At the year-end, a flurry of new releases kicks off as the auto industry gears up for the prelude to 2024's intense competition.

In the final week of 2023 just past, several automakers launched a flurry of new models, including the NIO ET9, AITO M9 (with features | price inquiry), Zeekr 007, and Xiaomi SU7. These bold moves not only enriched the year-end market supply but also seemed to foreshadow that, in China's auto market of 2024, there will be no limit to how competitive it gets—only more intense competition ahead.

This has been an unprecedented "crazy week" in the automotive market—and it perfectly encapsulates the state of the new-energy vehicle sector in 2023. It’s easy to foresee that the NEV market in 2024 will witness even fiercer competition. As 2023 draws to a close, NIO, AITO, Zeekr, Xiaomi, and XPeng have chosen this pivotal moment to unveil highly anticipated new models, injecting a powerful wave of innovation and vitality into the entire automotive industry while simultaneously showcasing their respective strengths. At NIO Day 2023, NIO officially unveiled its intelligent, all-electric executive flagship model—the ET9. Though positioned as a luxury vehicle priced at around 800,000 yuan, the ET9 boasts groundbreaking advancements across multiple dimensions: from design and interior space to driving dynamics, performance, energy replenishment, and cutting-edge smart technology. Notably, on the technological front, the ET9 is equipped with NIO’s next-generation 900V all-domain electric architecture, the SkyRide chassis system, and the company’s self-developed NIO Aquila NX9031 chip—marking a remarkable leap forward that surpasses current industry standards. In other words, the ET9 sets a new benchmark in areas such as vehicle charging efficiency, energy consumption, chassis comfort, handling precision, and in-car infotainment and autonomous driving experiences, firmly placing it among the industry’s elite.

Additionally, the ET9 features advanced battery technology and an intelligent driver-assistance system, significantly enhancing both its range and safety. It also offers a wealth of comfort and entertainment features, designed to deliver a more luxurious driving experience to users. At the launch event for the AITO M9, Richard Yu, Huawei’s Executive Director, CEO of Terminal BG, and CEO of Smart Car Solution BU, stated: "The AITO M9 will redefine the best smart flagship SUV under 10 million yuan, bringing users an exceptional new experience that sets a benchmark—leading by more than one generation." As another heavyweight product resulting from the collaboration between Huawei and Seres, the AITO M9 boasts a lavish interior design, ample and spacious cabin space, and cutting-edge intelligent driver-assistance and powertrain systems, ensuring a journey that is not only more convenient but also supremely comfortable for users.
Notably, Richard Yu emphasized the AITO M9's exceptional safety features. This vehicle boasts the Xuanwu body design, crafted entirely from 2000 MPa nuclear-submarine-grade hot-formed steel—steel that is used in no fewer than 12 critical areas to guarantee unrivaled safety. Meanwhile, 80% of the AITO M9’s body structure is made from lightweight aluminum alloy, while other key components have undergone advanced one-piece die-casting using a 9000T press machine, further enhancing the car’s top-tier safety performance. On the active safety front, the AITO M9 comes standard with nine airbags and 16 strategically placed safety zones, providing comprehensive protection for all passengers. As for the battery pack, it features a sophisticated five-layer thermal safety system, including high-temperature-resistant mica boards, insulating mica paper, aviation-grade thermal insulation aerogel, nano-level ceramic thermal barriers, and an ultra-thin liquid-cooling system—all designed to prevent thermal runaway and ensure maximum safety. To underscore the AITO M9’s remarkable safety credentials, Richard Yu even shared a video demonstrating how the vehicle sustained minimal damage after being squeezed between two massive trucks. Netizens quickly chimed in, praising the M9’s cutting-edge safety features and affirming that its industry-leading reputation is well-deserved. "Zeekr," Richard Yu added, "is on a mission to redefine every segment we enter. Each of our products sets a new benchmark in its respective market—and this time, we’re turning our attention squarely toward the sedan segment, the world’s most crucial and mainstream automotive market."
From a product perspective, the Zeekr 007 is built on an 800V high-voltage platform, featuring an 800V high-capacity battery pack and a 475kW high-performance silicon carbide electric drive system. With a range exceeding 800 km, it sets new benchmarks in both its architecture and its advanced three-electric system, placing it ahead of competitors in its class. In addition, the new vehicle comes equipped with industry-leading "black technologies," including the 8295 smart cockpit chip, NVIDIA OrinX intelligent driving chip, and Geely’s self-developed Kr AI large model. These cutting-edge features position the Zeekr 007 poised to redefine the standards for intelligent, all-electric mobility. Of course, what truly makes the Zeekr 007 stand out is its impressively competitive pricing—starting at just 209,900 yuan for the entry-level rear-wheel-drive version, while the top-spec four-wheel-drive performance model tops out at only 299,900 yuan. Combined with a host of limited-time pre-order incentives, the car boasts a significant edge in the segment of premium all-electric sedans, earning it the nickname "fully committed to pushing boundaries." As numerous automakers continue to roll out their flagship models, even Xiaomi Motors could no longer sit back. On February 28, 2023, Xiaomi held a "Xiaomi Automotive Technology Launch Event," where, aside from the undisclosed price of the Xiaomi SU7, nearly every other feature and configuration was thoroughly unveiled.

