New energy vehicle companies launch an "advanced competition" and enter the stage of reshaping the industrial chain

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Securities Times reporter Han Zhongnan

Recently, due to the booming sales of AITO's new M7, there has been a wave of promotions for the same type of new energy vehicle in the market.

On October 15th, AITO Wenjie announced that its new M7 had over 60000 large orders in its first month of launch. It is reported that the Selis factory has added new production shifts, with 22 hours of continuous production per day and a dual shift operation mechanism.

It is reported that the explosion of orders brought by the new M7 has successfully stimulated the already fiercely competitive new energy vehicle market. On October 16th, the day after the launch of the new M7, Geely Krypton announced the launch of its limited time purchase rights for its models. Some regional sales terminal stores of Ideal Automobile also offer discounts and promotions for their L7 and L8 models.

Unlike previous' price wars', current new energy vehicle companies are not only constantly competing in price, but also seeking iterative innovation in their products. For example, Xiaopeng Automobile's new G9 and the 2023 Landau Dreamer have undergone systematic upgrades in their products.

Industry insiders have judged that the current new energy vehicle companies have launched an "advanced race", and if they cannot keep up with the competitive pace of the market, they may face the risk of being eliminated at any time.

New energy vehicle companies compete to advance

During the peak sales season of "Jinjiu", the demand for high-end new energy vehicles began to rise. According to data from the China Association of Automobile Manufacturers, the domestic retail penetration rate of new energy vehicles in September was 36.9%, an increase of 5.1 percentage points from the 31.8% penetration rate in the same period last year. Among them, the penetration rate of new energy vehicles among luxury vehicles is 24.0%, indicating the trend of new energy vehicle companies constantly seeking high-end development.

Recently, multiple new energy vehicle companies, including Lando, Celes, and Xiaopeng Motors, have upgraded their models. Among them, the order volume of AITO's new M7 has ignited the market. It is understood that the new M7 has had over 60000 large orders in its first month of launch. Affected by this news, the stock price of Celes has risen continuously, with a year-on-year increase of over 101.25%. Dongwu Securities analyzed that the new upgrade of the M7 is expected to bring about a new round of upscaling cycle.

It is reported that the new M7 has increased its overall investment by 500 million yuan, with the core upgrade points being the improvement of intelligent driving, cabin connectivity, and comfort. In addition, the space and safety of the vehicle have also been optimized.

Not long ago, Landau Motors also upgraded its MPV model Dreamer. It is reported that the 2024 New Lantu Dreamer has undergone a comprehensive upgrade to its product configuration, including improvements in range, power, safety, and energy consumption.

In addition, the 2024 pure electric SUV Xiaopeng G9 was also officially launched recently. At the press conference, He Xiaopeng, Chairman and CEO of Xiaopeng Automobile, revealed that behind the new G9, Xiaopeng Automobile has also undergone comprehensive changes from organization, products, technology, and marketing.

It is precisely because more and more new energy vehicle companies are accelerating the efficiency of product upgrades that a new round of "price wars" is quietly surging.

On October 16th, the day after AITO Wenjie's new M7 was launched, Geely announced that from now on until December 31st, its models will launch limited time purchase rights. After stacking, the extreme Krypton 001 can enjoy a limited time car purchase benefit of 80000 yuan at most, the extreme Krypton X can enjoy a limited time car purchase benefit of 51000 yuan at most, and the extreme Krypton 009 can enjoy a limited time car purchase benefit of 16000 yuan at most.

Since the beginning of this year, Ideal cars with stable sales have quietly joined the price reduction army. It is understood that Ideal has launched a series of preferential policies in channel terminal stores in some regions, providing insurance and maintenance subsidies around the L7 and L8 products.

Not only that, but also some new energy vehicle companies have begun to focus on "lowering" prices from the source. On October 12th, SAIC's Zhiji LS6 went public, and its equity price was about 20000 yuan lower than the pre-sale price announced at the Chengdu Auto Show.

Industry insiders judge that while paying attention to new energy vehicle companies actively lowering prices, they should also see their active upgrading, price reduction, and allocation in their products, which not only reflects the "wave" of the new energy vehicle market, but also reveals the determination of new energy vehicle companies to seek advancement.

