Toyota’s Akio Toyoda is about to step down as chairman of the Japan Automobile Manufacturers Association. As a leader of Japanese car companies, will Toyoda continue to resist the development of electric cars after stepping down? The new car fever of the ninth generation Camry seems insufficient, but the car’s infotainment system displaying the “brake nod alleviation system” potentially being charged unexpectedly sparked heated discussion at the car show. Fortunately, it turned out to be a false alarm. Tesla has once again adjusted its prices this month. Why, amidst mainstream price reductions, does Tesla continue to increase its prices? Could it have other “tricks” up its sleeve? Let’s take a look at the hot topics in the car industry this week together. #Stellantis repurchases 9.34 billion euros worth of shares from Dongfeng Company# Views: 114,000 Event review: On November 22, local time, Stellantis announced on its official website that the company had executed a transaction with Dongfeng Motor Group Co., Ltd. subsidiary Dongfeng Motor International Co., Ltd., repurchasing 50 million ordinary shares from Dongfeng Company for a total consideration of 9.34 billion euros. Discussion among netizens:
Review: It is obvious that the future market and product planning still attract attention from the industry. At least a few points can be confirmed for now: Dongfeng will continue to manufacture and sell Peugeot and Citroen brand vehicles in the Chinese market; Dongfeng will continue to export Peugeot and Citroen vehicles globally; and will help Dongfeng through the transition to new energy. After this transaction is completed, Dongfeng Group will hold 49.2 million shares of Stellantis common stock, accounting for 1.58% of Stellantis’ equity. The share repurchase framework agreement previously signed by both parties will continue to be valid for these 49.2 million shares of common stock. Stellantis Group stated that the stock repurchase transaction with Dongfeng will not affect its €1.5 billion open market stock repurchase plan announced on February 22 of this year. Since the beginning of this year, Stellantis Group has been very active in the new energy field in the Chinese market. On October 26, Stellantis Group invested approximately €1.5 billion in Zhiji Auto to acquire about 20% of its shares and obtained 2 seats on Zhiji Auto’s board of directors. At the same time, Stellantis Group and Zhiji Auto plan to jointly establish a joint venture company “Zhiji International” in a ratio of 51:49. The CEO of the joint venture company will be appointed by Stellantis Group. On November 21, Stellantis Group also announced the signing of a strategic memorandum of understanding with CATL to supply lithium iron phosphate batteries to Stellantis Group in the European market and explore the possibility of establishing a joint venture in an equal manner. The focus in the future will be on the development and layout of new energy, as well as the rapid transformation in the Chinese market. Traditional companies have more or less encountered problems in this area, and it remains to be seen whether Stellantis Group can come up with a good solution. #Akio Toyoda will step down as chairman of the Japan Automobile Manufacturers Association# Readership: 114,000
Event Review: Today, the Japan Automobile Manufacturers Association announced that the current president, Akio Toyoda, will step down at the end of this year, and will be succeeded by the current vice president of the association and chairman and CEO of Isuzu Motors, Masanori Katayama, as the next president. This appointment will take effect on January 1, 2024. Online discussion:
Review: As a neighboring country and a major player in the automotive industry, Japan’s automotive development has many aspects that are worth learning from and emulating for China’s automotive industry. The resignation of Akio Toyoda has sparked attention not only because he was the chairman of the Japan Automobile Manufacturers Association, but also because of his connection to the Toyota empire. After Akio Toyoda’s resignation, the position will be taken over by the current vice chairman of the association and chairman and CEO of Isuzu Motors, Masanori Katsuya. It is worth mentioning that this is the first time in the 59-year history of the Japan Automobile Manufacturers Association that a senior executive from outside the three major giants of Honda, Toyota, and Nissan has taken on the role of chairman. Currently, the Japan Automobile Manufacturers Association includes 14 manufacturing companies for passenger cars, trucks, buses, motorcycles, and other motor vehicles in Japan. These include Toyota, Honda, Nissan, Mazda, Mitsubishi, Suzuki, Isuzu, Subaru, Hino, Daihatsu, Mitsubishi Fuso Bus, Yamaha Engines, UD Trucks, and Kawasaki. As one of the representatives of the Japanese automotive industry, Akio Toyoda’s words and actions have always been closely watched, especially when he previously expressed his opposition to electric cars in public, sparking widespread discussion online. In October of this year, Akio Toyoda stated that the automotive industry is realizing that electric cars are not the only way to reduce carbon emissions, and there are many other methods to achieve carbon neutrality. Automakers should continue to invest in hybrid cars, rather than fully focusing on electric cars. Previously, Akio Toyoda publicly pointed out, “The majority of people working in the automotive industry are silent, and they have always wondered if electric cars as the sole choice are really feasible. But they think this is the trend, so they dare not speak out.” This statement received support from many Japanese car companies, including Suzuki, Isuzu, Yamaha, Honda, and Mazda. Electrification and intelligence are the trends for the future development of the automotive industry. In the midst of this wave, the Japanese automotive industry cannot stand alone and must actively embrace change. The past glory does not represent the future development. #GAC Toyota responds to brake nod relief system requiring payment# Reading: 184,000
