3 6 Ke·2025-06-12 10:11Core Viewpoint - The recent public relations battle among major Chinese automotive companies like BYD, Geely, and Great Wall highlights a significant turning point in the industry, characterized by intense competition and a shift towards a more consolidated market structure [1][3][4]. Group 1: Industry Competition - The automotive industry in China is experiencing a fierce competition phase, reminiscent of the historical development patterns seen in Germany and Japan, where a few brands dominate the market [4][7]. - Currently, the market share of the top five automotive companies in China is below 60%, indicating a fragmented market compared to Japan's 80% and Germany's 70% [4][7]. - The ongoing "survival of the fittest" scenario suggests that a "big elimination" phase is inevitable, leading to a potential oligopoly in the future [4][7]. Group 2: Price Wars and Cost Control - The price war among automotive companies is a critical aspect of the current competitive landscape, with survival hinging on either possessing core technologies or mastering cost control [7][9]. - BYD's advantages lie in its scale and vertical integration, allowing it to offer competitive pricing strategies such as "oil-electric parity" and "electricity cheaper than oil" [7][9]. - The extended payment terms for domestic car manufacturers, averaging around 180 days, contrast sharply with foreign companies' average of less than 60 days, indicating financial strain within the industry [10][11]. Group 3: Supply Chain Impact - The prolonged payment terms have created challenges for supply chain companies, with some domestic firms extending their payment periods to as long as 240 days [10][12]. - The competitive pressure has led to a situation where suppliers are increasingly burdened, prompting calls for transparency and collaborative cost-reduction strategies [12][26]. Group 4: Transition to Electrification - The competition is also underscored by the accelerated transition to electric vehicles, with companies like BYD leading the charge while traditional players like Geely and Great Wall navigate this shift [12][13]. - The automotive landscape is evolving, with new entrants and established brands alike adapting to the demands of electrification and smart technology [12][13][24]. Group 5: Strategic Partnerships - Companies are increasingly recognizing the need for collaboration, as seen in the growing number of partnerships with tech giants like Huawei, which focuses on enhancing vehicle technology rather than manufacturing cars itself [21][23]. - The shift towards a healthier ecosystem is evident as companies begin to shorten payment terms and focus on technological advancements rather than solely competing on price [26][27].