The Acceleration of the Automotive Industry's Transformation: Nearly 80% of New Vehicles Are Now Renewable Energy, with Conventional Cars on the Decline?
Hello everyone, I'm your financial journalist. Today, we're talking about a “new car list” recently released by the Ministry of Industry and Information Technology (the 411st batch of the “Announcement on Road Motor Vehicle Manufacturers and Products”).
This list may seem dull, filled with vehicle codes and parameters, but it's actually a “barometer” for the automotive industry. It tells us: Which new cars will be on the market in the coming months? And in which direction are the car companies focusing their efforts?
To put it simply: Out of the new cars declared this time, nearly 8 out of every 10 are renewable energy vehicles. Conventional cars are still around, but they have become the minority. Meanwhile, joint-venture brands are still clinging to the conventional car market, while domestic brands are making rapid progress with renewable energy and hybrid vehicles.
Below, I'll break down this news into five key points that everyone will find interesting, explained in plain language.
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1. A High Proportion of New Vehicles Are Renewable Energy
Let's start with the most straightforward data: 58 new passenger vehicles were announced, of which 46 are renewable energy vehicles, accounting for 79.3%.
What does this mean?
It's like going to a restaurant where 8 out of 10 dishes on the menu are vegetarian or light, with only 2 being traditional braised pork. This indicates that car companies have shifted their R&D resources and production lines towards electrification.
- Pure Electric Vehicles (BEVs): 23 models, accounting for half of the renewable energy vehicles. These are the most fully electric options, ideal for urban commuting and those with convenient charging access.
- Plug-in Hybrid Vehicles (PHEVs): 21 models, following closely. These are the versatile options that can be refueled or charged, addressing concerns about range and are very popular with the public.
- Extended Range Electric Vehicles (EREVs): 2 models. Although fewer in number, they represent the main technology focus for brands like Ideal and Wengui, suitable for long-distance travel.
Implications for consumers:
If you're thinking about buying a car soon, you'll find an increasing variety of renewable energy options, and competition will be fiercer. To capture the market, car companies may offer more discounts on configurations and prices.
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2. Conventional Cars Divided Equally Between Joint-Venture and Domestic Brands, but with Different Futures
Of the 12 conventional cars declared this time, joint-venture brands (such as BMW, Hyundai, Buick) and domestic brands (such as Roewe, Great Wall) each had 6 models. However, the behind-the-scenes stories are quite different:
- Joint-Venture Brands (6 models):
- Beijing Hyundai: 3 models
- Brilliance BMW: 2 models
- SAIC-GM-Buick: 1 model
Interpretation: Joint-venture brands still have a presence in the conventional car market, especially luxury brands like BMW, for which conventional cars are an important source of profit. They haven't completely abandoned this market and are focusing on maintaining their position.
- Domestic Brands (6 models):
- SAIC Roewe: 2 pure-conventional cars
- Great Wall Group: 4 models (3 of which are hybrid vehicles)
Interpretation: Note that 3 of Great Wall's models are hybrid vehicles (HEVs) that cannot be plugged in and can only be refueled. This shows that domestic brands are also trying to reduce fuel consumption and improve competitiveness with hybrid technology, rather than just selling pure-conventional cars.
Implications for consumers:
If you're set on buying a pure-conventional car, your choices are narrowing. Joint-venture brands may offer more “traditional” options, while domestic brands might introduce more hybrid models with lower fuel consumption, though prices may also increase accordingly.
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3. Great Wall Automobile's Slower Transition to Renewable Energy
The news specifically mentioned Great Wall Automobile as having a slower transition to renewable energy. Here's the data:
- Great Wall Automobile (August): Total sales of 113,400 units, with 40,000 renewable energy vehicles, a renewable energy penetration rate of 36%.
- BYD (August): 100% renewable energy vehicles (has completely stopped producing conventional cars).
- Geely Automobile (August): Renewable energy penetration rate of over 65%.
- Chery Automobile (August): Renewable energy penetration rate of near 43%.
What does this mean?
- BYD is leading the way, having completely moved away from conventional cars.
- Geely and Chery are catching up quickly, with renewable energy accounting for more than half of their sales.
- Great Wall is relatively conservative. Although it's also promoting renewable energy models (such as Ora and Wei), its conventional cars (such as Harvester and Tank series) still contribute significantly to sales.
Implications for consumers:
If you value a brand's technical heritage and the reliability of conventional cars, Great Wall's conventional models may still have advantages. However, if you seek intelligence and lower operating costs, Great Wall's renewable energy models might not be as competitive as those from BYD and Geely. Great Wall's slower transition may mean it's not as aggressive in terms of product innovation and pricing in the renewable energy sector.
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4. A Gap Between Declaration and Market: Car Companies Are More Aggressive Than Consumers
Here's a crucial comparison:
- Market sales (actual sales in August): Renewable energy vehicle penetration rate of 64.2%.
- New car declarations (this list): Renewable energy vehicle proportion of 79.3%.
What's the difference?
There's a 14 percentage point gap between the two!
What does this mean?
- Car companies are stockpiling and preparing for the future: They realize that the future belongs to renewable energy and are focusing all their efforts on developing and declaring new renewable energy vehicles, preparing for a market explosion in the next 1-2 years.
- The market is still adapting: Although consumers are increasingly accepting renewable energy, the 64.2% penetration rate indicates that more than one-third of cars are still conventional. The market is evolving, but it hasn't yet fully embraced electrification.
- The dilemma for joint-venture brands: Mainstream joint-venture brands have a renewable energy penetration rate of only 15.7%, while domestic brands have a high rate of **74.3%. This shows that joint-venture brands are falling behind in their transition to renewable energy, still relying on conventional cars, while domestic brands have already completed their transformation.
Implications for consumers:
In the next 1-2 years, you'll see a large number of new renewable energy vehicles on the market, and competition will be fierce. Joint-venture brands may face greater pressure due to insufficient technology and slower market response. If you're considering buying a joint-venture brand, it's advisable to pay more attention to the performance of their renewable energy models, not just their conventional cars.
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5. Summary and Outlook: The Tipping Point of the Automotive Industry Has Arrived
Putting all these points together, we can draw the following conclusions:
1. Renewable energy is the absolute mainstream: Whether in new car declarations or market sales, renewable energy has taken the lead, with conventional cars becoming the minority.
2. Domestic brands are leading, while joint-venture brands are catching up: Domestic brands have a strong product and market advantage in renewable energy, while joint-venture brands are lagging behind in their transition.
3. Diverse technology options: Pure electric, plug-in hybrid, extended range, and hybrid technologies are all developing. Consumers can choose the most suitable power source based on their needs (urban commuting, long-distance travel, charging facilities, etc.).
4. Intensifying competition and possible price wars: With a high proportion of renewable energy vehicles and fierce competition among domestic brands, future new car prices may become more affordable, and configurations will improve.
Advice for consumers:
- Don't rush to buy a conventional car: Unless you have specific needs (such as frequent long-distance travel, no charging facilities, or high brand loyalty), consider renewable energy vehicles first.
- Watch out for joint-venture brands' renewable energy offerings: Do they have competitive products that could offer new choices?
- View penetration rates rationally: Higher penetration rates indicate a more mature market, but also more intense competition. As consumers, you can expect more discounts and better products.
In summary, this announcement tells us that the electrification of the automotive industry has moved from a concept to reality and is accelerating. As consumers, we are at a pivotal moment with more choices than ever, but we also need to make more informed decisions.