The Xiaomi SU7 has been hailed as a dark horse, rivaling Porsche and rivaling Tesla. This car boasts highly competitive design and intelligent features. Lei Jun has pledged to become a top-five global automaker within 15-20 years. Xiaomi's official description of the SU7 states that it boasts a refined industrial design, intelligent interior features, a high-performance electric drive system, and exceptional handling, creating a C-segment high-performance, eco-friendly sedan that combines technology with driving pleasure. The ecosystem is particularly important: the Xiaomi SU7 utilizes Surge OS, providing the same enhanced user experience as a phone or tablet. The fully integrated system is user-friendly and takes into account the driving experience of iOS users. At the Xiaomi Auto Technology Launch Conference, Lei Jun officially addressed the Xiaomi Auto's price, stating, "Don't even think about 99,000 yuan. 149,000 yuan won't even cover costs. It's hard to say if you can get a standard model for 200,000 yuan, but at least 250,000 to 300,000 yuan is a reasonable price range."

Like these emerging car makers, Xiaopeng Motors is also competing fiercely. On the first day of 2024, Xiaopeng Motors unveiled a major New Year's gift for family users: the Xiaopeng X9. This car features significant upgrades in design and technology, particularly its industry-leading autonomous driving technology. Notably, the Xiaopeng X9 not only boasts an exceptionally long range and exceptional performance, but also provides users with an unprecedented intelligent driving experience. The launch of this new car will undoubtedly further solidify Xiaopeng Motors' position in the electric vehicle market. This wave of new car launches, while flexing its muscles, has also brought market competition to a climax. At the beginning of 2023, Tesla cut prices on its domestically produced models by up to 48,000 yuan, sparking a price war. This marked the beginning of an unprecedented price war that raged throughout the auto industry, disrupting long-standing industry norms. Price cuts and internal competition became the dominant themes in the auto market. Entering 2024, new energy vehicle companies such as BYD, GAC Aion, Li Auto, NIO, Xpeng, and Leapmotor successively announced their 2023 sales figures. Driven by nationwide consumer stimulus policies and company promotions, these major automakers achieved impressive results, boosting the overall new energy vehicle market. Li Auto achieved cumulative sales of 376,000 vehicles in 2023, securing the title of top seller among emerging automakers in 2023 and becoming the only emerging automaker to achieve its 2023 sales target. Monthly sales also exceeded 50,000 vehicles for the first time, setting the stage for ambitious targets of 800,000 annual sales and 100,000 monthly sales.

Xpeng Motors' sales rebounded in the second half of 2023, with deliveries increasing for three consecutive months, reaching 141,600 units for the full year, a 17% year-on-year increase. Xpeng Motors' flagship model, the X9, has officially launched and delivered. Meanwhile, the Xpeng XNGP intelligent assisted driving system's urban intelligent driving capabilities have reached 243 cities. NIO delivered a total of 160,000 new vehicles in 2023, a year-on-year increase of 30.7%, ranking second among new car manufacturers in terms of delivery. This year, NIO completed a generational transition across its entire product line. At the recent 2023 NIO Day, NIO's electric executive flagship, the ET9, officially debuted, attracting considerable attention. In response, NIO CEO William Li stated, "There's no doubt we didn't achieve our goals this year. This was due to both the external environment and our own internal factors. We had significant shortcomings in our understanding of environmental uncertainty, our risk awareness, and our organizational preparedness." Most new energy vehicle brands incubated by traditional automakers have achieved growth. The popular AITO Wenjie surpassed 20,000 units in monthly sales for the first time, while Lantu Auto and Zhiji Auto also surpassed 10,000 units for the first time. After slowing sales in October and November, GAC Aion saw sales rebound in December.

