Friday, May 24, 2024
ElectricNewspaper focuses on why legacy car makers lag behind in EV market

Newspaper focuses on why legacy car makers lag behind in EV market

The popularity of new car makers in China’s fast-growing new energy vehicle market and the apparent lagging behind of many traditional car makers has sparked much discussion.

In an article published Monday, the Yangcheng Evening News in the southern Chinese city of Guangzhou focused on the issue, saying that what traditional car companies hate about themselves is that they seem to understand why the new car makers are winning, but they just can’t do it right.

The article said that traditional car companies can’t seem to shake the burden of the fuel car era, let alone the decision-making and operational mechanisms, even though they are also making new energy vehicles.

Instead, the electric car market seems to be the domain of the newest car companies, which were born only a few years ago, the article reads.

“The new car makers are eyeing electric, smart and connected vehicles in a desperate bid to maintain a state of zero distance from the founders to the designers to the users,” according to the article.

While executives of traditional car companies toil to plan their transformation, set up new departments, build new factories and try to imitate the words of young people, they also have to divide their energy to consider the manufacturing and production of fuel vehicles.

And the founders of young car-making new forces, backed by venture capitalists, have run away with it, according to the article.

While some traditional media still worry all day about the difficulties of charging, battery fires, and poor regulations, the new generation of young people seems to be unaffected by these problems at all.

Obviously, it is a different mindset that separates the groups completely. The younger the mindset, the more fearless they are with their new aesthetic, consumer, and car views, the article reads.

The various principles and standards that traditional car companies see may simply be as light as a feather in the eyes of the emerging group. As long as the delivery and payment problems are solved, buying a car, like buying a cell phone, becomes a habit for this group, according to the article.

This divide in thinking and perception also predisposes new power car companies to have an advantage, allowing them to still take China’s young consumers a long way, the article reads.

Against the backdrop of an overall positive new energy vehicle market, the new car makers, including NIO, XPeng Motors, and Li Auto, have all turned in what looks like good sales results.

XPeng sold 6,665 units in June, up 617 percent year-over-year. Its cumulative sales for the first half of the year were 30,738 units, up 459 percent year-over-year, and already exceeded the number of deliveries for the whole of 2020.

NIO delivered 8,083 units in June this year, up 116.1 percent year-on-year, which is NIO’s highest sales volume in a single month.

NIO delivered a total of 41,956 new vehicles in the first half of the year, up 196.1 percent year-on-year and reaching 95.9 percent of the company’s full-year deliveries last year.

Li Auto sold 7,713 units in June this year, up 320.6 percent year-on-year. In the first half of this year, Li Auto delivered a total of 30,154 units of Li ONE, up 216.5 percent year-on-year.

In addition to the three new car makers, Neta Automobile and Leap Motor also performed very well in June.

Neta has sold more than 4,000 units for three consecutive months. 21,104 units were sold from January to June, an increase of 478 percent year-on-year.

Leap Motor’s sales in June reached 3,941 units, up 893 percent year-on-year, with cumulative sales of 13,045 units in the first half of the year.

This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.

CnEVPost is a website focused on the coverage of the new energy vehicle industry in China. As with our original intent for CnTechPost, there are a lot of interesting things happening in the Chinese EV industry every day, but they are not covered by the mainstream English language media. We're here to keep track of what's happening in the Chinese EV industry and strive to be the first to publish what we see in English.