Introduction

Introduction

A vivid and brutal portrayal of the current state of affairs.

It's unclear when exactly the term "going crazy" became the most prominent label haunting China's auto market.

Especially since the beginning of 2024, as the shuffling intensifies once again, the sense of urgency is becoming increasingly palpable across all dimensions. Everyone in this industry is undoubtedly feeling an unprecedented sense of confusion, pressure, and exhaustion. It's not just about "going crazy," but rather, going crazy to the point of suffocation. Even more terrifying is that often, this frenzy is aimless, unrewarding, and even counterproductive...

Take the recent September 10th, for example, which coincided with the so-called "Teachers' Day."

Perhaps some readers only remember the unremarkable Apple fall event and the iPhone 16, while others might recall China's men's national football team's heartbreaking loss against Saudi Arabia in stoppage time. In contrast, what struck me most was that within just one day, an astonishing six major automotive events took place consecutively.

Naturally, the consequence of such a clustering of events is that the strong ones dominate the limelight, while the weak ones are left in the shadows. As for who is stronger and who is weaker, you are welcome to draw your own conclusions. In the following sections, I would like to delve deeper into three players that, in my opinion, serve as key indicators of the current trends.

First, there's Huawei, which insists on "not building cars.""Huawei's Rotating Chairman, Chairman of the Consumer BG, and Chairman of the Intelligent Automotive Solutions BU, Yu Chengdong, stood at the center of the stage under the spotlight. Besides unveiling the Mate XT Ultimate Master Edition, a three-fold screen flagship priced from 19,999 yuan, and personally demonstrating innovation to a rival across the ocean, he also introduced the AITO M9 Large Five-Seater version, which is worth mentioning.

In fact, when discussing this phenomenal product, it's impossible not to mention its remarkable sales performance. Within just over eight months since its launch, it has sold over 130,000 units, topping the sales charts for vehicles priced above 500,000 yuan in the Chinese market for five consecutive months.

With the official entry of the Large Five-Seater version, priced the same as the Six-Seater version, Huawei has further strengthened its product lineup. Its launch also underscores Huawei's efficiency and ambition in responding to the needs of its target customer base, despite not actually manufacturing cars.""Although Huawei claims not to build cars, it poses an even greater threat than many automakers that do.

In the past, people eagerly anticipated premium five-seater versions of vehicles like the Lixiang L9 and NIO ES8, but it was AITO M9 that seized the opportunity first. Without any baggage, it charged ahead boldly, and its abundant brand momentum were key factors in its success as a blockbuster product.""Meanwhile, as the first coupe SUV under the HarmonyOS Smart Drive brand, the AITO R7 officially kicked off pre-sales at a price of 268,000 yuan. Its mission is destined to be carving out a share from Tesla's Model Y.""However, unlike the AITO M9, which seemed to operate in a vacuum, the AITO R7 enters a fiercely competitive red ocean. How much further its final price can be lowered and whether an extended-range version will be introduced will be crucial to its ability to gain a foothold. Even for a powerhouse like Huawei, there's no guarantee of success in the 200,000-300,000 yuan segment.""""Similarly, this principle also applies to the JiYue 07, which debuted on September 10th.""When discussing the mastermind behind this so-called "most beautiful pure electric coupe," it's impossible not to mention JiYue CEO Xia Yiping's emotional breakdown during an interview at the Chengdu Auto Show when asked about the company's disappointing sales figures.""Behind this genuine display of emotion lies yet another facet of China's frenzied auto market.""Turning our attention back to the JiYue 07, it offers a limited-time purchase price range of 199,900 yuan to 289,900 yuan. Considering its specific configurations and overall product capabilities, it's clear that this new force in automotive manufacturing has brought its A-game. Moreover, it hasn't repeated the mistake of vague SKU allocation that plagued the launch of the JiYue 01 last year.""'JiYue 07 is the world's first sedan with over 100 billion yuan invested. It boasts top-tier intelligent driving capabilities and is the king of cost-effective range. In the industry, we have achieved multiple bests, firsts, and onlys, ushering in a brand-new era of intelligent mobility,'" Xia Yiping boasted.""Listening to Xia Yiping's pitch, one can sense his confidence in this newcomer.""""But speaking rationally and objectively, if I had to pick the toughest nut to crack in China's auto market, I would undoubtedly vote for the segment where JiYue 07 resides. From Tesla's Model 3 to Xiaomi's SU7, to Zeekr 007, NIO's ET5, LYNK & CO's Z10, BYD's Han and Seal, and the upcoming XPeng P7+, who among these competitors is an easy target?""To compete in this thorny jungle and grab a piece of the pie, offering cost-effective products is often just the first step. Ultimately, whether a product becomes a hit depends on "fate" or, put another way, a combination of the right timing, location, and people.""So, without bias, do you think JiYue 07, with its array of prestigious brand endorsements, stands a chance? As for the answer, I'd rather say, 'I can't guarantee it, but I'm pretty sure the Passat will make it.'"""Indeed, the transition here is somewhat abrupt, but it seamlessly leads us to the third player of today's article.""On the evening of September 10th, while many people might not have paid much attention, SAIC Volkswagen still unveiled the all-new Passat. It offers five models for the end consumer, with the Passat 2025 Outstanding Edition priced at 159,900 yuan to 179,900 yuan for a limited time, and the Passat Pro priced at 189,900 yuan to 223,900 yuan for a limited time.""""With both old and new models on offer, the entire lineup is equipped with a 380TSI 2.0T high-power engine.""To be fair, as the retail penetration rate of new energy vehicles surpassed the 50% mark again in August, the voices decrying joint ventures and traditional fuel vehicles have grown louder in the industry. However, the all-new Passat still showcases the German automaker's determination to persevere.""Moreover, looking at the retail performance of this product from January to August this year, with sales figures of 22,313, 11,641, 19,446, 16,033, 16,504, 17,097, 20,003, and 21,479 units, it has undoubtedly maintained a relatively stable output. Significant upgrades to the product will undoubtedly help it continue to consolidate its strengths.""In any case, my stance remains the same: "While the aggressive push from domestic automakers has indeed put many joint venture brands in a tight spot, Volkswagen, with its deep roots, is not about to collapse overnight. At the same time, in many ways, the German automaker has already shown positive signals of embracing change.""As an observer, one should not overlook the progress made by the all-new Passat simply because of the embarrassment caused by the malfunction of its intelligent voice assistant during the unveiling event.""Undoubtedly, it doesn't want to lose.""As this article draws to a close, I would like to conclude by saying that whether it's Huawei, JiYue, or SAIC Volkswagen, along with other automakers that chose September 10th to introduce new products, in the fiercely competitive Chinese auto market, everyone is forced to push forward into an uncertain future in order to survive and thrive.""Of course, many more "September 10ths" await us on our journey ahead...