The 21st Guangzhou International Auto Show is currently underway, with a reported 59 global debut cars, 20 concept cars, and 469 new energy vehicles on display, attracting many domestic and foreign car companies to participate. Before the opening of the Guangzhou Auto Show, BYD released the E-Seed concept car, equipped with a number of cutting-edge technologies, sparking discussions across the internet. In addition, Tesla, which continues to disrupt the new energy market, raised the price of the Model 3/Y rear-wheel drive model this week. It is unknown whether Tesla has considered whether it can still achieve its annual sales target of 1.8 million units after the price increase. Just as everyone was discussing Tesla’s price increase, the 2-day Intelligence S7 release brought good news, with pre-orders exceeding 10,000, which is indeed a positive development. Stay tuned for more details. #2023GuangzhouAutoShow# Views: 89.805 million Event Recap: The 21st Guangzhou International Auto Show will be held from November 17th to 26th, 2023 at the China Import and Export Fair Complex.
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Review: The annual Guangzhou Auto Show is the “barometer” of the Chinese auto market, summarizing the current year’s market and providing a glimpse into next year’s market. Judging from the lineup of exhibitors, new energy vehicles are undoubtedly the focus of this year’s show, with independent brands being the main highlight. In addition, car companies have also brought many innovative new technologies, which are also worth industry attention. According to the organizers, this year’s Guangzhou Auto Show has not only attracted all the major global car companies, but also has seen a significant increase in the number of new car debuts and the total number of cars on display compared to previous years. There are a total of 1132 cars on display, including 59 global debut cars, 8 debut cars from multinational companies, 20 concept cars, and 9 cars from international brands. There are also 469 new energy vehicles and 119 cars from foreign brands on display. Wilson data shows that the proportion of SUVs and sedans at this year’s show is basically the same, with SUVs mainly concentrated in the A to C segment markets, and sedans mainly in the B and C segments. Independent brands are the main highlight, with the highest number of exhibited models, followed closely by German brands. The mid-to-large luxury sedans led by BBA have also released significant new products at the show. It is worth noting that compared to previous years, this year’s Guangzhou Auto Show has seen the emergence of many new independent new energy brands, such as Haobo, Fangchengbao, Yangwang, iCAR, and Jiyue, all of which have gathered the latest electrification and intelligent technology from their parent brands. In addition, this year’s Guangzhou Auto Show will also showcase various technological innovations and future trends, including new materials, new processes, and new designs, injecting new momentum into the development of the automotive industry. As cross-industry cooperation in the automotive industry has become a win-win model, the “technology” elements brought by the Guangzhou Auto Show are becoming more and more prominent. In a sense, they are more forward-looking than the new car models themselves. The opening of this year’s Guangzhou Auto Show will bring more new models to the market, and is expected to further stimulate the continuous improvement of the development trend of the automotive market. #Yangwang’s new concept car is out of this world# Readership: 42.91 million Event Review: Recently, Yangwang brand released the Yisifang concept car, which is equipped with a number of cutting-edge technologies. The car has no steering column and brake calipers, and can achieve steering and braking without relying on pure mechanical structure. Netizens’ hot discussion:
Review: The Yijifang concept car has achieved a three-in-one combination of driving, braking, and steering, opening up a new direction in the industry for the integration of chassis and power technology control. In simple terms, the new car is not meant to convey a cool appearance, but rather a completely new safety technology, or a new concept that expands the boundaries of automotive safety. Recently, Yangan Automobile officially released a brand new Yijifang concept car, based on the Yangan U8, with a design that eliminates the steering column and brake calipers, aiming to achieve a higher level of safety redundancy. It is understood that this concept car can control the vehicle without relying on traditional mechanical structures. In the event of a rare emergency situation where the braking or steering system fails, it can also ensure the safety of the user’s life.