Review of the event: A few days ago, Toyota responded to the “brake nod alleviation system payment” for the ninth generation Camry. They mentioned that the system is not a “brake”, but a feature developed to improve passenger comfort during braking. It effectively controls the vehicle’s pitch angle by appropriately distributing braking force between different wheels, reducing the “nodding” phenomenon and making braking smoother, without the need for additional payment. The display vehicles at the Guangzhou Auto Show are prototypes, and the functions displayed on the vehicle screens are all for testing purposes. Online discussion:
Review: To be fair, the release of the ninth-generation Camry seems to have attracted little attention, but “brakes and fees” have successfully sparked discussion about the ninth-generation Camry. It feels a bit like “unintentionally planting willows and creating shade.” Now the official explanation has cleared up the issue and dispelled doubts. But it’s best not to do this kind of operation in the future. It’s not that consumers can’t accept customized consumption, it’s just that many people feel there’s a deep “routine” here. Do you remember when Mercedes and other manufacturers included heated seats as a paid option? Now it’s clear why they integrated the buttons into the large screen, so they can be controlled through software, and if you don’t pay, they won’t heat up. But this way of making money seems a bit too shortsighted. As for the “brake nod mitigation system” on the ninth-generation Camry, GAC Toyota said: “This system is not ‘braking,’ it is a function developed to improve passenger comfort during braking, it effectively controls the vehicle’s pitch angle by appropriately distributing braking force between different wheels, reducing the ‘nodding’ phenomenon of the vehicle, making braking smoother, and can be used without additional payment. We’ve clarified two issues, first, this function is free, and second, what is the function of this function. However, is the technology behind the brake nod really cutting-edge? Of course not, this method of controlling the pitch angle of the vehicle during braking by adjusting the braking force between the wheels has been around for a long time, and even some domestic cars are equipped with it. The equipment of the ninth-generation Camry is a bit late, and it almost caused a misunderstanding. Be sure to pay more attention next time.
Event review: Ideal Car’s cumulative delivery in 2023 has exceeded 300,000 vehicles, with the delivery of individual models such as Ideal L9, Ideal L8, and Ideal L7 all exceeding 100,000 vehicles. Online discussion:
Review: I remember Li Xiang’s ambitious words at the second quarter performance meeting, where the CEO of Ideal Cars, Li Xiang, expressed confidence in challenging Mercedes-Benz, BMW, and Audi in the Chinese market ahead of schedule in 2024. He stated, “We will strive to become the number one luxury brand in terms of sales in 2024.” Ideal has positioned itself as a luxury brand, which doesn’t need much discussion and cannot be achieved by one person alone. Luxury carries a lot of weight, and being too heavy can crush a brand. Sales volume is the focus of today’s discussion, and Ideal has indeed achieved a “significant lead” in sales volume in the same category in 2023. Specifically, Ideal L9 reached 12,653 units, making it the number one model in the price range above 400,000 RMB; Ideal L8 reached 12,078 units, making it the number one six-seater car in the 300,000-400,000 RMB price range; Ideal L7 reached 15,357 units, making it the number one model in the 300,000-400,000 RMB price range. “Color TV, refrigerator, big sofa” is the nickname that many netizens have given to Ideal Cars. This seemingly plain evaluation hits the nail on the head. Ideal Cars has truly captured the preferences of consumers, proving that understanding Chinese people is still best done by the Chinese. Another point is the energy form. Ideal currently uses extended-range power, except for the upcoming MEGA model. Ideal Cars has repeatedly stated, “Extended-range is the future of hybrid,” and Great Wall Motors executives have also responded positively to this statement. Great Wall Motors stated that it will resolutely not take the extended-range route, as plug-in hybrids can “bridge the gap.” Which is better, extended-range or plug-in hybrids? Today, we won’t focus on this, but back to the topic, Ideal’s sales volume has already proven the point. The future of new energy vehicles should have several characteristics, and it has provided successful examples to other manufacturers. However, let’s speculate for a moment. After MEGA is launched, how many units will be sold each month? Will it be enough for Ideal? #Xiaomi invests over 7 billion RMB in car development# Readership: 480,000
