The current automotive industry is undergoing profound changes not seen in a century. The wave of electrification has entered the “deep water zone” where the bayonet is red from the initial “trial period”, and intelligence has officially become the main focus of the “second half” that determines the future pattern. The following are the most noteworthy core trends and heavyweight news in recent times:
- Electrification battlefield: Price war intensifies, giants accelerate their turnaround
The price war of “lower electricity than fuel” is sweeping the world: Chinese brands led by BYD have launched the “Honor Edition” series of models at the beginning of the year, bringing the prices of plug-in hybrid and pure electric models directly to the same level as traditional fuel vehicles, causing a huge impact on the global market. In response, multinational giants such as Tesla, Volkswagen, and General Motors have also adjusted their pricing strategies, and a global price war for electric vehicles has begun. This indicates that the focus of industry competition is shifting from early “range” to extreme “cost control and supply chain efficiency”.
The traditional giant “Elephant Turnaround” has entered a critical period: CARIAD, a software company under Volkswagen Group, has undergone a major restructuring and has launched a deep cooperation with Chinese technology company Horizon to quickly fill the software gap. BMW, Mercedes Benz, and others adhere to a diversified technological route, continuously launching pure electric platform new cars (such as BMW’s “new generation” models), while also continuing to invest in alternative solutions such as hydrogen fuel cells. Their performance will determine the discourse power of traditional luxury brands in the new era.
- Intelligent “Second Half”: Practical Experience from “Stacking Materials” to “Landing”
City navigation assisted driving (City NOA) has become standard: the competition for intelligent driving has shifted from highway scenarios to more complex urban roads. Chinese brands such as Huawei, Xiaopeng, and Ideal have launched city NOA functions nationwide, while Tesla’s FSD (fully autonomous driving capability) continues to advance in North America and seek opportunities to enter the Chinese market. Whoever can take the lead in implementing large-scale and low-cost urban intelligent driving will have the initiative.
Software defined cars enter the revenue stage: car companies begin to generate sustained revenue through software subscription services. For example, BMW, Mercedes Benz, and others have attempted to provide paid unlocking for certain hardware features such as seat heating and rear wheel steering; NIO and Tesla’s advanced driver assistance packages also adopt a subscription system. The success or failure of this business model directly tests the software strength and user loyalty of car companies.
- China’s power: from “follower” to “definer”
The market share of Chinese brands continues to climb: With its first mover advantage in the fields of electrification and intelligence and a well-established supply chain, Chinese brands have a market share of over 50% in the domestic market and have begun to go global on a large scale. BYD, SAIC (MG brand), Great Wall Motors, NIO, and others have performed strongly in markets such as Europe, Southeast Asia, and Australia, attracting attention and even investigation from local governments.
Reverse technology output has become the new normal: in the past, it was “market for technology”, but now it is “technology going global”. Volkswagen Group invests in Xiaopeng Motors and uses its platform technology to produce new cars; Stellantis Group invested in Zero Run Motors and obtained its technology authorization. This marks that the technology platforms and intelligent electric solutions of Chinese car companies have gained recognition from top international corporations.
- Future prospects and challenges
Supply chain security and battery technology: With the intensification of competition, ensuring stable supply of key raw materials for power batteries, such as lithium and cobalt, is crucial. Meanwhile, solid-state battery technology is seen as a breakthrough for the next generation of power batteries, and companies such as Toyota and CATL are intensifying their research and development efforts to achieve commercialization first.
The profit challenge remains severe: except for Tesla and BYD, the vast majority of electric vehicle manufacturers are still in a loss making state. How to achieve profitability while accelerating technology investment and expanding market size is the ultimate challenge facing all players.
In summary, the automotive industry is no longer just an arena for mechanical manufacturing, but has evolved into a comprehensive technology industry that integrates high-end manufacturing, artificial intelligence, software engineering, and energy technology. The future winners will inevitably be those enterprises that can establish comprehensive advantages in cost control of electrification, intelligent user experience, and global market operation. The speed and depth of this transformation far exceed people’s imagination, with new stories unfolding every day.
