Although the domestic auto market has reached a turning point dominated by new energy vehicles, this does not mean that everyone can get a piece of this increasingly big pie.

On August 10, 2024, in Changzhou, Jiangsu, citizens were choosing new cars at the auto show.

New energy vehicle penetration rate exceeds fuel vehicles for the first time

Event Overview: In June 2024, the retail sales volume of the domestic passenger car market was 1.72 million units, a year-on-year decrease of 2.8%. Among them, the retail sales volume of traditional fuel vehicles was 840,000 units, a year-on-year decrease of 26%; the retail sales volume of new energy vehicles was 878,000 units, a year-on-year increase of 36.9%. In July, the domestic retail penetration rate of new energy vehicles was 51.0%. In other words, new energy vehicles have become the real protagonist of automobile sales.

Comment : The wheel of time is rolling forward, and fuel vehicles have become the "carriage" of the new era. Judging from the performance of manufacturers, this trend has also been followed. BYD Auto and Ideal Auto both achieved a surge, with Ideal Auto increasing by 49.4%, entering the top ten domestic manufacturers for the first time. Chery Automobile, which has begun to fully develop new energy vehicles, also achieved a big increase.

In July, its year-on-year growth was 51.0%, making it the manufacturer with the largest increase among the top ten automakers.

Brands lagging behind in the new energy sector will not fare well in terms of overall sales either. For example, Changan Automobile’s sales fell by 27.2% year-on-year, while joint ventures such as FAW-Volkswagen and GAC Toyota also saw sharp declines. Japanese joint ventures such as GAC Honda, Dongfeng Honda, and Dongfeng Nissan did not even make the top ten.

In fact, since April and May this year, the weekly sales and biweekly penetration rate of new energy vehicles have occasionally exceeded 50%, but July was the first time that the monthly penetration rate exceeded that of fuel vehicles. It can be said that we are witnessing the "iPhone moment" of the automotive industry.

However, with the rapid improvement of new energy vehicle technology and intelligent technology, the cost has dropped rapidly, which has also led to the price system of new energy vehicles being less stable than in the past era of traditional oil vehicles. The probability of consumers becoming "leeks" is getting higher and higher. It has become a fact that the new car bought today will drop by 50,000 yuan tomorrow.

In addition, due to the intensification of internal competition in the new energy vehicle industry, the situation of "price reduction and quality reduction" covered by "price reduction and increased configuration" is becoming more and more serious - the cost performance of new cars is getting higher and higher, but in fact, the standards of structural parts that consumers cannot see are gradually lowered. No wonder Wei Jianjun, chairman of Great Wall Motors, recently called for an industry-wide audit to eliminate cheating and fraud in the automotive industry.

Car manufacturing should not have "diode thinking". It is neither a computer on wheels nor a purely mechanical commuting tool. It does not mean that we can ignore the mechanical quality of the car just because it has advanced intelligence. Nor should we rest on our laurels and think that intelligence is an impractical "pseudo-innovation" just because of its excellent manufacturing process and durability.

In short, we hope that when the automotive industry enters the threshold of a new era, it will not stumble and rush, but will stride forward with confidence and strides.

Human Horizons files for bankruptcy reorganization

Event Overview: On August 9, HiPhi Auto's parent company Human Horizons Technologies Co., Ltd. filed a bankruptcy reorganization application with the People's Court of Yancheng Economic and Technological Development Zone. The company is facing financial difficulties because its assets are insufficient to repay matured debts. Ding Lei, the legal representative of Human Horizons Technologies Co., Ltd., has been subject to multiple consumption restrictions before.

According to public information, Human Horizons Technology Co., Ltd. is related to HiPhi Auto. The application for bankruptcy reorganization is based on the judgment that the company has the value and possibility of reorganization.

Comment : Previous rumors that FAW, Changan and other national teams were going to acquire/invest in HiPhi were dispelled by a bankruptcy reorganization application.

In fact, even when HiPhi was operating normally, it never appeared at the center of the stage in the era of smart electric vehicles. Ding Lei, the founder with a dual political and business background, did not lead the team to successfully cross the single-plank bridge of new forces in car manufacturing as he wished. On the contrary, its car-making concept of emphasizing mechanical design and quality is out of place in the current era when the industry generally pursues smart software black technology. This is hardly ironic.

But on the other hand, when a company becomes large in size, its success is often no longer determined by the personal will of the founder. Various aspects such as the loyalty of its executives and the efficiency of its organizational structure always affect the company's competitiveness in the market.

Comparing the current leading new forces such as Weilai, Xiaopeng, and Ideal, it is not a smooth journey. There is Li Bin, the "most difficult person", He Xiaopeng who once said that "the key to car manufacturing is operation rather than manufacturing", and Li Xiang who said "we don't have technology, what technology do you know", these companies have encountered different "obstacles" at different time points.

The situation of HiPhi is similar. According to media reports, some senior executives of HiPhi are keen on forming cliques, giving orders blindly, and being ambitious. The negative impact of these small actions in large companies may take a long time to manifest, but in startups, they are undoubtedly "immediate".

At this point, if there is not enough leadership and determination, then exiting the stage of history is a high probability event.

However, it is worth noting that this time Human Horizons filed for "bankruptcy reorganization" rather than "bankruptcy liquidation", which means that it still has hope of making a comeback through asset integration or acquisition.