In addition, the steering system of the Yi Sifang concept car does not have a steering column. It calculates the required steering angle based on the driver’s steering intention and applies different torques to the front wheels on both sides to make the steering tie rod deflect and achieve wheel steering. Unlike traditional braking methods, it achieves braking by pushing the friction pads to clamp the brake disc through the hydraulic cylinder to generate friction torque. The Yi Sifang concept car does not have brake calipers, so braking is achieved by controlling the four drive motors to generate electromagnetic resistance torque through regenerative braking. According to the introduction, these functions can be updated to vehicles equipped with Yi Sifang technology through OTA upgrades as safety redundancy for the steering and braking systems. It can be seen that the application of this technology will also push automobile safety to a whole new level, and perhaps it won’t be long before we can see this technology on the new cars we look up to. #Entry-level Tesla Model 3 and Y prices increase# Reading: 11.763 million Event review: Recently, Tesla’s official Weibo announced a price increase of 1500 yuan (210$) for the rear-wheel drive version of the Model 3 and a price increase of 2500 yuan (350$) for the rear-wheel drive version of the Model Y. After the adjustment, the price of the entry-level Tesla Model 3 is 261,400 yuan (36580$), and the price of the entry-level Tesla Model Y is 266,400 yuan (37280$).
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Review: Every time we hear about Tesla adjusting prices, old car owners feel like they’re being taken advantage of. However, the recent price adjustment by Tesla is an increase, which has brought joy to those who have ordered the Tesla Model 3/Y early. So, is this wave of price increase by Tesla to alleviate the decline in gross profit margin, or is it preparing for a price reduction in the future? Since the beginning of this year, Tesla has made multiple adjustments to the prices of its Model 3/Y. Just last week, Tesla officially raised the prices of the long-range versions of the Model 3/Y, with increases of 1500 yuan (210$) and 2500 yuan (350$), respectively. After this round of price adjustments, all models of the Tesla Model 3/Y have seen an increase in price. Currently, Tesla has not provided a response as to why the prices of these two models have increased, but last week the official reason given for the price increase of the Model 3/Y was: due to rising costs, the vehicle configurations have not changed, “price fluctuations are normal, if costs decrease, then prices may come down.”
Following Tesla’s announcement of a price increase, some consumers who had already paid a deposit immediately paid the balance. Some bloggers have indicated that after Tesla’s price increase announcement, nationwide orders surged, with approximately 5,000 new orders placed in a single day. Therefore, Tesla’s slight price increase is also a means to urge consumers to place orders as soon as possible and to boost sales. Tesla’s continuous use of price reductions and increases to increase sales also reflects the sluggish market demand. Regarding Tesla’s price increase for the Model Y and Model 3, Cui Dongshu, the Secretary-General of the China Passenger Car Association, believes that Tesla is facing increased profit pressure, leading to the price adjustment plan. However, Cui Dongshu also stated, “Tesla plans to increase the prices of the two domestically produced cars to alleviate the current decline in gross profit margin, but this will bring certain pressure to achieve its annual sales target of 1.8 million vehicles.” However, some industry insiders believe that with the diminishing effect of price reductions, Tesla’s sales, revenue, and profits have all declined in the third quarter. Previously, Musk has also repeatedly signaled the possibility of lowering prices again for the sake of sales, so this wave of price increases may be in preparation for a future decrease. #Smart Edge S7 pre-orders exceed 10,000 in 2 days# Views: 1.128 million Event recap: Recently, Yu Chengdong posted on his WeChat Moments, “Smart Edge S7 pre-orders have exceeded 10,000 in just two days, even more than the momentum of the new M7 at the same time!”
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Review: Pre-sold 10,000 units two days before the official release, better than the M7 from WENJIE at the same period. Whether it’s a large order or a small order, it’s a great achievement for the first car of a brand new brand. Of course, pre-orders do not represent actual sales, but to reach this level in such a short period of time, it shows that the influence of Huawei Smart Selection Car is significant. The Smart Selection S7 is a medium to large-sized electric car co-developed by Chery and Huawei Smart Selection Car. The new car is the first sedan from Huawei Smart Selection Car and will use Huawei’s new 800V high-voltage platform, with a pre-sale price starting at 258,000 yuan (36110$). It is worth mentioning that the Smart Selection S7 is equipped with the Huawei HarmonyOS 4 system, which adds multi-screen sharing functionality and allows for multi-screen synchronous viewing in the cabin.