Event Review: On November 20th, Xiaomi Group released its third-quarter financial data, showing that R&D expenses for the third quarter of this year increased from 41 billion yuan in 2022 to 50 billion yuan, the highest single-quarter R&D expenditure for Xiaomi in the past two years. Xiaomi stated that the increase in R&D expenses was mainly due to the research and development of its smart electric vehicle business and other innovative businesses. Netizens’ Hot Discussion:
Review: Research and development is the most important aspect for every car company, without exception. In other words, making cars is a “money-burning” process, and R&D is the lifeline for the survival and development of the enterprise. Without innovation and R&D, there would be no competitiveness or motivation, and such companies would not be able to talk about development. From one point of view, the R&D investment made by Xiaomi is not considered high. Since the announcement of entering the car industry, Xiaomi has planned for heavy investment. Xiaomi Group Chairman and CEO Lei Jun announced at the end of March 2021 that Xiaomi has a cash reserve of 108 billion RMB, with an initial investment of 10 billion RMB for car manufacturing and a future investment of 10 billion USD over the next ten years. Where will all this money be spent? The early stage of car model development, from appearance to the three-electric system, powertrain, and intelligent software, not only requires a long R&D time, but also incurs high labor costs. According to Lei Jun, Xiaomi will invest 3.3 billion RMB in the R&D of autonomous driving in the initial phase alone. The development of a new car model takes at least two years and costs at least several billion RMB. According to Xiaomi’s previous financial reports, the R&D investment in new businesses such as smart electric vehicles has reached 3.1 billion RMB in 2022. In the first and second quarters of this year, Xiaomi’s R&D investment in cars totaled 2.5 billion RMB. The question arises: where does such high R&D costs come from? The answer is simple: car companies rely on continuous sales growth to amortize high R&D costs. For Xiaomi, it can currently amortize from its other products, and the sales volume of Xiaomi cars in the future is still uncertain. However, even with uncertainty, R&D will continue and cannot stop. And it will only increase, as data shows that the global automotive R&D expenditure grows by over 6.5% year on year. NIO has stated that it will have a fixed R&D investment of 3 billion RMB per quarter in the future, while Xiaopeng predicts that R&D expenses will reach 10 billion RMB by 2025. And even then, there may not be much return, so it can be said that the road of car manufacturing is really not easy. Since Xiaomi has decided to enter the automotive industry, it should remain steadfast and keep going. Good luck. #GeelyGalaxyE8 semi-circular steering wheel exposure# Readership: 492,000
Event Review: In the 377th batch of the Ministry of Industry and Information Technology’s “Announcement of Road Motor Vehicle Production Enterprises and Products” change and expansion public notice, the semi-circular steering wheel appeared in the declaration diagram of the Geely Yuanjing E8, which means that this design has been approved and is expected to become an optional feature for this new car in the future. Online discussion:
Review: In the era of electrification, the change is not only in the form of power, but also in various unbelievable changes from the exterior to the interior of the vehicle. The half-wheel steering wheel is not a creation of Geely. Tesla, Toyota, and Zhiji have already launched their official models. But still, one can’t help but ask, what is the significance of this half-wheel steering wheel? Has safety, habit, and other aspects been fully considered? In fact, the evolution of the half-wheel steering wheel can be traced back to F1, because the space in the racing car is very small, in order to not block the line of sight and to bring more precise control, the square wheel style gradually became what it is now. The narrow, rectangular steering wheel. The principle of the half-wheel steering wheel is actually very simple – compared to the traditional steering wheel, the half-wheel steering wheel reduces the turning radius required for turning. By manually shortening the steering ratio, the angle of the wheel’s deviation is increased, which can achieve more precise steering while saving time. However, driving a civilian car is different from driving an F1 car after all. The half-wheel steering wheel looks very high-tech, but whether it is really suitable for civilian cars still needs further verification. As mentioned earlier, the steering of the half-wheel steering wheel will be more precise, but a slight deviation will result in a large error in the car. From this point of view, it requires higher driving skills. But the reason why the traditional round steering wheel can still be used is not without reason. It is more adaptable and has a higher tolerance. Regardless of how it develops, safety is always the top priority. If the half-wheel steering wheel has not made technological innovations and is only for the sake of appearance, then it is irresponsible behavior by the manufacturer. Such practices for the sake of appearance are unacceptable. According to the data, Geely officially stated that the Geely Galaxy E8 accelerates from 0 to 100 km/h in 3.49 seconds and smoothly passes the moose test at a speed of 82 km/h. Was this speed achieved using the half-wheel steering wheel? Probably not.
