While the tech is in its infancy, the push to equip robots with machine-learning capabilities is raking in new investment

• In 2024, China's central economic meetings highlighted challenges of overcapacity in certain industries. High-level visits and discussions with the U.S. and Germany focused on capacity issues, leading to new bilateral mechanisms for economic balance and growth discussions.
• Rapid export growth in sectors like electric vehicles and photovoltaics has drawn global attention to China's production capabilities, raising concerns about overcapacity despite a strong market demand projected for the future.
• Discussions around capacity utilization rates reveal varying standards across industries and countries, with no universal benchmark for ideal rates. China's industrial capacity utilization hit a low in early 2024, prompting debates on whether emerging industries can be judged by current supply-demand metrics alone.

• Ken Griffin, founder of Citadel Investment and Citadel Securities, is one of the most successful hedge fund managers globally. As of 2023, Citadel manages $61 billion with a 38% return in 2022, making it the highest cumulative return hedge fund historically. Citadel Securities has become a leading market maker in the U.S., handling about $400 billion in trades daily.
• Griffin has donated $1.56 billion across various sectors including education and politics, and is a major donor to the Republican Party. He recently contributed $5 million to Nikki Haley's presidential campaign.
• Griffin's views on China are positive; he participated in the China Development Forum (CDF) in Beijing and plans to expand Citadel's footprint in China by bidding for Credit Suisse Securities (China). His approach emphasizes leveraging technology and talent for business growth, evidenced by hiring experts like Zhao Peng as CEO of Citadel Securities.

NEV pioneer sends its sales team abroad with plans for factories in Thailand, Brazil, Hungary and elsewhere

Electric carmaker introduces its sports utility vehicle, the G9, and seven-seater X9 multipurpose vehicle to new markets

• China's state-owned automotive companies are intensifying efforts to compete in the new energy vehicle (NEV) market, with the State-owned Assets Supervision and Administration Commission (SASAC) encouraging bold moves and separate assessments for NEV operations. This shift comes as these enterprises lag behind private companies like Tesla and BYD in NEV development.
• SASAC aims to "unshackle" major state-owned car manufacturers such as FAW Group, Dongfeng Motor Corporation, and Changan Automobile by focusing future assessments on technology, market share, and development potential in the NEV sector. This strategy includes easing profit assessments to prioritize sales volume and technical advancements.
• The Chinese government's support for NEVs since 2009 has not translated into rapid growth for state-owned enterprises due to a cautious approach towards investment in emerging fields. However, with policy adjustments and organizational reforms aimed at boosting competitiveness, these companies are now positioned to aggressively pursue a larger share of the NEV market amidst increasing domestic competition and changing consumer preferences.

• Li Auto, led by CEO Li Xiang, reported a successful 2023 with 376,000 vehicles delivered and a net profit of RMB 11.81 billion, marking the first annual profitability among new electric vehicle makers. The company unveiled its all-electric flagship model, the MEGA, aiming to compete with luxury brands but faced challenges with image manipulation and rumored order cancellations.
• Huawei's automotive brand AITO has emerged as a formidable competitor to Li Auto, with its M7 model surpassing 100,000 units in deliveries within 170 days and outselling Li Auto in the early months of 2024. Huawei's aggressive strategy under HarmonyOS Smart Mobility poses a significant threat to other electric vehicle makers.
• Li Auto is responding to competition by introducing price reductions and new models while emphasizing investments in intelligent driving and smart cabins. The company aims for high sales targets in 2024 amidst intense competition from established brands like Tesla and BYD, as well as technology companies entering the automotive sector like Xiaomi.

• In January 2024, Geely Automobile sold 213,000 vehicles, surpassing BYD by 12,000 units, marking a significant achievement for Geely which had been trailing behind BYD for two years. Geely's acquisition of Volvo Cars in 2010 was a turning point that helped reshape its product development and brand system. Despite announcing ambitious plans for new energy vehicles in 2015, Geely struggled to meet its targets and keep pace with the electrification transformation, lagging behind BYD's rapid growth in new energy vehicle sales.
• BYD capitalized on the shift to new energy vehicles and ceased gasoline vehicle production in April 2022. Meanwhile, Geely's early bets on hybrid electric vehicle technology did not align with market trends as subsidies and incentives favored pure electric and plug-in hybrid vehicles over hybrids. This misalignment led to strategic adjustments but left Geely struggling to compete with BYD's scale and growth rate in the short term.
• Li Shufu, founder of Geely Automobile, has gradually stepped back from day-to-day operations while focusing on broader investments through Geely Holding Group. The group aims to become a major player in the new energy vehicle era but faces challenges in electrification transition similar to traditional automakers like Volkswagen Group. Despite efforts to adapt through acquisitions and new brand strategies, Geely must overcome numerous obstacles to regain leadership in China's automotive market against competitors like BYD.

