Chengdu Auto Show: a world of contrasts?

09/02 2024 477

"I'm not going to the Chengdu Auto Show this year," I've heard this phrase from my media colleagues repeatedly in recent days. Unfortunately, we also didn't attend this year's Chengdu Auto Show. The reasons are simple: partly because we couldn't gather enough suitable invitations, and partly because we had already been exhausted from attending various new car launches and test drives before the show.

In fact, it's not hard to notice that automakers are no longer eager to hold launch events on the same day as the auto show. For instance, at this year's Chengdu Auto Show, brands like Geely and Changan focused mainly on exhibition and sales rather than holding launch events, although BYD and Great Wall still organized launches. This suggests a world of contrasts at the Chengdu Auto Show, whether it's between domestic and joint venture brands or between gasoline and electric vehicles.

The law of the jungle: the strong always get stronger. It's undeniable that the divergence between joint venture and domestic brands has intensified as the Chengdu Auto Show opens. When consumers face the competition in the automotive market, they often prioritize price over everything else, leading to an endless price war since the beginning of the year. Traditional automakers are reluctant to invest much effort in the auto show for fear of losing valuable exposure. However, the law of the jungle remains unchanged: the strong always get stronger. For example, BYD was the most prominent brand at this year's show, occupying Hall 9 and showcasing its entire lineup, including the Dynasty series, Ocean series, Auto series, FANGCHENGBAO, and DENZA. To describe BYD as formidable is no exaggeration.

Not only BYD but also Xiaomi, Geely, Changan, and HarmonyOS Intelligent Driving have their respective fan bases and significant influence. In contrast, joint venture brands face a different scenario.

Joint venture brands' market share in China has shrunk to 40% this year and continues to decline. This is a universal trend affecting Japanese, German, American, and Korean brands alike. However, it's important to remember that everything is uncertain. While we should celebrate the rise of domestic brands, we shouldn't become complacent. It's unwise to underestimate the contributions of joint venture brands to China's automotive industry. They may have lost some discourse power and premium pricing capabilities, but they still play a significant role.

Traffic or sales? This year, only two luxury brands occupied the once-exclusive wall advertisements at auto shows: Cadillac and BYD. This reflects the need for automakers, once known for their lavish spending, to tighten their belts and consider the cost-benefit ratio more carefully.

At this year's Beijing Auto Show, 90% of the traffic went to Lei Jun, while the remaining 95% became a silent backdrop. Under the immense traffic suction effect, the predicament faced by non-traffic automakers and brands at auto shows was magnified severalfold, and the same was true at this year's Chengdu Auto Show. Some automakers revel in the limelight, while others are sobered up by reality. The joys and sorrows of automakers are never shared. Previous auto shows, though a "colosseum" of hundreds of booths, ultimately spoke with strength: technical prowess and groundbreaking new models attracted traffic. However, these rules no longer hold. A single "traffic figure" can render many carefully planned automaker events unnoticed.

Worse still, traffic can have a negative impact on automakers. Nezha Automobile is a case in point. I won't deny that Zhou Hongyi brought significant traffic to Nezha, but those familiar with the inner workings know that his interference, rather than the Nezha team itself, is likely the underlying cause of the brand's decline.

In conclusion, we live in a magical world. I rejoice at the rise of China and the strengthening of domestic automakers, but underestimating our competitors while supporting domestic brands is poisonous. In this world of contrasts, we can never find new horizons with old maps.

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