In 2005, China surpassed Japan in one fell swoop and became the second largest automobile consumer in the world after the United States. Taking advantage of the explosion of the Chinese automobile market, Chinese automobile manufacturers began to try to open up the European market, which has the most competitive automobile industry and the most complete market in the world.
That year, Landwind took the lead in entering the European market, selling nearly a thousand units in the first month of its release, and won the title of the best imported car of the month, becoming "an important milestone in the development of domestic independent automobile brands."
Landwind's momentum is so strong that European industry insiders can see the shadow of Japanese automakers in the 1970s and Korean automakers in the 1980s.
The "elementary school students" in their eyes actually want to kill in their own hinterland. This kind of thing is unacceptable in any case. Soon, a sudden disaster fell on Landwind Motors, and even the entire Chinese automakers.
At that time, the German International Auto Show IAA was held in Frankfurt, which had not yet moved to Munich today. The three major Chinese automobile brands, Geely, Landwind and Brilliance, made their debut as Chinese independent brands.
I originally thought I would be greeted with flowers and applause from international colleagues, but what awaited Landwind was the All-German Automobile Club (ADAC) report on the crash test. After the collision, "the driver's chance of survival was almost zero."
The All-German Automobile Club commented, "With the worst results in the history of crash tests over the past 20 years, such a car should not be given a pass to enter the European market."
At the same time, the Dutch National Motorists Association also conducted a test on Landwind vehicles. The report stated that Landwind vehicles were not only extremely safe, but also seriously polluted the environment and had poor driving stability.
Overnight, Landwind, which had been unknown overseas, became a well-known "brand" in the European and American automobile industry, and "shoddy" became the stereotype of Chinese cars in the European media at that time.
This crisis not only hindered the entry of Chinese cars into the European market, but also seriously affected the confidence of Chinese manufacturers.
In the following years, domestic independent brands also tried many times to open the door to the European automobile market, but with little success and did not stir up much excitement.
The most difficult thing about entering the European automobile market is not meeting Europe's strict standards, but their inherent sense of superiority, which is a gap that is difficult for Chinese automobile companies to cross.
Europe is the birthplace of modern automobiles. Since the German Karl Benz invented the first car, the European automobile industry has gone through more than 130 years of development and produced a large number of world-renowned automobile brands, such as Volkswagen, Mercedes-Benz, BMW, Peugeot, Renault, Citroën, Bentley, Jaguar and Land Rover.
The Chinese automobile industry is only seventy years old. Most of the time, it has been busy dismantling and imitating, reverse research, or joint ventures for win-win results. The "three major parts" of fuel vehicles, namely engines, gearboxes, and chassis, have always caused Chinese car companies a headache.
The domestic traditional car market is basically dominated by joint venture cars, mainly German and Japanese cars. Domestic independent brands have always been rubbed against the ground.
I don’t even understand it in China, but I still think about going to Europe, the base of the automobile industry, to flip the table. It’s too whimsical!
How arrogant the European automobile giants were in the era of fuel vehicles, but how panicky they are in the era of new energy. Their technologies such as engines are still very good, but the power of new energy vehicles comes from batteries.
On the contrary, just as domestic independent brands were passive in the era of fuel vehicles, they are active in the era of new energy. Domestic independent brands lost face with fuel vehicles in Frankfurt, but Chinese new energy vehicles regained their reputation in Munich.
China's electric storm: sweeping Munich for the second time
Just now, the 2023 Munich Motor Show (IAA, the "Olympics" of the world's automotive industry) has come to an end.
As one of the five major auto shows in the world, it used to be the main battlefield for German car companies such as Mercedes-Benz, BMW, and Volkswagen to show off their muscles. Most of the booths were taken over by them. However, this year, 41% of all manufacturers participating in the exhibition are from China.
The Chinese team composed of BYD, Avita, Leapmoon, Cyrus and Xiaopeng gathered here heavily. The booth was crowded with visitors, and even Wang Chuanfu couldn't squeeze into his own booth.
Although the Chinese team played away from home, they successfully won the C position and firmly occupied the spotlight of the main stage.
Germany's "Economics Weekly" commented that starting from 2023, Chinese automakers will surpass German automakers in the field of innovation for the first time, and the Munich Auto Show will be the "IAA for the Chinese." "The Munich Auto Show is no longer the home venue for German CEOs. It has become a 'personal show' for Chinese car companies."
