In 2024, the price war of new energy vehicles will rise everywhere, and new energy vehicle brands such as Tesla, Ideals and Zero Run will reduce their prices one after another. This shows that with the maturity of new energy vehicle manufacturing technology, the cost has crossed the critical point and started to gradually reduce, which not only further highlights the price advantage of new energy vehicles, but also poses a fierce challenge to the traditional fuel vehicle market.
Behind the price war is the rapid maturity and growth of China's new energy vehicle industry chain, which is inseparable from the strong support of the government for the automotive industry, especially new energy, and the inevitable result of Chinese enterprises, including Kunyuan Asset FOF ecosystem partners, increasing R&D investment, promoting technological innovation and brand building.
It is predicted that the market share of new energy vehicles will exceed 40% in 2024, close to 50% in 2025, and will exceed 50% in 2026. New energy vehicles will dominate the automobile market. According to the latest statistics, the total export volume of Chinese cars will reach a new high of 4.91 million in 2023. This achievement not only makes China's automobile export volume exceed that of Japan, but also ranks first in the world for the first time. It is particularly remarkable that new energy vehicles have played a key role in this growth process. In 2023, China's exports of new energy vehicles will reach 1.203 million, up 77.6% year on year.
New energy becomes a new engine of industry with reform coming
"It is expected that the market share of new energy vehicles is expected to increase by 5% - 10% this year, that is, the annual market share is expected to reach 36% - 41%." Ouyang Minggao, academician of the Chinese Academy of Sciences and vice chairman of the China Electric Vehicle Association of 100, said recently that a new round of economic cycle and technological breakthroughs will promote the rapid breakthrough of the market share of new energy vehicles.
With the global concern for climate change and the increasing demand for clean energy, the global automotive market is undergoing unprecedented changes, and new energy vehicles are gradually becoming the new engine of the global automotive industry. This has provided an important historical opportunity for China to build itself into a strong automobile country. Anchoring new energy and overtaking on another road has become the only way for China to move from a big automobile country to a strong automobile country.
In order to promote the development of new energy vehicle industry, our government has issued a series of policies, such as car purchase subsidies, tax incentives, charging infrastructure construction, etc. In October 2020, the State Council issued the New Energy Vehicle Industry Development Plan (2021-2035), which clearly proposed that by 2025, the sales of new energy vehicles will reach about 20% of the total sales of new vehicles, and by 2035, pure electric vehicles will become the main stream of new vehicles. The recently held fourth meeting of the Central Finance and Economics Commission proposed that "we should encourage the trade in of old consumer goods such as automobiles and household appliances, and promote the trade in of old consumer goods for new consumer goods. For the trade in of old consumer goods, we should adhere to the linkage between the central finance and local governments, coordinate and support all links of the whole chain, and more benefit consumers."
In 2022, the penetration rate of China's new energy vehicle market will reach 25.64%, achieving the set goal three years ahead of schedule. This has not only established China's position as the world's largest new energy vehicle market, but also demonstrated the increasingly strong competitiveness of the relevant industrial chain in the international market. Relevant data shows that in 2021, the number of new energy vehicles exported by China will reach 310000, about 60% of which will be produced by foreign-funded enterprises. By 2023, the total export volume will increase to 1.2 million, but the share of foreign-funded enterprises will decline significantly, and the proportion of self owned brand new energy vehicles will reach 60%, which fully reflects the great progress of China's new energy vehicle industry.
The relevant investors of Kunyuan Assets, who have long been concerned about the new energy track, said that after new energy became an important deployment of "double carbon", the relevant policies created a favorable external environment for new energy enterprises and greatly promoted the technological innovation and market expansion of the industry. In recent years, Kunyuan Assets has focused on the new energy track. From the early ideal car to the later, focusing on the direction of power battery, automatic driving, etc., it has invested in many technology enterprises such as Yihuatong, Rongbai Technology, Yachuang Electronics, and Zhongchuangxin Airlines. At present, it has received many IPOs.
Deeply reshaping the industrial competition pattern
The reason why new energy vehicles have become the growth point of China's automobile export is not only due to the steady promotion of relevant national policies, but also due to the unremitting efforts of China's new energy automobile industry to consolidate the foundation and build competitive advantages.
