Daily Management Review

In A Global Drive, BYD Exhorts China's Automakers To Band Together And "Demolish The Old"


In A Global Drive, BYD Exhorts China's Automakers To Band Together And "Demolish The Old"
A patriotic appeal to unite the industry and "demolish the old legends" of the international market made by China's top-selling automaker has gone viral, garnering praise as well as a reprimand from a competitor.
BYD celebrated the development of China as a global auto manufacturing powerhouse this week by holding an event to honour a production milestone.
"I believe the time has come for Chinese brands," BYD founder and chairman Wang Chuanfu said at the event, standing in front of an image of the logos of 12 major Chinese automakers.
"It's an emotional need for the 1.4 billion Chinese people to see a Chinese brand becoming global."
The announcement by BYD, Tesla's main challenger in the global electric vehicle sales battle, was widely praised and demonstrated how China's automakers are torn apart by domestic competition and chasing growth abroad.
Tesla launched a brutal price war in China's auto industry in January, and it is still going strong. Additionally, they are all engaged in competition on the same international markets, where they must deal with legislative obstacles occasionally and wary consumers.
A movie commemorating the establishment of a dozen rivals, from the state-run manufacturer FAW Group in 1956 to the commercial EV startups Xpeng, Nio, and Li Auto in the previous ten years, was released by BYD at its event.
The video features historical images, grand landscapes, and automobiles being loaded for shipment. The narrator claims, in regard to international marketplaces, "There's no distinction between 'you' and'me,'" adding that "our stories are different from each other but share the same direction."
With the motto "Chinese Autos," it concludes with a challenge to China's automakers to "demolish the old legends and achieve new world-class brands."
Chinese social media saw a huge increase in video views. Rival executives conveyed their gratitude on their websites. William Li, CEO of Nio, said on Weibo, "I feel proud for China's auto industry!" "We should take note of BYD's achievements."
"Salute to BYD!" said Li Xiang, CEO of Li Auto, who reposted the BYD video. "Let's give a thumbs up to every participant in the new energy era!"
In Europe, where Chinese EV exports may be subject to anti-dumping examination, several automakers worried that the message might increase regulatory risks for Chinese brands there.
Great Wall Motor of China's senior executive responded that Chinese automakers should accept the "reality of competition".
"At such a critical moment, how can Chinese automakers be together?" Wang Yuanli, Great Wall Motor's Chief Technology Officer, posted on his social media Weibo account on Friday. "If we only talk about being together but keep our bitterness in our hearts, it would be better to have the fight first."
Wang then admitted that he had been paraphrasing a senior editor from China's Auto Business Review.
A commitment to avoid "abnormal pricing" made by 16 manufacturers, including BYD, was later withdrawn by the trade association for China's automakers in July. According to the China Association of Auto Manufacturers, the arrangement was illegal under Chinese antitrust legislation.
Great Wall said in May that it had reported BYD to Chinese regulators, stating that two of the company's best-selling hybrid vehicles did not adhere to emissions regulations. BYD denied the allegation and threatened legal action.
With a 37% share in the first seven months, up from 29% a year earlier, BYD has increased its lead in China's new-energy industry, which includes EVs and plug-in hybrids. Additionally, it outsold the Volkswagen brand, which has long been the leader in sales in China.