At the same time, the new car is also equipped with the ADS 2.0 advanced intelligent driving system, supporting advanced functions such as intelligent driving without maps and intelligent parking valet, and performs well in terms of intelligent experience. In terms of power, the Zhiji S7 is equipped with the new generation DriveONE 800V high-voltage silicon carbide power platform, providing two power versions of single motor and dual motor four-wheel drive. The CLTC range can exceed 800km, and supports Huawei super fast charging. Charging for 5 minutes can add 200km of range, and charging for 15 minutes can add 400km of range. According to Yu Chengdong, the specifications of the Zhiji S7 will surpass the Tesla Model S, and the new car will be officially launched on November 28th. At present, the Zhiji S7 has the combination of Chery’s car-making heritage and Huawei’s intelligent solutions, which is still very attractive to consumers, and the market performance is eagerly awaited. #Lynk & Co’s 1 millionth vehicle rolls off the assembly line# Readership: 1.018 million Event review: According to official information from Lynk & Co, the 1 millionth Lynk & Co vehicle, the Lynk 08 EM-P, has officially rolled off the assembly line at the Yuyao factory.
In 2017, the first Lynk & Co 01 limited edition was officially launched. Today, the one millionth Lynk & Co 08EM-P has rolled off the production line in less than six years, setting a new record as the fastest Chinese premium car brand to reach one million in sales. Online users are discussing:
Review: As a mid-to-high-end brand under Geely Auto Group, Lynk & Co has attracted a lot of attention since its inception. The production of the 1 millionth new car now demonstrates consumers’ recognition of the Lynk & Co brand. With a focus on new energy and overseas markets, it is believed that the Lynk & Co brand will quickly enter the next stage of challenges. When Geely Auto, Volvo Cars, and Geely Holding Group jointly established Lynk & Co, they had high expectations for it to be a “global new high-end brand.” Similar to the Wei brand of Great Wall Motors, Lynk & Co’s label is more youthful, sporty, and personalized. Lynk & Co has lived up to expectations, being the first Chinese car brand to break through the 150,000 yuan (20990$) price ceiling for domestic brands. The latest data shows that Lynk & Co sold 24,707 vehicles in October, an increase of 13% month-on-month and 50% year-on-year. The Lynk & Co 08, which has been on the market for 54 days, has sold over 12,000 units. Now, the Lynk & Co 08 EM-P and the Lynk & Co 06 EM-P with the EM-P super electric solution have been launched, further enriching Lynk & Co’s new energy product lineup and expanding the layout of Lynk & Co’s SUV models under the EM-P super extended-range electric solution. In the overseas market, Lynk & Co has also achieved good results. Data shows that in the first half of 2023, the overseas shipment volume exceeded 16,000 units, with new energy models accounting for 96%. In 2022, the annual overseas shipment volume exceeded 35,000 units, making it the top Chinese brand with models priced above 250,000 RMB for two consecutive years, achieving a healthy development cycle both domestically and internationally. #BYD and CATL supply Audi FAW with battery cells# Views: 749,000 Event Review: According to Caixin, BYD’s lithium iron phosphate and CATL’s ternary battery cells will supply Audi FAW’s new energy vehicles. The first pure electric model based on the PPE platform is planned to be mass-produced in Changchun next year. According to the plan, Audi FAW’s new energy project will introduce three products: Audi Q6L e-tron, Q6L sportback e-tron, and A6L e-tron, with a total planned production capacity of 600,000 vehicles. Netizen’s hot discussion:
Review: BYD and Contemporary Amperex Technology (CATL) as the two giants in the domestic power battery market, this supply to Audi’s FAW new energy vehicles will further consolidate their position in the global power battery market. At the same time, this will also provide them with more opportunities to cooperate with internationally renowned car manufacturers and explore broader international markets. It is reported that the total investment of the Audi FAW new energy vehicle project is approximately 2.6 billion euros, including the establishment of a new company and a new production base. The project covers a total area of 2.46 million square meters, with an annual production capacity of 150,000 vehicles, making it Audi’s first production base for pure electric vehicles in China. This cooperation is an important layout for BYD and CATL in the power battery market. As leading domestic battery manufacturers, CATL has a high market share in ternary lithium batteries, while BYD is renowned for its lithium iron phosphate battery technology, demonstrating the competitiveness of Chinese power battery companies in the international market.
