Guangzhou, October 30, 2023 (Xinhua) This year witnessed a new trend in the Chinese automobile market, as sales of new energy vehicles to local automakers such as BYD and GACION witnessed a continuous rise, while joint venture brands faced a decline. In sales or even suspension of production.
The Japanese company Mitsubishi Motors recently announced that it will end its local production of Mitsubishi cars in China and transfer its share in a joint venture in China to its Chinese partner, Guangzhou Automotive Group Co., Ltd. (GAC Group).
After the restructuring process is completed, the production capacity of GAC Mitsubishi will be transferred to GAC ION, a subsidiary of GAC Group dedicated to the manufacture of new energy vehicles, and its headquarters are located in Guangzhou, capital of China. Guangdong, southern China.
On July 3, GAC ION produced China’s 20 millionth NEV in Guangzhou – a milestone for the country’s NEV sector.
As China’s new energy vehicle market maintains its strong growth momentum, new partnerships have also been forged between foreign and domestic automobile brands.
Last July, Volkswagen reached an agreement to buy a 4.99 percent stake in the emerging Chinese electric car company Xpeng and participate in developing two models of electric cars for the Chinese market.
The aforementioned deal attracted great attention because it gave Volkswagen access to XPeng technologies, including an advanced driving assistance system, which contributed to its efforts to enter the rapidly growing electric car market in China.
Shenwan Hongyuan Securities said in a research note that the two companies’ cooperation represents a major milestone in China’s smart electric vehicle manufacturing sector and an important signal that China’s auto manufacturing capabilities are recognized by the world’s leading automakers.
For decades, the Chinese auto industry has sought to improve its innovation capabilities in areas ranging from complete vehicles to communications modules, power chips and other electronic components.
Valeo, a global leader in auto parts, headquartered in France, launched the Valeo Intelligent Manufacturing Center (Shenzhen) earlier this year.
Zhu Song, president of Value China, said the center expects its sales to maintain a high annual growth rate of more than 20 percent over the next five years.
“Shenzhen has a relatively complete foundation for the new energy vehicle industry. Its resources and advantages in developing the smart vehicle industry enhance our confidence,” Zhou continued.
BYD, the Chinese giant new energy vehicle company, issued forecasts regarding its total net profits during the first three quarters of this year, estimating that the total of 20.5 billion yuan (about 2.86 billion US dollars) would reach 22.5 billion yuan, an increase of more than 120 percent on an annual basis. It also noted that its cumulative sales of new energy vehicles have already exceeded 5.4 million units.
Market analysts believe that China’s vehicle consumption potential remains resilient, and foreign auto companies have ample room for development in China.
In 2022, China’s new energy passenger vehicles accounted for a 63 percent share of the world’s new energy passenger vehicle market, according to the China Passenger Vehicle Association.
“The rise of domestic Chinese auto brands indicates the high-quality development of China’s auto industry, especially the more competitive new energy vehicles,” said Cui Dongxu, general secretary of the association. /end of news/
2023-10-30 04:24:15
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