Event Recap: On November 21st, Changan Automobile and NIO signed a cooperation agreement on battery swapping business in Chongqing. The two parties will cooperate in promoting the establishment of battery swapping standards, the construction and sharing of swapping networks, the research and development of swapping vehicle models, and the establishment of an efficient battery asset management mechanism. Online Discussion:
Review: NIO’s battery swapping opens the door to the entire industry. At the same time, Changan joining NIO’s battery swapping system is conducive to enhancing Changan’s new energy vehicle market competitiveness and user replenishment experience, and also reflects Changan’s determination to transform to electrification. Those familiar with NIO know that battery swapping service is currently NIO’s main mode and service. The battery swapping mode realizes the separation of the car and the battery. When purchasing a NIO car, users can only buy the vehicle, while the battery adopts a leasing model, reducing the user’s purchase cost. The battery swapping mode also allows users to enjoy the latest battery technology at a lower cost. As of November 20th, NIO has a total of 2103 battery swapping stations nationwide, with 798 new stations added this year. According to the plan, NIO will have a total of 2300 battery swapping stations by the end of this year. Li Bin said: “From the first day of the charging and swapping business, NIO decided to open up to the entire industry. Like internet cloud service infrastructure, NIO’s battery swapping network and NIO energy cloud have also followed a path of infrastructure first, internal closed-loop, full-scene verification, and external openness. After 5 years of development, NIO’s battery swapping network and NIO energy cloud have accumulated rich experience in research and development, construction, and operation. NIO’s battery swapping business is ready to open up to the industry. As a leading enterprise in the Chinese automotive market, Changan’s determination and action to transform to electrification are admirable. Through this cooperation, NIO and Changan will jointly promote the high-quality development of the new energy vehicle industry and promote the low-carbon transformation of the automotive industry.” It is worth mentioning that NIO also announced on the same day the official connection of the G45 Daqing-Guangzhou Expressway Jingguang section high-speed battery swapping network. The G45 Daqing-Guangzhou Expressway Jingguang section has a total length of 2422 kilometers, with 31 high-speed battery swapping stations spanning Beijing, Hebei, Henan, Hubei, Jiangxi, and Guangdong, earning praise for NIO. #Tesla Model Y long-range version raises price by 2000 yuan (280$)# Views: 3.51 million
Event review: Earlier, Tesla officially announced, “Starting today, the price of the Model Y Long Range has been increased by 2000 yuan (280$), with a selling price of 304,400 yuan (42570$).” Netizens are discussing:
Review: This is already the second time that the long-range version of the Model Y has raised its price in the past month. On November 9th, the price of the long-range version of the Model Y was raised by 2500 yuan (350$). While others are reducing prices, Tesla is raising them. When it comes to the choice between reducing and raising prices, Tesla’s response seems to be quite flexible. It is reported that this is the fourth price increase announced by Tesla within a month. On October 27th, Tesla announced that the price of the domestic high-performance version of the Model Y was raised by 14,000 yuan (1960$), with the adjusted selling price being 363,900 yuan (50890$). On November 9th, Tesla announced an increase in the selling price of the Model 3/Y long-range version, with the selling price of the Model 3 long-range version adjusted to 297,400 yuan (41590$), previously 295,900 yuan (41380$), an increase of 1500 yuan (210$). The selling price of the Model Y long-range version was adjusted to 302,400 yuan (42290$), previously 299,900 yuan (41940$), an increase of 2500 yuan (350$). When it comes to the issue of reducing or raising prices, Tesla has firmly chosen the latter. As the year comes to a close, now is the stage for various car companies to boost their sales performance. In big cities like Beijing, Shanghai, and Guangzhou, businesses will use various methods to reduce prices and promote sales, resulting in average sales, but also including many popular cars. It seems that Tesla’s price increase is not at all worried about this year’s sales, and there may even be more “big moves” in the future.