In 2024, the automotive landscape shifted dramatically as domestic automakers surged ahead, challenging the long-standing dominance of joint ventures.

The tales of the automotive world are nearing their climax, where technological innovation collides with market forces, scripting a year filled with thrilling turns and unexpected twists.

A Pivotal Year Marking the Divide Between "Success" and "Struggle"

As the dawn of 2025 breaks, the performance reports of major automakers are rolling in, painting a vivid picture of the year gone by.

BYD stands tall in the realm of new energy vehicles, notching up sales of 514,800 units in December alone and an impressive cumulative sales volume of 4.2721 million units for the year, marking a 41.26% year-on-year growth and surpassing its annual sales target with ease.

Moreover, BYD leads the charge in the realm of intelligence. As early as 2018, BYD Chairman Wang Chuanfu foresaw that "the second half of the new energy vehicle era belongs to intelligence." Today, BYD's DiLink intelligent cockpit system stands as an industry benchmark, positioning Chinese automobiles at the forefront of global technological accumulation and experience in the field of intelligence.

Chery Group also shone in 2024, with comprehensive efforts in both domestic and international markets, and across both fuel and new energy vehicles. The annual sales volume reached 2.6 million units, up 38.4% year-on-year, surpassing its annual target. Chery not only achieved stellar sales but also made significant strides in digital transformation and ecological platform construction. The creation of platforms like Haiyunxing, Ruijing, Ruixiang, and Ruixuan has enabled Chery to achieve qualitative leaps in industrial chain collaboration, industrial procurement, user services, and financial services.

However, while some automakers celebrate their triumphs, others grapple with challenges.

While BYD and Geely enjoyed growth, SAIC Motor and GAC Group faced setbacks. SAIC Motor's annual sales volume fell to 4.01 million units, down 20.07% year-on-year, losing its title as the sales champion in the Chinese automotive market after 18 consecutive years. GAC Group also struggled, with expected annual sales declining by more than 20%.

FAW Group also fell short of its year-start target, primarily due to a sharp decline in sales of FAW-Volkswagen. Although Great Wall Motors reported a higher net profit, its sales growth was sluggish, with a meager 0.21% year-on-year increase.

The difficulties faced by these traditional automakers stem largely from their over-reliance on joint venture brands and insufficient independent innovation. As market competition intensifies and joint venture brands falter, they find themselves in a predicament of sharp sales declines.

For instance, the decline of FAW-Volkswagen further tarnished the reputation of the entire FAW Group, highlighting its lack of a diversified development strategy and weak risk resistance capabilities.

In contrast, new car companies such as NIO, XPeng, Li Auto, and Zero-Run set new sales records in 2024.

Li Auto met its annual sales target of 500,000 units, Zero-Run approached the 300,000-unit mark, NIO achieved an overall sales volume of 220,000 units, up 38.7% year-on-year, and XPeng also returned to growth with sales reaching 190,000 units.

However, the new car companies also face the harsh reality of intensifying competitive elimination races. Behind the sales growth of some brands lies the heavy burden of persistent performance losses.

Comparing the history of China's automotive development, it is apt to liken 2024 to a pivotal year marking the divide between "success" and "struggle" for Chinese automakers.

Intense Competition Reaches a Boiling Point

In 2024, competition in the automotive industry reached a fever pitch.

Price wars raged throughout the year, serving as the dominant theme. Right after the 2024 Spring Festival holiday, BYD kickstarted the price war with its slogan "Electricity is cheaper than oil."

This battle raged on relentlessly throughout the year.

Tesla reduced the price of its Model Y by another 10,000 yuan in November, and BYD and SAIC MAXUS were also reported to have required suppliers to cut prices by 10% for the next year.

In March, GAC AION Y Plus Starshine Edition dipped into the 100,000 yuan range, XPeng G6 offered a limited-time discount of 20,000 yuan across the board, Geely Automobile provided a subsidy of 2 billion yuan, and the Chery Group launched a "Billion Subsidy Replacement Season." This intense competition has had multifaceted impacts.

In the short term, some automakers gained market share through price reductions. BYD's cumulative sales from January to November reached 3.7573 million units, up 40.02% year-on-year, surpassing "North and South Volkswagen" to become the market leader.

However, in the long run and from an industry-wide perspective, the negative impacts cannot be overlooked.

From January to October, the profit of the automotive industry was 375.8 billion yuan, down 3.2% year-on-year, with the profit rate of the automotive industry hitting a historical low of 4.5%. Automotive dealer groups in some regions faced operational difficulties due to tight cash flow, and models priced above 300,000 yuan and the traditional luxury car market were significantly impacted.

It was in this year that the automotive industry gave off an air of all-out chaos. Slight negligence could lead to being overtaken, and even some brands vanished due to the intense competition. For instance, new force automakers like WM Motor, HiPhi, and Geely Xinyue, which misjudged strategies and had a limited product line, could not escape defeat in 2024. Based on their current state, brands like Nezha and Maxus Auto are expected to face challenges in 2025 as well.