Since the Chinese auto brands debuted at the German auto show in 2005, they had a poor start. Today, they suddenly take the main stage and are scrutinized by the world media. The Chinese auto industry has been working hard for 18 years.
This time the Chinese teams can be roughly divided into three categories:
Subversives: I want to replace you, what does it have to do with you?
BYD Automobile's exhibition area occupies the largest booth on the site, surpassing established European car companies such as Mercedes-Benz, BMW, and Volkswagen, and makes no secret of its ambition to replace its position.
As early as 16 years ago, Wang Chuanfu set an ambitious goal: BYD's sales volume would be the first in the world by 2025. Today, BYD has ranked among the top 10 global auto sales, getting closer and closer to its original promise. At this Munich Auto Show, Wang Chuanfu seems determined to win.
In addition to displaying 6 new energy vehicles at once - Seal (Europe: BYDSEAL), Song PLUSEV Champion Edition (Europe: BYDSEALU) and Denza D9 (DENZAD9), the D9 in particular is regarded by foreign media as a strong rival to the new Mercedes V-Class and Lexus LM luxury commercial vehicles.
BYD also showed off a wave of technologies, such as CTB battery body integration technology, iTAC intelligent torque control system, DiLink intelligent network connection system, etc.
Of course, the design concept of "marine aesthetics" did not forget to popularize science with Europeans.
BYD is currently the only car company in the valley that can realize self-research and manufacturing of "three electrics" and the only car company that can produce its own main control chips. It has vertically opened up almost all core links in the new energy vehicle manufacturing industry chain, forming a vertical integration capability in the supply chain that no other car company has.
This is BYD's confidence to become the global car sales king.
However, BMW Group Chairman Zipze was unfazed by BYD's aggressive approach, saying, "No one can enter a new market overnight."
He believes: "Ambition does not equal success, and it remains to be seen how new players can meet the requirements and tastes of European customers."
We will wait and see who is right and wrong.
Rivals: Dances with Wolves
Compared with BYD's "extremely threatening" approach, Leapmotor, Changan, Xpeng, etc. appear to be much "kinder" and less threatening. They show more of their emphasis and expectations on the European market and hope to "dance with wolves" with established European car companies to carve up this big cake.
Taking Leapmotor as an example, Leapmotor not only showcases the LEAP 3.0 technology architecture, the latest achievement of global self-research, but also officially calls it a "four-leaf clover" because it can support the "four domains in one" of the cockpit domain, smart driving domain, power domain, and body domain.
At the same time, Leopao has released the Leopao C10, the first global strategic model based on this architecture. It is positioned as a medium and large SUV. It is expected to use two power routes: extended range and pure electric power. It supports super fast charging on an 800-volt high-voltage platform, and is equipped with lidar and high-end intelligent driving assistance systems.
Mutual benefit faction: Let me help you build a car, mutual benefit and win-win situation
At this year's Munich Auto Show, in addition to BYD and other new energy companies that shine, there are also Chinese intelligence, electrification and parts suppliers. These aspects are the shortcomings of the established European auto giants.
In the field of power batteries, 13 companies including Ningde Times, Yiwei Lithium Energy, Sunwoda, China Innovation Aviation, and Funeng Technology participated in the exhibition.
CATL has made it clear that it will set up factories in Germany and Hungary to meet the development needs of local new energy vehicles and help Europe's comprehensive electrification process and local new energy vehicle companies go overseas.
In terms of smart car software and hardware and smart driving, autonomous driving solution providers such as Horizon, Yikatong, Qingzhou Zhihang, Yuanrong Qixing, and SenseTime Technology, as well as smart driving hardware providers such as lidar, have all made appearances.
Take smart driving technology as an example. Chinese smart driving technology brands are accelerating their overseas expansion, while related technologies in Europe are making slow progress. There is broad space and potential for cooperation between the two parties.
Recently, Yuanrong Qixing announced that it is currently in technical discussions with a number of international car companies and will set up a European operations center in Germany next year to simultaneously release the overseas version of the DeepRoute-Driver3.0 solution, two smart driving products, D-PRO and D-AIR, and smart driving light trucks.
The Wall Street Journal published a column during the Munich Auto Show saying that now Western manufacturers should learn from Chinese car companies such as BYD.