The joint venture says it aims to sell one million passenger electric vehicles by 2030

• Li Auto, led by CEO Li Xiang, reported a profitable year in 2023 with 376,000 vehicles delivered and a net profit of 11.81 billion yuan. The company faced challenges after the launch of its first all-electric flagship model MEGA and three new extended-range models in early March 2024, experiencing negative reactions and organized attacks online.
• Huawei's automotive brand AITO has emerged as a significant competitor to Li Auto, surpassing its sales in the first two months of 2024. Huawei dominates in smart car technology and has expanded its automotive partnerships under the HarmonyOS for Cars system, posing a threat to Li Auto's market position.
• Despite setbacks with MEGA's launch, Li Auto is adjusting strategies by offering discounts on existing models and planning to introduce three new electric vehicle models by 2024. The company aims to maintain growth amidst intense competition from traditional automakers and tech companies entering the EV market.

Japanese carmakers to collaborate on core technology for battery-based electric cars to catch up with Chinese rivals

Lack of charging points is highlighted as the biggest problem by NEV owners, although carmakers are making strides to improve this

• Global automakers like Volkswagen, Stellantis, and Renault are forming new partnerships with Chinese electric vehicle (EV) companies such as XPeng and Leapmotor to leverage each other's strengths in technology and market access.
• Volkswagen has partnered with XPeng to co-develop models and utilize VW's supply chain for cost reduction. Stellantis invested approximately €1.5 billion for a 20% stake in Leapmotor, aiming to accelerate its presence in China and globally.
• These collaborations mark a shift from previous joint ventures where foreign companies sought market access in exchange for technology. Now, Chinese EV firms are seen as tech leaders, contributing to the global automotive industry's transition towards electrification and intelligent driving systems.

India offers a burgeoning market for EV sales and BYD wants to be leader in the premium category

• Miao Wei, a key figure in China's automotive industry, reflects on the rapid development of new energy vehicles (NEVs) and China becoming the largest auto exporter globally in 2023, surpassing Japan. He emphasizes the need for continued reform and opening up to transition from an automotive big country to a strong one.
• Miao discusses challenges such as technological innovation, brand building, and international competition. He highlights strategic moves like inviting Tesla to China and increasing foreign investment limits as pivotal for industry growth. The focus is on adapting to global trends, enhancing competitiveness, and fostering collaboration across sectors to innovate.
• Looking forward, Miao stresses the importance of seizing opportunities in intelligent connected vehicles (ICVs) and navigating geopolitical complexities. He advocates for open-source systems in smart cars, leveraging AI advancements, and addressing overcapacity through market mechanisms. The goal is ambitious progress towards NEVs and ICVs while maintaining strategic openness and innovation.

特斯拉现有五款在售车型，销量主力车型只有两款，相比竞争对手，产品线过于单薄

Tech giant’s interest in developing a car helped highlight an investment boom in Silicon Valley

By slashing the prices on revamped versions of its flagship sedans, the Chinese automaker set off a chain reaction with competitors scrambling to match it with their own cuts

• In January 2024, Geely Automobile outsold BYD by 12,000 vehicles with a total of 213,000 units sold in a single month, marking a significant achievement for Geely after being outperformed by BYD for two years.
• Geely's transformation and growth were significantly influenced by its acquisition of Volvo Cars in 2010, which helped the company revamp its product development and brand system. Despite setting ambitious goals for electric vehicle (EV) sales under its "Blue Geely Initiative," the company fell short of these targets due to strategic missteps in adapting to the EV market transition.
• Geely is now focusing on catching up in the EV segment with new strategies and investments, including launching new brands and models targeting different market segments. The company faces challenges in regaining its leading position against competitors like BYD, which has successfully capitalized on the shift towards electrification.

BYD ups pressure on rivals by offering revamped flagship Qin Plus sedan at lower price than last year