Core Viewpoint - Despite efforts from Europe and the US to impose tariffs on Chinese imported cars due to alleged "unfair subsidies," the rapid development cycle and shortened R&D times are the primary factors enabling Chinese automotive brands to dominate the market [1][3]. Group 1: R&D Speed and Market Dynamics - Chinese brands have an average vehicle age of 1.6 years for electric and hybrid models, compared to 5.4 years for foreign brands, indicating a significant advantage in R&D speed [3]. - From 2020 to 2024, the top five foreign car manufacturers in China saw their annual passenger car sales plummet from 9.4 million to 6.4 million, while the top five Chinese manufacturers doubled their sales from 4.6 million to 9.5 million [4]. - Executives from major global automakers acknowledge the threat posed by Chinese competitors and express a desire to learn from their rapid R&D processes [6]. Group 2: Competitive Strategies - Many foreign automakers are collaborating with fast-growing Chinese manufacturers to adopt their operational methods, as seen with partnerships like Volkswagen and Xpeng, Stellantis and Leap Motor [6]. - Chinese automakers have shifted from merely imitating foreign designs to developing unique, faster product release strategies [6]. - The intense competition has led to a market where 93 out of 169 existing Chinese manufacturers hold less than 0.1% market share, indicating a brutal landscape [6]. Group 3: Unique Chinese Speed - Since Tesla launched the Model Y in 2020, BYD has introduced over 40 new models and 139 updates, showcasing an impressive pace of innovation [7]. - The flat organizational structure in Chinese companies allows for quick decision-making, enhancing flexibility and speed in development [7]. - Chinese engineers often work longer hours, contributing to the rapid pace of development compared to their global counterparts [7]. Group 4: Digital Development and Quality - Chinese automakers increasingly rely on digital R&D, enabling parallel deployment of global teams, which can significantly reduce development time [12]. - Despite shorter review processes, Chinese brands consistently achieve high safety ratings, such as five stars in the Euro NCAP tests, challenging the perception of lower quality [12]. - Standardized platforms and components across models help Chinese manufacturers save time and costs, with companies like Zeekr utilizing extensive databases to optimize parts selection [12]. Group 5: Agile Product Development - Companies like Chery propose multiple digital design options for each new model, allowing for rapid iteration based on market feedback [14]. - If a model fails to resonate with consumers, it can be quickly redesigned and reintroduced within two years, demonstrating agility in product development [14].