2024 is not an easy year for both vehicle and componentcompanies.The fierce competition, internal competition, andinternal friction among new energy vehicle companies areaccelerating.BYD has opened a new chapter in the price war fornew energy vehicles, and a group of car companies haveresponded one after another. Domestic car companies have risenwhile joint venture car companies have been retreating one afteranother,and mid to high end car companies have also fallen intothe vortex of price wars. The competition in the aftermarket isnot weak at all, with models such as offering membership andrecharge, and product profits almost approaching transparencyCompanies without good profit models gradually show signs offatigue and bid farewell to the industry. New energy vehicle
companies such as Gaohe, Weima, and Jiyue that will collapse in2024,in addition to vehicle manufacturers, there are countless 4Sstores that will also collapse, Among them, most of the 4S storesof Benbaoao and joint venture car brands will go bankrupt orclose down.
Summary: The rapid development of China's automotive andparts industry in the past few decades has resulted in anabsolute oversupply in the market.Under competition. everyoneis generally experiencing downward competition, and theindustry's production capacity needs to be cleared, Enterprisesare fiercely competing for reshuffling. However, the internalcompetition in the industry is almost always downward, focusingon price and service,rather than upward breakthroughs toimprove product quality and innovation.Ultimately, this is becausethe downward competition has an immediate effect, while theupward competition competes more with the internal strengthand technological accumulation of enterprises. The future
internal competition will eliminate a group of enterprises withouttechnological core,innovation ability, and self accumulation.