Industry experts generally believe that price wars and competitive competition will not end in 2024, and that the elimination round will continue. This is evident in the intensive pace of new vehicle releases by automakers at the end of 2023. Industry forecasts predict that the new energy vehicle industry will experience even greater competition in 2024. With the rapid iteration of new products, competition among automakers will intensify, with the competition not only focusing on the speed of new product launches but also on the speed of product innovation. A Geely Auto executive stated, "Everyone is talking about volume in 2023, and this is no longer surprising. The 4P automotive marketing strategy has begun to roll out across all fronts: price, product, channel, and promotion. Market pressure will undoubtedly remain high in 2024. We've been watching the releases of new cars over the past few days, and there's no doubt that the pure electric market will usher in a consumption upgrade."

Zhang Yongwei, Vice Chairman and Secretary-General of the China Electric Vehicle 100 Forum, believes that the automotive industry will enter a period of profound restructuring from 2024 to 2025. This will be a critical period for corporate competition, with industry reshuffles expected to accelerate and opportunities for growth for many companies. He also emphasized that 2024 will be a crucial period of market sifting, with more new energy vehicle models launching onto the market. In 2023 alone, over 1,100 new energy vehicle models were launched in the Chinese market, marking the automotive industry's entry into the Moore's Law era. Zhang Yongwei believes the lifecycle of new models is shrinking rapidly. In the days of gasoline-powered vehicles, a new car was released every four years, but now the cycle is 12-18 months. The industry's internal competition is not limited to price competition at the commercial level, but is also reflected in high-frequency innovation. NIO founder Li Bin has already taken precautions, predicting that competition in the automotive industry will intensify over the next two years. Cost reduction and efficiency improvement are top priorities for companies. Don't be surprised if we see even more intense price wars after the Spring Festival holiday; perhaps this will become the new normal for the next few years.

Furthermore, industry insiders generally believe that the landscape of the Chinese auto market will become more defined by 2025, with some automakers facing elimination amid fierce competition. Data from the 2023 auto industry landscape indicates that Japanese auto sales will decline by over 14% year-on-year, while domestic brands will see a 22% increase. The rise of domestic brands is not only reflected in a surge in sales, but also in their strong industry-leading role in the development of new energy and intelligent technologies. Recent sales trends show that BYD and Tesla lead the new energy market, while NIO and Xpeng Motors are facing competition from new brands like Zeekr and Zhiji, both incubated by traditional automakers. The M7 and M9 from WJ Auto are also challenging Ideal Auto's position. Furthermore, NIO, Ideal Auto, and WJ Auto are jointly attacking the new energy vehicle market priced above 500,000 yuan, a segment previously dominated by traditional luxury brands. Facing the involution of the Chinese auto market, the president of Porsche China stated, "I've worked in the automotive industry for over 30 years, much of that time in markets outside of Germany, but I've never witnessed such chaotic price wars in the Chinese market." To avoid being caught up in a price war and ensure operational quality for end-distributors, Porsche has begun reducing product supply in China, allocating production capacity to higher-demand markets like North America and Europe. Like Porsche, luxury brands like Mercedes-Benz, BMW, and Audi, as well as joint ventures like Volkswagen and Toyota, are also facing significant pressure in China. Launching low-priced products in China may become the new normal for these overseas giants.

Although the auto market will face numerous challenges heading into 2024, it will also usher in new changes. According to industry forecasts, the penetration rate of new energy vehicles in China could exceed 40% by 2024. Cui Dongshu, Secretary-General of the Passenger Car Market Information Joint Conference, previously stated, "The new energy vehicle market is expected to grow relatively optimistically in 2024. New energy passenger vehicle wholesale sales are projected to reach 11 million units, with a net increase of 2.3 million units, a year-on-year increase of 22%. New energy passenger vehicles maintain strong growth momentum." This news demonstrates China's strength in the new energy vehicle sector, reflected not only in sales volume but also in technology, innovation, and the overall industrial chain. From the perspective of new energy vehicles, the new energy market is poised for even faster growth thanks to policy support, lower actual vehicle costs, and the continued shift from gasoline to electric vehicles.

