Having attended more than ten Guangzhou Auto Shows, I suddenly wondered this year: why does the domestic auto show always end in Guangzhou every year?

Here are a few reasons for this:

On the one hand, the automotive industry in Guangzhou is well-developed, and a complete industrial chain layout has been formed around Guangzhou. The automotive industry in Guangdong Province ranks among the top in the country in terms of output value. On the other hand, consumers in the South China market have strong purchasing power, and the Guangzhou Auto Show can boost sales and enhance annual sales performance. In addition, the climate in Guangzhou is still warm in November, with a variety of delicious food. Visiting the Guangzhou Auto Show at the end of the year always brings good luck. Therefore, after all these years, Guangzhou's position as the final destination for auto shows at the end of the year remains unshaken by any other city.

Given the developmental pressures faced by the automotive industry, the state of auto companies at this year's Guangzhou Auto Show will largely reflect next year's market expectations. Amidst the drizzle, the 2024 Guangzhou Auto Show officially kicked off.

Walk on two legs

I was worried that the overall subdued atmosphere at the Chengdu Auto Show this year would "infect" the Guangzhou Auto Show, but the lively atmosphere inside the exhibition hall quickly dispelled these concerns.

Despite the absence of some brands such as Jaguar Land Rover, Rolls-Royce, and Chevrolet, which cater to different customer segments, new brands like Xiaomi, Gemstone, and Ledo made their debut at this year's show. Additionally, brands like Infiniti, Besturn, Dongfeng Fengxing, and Baojun chose to participate again after a year's absence, demonstrating the attractiveness of the Guangzhou Auto Show.

From the booth sizes at this year's auto show, we can gain insight into the current situation of auto companies. For instance, BYD, which has become the leading domestic sales brand, booked an entire exhibition hall to showcase its multiple new car models from different brands. In contrast, the booth sizes of most other brands were significantly smaller.

Regardless of booth size, auto companies put a lot of effort into booth construction this time, with a notably higher "density" of vehicle displays. This shows that they attach great importance to the Guangzhou Auto Show and want to showcase their new dynamics and styles.

There are many new models debuting at this year's Guangzhou Auto Show. While new energy vehicles are the mainstream, newly launched gasoline vehicles also have many highlights. For joint ventures, the shift from previously overlooking the market to now actively engaging in it represents not only a change in market strategy but also an adjustment in mindset after recognizing the gap.

In fact, due to the broader market environment, it's not just joint ventures that are facing challenges. The similar market strategies of new forces and the similar product functional designs of new energy vehicles are also weakening their appeal to consumers.

Judging from the current demand for car models in both domestic and international markets, it is still too early for new energy vehicles to fully replace gasoline vehicles. It is important to continue enhancing and strengthening the appeal and competitiveness of gasoline vehicles while keeping up with the trends of new energy and intelligence through independent research and development and collaboration. By "walking on two legs," auto companies can take a more proactive approach in the market next year.

Enhanced awareness of efficiency improvement

The day before the opening of the Guangzhou Auto Show, Geely announced significant news, integrating Zeekr and Lynk & Co. Just a few days earlier, SAIC Motor announced the integration of Roewe and Feifan. Even the largest groups face limited resources. Therefore, auto companies reduce cost consumption through internal integration and accelerate the R&D cycle through external collaboration. At the same time, they reduce horizontal competition among their models and increase vertical coverage of more segmented markets and price points, ultimately achieving the effect of cost reduction and efficiency enhancement.

At this year's Guangzhou Auto Show, auto companies are not just spending money; they are also here to make money. The exquisite and gorgeous exhibition stands not only leave a good impression on the audience but also aim to retain consumers. Many brands started "selling" on the first day of the auto show, offering high discounts. Some brands even began training their sales teams the day before the auto show opened, making the atmosphere inside the exhibition hall more lively than ever.

At this year's auto show, although some brand booths naturally attract traffic, the popularity is not as one-sided towards new forces as before. Many joint venture brands are also very popular and have introduced industry-leading or unique new technologies and features.

The purpose of full competition in the automotive market has never been for one company to dominate. As long as a car model has unique features and highlights, and a competitive price, it will be attractive. The less concentrated crowds at the auto show booths also reflect the diversity of car model choices.

For auto companies next year, there will be both pressures and opportunities. Although the market environment may be worse next year, and many auto companies will face greater pressure in terms of sales and profits, with many foreseeable and unforeseeable difficulties, the industry must continue. In adversity, we must shout louder and encourage each other! Guangzhou Auto Show, auto companies, roar!