With the strong rise of the new energy electric vehicle industry, the automobile market has ushered in a major reshuffle.
In order to promote the overall growth of the coverage rate of new energy electric vehicles, a number of experts have jointly proposed a ban on the sale of internal combustion engines, which has been unanimously opposed by the relevant departments of the mainland!
As many giant car companies have announced that they have invested heavily in the research and development of the next generation of internal combustion engines, it confirms the correctness that the mainland has not banned the sale of internal combustion engines. So what impact will the recovery of the internal combustion engine market have on the world auto market?
First, the decline of traditional fuel vehicles
With the maturity of internal combustion engine technology, the world has entered the automobile era, and a series of world automobile brands such as Volkswagen, Mercedes-Benz and Honda have emerged, and Japan and Germany have become the world's automobile center by virtue of the technical patents of internal combustion engines.
With its monopoly on internal combustion engine technology, Japan and Germany made a lot of money, which enabled them to quickly complete economic recovery during World War II and develop into one of the world's top 10 developed countries.
With the increase in the per capita income level of Chinese since China's reform and opening up, the Chinese mainland market has generated strong demand for cars, and has become the world's largest automobile demand market.
However, at the beginning, the mainland did not have a mature domestic car brand, and it could not master the cutting-edge internal combustion engine technology.
With technology patents and brand advantages, German Volkswagen, Mercedes-Benz and other automobile companies have entered the Chinese mainland market, and the German cars have sold well in China by means of joint ventures.
However, due to the backward development of internal combustion engine technology, the mainland can only give up the huge profits of the automobile market!
But all this has changed dramatically with the strong rise of China's new energy electric vehicles. Continental began to focus on patent research in the automotive industry, and selected two markets: new energy vehicles and traditional fuel vehicles.
Although it is difficult for Continental to achieve technological breakthroughs in the internal combustion engine market, it has achieved remarkable achievements in the field of new energy.
BYD's three-electric system and the new energy batteries produced by CATL have promoted the prosperity of the new energy industry in mainland China, and also promoted the transformation of the global automobile market from traditional fuel vehicles to new energy vehicles.
Moreover, with the continuous international disputes, gasoline prices have ushered in a crazy rise, which has further accelerated the pace of implementation of new energy electric vehicles in China.
With the achievement of corner overtaking in the field of new energy vehicles, the mainland is already the world's largest automobile exporter, and Chinese cars are exported to Europe and other overseas markets.
Under the impact of new energy electric vehicles, the sales volume of fuel vehicles in the Chinese mainland market has been declining, and instead of them, the proportion of new energy electric vehicle sales has been increasing, the market share has increased by 12.1%, and the market share of new energy electric vehicles has reached 25.6%.
In order to further promote the coverage of new energy vehicles in Chinese mainland, mainland economic experts have proposed a complete ban on the sale of fuel vehicles and accelerate the nationwide promotion of new energy electric vehicles. However, the application was not supported by the mainland government department.
Unexpectedly, after entering 2024, the global internal combustion engine market has a tendency to "return to the light", and major car companies have increased their research expenditures on internal combustion engines.
So what are the reasons for the change of attitude of the world's major car companies, and what impact will it have on the future development of the global auto market?
2. Reasons for the world's major car companies to increase R&D funds for internal combustion engines
Since the beginning of 2024, Toyota, a veteran Japanese car company, has been the first to decide to increase R&D funding for internal combustion engines.
Toyota Chairman Akio Toyoda said in an interview with the media that Toyota's R&D team found that the internal combustion engine still has a huge space for development, so it decided to increase the internal combustion engine research and development fund.
Coincidentally, for example, Volkswagen, a well-known German car brand, also expressed great optimism about the development prospects of internal combustion engines.
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Volkswagen's chief financial officer said in a high-profile manner at the Munich Motor Show that Volkswagen will increase its research and development funds for internal combustion engines in the future, and even take out one-third of the total funds of the Volkswagen Group, about 60 billion euros, to develop a new generation of internal combustion engines.
In addition, such as Stellantis, an internationally renowned automobile company, and Mercedes-Benz, the three major German luxury car brands, have also announced that they will increase investment in research and development and devote themselves to the research and development of new internal combustion engine models.
The reasons for the change in the attitude of many Western car brands are very complex, including the optimism about the research and development prospects of internal combustion engines, and at the same time, the helplessness of the new energy technology revolution to make progress.
Previously, a spokesman for the German Automobile Association had made it clear that Germany had lost its leading position in the field of new energy electric vehicles, but had become a catch-up.
Volkswagen's CFO and COO Arno Antlitz also said at the Munich Motor Show that the future of the automobile market is new energy, but this does not mean that fuel vehicles will be eliminated by the market, at least now fuel vehicles will account for one-third of the global car market.