It is said that before the exhibition, Wan Gang (Chairman of the China Association for Science and Technology) called all the exhibitors for a meeting. At the meeting, the leader Qian warned and Wan exhorted:
Low profile! Low profile! Low profile!
It is not difficult to understand. From complete vehicles to power batteries to intelligent driving systems, China's new energy vehicle industry chain is directly blocked at the doorstep. It may be a "threat theory."
I'm afraid it's impossible to keep a low profile now. The European auto industry is currently clouded with gloom, and the traditional auto giants are even more gloomy.
"We (Germany) are losing competitiveness." Hildegard Muller, chairman of the VDA (German Automobile Industry Association), warned the German automobile industry.
Faced with the low morale of the German automobile industry, Prime Minister Scholz could no longer sit still. Regardless of the injury on his face, he went to the Munich Auto Show to cheer for his country's automobile manufacturers.
"Competition should inspire us, not scare us." He pointed out that in the past few decades, the German automobile industry has been subject to competition from Japan and South Korea; now, electric vehicles from China will also provide "innovation driving force" for German car companies.
He once again emphasized that Germany's international competitiveness as a major automobile country is "undoubted."
At the same time, he also announced an incentive plan worth 110 billion euros to promote German industrial modernization and climate protection, which includes accelerating investment in strategically important areas such as charging infrastructure, renewable energy, and batteries.
Faced with the dilemma of new energy vehicles, although European automobile giants lack confidence, they have not given up and are ready to start a second business.
European Automobiles: Second Entrepreneurship
The global automobile industry is facing major changes unseen in a century. Traditional fuel vehicles are on the decline, while new energy vehicles are on the rise. It has become the consensus of the industry that one is ebbing and the other is ebbing.
According to research by Morgan Stanley, new energy vehicles are expected to account for more than 50% of global car sales by 2025, with China becoming the dominant player in this track.
Facing the storm of new energy vehicles in China, Europe is not sitting still. It is taking a multi-pronged approach and is making every effort to keep up with the rapid development of new energy vehicles in China.
Inside and outside the Munich Auto Show, the European industry has realized that China is becoming a superpower of new energy vehicles. Not only is it continuing its former glory in the Chinese market, it has even posed a threat to its own "home field". Europe needs to prove that it still has the strength to compete with China.
Renault Chairman Jean-Dominique Senard lamented that in "this (new energy vehicle) field, China is already a generation ahead of us, and European car companies "must catch up quickly."
German brands that feel the crisis have already begun to take action. At the Munich Auto Show, Germany is redefining the next generation of new energy vehicles.
Mercedes-Benz brought the CLA-class concept car, which is the first model built on Mercedes-Benz's new modular architecture MMA platform and equipped with the MB.OS operating system. It is equipped with an 800V supercharging system, has a WLTP operating range of more than 750 kilometers, and has excellent energy consumption performance of about 12 kWh/100 kilometers. It is called a "1-liter car."
The BMW Group brought the world premiere of the BMW New Generation Concept Car, demonstrating the next generation BMW iDrive human-computer interaction system. BMW said that it will be installed on the new generation model for the first time in 2025, and the domestic version will be mass-produced in China in 2026. Six new models will be launched based on this platform in the future.
The Volkswagen ID.GTI concept car was unveiled, bringing the iconic GTI series into the future world of electric travel, and also presented a new brand concept in an all-round way for the first time.
The new car brings the GTI series into the era of electric travel for the first time and is built on the MEB platform Volkswagen ID.2all concept car. The production version is planned to be launched in 2027.
The prelude to Europe's new electrification has finally begun, and a new round of global competition has quietly begun.
Faced with the dilemma of new energy transformation, traditional European automobile giants have chosen to cooperate with Chinese companies in all aspects to make up for their shortcomings in intelligence. For example, Volkswagen invested in Xpeng Motors, and Audi cooperated with SAIC Zhiji to focus on electrification and intelligence.
The German Volkswagen spent 5 billion yuan in tuition and only received an observer seat on the board of directors, without even voting rights. The German auto giant's learning attitude can be said to be quite sincere, and it is no longer the arrogant "mentor" it used to be.
Now, the story is repeating itself again, but the roles of the two parties have quietly swapped, and the global automotive industry landscape is accelerating in its reshaping.