On June 6, the 2024 China Automotive Chongqing Forum was held. Entrepreneurs, experts and scholars expressed their opinions and suggestions on hot topics in the industry. Among them, on the persistent hot topic of "volume", the industry reached a consensus - don't just focus on the present, but have a long-term perspective.
Wang Xia, president of the Automotive Industry Branch of the China Council for the Promotion of International Trade, believes that the second half is not the final battle, and it may be even longer than the first half, and there may even be overtime. We must persist in implementing this long-termism and fight a protracted war.
Wang Xia mentioned that competition among automakers has been very fierce recently. In terms of configuration, speed, traffic, and bosses, it feels like the fast-forward button has been pressed in the second half. The knockout rounds are accelerating, and victory or defeat seems to be just around the corner.
However, he believes that the transformation of the industry will not end quickly in a simple and crude rhythm. The automotive industry must have a clear understanding of the importance, difficulty and long-term nature of the "second half".
Wang Xia said that car companies can win in the first half by relying on first-mover advantage, capital advantage and speed, but in the second half they must have system capabilities, sustainability, adaptability and differentiated core capabilities. Although the penetration rate of new energy vehicles has exceeded 50% for the first time, and the market share of Chinese brands has exceeded 60%, the competition between new energy vehicles and fuel vehicles, and between Chinese brands and joint venture brands is far from the end, and there are still many uncertainties, and each will have a lot of room for development.
In Wang Xia's view, the second half of the development of the automobile industry will start with a price war, but the final victory will be won by technology and value war. It is impossible to avoid price wars, but there is no future if you only fight price wars.
Zeng Qinghong, Chairman of GAC Group, said in his speech that enterprises should have a long-term strategy, rather than "rolling" for the present. They should also stand in the national interest and promote long-term development. He said: "What is the purpose of running a business? Profits, what do you do with profits? Contribute to the country, contribute to society, pay taxes, and provide employment. How many layoffs have been made now? I can tell you that GAC has also laid off a lot of people. If this continues, what will happen to society and the country?"
Zhu Huarong, chairman of Changan Automobile, also opposes low-end volumes. He believes that we must adhere to a user-centric approach and be realistic in our publicity to avoid overdrawing the trust of society and users in the industry.
In addition, Zhu Huarong mentioned that it is necessary to strengthen scientific and technological innovation to quickly break through and solve the pain points of the industry.
On the basis of benign volume, Zhu Huarong believes that "volume is the process of good money driving out bad money. Volume itself means the pursuit of excellence, which will bring new heights to Chinese brands, maximize user benefits, and truly create value for users. I believe that in the next ten years, more Chinese brands will be rolled into world-class brands."