The long story is short, the short story is about the key points.
It’s been a week since the car price cut came out. I won’t talk about the obvious things, but will express my humble opinion.
1: First, let’s talk about the essential issue of price reduction of fuel vehicles (there is no increase in the market, only stock).
Stock consumption is getting less and less. In recent years, new energy sources have been added to the increase in the original situation where only fuel vehicles were included. The market is tight at both ends (fewer fish and more people fishing)
2: An unchangeable trend (fuel vehicles— New energy) is like more than 20 years ago
(Motorcycles-electric bicycles) are currently in a replacement cycle, but the passenger car sales release in February (you can check it yourself) has clearly shown that the new Energy penetration has become higher and higher. Trend cycles are irreversible.
3: Industrial revolution (fuel vehicles have too many foreign patents and technology monopolies). As latecomers, it is basically impossible for us to overtake in corners in this industry. We might as well reopen the track.
4: In the absence of incremental consumption in the automobile industry in the next few years, the fight between automobile companies will become increasingly fierce (if you have no meat in your own bowl, you can only grab the meat in other people’s bowls. There will also be big fish eating small fish and continuous mergers and acquisitions) but this is a path that must be taken and a cycle that must be experienced. In the end, giants will emerge in the industry, and these are the national enterprises we really need.