Summary of Key Issues
The performance of automakers in the first half of the year has exposed three major problems: a polarized market (where the top performers have seen their sales double to 190,000 units per month, while the bottom performers only manage a few hundred units), an industry-wide trend of "selling more but making less profit" (with profit margins dropping to 3.2%, even for leading companies like BYD), and most brands failing to meet their annual targets (with Hongmeng Zhihang achieving less than 20% of its goals). More critically, 90% of new energy brands may disappear in the next few years, with those owned by multiple shareholders (such as Jiyue, HEC, and Nezha) being particularly at risk. These brands suffer from three fatal flaws: multiple decision-makers, internal strife, and product compromises, which render them uncompetitive in a rapidly evolving market.
Market Situation: The More You Sell, the Less You Make
The new energy vehicle market has been volatile this year. While leading players like BYD and Tesla have seen significant sales growth, the industry's overall profit margin has plummeted from 5-6% last year to 3.2%, meaning for every $100 in sales, only $3.2 is earned. Even giants like BYD have experienced a sharp decline in profits, and brands like ZeroRun have gone from making a profit to incurring losses.
The situation is even worse when it comes to meeting targets. Most brands have failed to achieve even 40% of their goals, with Hongmeng Zhihang falling well short of its objectives. This indicates that the market has entered a phase where sheer volume is no longer enough; companies must be able to generate actual profits and move forward according to their plans.
Multiple Shareholders as a "Slow Poison": Multiple Decision-Makers
Automobile manufacturing requires quick decision-making, but brands with multiple shareholders often struggle with indecision. Take Jiyue as an example: Geely provided the technology and factory, while Baidu contributed its intelligent driving capabilities. Initially, they collaborated closely, but after changes in equity structure, the two companies began to compete for control. Management had to constantly balance the interests of both parties, wasting valuable time during the crucial launch period of the first vehicle.
Internal Strife Hinders Progress
In today's fast-paced market, decisions must be made swiftly. Xiaomi was able to finalize the pricing for the SU7 in just one night under Lei Jun's leadership, and He Xiaopeng single-handedly brought the appealing design of the PENGUIN MONA L03 to life. However, brands with multiple shareholders are unable to move quickly. Jiyue, for instance, has to obtain approval from both Geely and Baidu for any product changes, a process that can take weeks. This kind of inefficiency is detrimental, as the market does not wait for companies to sort out their internal conflicts.
Product Compromises: Soulless Mediocre Products
Great products are often created by individuals with a strong vision (like Tesla, which ignored investors to focus on the Model 3, or Li Auto, which persisted with its range-extended technology despite criticism). Brands with multiple shareholders, on the other hand, end up with product managers who cater to the interests of various shareholders, resulting in products that are free from major flaws but also lack distinctiveness. For example, Jiyue's product positioning has been inconsistent, and AIVA, a collaboration between ByteDance and Seres, uses ByteDance's technology for its infotainment system but lacks a solid foundation for advanced driving features.
Breaking the Cycle: Who Really Makes the Decisions?
To break the cycle of multiple shareholders leading to slow decision-making and poor product quality, a clear leader with authority is essential. Leaders like Lei Jun and He Xiaopeng can drive rapid progress. Brands with multiple shareholders, without such a figure, will continue to struggle with internal conflicts and miss critical opportunities.
In conclusion, the elimination race among new energy automakers has begun. Those brands that cannot resolve issues related to decision-making, speed, and product quality are likely to be among the first to fail. Consumers should pay attention to the decision-making efficiency of these companies when considering purchasing vehicles. After all, if a company cannot manage itself effectively, how can we trust its products?