In addition, providing battery supply for Audi’s FAW new energy vehicles will further enhance the brand influence of BYD and CATL. Especially in the international market, this will help improve their reputation and credibility in competing with international brands. As leading companies in the automotive industry, Audi, BYD, and CATL are joining forces to promote the development of new energy vehicles. This will undoubtedly bring higher quality new energy vehicle products to global consumers, and of course, it also indicates that the competition in the future new energy vehicle market will be more intense. #Xpeng Motors’ third-quarter revenue exceeds 8.5 billion yuan# Readership: 20,000 Event review: On November 15, Xpeng Motors released its third-quarter financial report. The report shows that in the third quarter, Xpeng Motors delivered 40,008 new vehicles, with revenue exceeding 8.5 billion yuan, a 68.5% increase from the previous quarter and a 25.0% increase year-on-year, returning to a historical high.
Based on positive sales expectations, XPeng Motors has raised its Q4 performance guidance, with expected deliveries of 59,500-63,500 vehicles, a year-on-year increase of approximately 101.2% to 114.7%, and expected total revenue of 12.7-13.6 billion yuan, a year-on-year increase of approximately 86.1% to 99.3%. Online users are discussing:
Review: From the third quarter financial report, Xiaopeng Motors’ cost reduction and efficiency improvement strategy has shown significant results, with revenue and sales volume already bottoming out and starting to rebound, but still in a loss-making state. Of course, the transition period requires buffering, and with products gradually maturing and the organizational structure becoming healthier, it is expected that 2024 will usher in a period of rapid development. Thanks to the outstanding performance of the Xiaopeng G6, Xiaopeng Motors had a good sales performance in the third quarter. Since the beginning of the year, Xiaopeng Motors’ monthly deliveries have maintained positive growth for 9 consecutive months, entering a positive cycle. Although there has been an increase in sales volume, Xiaopeng Motors still failed to achieve profitability. The financial report shows that the net loss attributable to common shareholders in the third quarter was 3.89 billion yuan, compared to a loss of 2.38 billion yuan in the same period last year, and a loss of 2.34 billion yuan in the first quarter of this year, an increase of 63.4% year-on-year and 38.9% quarter-on-quarter. Regarding the loss, Xiaopeng explained that due to the increase in the company’s stock price, the value of the equity investment of the public has correspondingly increased, resulting in a non-cash loss of 970 million yuan being included in the fair value change, excluding the fair value change item, the loss remained basically flat quarter-on-quarter.
In terms of gross profit margin, Xiaopeng Motors recorded a -2.7% in the third quarter of 2022, 13.5% in the third quarter of 2023, and -3.9% in the second quarter of 2023. The gross profit margin expanded year-on-year and increased by 1.2 percentage points quarter-on-quarter. Xiaopeng Motors explained in the financial report that this was mainly due to inventory impairment related to G3i, which had a negative impact of 2.9 percentage points on the automotive gross profit margin in the third quarter of 2023, as well as increased sales promotions and the expiration of subsidies for new energy vehicles. It is expected that the gross profit margin will significantly increase in the fourth quarter and is expected to turn positive. The financial report also shows that Xiaopeng Motors invested 13.1 billion yuan in research and development in Q3, with a total accumulated R&D investment of over 181 billion yuan. It has 395 sales outlets and covers all prefecture-level cities in China with 1057 self-operated charging stations. He Xiaopeng stated at the financial report meeting, “Xiaopeng Motors has achieved a turning point in the technology and user demand for intelligent assisted driving in 2023. I believe that the next five years will be the years of widespread popularization of intelligent assisted driving. Xiaopeng Motors will lead the coverage of intelligent assisted driving nationwide and become the preferred brand for users seeking intelligence.”