During the CCTV News program "China UP" New Year's Eve event, Wei Jianjun of Great Wall Motors stated that the development of the automotive industry should be steady, akin to finding a rhythm and maintaining breathing in a marathon. Enterprise development requires strategic determination and should not be swayed by intense competition. It is necessary to proceed with caution and aim for long-term success.

The Central Economic Work Conference also clearly proposed to "comprehensively rectify 'involutional' competition and regulate the behavior of local governments and enterprises," pointing the way for the automotive industry to escape vicious competition in 2025.

The Path to Ascendancy

Despite intense competition, the Chinese automotive industry has not halted its progress. With breakthroughs in technologies such as 5G and AI, automobiles are evolving towards greater intelligence, opening up new avenues for the industry.

Many automakers have invested heavily in technological innovation and achieved remarkable results.

Changan Automobile initiated its third entrepreneurial plan as early as 2017, transforming from a machinery manufacturing enterprise into a smart and low-carbon mobility technology company. By 2021, Changan Automobile had become the first Chinese brand with cumulative production and sales exceeding 20 million units, and it is poised to surpass 30 million units sooner rather than later by 2025.

Hongqi Brand has also dedicated itself to building two major technology platforms, Jiuzhang and Tiangong, promising users a safer and more intelligent travel experience. Its Hongqi Tiankong 08, positioned as a mid-to-large-sized luxury pure electric SUV, is expected to emerge as a top player in the new energy field.

In the wave of domestic automobiles' overall rise in 2024, multiple popular models stood out.

Xiaomi SU7, the fruit of Lei Jun's three years of hard work, achieved a cumulative delivery volume of about 130,000 units in eight months since its launch, with a cumulative order volume of nearly 260,000 units.

Jim Farley, CEO of Ford Motor Company in the United States, sang high praise for it, Professor Shinji Yamamoto of Nagoya University in Japan conducted a detailed teardown, and former F1 World Champion Nico Rosberg questioned whether German automakers could keep pace with China after test driving it.

Wenjie M9 has successfully established itself in the luxury market above 500,000 yuan, with a starting price of 460,000 yuan and a top-of-the-line model exceeding 500,000 yuan. As of December, the cumulative number of large orders exceeded 200,000, ranking first in sales in China's luxury SUV market above 500,000 yuan for eight consecutive months.

Zunjie S800 is even more ambitious, with a pre-sale price ranging from 1 million to 1.5 million yuan. Within 48 hours of opening pre-orders, the number of pre-orders reached 2,108 units. Assuming a deposit of 20,000 yuan per car, HarmonyOS Intelligent Drive received deposits totaling 40 million yuan within 48 hours.

BYD, a leader in China's new energy vehicles, has also excelled in overseas markets with its ATTO 3, winning sales champions in multiple regions such as Thailand, New Zealand, Israel, and Brazil. It has delivered vehicles to over 70 countries and regions, with a cumulative export volume exceeding 140,000 units.

Its high-end brand Yangwang Automobile's Yangwang U9 is even more impressive. In August 2024, it reached a top speed of 375.12 km/h during testing, setting a new record for the top speed of domestic electric supercars. The Nürburgring result announced in November also ranked second among mass-produced pure electric vehicles.

XPeng's "land aircraft carrier" split-body flying car has also garnered significant attention. Pre-sales began in December 2024, with planned deliveries in the first quarter of 2026. Previously, the one-piece flying car left a lasting impression on the Chairman of the Dubai Civil Aviation Authority and others at the GITEX exhibition in Dubai.

Behind these achievements lie the relentless investment of Chinese automakers in technological research and development and their keen insights into market trends.

Postscript: Disruption and Integration, A Promising Future!

From traditional machinery manufacturing to smart cars, from the quagmire of price wars to the high ground of technological innovation, the automotive landscape is being redefined.

As cross-industry giants like Xiaomi and Huawei enter the automotive field, and traditional automakers like Hongqi and Chery radiate new vitality, the automotive industry is undergoing a transformation.

Looking back at China's automotive industry in 2024, it is evident that domestic automakers have risen, joint venture brands have been marginalized, new car companies are fiercely competitive, and involution is severe. However, technological innovation continues to flow unabated.

On one hand, the country has introduced comprehensive policies for the development of new energy vehicles, providing substantial financial subsidies, tax incentives, and other support measures, laying a solid foundation for industry growth.

On the other hand, the accumulated strength of Chinese automakers themselves is also crucial. For instance, Huawei began providing standardized components to automakers as early as 2016 and later gradually improved technologies such as HarmonyOS Cockpit and ADS intelligent driving. Xiaomi, before entering the automotive industry, had already established itself as the world's third-largest mobile phone manufacturer, with a comprehensive smart home ecosystem and over 100 million AIoT device users, enabling it to create a seamless "human-car-home" ecosystem with Xiaomi SU7 and forge a unique competitive edge.

In 2025, with the continuous increase in state subsidies for stimulating consumption through trade-ins and the intensification of price wars in the automotive industry, China's new energy vehicles are poised to become the mainstream. By then, most joint venture and overseas brands may find themselves further marginalized.

The story of the automotive industry in 2025 will continue to unfold. Whether the redefined landscape of the automotive industry will lead to disruption or integration remains to be seen. We eagerly await the next chapter.