At present, a large number of technical patents in the field of new energy vehicles are completely mastered by the Chinese mainland market, while the former automobile giants in Japan and Germany have become complete catch-ups, and their electric vehicle sales are dismal when it is difficult to achieve technological breakthroughs.
In recent years, German car companies have made every effort to catch up with the development pace of China's new energy electric vehicle industry, and have launched a series of new energy electric vehicle models under the brand of giants, but the sales are dismal and unsatisfactory.
And for Western car companies, even if they achieve a breakthrough in the field of new energy electric vehicle technology, it is difficult to compete with Chinese mainland car companies.
This is due to the price advantage of Chinese mainland in labor, which can significantly reduce the price of new energy electric vehicles.
Even under the influence of BYD's price reduction strategy, the price of new energy electric vehicles will usher in a new round of decline in the future, bringing new challenges to Western car companies.
Therefore, knowing that they will not have an advantage in the future competition with China's automobile development, Western auto companies have made business adjustments, in an attempt to bring the world back to the dominant trend of fuel vehicles through the technological revolution of internal combustion engines.
In fact, despite the current development of the global new energy electric vehicle industry, it is undeniable that the global automobile market is still dominated by fuel vehicles.
Even the proportion of each model exported by mainland automobiles, fuel vehicles are also the models with the largest proportion.
Moreover, with the development of new energy electric vehicles in recent years, hybrid models have ushered in development opportunities due to the combination of the advantages and characteristics of the two models, and the export volume has continued to increase.
In the current global auto market pattern, most regions still account for more fuel vehicles, such as the United States, Africa and the Middle East, among which even domestic auto brands such as Chery and Great Wall in the mainland also account for a larger proportion of fuel vehicle exports.
Therefore, the mainland's decision not to ban the sale of fuel vehicles is not unwise, not only allowing the mainland to seize the current trend of the global internal combustion engine technology revolution, but also relying on the export of a large number of fuel vehicles, so that China's local fuel car companies have reaped huge profits.
As foreign car companies increase their R&D investment in internal combustion engines, will it have an impact on the auto market, and what will be the future development of the global auto market?
3. Prospects for the future development of the global automobile market
Although major car companies around the world have increased R&D investment in internal combustion engines, they cannot essentially change the trend of new energy electric vehicles gradually replacing traditional fuel vehicles.
No matter how the technology of the internal combustion engine is adjusted, it will never be able to avoid the disadvantages of environmental pollution and energy consumption, which is also the fundamental reason why it will eventually be replaced by new energy electric vehicles.
If traditional fuel vehicles want to have a second spring, unless the global oil price can come to the price of cabbage, no matter how the internal combustion engine is upgraded in the future, it will not change the fact that fuel vehicles will go downhill.
Moreover, for Japanese car companies such as Toyota and Honda, their research and development of internal combustion engines is not like simply serving fuel vehicles, but more to explore the development balance of hybrid vehicles. Japanese car companies are committed to the research of hybrid internal combustion engines by trying to improve the disadvantages of traditional internal combustion engines through more advanced combustion technology and advances in material science.
In addition, major international car companies are also exploring new possibilities for improving the mileage of internal combustion engines and increasing power.
Therefore, the future of automobiles may show an obvious trend of two-level differentiation, and new energy electric vehicles focus on the daily travel of car owners, and occupy an advantage in environmental protection and driving experience.
Fuel vehicles, on the other hand, focus on performance and mileage, and win the hearts of long-distance car owners.
Although the research and development of a new generation of internal combustion engines cannot hinder the development of new energy electric vehicles, the mainland new energy electric vehicle industry can not slack off, and it can not relax the research and development of technological innovation and patents.
Because in addition to the challenges of internal combustion engines, Japan's hydrogen energy and the solid-state batteries that major global car companies have invested heavily in research and development have the ability to reshape the automotive market pattern in the future.
Therefore, mainland new energy electric vehicle enterprises need to increase scientific and technological research and development funds and grasp the technological initiative.
epilogue
Affected by the rapid development of new energy electric vehicles in the world, many experts in mainland China have suggested banning the sale of internal combustion engines. Now that the development of internal combustion engines has regained its second spring, major car companies around the world have increased investment in the research and development of internal combustion engines, and the internal combustion engine market has ushered in a recovery.
Although the development of internal combustion engines has picked up, it cannot prevent new energy electric vehicles from becoming the mainstream of the future development of the automobile market, and the mainland needs to increase investment in scientific and technological research and development to ensure today's technological leadership.
For the second spring of the internal combustion engine, the mainland fortunately has not banned the sale of internal combustion engines, what do you want to say? Welcome to leave a message in the comment area to discuss.
Resources
Economic Daily November 4, 2022 ""Ban on combustion" should be "established first and then broken"
New Quotes May 15, 2023 "Experts Recommend Banning the Sale of Fuel Vehicles in Five Years"
Chinanews.com, April 30, 2024 "New technologies make the road to "decarbonization" of internal combustion engines wider and wider"