The industrial chain has entered the stage of reshaping

While new energy vehicle enterprises are collectively advancing, the new energy vehicle industry chain is also undergoing unprecedented changes.

Recently, Yu Chengdong, Executive Director of Huawei, CEO of Terminal BG, and Chairman of Intelligent Automotive Solutions, stated during a live broadcast at the Celes factory that in order to quickly improve the delivery speed of vehicles, the entire industrial and supply chain has added 20000 workers. In addition, Yu Chengdong also revealed that Huawei has invested another 1 billion yuan to accelerate the development of its supply chain.

Dongwu Securities analyst Huang Xili stated that since 2023, Huawei and Celes have established a joint working group to complete closed-loop management of sales and delivery. With the launch of new products, AITO's products are expected to start a new round of mass production cycle.

The industrial chain has entered the stage of reshaping

Recently, several A-share listed companies such as Huitong Co., Ltd. have publicly announced their identity as "Celes suppliers", indicating that their products have been stably supplied in the production of related vehicle models in the industry. This move also indirectly reveals the gain effect that Huawei's cooperation with Celes has brought to the new energy vehicle industry chain.

Great Wall Motors has also built a system called "Forest Ecology" around the industrial chain investment, with the core being to comprehensively layout related technology industries such as intelligence and new energy. Under its incubation, Millimeter Journey, Honeycomb Energy, and Mandate Electronics have gradually grown and strengthened.

In the short term, there has also been some optimization in the marginal high cost lithium carbonate production capacity during the process of lithium carbonate price decline. Analysts from Pacific Securities stated that there will be opportunities for significant fluctuations in lithium prices in the fourth quarter, and lithium prices will continue to decline in the future. The true stabilization of lithium prices represents the stabilization of supply and demand in the new energy vehicle industry chain. The current supply and demand in the new energy vehicle industry chain has entered a bottom reshaping stage. Huawei and Zhiji's new products will lead to further acceleration of intelligence, and it is necessary to pay attention to the sustainability of investment opportunities in the relevant industry chain within the industry.

Accelerated elimination process

The competition in the new energy vehicle industry chain is becoming increasingly intense, and the corresponding elimination is also accelerating.

On October 18th, in response to the rumors circulating online that "Weima applied for bankruptcy and the founder fled overseas", Weima Motors' official Weibo account released a message stating that Weima Motors did not apply for bankruptcy, and pre restructuring is different from bankruptcy restructuring, which is a self rescue action taken by the enterprise in the early stage of facing difficulties. The recent focus of the company's founder Shen Hui's work has been on overseas matters, and there is no situation where the founder travels overseas.

In addition, the response also pointed out that the core positions of the company are currently operating normally, and progress has been made in matters such as after-sales service, resumption of work and production, export business, overseas cooperation, international financing, and the introduction of strategic investors. We will seek suitable opportunities to publicly announce them.

Although Weima Motors has not officially gone bankrupt, it is an undisputed fact that the company has fallen from the second camp of new car manufacturers. Since the end of last year, sales of Weima Motors have stagnated.

On one hand, early car building new forces such as Weima began to fall behind, and on the other hand, new players such as Jiyue and Xiaomi continued to flood the industry. These new players occasionally reveal their progress in car manufacturing, which has a strong trend of "post wave".

On the other hand, new energy vehicle companies that have already taken advantage of scale are continuously expanding their market share. In September, several new energy vehicle companies saw their sales increase. Among them, BYD's monthly sales exceeded 280000 units, a year-on-year increase of 43%; Guangqi Aian's monthly sales exceeded the 50000 mark, a year-on-year increase of 72%; The ideal September delivery volume exceeded 36000 vehicles, a year-on-year increase of 212%. The continuous increase in market share of these new energy vehicle companies has further squeezed the survival space of the laggards.

A research report from Dongfang Securities shows that in the current competitive environment, new energy vehicle companies with weak product and technological capabilities may face accelerated elimination.

Industry experts believe that with the increasingly fierce competition for new energy vehicles, the market reshuffle will further accelerate, and companies like Weima Motors that are busy rescuing themselves will not be isolated. New energy vehicles are like going to the middle of the game, where product functions, prices, and market patterns are constantly changing. Both new and old players need to be vigilant to prevent the situation of "losing out on one move".