Core Viewpoint - The strategic transformation of multinational automotive companies in China is revitalizing joint ventures, focusing on local R&D and adapting to the fast-paced development of electric vehicles and smart technologies [3][4][5]. Group 1: Investment and R&D Focus - Nearly 70% of surveyed multinational automotive companies plan to increase investments in China by 2025, with over 78% focusing on R&D [3]. - Mercedes-Benz has invested over 10.5 billion yuan in R&D in China over the past five years, emphasizing electric and intelligent vehicle development [4]. - BMW's R&D investment reached a record high of 9 billion euros in 2023, concentrating on new product architectures and battery technology [5]. Group 2: Localized Decision-Making - The shift from "headquarters-led" to "China-first" R&D models allows local teams to have greater decision-making power, significantly reducing development cycles [6][7]. - Nissan's Chinese R&D team now leads vehicle development, shortening the development cycle to 24 months [7]. - Toyota is transitioning decision-making authority for new models from Japan to its Chinese R&D center, enhancing responsiveness to local market needs [7]. Group 3: Strategic Partnerships and Collaborations - Mercedes-Benz plans to invest an additional 14 billion yuan in China, focusing on local partnerships to enhance R&D capabilities [9]. - Nissan is collaborating with Chinese tech companies like Huawei and Momenta to improve its smart driving technologies, with a planned investment of 10 billion yuan over the next two years [10]. - GAC Toyota is partnering with leading tech firms to develop AI ecosystems for smarter vehicle functionalities [10]. Group 4: Market Performance and Adaptation - SAIC Volkswagen's sales reached 523,000 units in the first half of the year, with a 2.3% year-on-year increase, driven by the integration of smart features in traditional vehicles [6]. - Dongfeng Nissan's sales were 530,000 units in the first half, reflecting a 0.3% increase, attributed to its R&D strategy and local team empowerment [7]. - General Motors has turned profitable in the Chinese market, with a 7.6% increase in sales in June, largely due to its accelerated electrification strategy [8].

Core Viewpoint - The automotive industry is witnessing a shift towards hybrid and plug-in hybrid vehicles, as companies adapt to consumer preferences and market dynamics, leading to larger fuel tanks in electric vehicles to alleviate range anxiety [4][17][39]. Group 1: Market Trends - Audi has retracted its plan to stop developing fuel vehicles by 2033, indicating a need for a diverse product lineup that includes electric, plug-in hybrid, and internal combustion engine models [4]. - The retail sales of plug-in hybrid vehicles increased by 28% in the first five months of the year, reaching 1.69 million units, with a projected growth of 76.9% in 2024, significantly outpacing pure electric vehicle growth [5][39]. - The proportion of plug-in hybrids in the overall new energy vehicle sales rose to 42.1%, an increase of 8.6 percentage points year-on-year [5]. Group 2: Vehicle Specifications - New energy vehicles are now equipped with larger fuel tanks, with some models exceeding their traditional fuel counterparts. For instance, the Lynk & Co 06 has a fuel tank capacity of 51 liters, up from 35 liters, and the BYD Seal 06 DM-i features a 65-liter tank [6][7]. - The average fuel tank capacity of new energy vehicles in China has increased by 52.6% from 2017 to 2024, reaching 58 liters, which is comparable to traditional fuel vehicles [14]. Group 3: Consumer Behavior - Consumer concerns about charging infrastructure and range anxiety are driving the demand for vehicles with larger fuel tanks, as the current charging infrastructure is insufficient to meet the growing number of electric vehicle users [17][18]. - The psychological aspect of range anxiety is significant, leading manufacturers to prioritize the development of hybrid vehicles with larger fuel tanks to address consumer needs [18][42]. Group 4: Technological Advancements - The battery technology has matured, allowing plug-in hybrid vehicles to achieve electric ranges exceeding 300 kilometers, significantly improving their market positioning [4]. - The cost of battery materials, particularly lithium, has decreased, providing manufacturers with the opportunity to install larger batteries and fuel tanks in their vehicles [24][26]. Group 5: Policy Impact - The discontinuation of national subsidies for new energy vehicles has leveled the playing field between plug-in hybrids and pure electric vehicles, encouraging the growth of plug-in hybrids [39]. - The extension of tax exemptions for new energy vehicles until the end of 2027 further supports the market for plug-in hybrids, as they now enjoy similar benefits as pure electric vehicles [39].

Core Viewpoint - The automotive industry is witnessing a shift where traditional fuel vehicles and new energy vehicles (NEVs) are increasingly incorporating larger fuel tanks, reflecting a compromise between idealism and practicality in consumer preferences [3][4][5]. Group 1: Industry Trends - Audi has retracted its plan to cease development and sales of fuel vehicles by 2033, indicating a need for a diverse product lineup that includes electric, plug-in hybrid, and internal combustion engine models [3][4]. - Many Chinese automakers, initially focused on pure electric vehicles, are now pivoting towards plug-in hybrid models, recognizing the importance of fuel tanks in consumer purchasing decisions [4][5]. - The retail sales of plug-in hybrid vehicles (including range-extended models) increased by 28% year-on-year in the first five months of this year, reaching 1.69 million units, with a projected growth of 76.9% in 2024 [5][40]. Group 2: Technical Developments - The advancement in battery technology has led to plug-in hybrid models achieving electric ranges exceeding 300 kilometers, significantly improving their market positioning [4][5]. - The fuel tank sizes of new energy vehicles are now often larger than their traditional fuel counterparts, with some models featuring tanks up to 91.5 liters [5][6][13]. - The average fuel tank capacity of new energy vehicles in China has increased by 52.6% from 2017 to 2024, reaching 58 liters, aligning closely with traditional fuel vehicles [15][22]. Group 3: Consumer Behavior - Consumer anxiety regarding charging infrastructure remains a significant barrier to the adoption of electric vehicles, prompting manufacturers to enhance fuel tank capacities as a practical solution [18][19]. - The shift in consumer preference towards larger fuel tanks in new energy vehicles is driven by the need for convenience and reliability in refueling options [19][43]. - The introduction of policies that treat plug-in hybrids and pure electric vehicles equally in terms of subsidies has further accelerated the growth of plug-in hybrid models [40][43].