At a recent media briefing held by the China Electric Vehicle 100 Forum, representatives stated that with the continued expansion of production and sales, new energy vehicle costs will further improve, new technologies will steadily be implemented, and the consumer environment will continue to improve. It is expected that the "oil-to-electric war" will intensify in 2024, with new energy vehicles further encroaching on the fuel vehicle market. A- and B-segment sedans priced between 100,000 and 150,000 yuan will become key growth markets, contributing one-third of new energy vehicle sales. At the same time, plug-in hybrid electric vehicles (PHEVs) (including extended-range electric vehicles) will become a new growth driver for new energy vehicles. Regarding new energy vehicle exports, global sales of new energy vehicles are expected to exceed 20 million in 2024, with China contributing over 60% of global sales. China's new energy vehicle industry will further enhance its global standing. It is worth noting that with the rapid development of the new energy vehicle industry, domestic automakers have gained a first-mover advantage and their products are becoming more competitive, while the leading position of traditional foreign brands is being weakened. Industry experts predict that 2024 will also be a difficult year for joint venture brands, with their market share continuing to decline.

However, many joint venture brands are accelerating structural adjustments to adapt to the development trend of electrification and intelligent technology by improving their presence in China and localizing R&D. At the same time, the cooperation model between Chinese and foreign automakers is also undergoing new changes. Some Chinese and foreign companies are strengthening cooperation in R&D, technology, branding, exports, and supply chains, changing the one-way inflow of foreign capital that has characterized joint ventures. From a technical perspective, 800V high-voltage fast charging is becoming commonplace. Currently, Xpeng, Ideal, Zhijie, Chery, and Zeekr have all launched models equipped with 800V high-voltage platforms by the end of 2023. 2024 will be the year when the 800V platform will fully blossom, and the technology is expected to be deployed in new, more affordable vehicles.

Industry insiders predict that with the advancement of China's charging infrastructure, starting in 2024, charging an electric vehicle will become an easy and enjoyable experience! With a 400-kilometer range possible in just 10 minutes, the "Flash" era has arrived.

Additionally, empowered by large-scale AI models and as BEV + Transformer architectures gradually become the industry standard, China's high-speed NOA systems are rapidly maturing. Both traditional automakers and new EV startups are actively ramping up their investments in this space. By 2024, urban NOA solutions are expected to be widely deployed across the country. During Xiaomi's automotive technology launch event, Xiaomi CEO Lei Jun emphasized that the company's intelligent driving capabilities are fully equipped to handle complex road conditions—with drivers requiring zero manual intervention throughout the entire journey. Xiaomi aims to roll out City NOA functionality covering 100 cities by the end of 2024. Meanwhile, leading players like Huawei, NIO, Xpeng, and Li Auto are already spearheading efforts to expand the coverage of urban NOA features, leveraging "map-free solutions." Meanwhile, second-tier domestic and foreign brands are steadily refining their high-speed NOA technologies, with plans to extend these advanced capabilities into even more sophisticated urban NOA applications starting in 2024.
As technology continues to advance, urban NOA (Navigate on Autopilot) functionality is expected to become the defining trend in the autonomous driving industry by 2024. Automakers will further ramp up their R&D investments in urban NOA features, accelerating the "intelligentization" race among products and propelling the autonomous driving sector into a fast lane of rapid growth. In summary, looking ahead to 2024, competition in the automotive industry is bound to intensify, with brands engaging in increasingly fierce battles across areas such as technology, intelligence, and sustainability. Everyone is striving hard to remain competitive, ensuring that China's auto market remains one where "there’s no limit to how intense the competition can get—only more intense." Notably, the 2024 auto market will place even greater emphasis on cutting-edge technology, superior quality, and innovation, as we eagerly anticipate this new wave of momentum continuing to drive the automotive industry toward an even brighter future.

Translated from Sina Auto

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