kr 001 attracted many consumers. It is reported that from 9 p.m. on April 15 to 0:00 on the 16th, the car has received nearly 2,000 orders from Dading.

After the explosion, the car also fell into a series of storms such as "goods are not on the right board", and was defended by the prospective owner, during which Extreme Kr CEO An Conghui also issued an apology. However, the flaws are not hidden, and the product level is full of highlights of the extreme Kr 001, so that most prospective owners and owners have enough patience and trust in this new brand. According to official data, the first month of delivery of the Krypton 001 reached 2012 units. It is understood that the delivery area is more than 150 cities across the country, and the average order amount of Dading has reached 335,000 yuan.

"These are all new features in the development of the industry, which are always inevitable, and many of the practices of new brands in the development process are not the same as those of traditional car companies, and they need more understanding, and we should hold an attitude of recognition and encouragement." For the above phenomenon, Cui Dongshu told the Times Weekly reporter.