As an important engine to promote the development of the new energy vehicle industry, technological innovation has always played a key role. At present, Chinese enterprises have achieved significant breakthroughs in battery technology, electric drive system, intelligent control and other fields, and many partners in the FOF ecosystem of Kunyuan Assets even occupy an important position in the world. Their technology not only improves the performance of new energy vehicles, but also reduces the cost and further strengthens the competitiveness.
In the field of new energy batteries, as the third largest power battery manufacturer in China, China Innovation Aviation has already possessed the world's leading high specific energy, long-life energy storage cells and corresponding supporting solution technologies; Unicorn enterprise Haichen Energy Storage also realized explosive growth with excellent product performance. It is expected that by 2024, its annual capacity will reach 100GWh, and further increase to 135GWh by 2025, so as to achieve the strategic goal of leading global energy storage battery brand.
In the field of intelligent control and other forward-looking technologies, many FOF partners of Kunyuan Assets also showed strong strength. From NASDAQ: HSAI, the world's leading lidar manufacturer, to Omnibus Technology and Superstar Future in the field of intelligent driving; From Mijia Technology in the field of intelligent interconnection to Huaxin Intelligent and Teleguide Electronics in the field of precision navigation. The development of these emerging enterprises is remarkable, and their technological innovation has further consolidated the competitive advantage of China's new energy vehicle industry.
In addition, optimizing the supply chain also has a significant impact on the competitiveness of the new energy vehicle industry. Taking Jiuling Lithium, the FOF partner of Kunyuan Assets, as an example, the company has its own lithium mica mine and has successfully completed the production line of "lithium mica raw ore concentrate separation industrial grade lithium carbonate battery grade lithium carbonate". An efficient and stable supply chain system ensures the supply of raw materials, greatly improves the efficiency of production and logistics, and thus improves the competitiveness of enterprises.
The global status of China's new energy vehicles has further improved
China's automobile export volume ranks first in the world, which not only reflects the important breakthrough made in the globalization process of China's automobile industry, but also means that Chinese enterprises can not only succeed in the domestic market, but also export high-quality products in the international market. This strategic layout of internal and external considerations will help China's new energy vehicle industry chain establish a dominant position in the global market.
In the Proposal on Promoting the Sustainable and Healthy Development of the New Energy Vehicle Industry to be submitted to the Second Session of the 14th CPPCC National Committee, the Central Committee of Civil Construction proposed to implement the "escort" action of new energy vehicles to the sea and help the development of industrial globalization. We will promote cooperation and mutual recognition with the EU and other standards, and at the same time strengthen the export of China's new energy vehicle standards. Support overseas intellectual property distribution of enterprises. Establish and improve special guiding measures and service mechanisms for overseas intellectual property disputes. Smooth logistics channels. Support enterprises such as batteries, materials, overseas marketing and after-sales operation and maintenance to "go to sea" with the whole vehicle and deeply integrate into the global supply chain system.
In terms of vehicle export, new energy related enterprises are actively deploying overseas markets. For example, Kunyuan Asset FOF Ecosphere Partner Ideal Auto will launch its export plan in 2024. The first markets to enter include the United Arab Emirates, Saudi Arabia and other Middle East countries, as well as some North African countries. In terms of industrial chain, Haichen Energy Storage has accelerated its layout in the US and European markets. At present, Haichen Energy Storage has set up subsidiaries in Delaware, Fremont and Munich in the United States to better meet local market demand, improve service efficiency and establish close cooperation with local customers.
The world is ushering in an era of Chinese cars, which deserves the long-term attention and layout of investment institutions. As a professional equity investment institution, Kunyuan Assets has been focusing on the diversified investment strategy of "direct investment+FOF master fund+S fund" since its establishment in 2014, focusing on the layout of national strategic emerging industries, including new energy. Adhering to the principle of creating long-term, stable and high-quality investment value for investors, accelerate the investment layout of the "China of Science and Technology" and "China of Health" strategies.
Looking forward to 2024, as the main direction of green development, the new energy vehicle industry will maintain high-tech, efficient and high-quality growth. In this context, Kunyuan Assets will resonate with the times, closely follow the market development trend, pay close attention to the investment opportunities in the new energy direction, actively explore and invest in high-quality enterprises with high growth, and help the high-quality rise of the new energy vehicle industry.
Disclaimer: There are risks in the market, so you should be careful! This article is for reference only, not for sale basis.
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[Editor in charge: h001]
