[Voice of Hope April 25, 2024](Comprehensive report by our reporter Li Hui) The Beijing International Auto Show opens today, with major global car brands exhibiting their latest electric vehicles. The price war for new energy vehicles will become more intense.
On April 25, the 2024 (18th) Beijing International Automobile Exhibition kicked off. The exhibition locations are located at the Shunyi Pavilion and Chaoyang Pavilion of the China International Exhibition Center in Beijing. The exhibition area reaches 220,000 square meters and will last until May 4. .
According to The Paper, this auto show will have 117 new cars from well-known domestic and foreign brands making their global debut here, as well as 41 concept cars and 278 new energy models.
The Beijing Auto Show is usually held every two years, alternating with the Shanghai Auto Show. This year is the first time since the 2019 epidemic. Chinese industry leaders including He Xiaopeng, CEO of Xpeng Motors, and Lei Jun, President of Xiaomi, attended the auto show and gave speeches.
With the strong subsidies from the Chinese Communist Party government, China’s electric vehicle market has experienced explosive growth in recent years, resulting in serious overcapacity problems. Agence France-Presse quoted Rystad Energy data as saying that by December last year, China’s electric vehicle sales accounted for 69% of global sales.
These new energy vehicles dumped overseas at low prices have triggered protests in many countries. Last year, the European Union launched a countervailing investigation into Chinese electric vehicles, while U.S. lawmakers proposed imposing a 125% tariff on new energy vehicles from China.
The problem of overcapacity of new energy vehicles in China has not only caused “cry and fight” from many overseas countries, but has also caused serious internal infighting in China.
As of August 2023, there will be about 100 electric vehicle manufacturers in China, while this number was 500 in 2019. This means that about 400 electric vehicle manufacturers in China have closed down in five years.
However, despite the large number and low price, the competitiveness of Chinese electric vehicles in the country does not seem to be optimistic.
According to statistics from Bloomberg, of the 129 existing car brands in China, only 20 can account for 1% of the domestic market share.
BYD is China’s largest new energy vehicle manufacturer, accounting for about one-third of the Chinese market, while Tesla only accounts for 8% of the Chinese market.
Excess production capacity has also led to an intensification of the electric vehicle price war, especially in the context of China’s economic downturn and slowing consumption.
In February this year, BYD launched a comprehensive price war; in April, Tesla followed up and announced that it would reduce the price of each vehicle sold in China by 14,000 yuan; subsequently, Li Auto announced that it would reduce the price of each vehicle by 40,000 yuan.
Some analysts believe that China’s electric vehicle price war has just begun, and the wave of price cuts that has lasted for many months will continue.
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Tags: price war opening Beijing Auto Show intense foreign countries clamor beat domestic hot rolls energy vehicles Electric vehicles Beijing International Auto Show China International Exhibition Center energy vehicle price war Overcapacity
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