Beijing Auto Show: Exploring Future Investments in the Chinese Automotive Industry

The 2024 Beijing Auto Show has attracted global attention and brought new opportunities for investors. In this article, we will delve into the current investment trends and future development predictions of the automotive industry, providing insights for investors.

1. Review of the Global Automotive Market

In recent years, the global automotive market has experienced significant changes and challenges. According to data from the International Organization of Motor Vehicle Manufacturers, global car sales have gradually recovered since 2019, with a year-on-year growth rate of 11.9% in 2023, reaching over 92.72 million units. Innovations in new energy vehicles, autonomous driving technology, and smart connectivity functions continue to drive industry growth.

2. Analysis of Investment Hotspots

Current investment hotspots mainly focus on electric vehicles, smart automotive technology, shared mobility, and automotive services. According to data from the International Energy Agency, global electric vehicle sales grew by 35% in 2023, reaching 14 million units, with 95% of them in the Chinese, European, and American markets. It is expected that by 2025, the sales of electric vehicles in China will further increase, accounting for over 25% of the market share.

1)New Energy Vehicle Market

New energy vehicles were the highlight of this year’s Beijing Auto Show. With the increasing awareness of environmental protection and technological advancements, new energy vehicles accounted for over 80% of the exhibited models, demonstrating the immense potential and broad prospects of the new energy vehicle market. The strong performance of new energy vehicle companies such as BYD, NIO, and Li Auto, as well as the transformation of traditional fuel vehicle companies into electrification, indicate that new energy vehicles will become the driving force of the future automotive industry.

2)Intelligent Driving Technology

Intelligent driving technology was also a major focus of this year’s exhibition. With the continuous development of artificial intelligence and big data technology, intelligent driving technology has gradually transitioned from concept to practical application. More and more vehicles are equipped with intelligent driving assistance systems, bringing new business models and profit opportunities to the automotive industry.

3. Investment Risks and Challenges

Investing in the Chinese market holds tremendous potential and allure. According to data from the China Association of Automobile Manufacturers, car sales in China increased by 12% in 2023, reaching over 30 million units. However, countries like the United States and Europe are gradually tightening restrictions on new energy vehicles. In the United States, tariff measures on Chinese new energy vehicles and batteries have be announced in mid-May this year, which will directly impact the competitiveness of Chinese new energy vehicles in the US market. In Europe, the European Commission initiated an “anti-subsidy” investigation into Chinese electric vehicles last year and plans to decide whether to impose anti-dumping tariffs on Chinese new energy vehicles in the future. This may bring certain market risks.

Additionally, investors need to closely monitor market dynamics and technological development trends. The application of intelligent driving technology also needs to address legal, ethical, and other issues, bringing uncertainties for investors.

Conclusion

In the ever-changing global automotive industry, investors need to consider the risks associated with policy adjustments when exploring investment opportunities in the new energy vehicle industry chain. On the one hand, Chinese new energy vehicle companies that rely on exports need to closely follow international market policy changes to adjust their market strategies. On the other hand, investors need to pay attention to the potential market risks brought about by policy adjustments, in addition to factors such as technological innovation and market share.

Claudia Cao Claudia Cao

Claudia Cao

Government Affairs Manager
Claudia Cao, the Government Affairs Manager, has been representing D’Andrea & Partners since 2021.

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