Chinese Electric Vehicle Trailblazers: Navigating the Future of Car Manufacturing (Business Guides on the Go)

From business models to unique selling propositions, from product offerings to sales, marketing and pricing strategies, this book reveals what sets Chinese electric car manufacturers apart from their Western counterparts. Chinese automakers are gradually establishing themselves as the new trendsetters in the automotive industry as they make technological advances in various fields, especially in electric vehicles. As more of them look overseas for opportunities, especially in the European market, it is time for the local players to better understand who they are up against and take steps to keep up with the rapid growth of their Far Eastern competitors. Based on Simon-Kucher’s project experience, this book shows what is going on behind the Great Wall, informs readers about the latest technological trends and advances in China, and offers suggestions on what Chinese newcomers should bring with them when they come to town. Sharing valuable insights for all readers with an interest in the electric vehicle (EV) industry, this book will be particularly relevant for managers and decision-makers at Western OEMs, suppliers, and other relevant players in the automotive industry. Acknowledgement 6 Contents 7 List of Figures 10 List of Tables 12 1: Chinese EV Players: From Followers to Trailblazers 13 1.1 Electrification Across the World 15 1.2 Driving Forces and Recent Developments 16 1.3 Competitive Landscape 18 1.4 Outlook 20 References 20 2: The History of the Chinese EV Industry 23 2.1 How the Chinese Government Fostered the EV Industry 24 2.2 Moving Away from Subsidies Toward Self-Reliance 27 2.3 New Players in the Domestic Market 29 2.4 Chinese EV Development in a Nutshell 30 References 32 3: An Overview of the EV Stakeholders in China 33 3.1 Automakers 34 3.1.1 Traditional Automakers 35 BYD 36 Geely 36 Changan 37 3.1.2 Joint Ventures Between Western and Chinese Automakers 38 SAIC-Volkswagen, FAW-Volkswagen, JAC-Volkswagen 39 SAIC-GM-Wuling 39 Dongfeng Nissan 40 3.1.3 Chinese EV Start-Ups 40 NIO 41 XPeng 42 Li Auto 42 3.2 Automotive Suppliers 43 3.3 Mobility Providers 46 References 48 4: Electrification: Routes to the Future 52 4.1 EV Powertrains 52 4.2 Charging Infrastructure 55 4.3 Battery Supply Chain 57 4.4 Range Anxiety 60 4.5 Battery-Swapping Trend 62 References 65 5: Smartification: The Holy Grail of EV 69 5.1 The Different Paths to Smartification 71 5.2 Intelligent Cockpits 74 5.3 Autonomous Driving 76 5.4 Optional or Standard 80 References 82 6: Chinese Route to Market 85 6.1 Embracing the Mobile Era: The Rise of Super Apps 86 6.2 Is the Transactional Business Model Outdated? 88 6.3 Fan Economy 92 6.4 Guochao: National Trend 98 References 99 7: Avoiding the Innovation Curse 102 7.1 Price Before Product 103 7.2 Pricing Pitfalls to Avoid 107 7.3 Generating Income from the Whole Life cycle 109 7.4 Providing Flexibility Through Pricing Models 110 References 113 8: On the March to Globalia 115 8.1 Revisiting the Overview of EV Companies in China 117 8.2 An Overview of Chinese EV Players’ Footprint in Europe 119 8.3 What Has Worked and What Has not 120 References 122 9: Roadblocks to Success 125 9.1 Value Depreciation 125 9.2 Increasing Costs of Raw Materials 127 9.3 Governmental Regulations 128 9.4 Growing Competition 130 References 131 10: What the Future Has in Store 133 Glossary of Abbreviations and Acronyms 136 Index 138