Joint venture car companies are accelerating their transformation
2025-05-23
Faced with the trend of electrification and intelligence in the automotive industry, joint venture car companies are currently clarifying their direction and accelerating their transformation amidst fluctuations and uncertainties. From 'Made in China', to 'Designed for China', and then to 'Defined by China', deep co creation and ecological integration have become the labels of the 'Automotive Joint Venture 2.0' era and the password for joint venture car companies to regain their development pace. In recent years, joint venture car companies have faced significant changes in the market environment by changing their marketing strategies and improving the transparency of terminal prices. Once, the market was dominated by fuel vehicles, with "foreign technology+Chinese manufacturing" as the mainstream cooperation model; Nowadays, the wave of electrification and intelligence is sweeping, and China is riding the wind to become a global hub for automotive innovation. According to data from the China Association of Automobile Manufacturers, the market share of joint venture brands in the Chinese passenger car market has decreased from 61.6% in 2014 to 31.5% in 2024. The report from the China Automobile Dealers Association shows that in 2024, the scale of 4S networks for joint venture and luxury brands will decline, with a total of 7744 joint venture brands, a year-on-year decrease of 13.5%; Among the newly added 4S dealerships, joint venture brands only account for 3%. Under pressure, how can joint venture car companies explore breakthrough paths? Breaking through the original pricing system. In 2024, SAIC Volkswagen took its first step, and subsequently, joint venture car companies such as SAIC General Motors, GAC Toyota, and Beijing Hyundai launched a "fixed price" marketing strategy for key products, which to some extent solved the problem of opaque terminal prices. Consumers do not need to bargain and can directly transact based on the listed price, which not only improves cost-effectiveness but also enhances transparency and convenience. From the perspective of terminal performance, the "fixed price" model has shown significant effects and the market performance has rebounded. Strive to be close to user needs. In the 2025 Shanghai Auto Show, 1366 vehicles will be exhibited, of which 163 new cars will be unveiled on site, with a ratio of nearly 1:1 between independent and joint venture models. The traditional "oil to electric" models are no longer available, replaced by newly designed products that better meet the aesthetic and value needs of the younger generation. Many executives from multinational brands and joint venture car companies expressed their determination to value the Chinese market, cater to local demand, and accelerate product iteration during the auto show. I used to think that joint venture brand cars were a bit outdated, but I didn't expect them to secretly 'evolve', "said a consumer after visiting the auto show. There were many people who came to see and test drive cars during the May Day holiday, and we were all on duty and couldn't take a break. ”At a joint venture brand 4S store in Beijing, sales personnel stated that after the launch of the new model, they have received a lot of positive feedback online, and everyone's enthusiasm and confidence have significantly increased. Refactoring the R&D model from one-way input to joint output. In the context of innovative development, multinational brands are increasing investment in establishing automotive R&D centers and design centers in China, emphasizing cooperation in R&D and manufacturing, and achieving a transition from "one-way input" to "joint output". In April, Toyota's wholly-owned Lexus pure electric vehicle and battery R&D and production company project in Shanghai officially landed, and announced the launch of a new R&D mechanism and the China Chief Engineer system at the same time. This means that Toyota will integrate research and development resources and fully consider the demand of the Chinese market, allowing local Chinese engineers to lead the development of new models. At the 2025 Shanghai Auto Show, Ma Zhixin, the relevant person in charge of Nissan, announced that an additional 10 billion yuan will be invested in electric vehicle research and innovation in China over the next two years, with the goal of accelerating technological iteration and product implementation. Nissan has for the first time handed over product development leadership to a Chinese team and shortened the research and development cycle to 24 months. Volkswagen has released an advanced driving assistance system, developed by the Volkswagen Group China team, specifically tailored for the complex and diverse road conditions in China; In March, the completion ceremony of the new energy factory of Guangqi Honda Development Zone was held in Guangzhou. The joint venture car company built a new factory, which confirmed Honda's determination to continue to deeply cultivate the Chinese market and embrace change; On April 22nd, 600 Changan Mazda pure electric vehicles boarded the ship at Shanghai Waigaoqiao Port and were sent to Europe. The model took only 18 months from research and development to mass production. The intelligent networking technology and battery thermal management system developed by Changan Mazda Nanjing factory have been fed back to Mazda Japan headquarters and applied to the next generation of models... Refactoring the research and development mode. Mutual exchange of goods and equal dialogue, two-way cooperation and common growth, promoting win-win through co creation, have become the common concepts and pursuits of both China and foreign countries. Valuing China's R&D capabilities not only enables joint venture car companies to better align their products with the Chinese market, but also helps multinational brands seize the initiative in the global automotive revolution and become a new engine driving global business growth to a certain extent. After more than 10 years of accumulation from relatively closed to collaborative development, China has built a relatively complete intelligent new energy vehicle industry chain and supply chain system, which provides fertile ground for the electrification and intelligent transformation of joint venture car companies. In the era of traditional fuel vehicles, the supply chain established by joint ventures in China was relatively closed, and foreign component companies accounted for over 80% of the first tier suppliers of some joint ventures. ”Zhang Yongwei, Vice Chairman and Secretary General of the China Electric Vehicle Hundred People's Association, stated that as the electrification and intelligence transformation of the automotive industry accelerates, joint venture car companies are restructuring their industrial and supply chains. At present, when consumers choose joint venture brand models, they compare them with mainstream domestic brands, and their focus is on intelligent cockpit, human-computer interaction, and assisted driving functions. To quickly achieve product upgrades, it is necessary to cooperate with local suppliers with advantages. ”A salesperson from a joint venture car company said. Intelligent technology often establishes a close connection with users, with obvious local adaptability and iterative characteristics, and is closely related to national conditions, culture, road conditions, driving habits, etc. Local suppliers clearly have advantages in these areas and understand Chinese consumers better. To fill the gaps, more and more joint venture car companies are expanding their "circle of friends" and leveraging the technological strength of local supplier partners to innovate. Local technologies such as CATL Power Battery, Huawei Qiankun Intelligent Driving, Volcano Engine Large Model, and Four Dimensional Map New Intelligent Cockpit Solution have been integrated into joint venture brand models, helping them quickly and accurately capture market changes and launch better Chinese exclusive models and customized services; On the other hand, it has accelerated the iteration of intelligent technology and the process of marketization, shortening the gap between it and domestic brands in terms of core competitiveness. We look forward to collaborating with more local suppliers to showcase the competitive advantages of China's new energy vehicle industry chain to the world, and jointly promote the return of Chinese technology to the global market. ”Toyota's executive director, Tatsuro Ueda, said. Zhang Wei, Vice President of Volkswagen Group (China), stated that in the face of market changes, joint venture car companies are accelerating their integration into the Chinese automotive ecosystem. The role of joint venture car companies is also constantly evolving, from technology introduction to independent innovation, contributing to the high-quality development of China's automotive industry. (New Society)
Edit:Yao jue Responsible editor:Xie Tunan
Source:People's Daily
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