“There is no such thing as a market you can give up on”… Companies looking for breakthroughs at the Beijing Motor Show

Asia’s largest ‘2024 Auto China’ held
Over 1,500 companies participated
World’s largest automobile market with 25 million units per year
“China is the largest market and largest production base.”

Shunyi Pavilion, Beijing International Exhibition Center, China, on the 25th. The ‘2024 Auto China’ (Beijing Motor Show), held for the first time in four years, is a silent battlefield for global auto brands to capture China, the world’s largest automobile market with annual sales exceeding 25 million units.changed to In particular, about 30% of new cars sold in China are ‘new energy vehicles’ (eco-friendly vehicles) such as electric vehicles (EV) and hybrid vehicles, which is drawing the attention of the automobile industry.

A senior official of Hyundai Motor Group who met at the site that day said, “Korean cars have recently faltered in the Chinese domestic market, but we cannot give up on the world’s largest market. Moreover, it is still a production base where cars from all over the world are made, so we must continue to dig in.” said.

Over the past 20 years, domestic companies have achieved significant growth in anticipation of exports to China. However, under the Yoon Seok-yeol administration, the situation changed as voices grew louder calling for greater trade diversification by increasing the proportion of North America, Europe, and ASEAN instead of reducing dependence on China. However, major domestic conglomerates such as Samsung, SK, Hyundai Motor, LG, and Lotte, as well as mid-sized and medium-sized companies in major industries that support the domestic economy, such as automobiles, petrochemicals, semiconductors, and information and communications (IT), cannot immediately replace China, which accounts for 25% of exports. Everyone agrees that it is not easy to find an alternative. Moreover, as the Chinese economy, which had been stagnant before and after the novel coronavirus infection (Corona 19), is gradually reviving, companies are trying to create even small opportunities in the already fierce competition among global companies instead of letting go of China.

Beijing Motor Show, once treated as a periphery…now at the center of the global automobile market

Starting with the Media Day event on this day, the Beijing Motor Show, which runs until the 4th of next month, was able to feel the heat of competition among global automobile companies targeting the Chinese electric vehicle market. Over 1,500 auto and parts manufacturers participated, including traditional powerhouses such as Hyundai Motor Company, Kia, Mercedes-Benz, Audi, Volkswagen, and Toyota, as well as Chinese companies such as BYD, Xiaomi, and Geely, which have emerged as emerging powerhouses in the global electric vehicle market. did.

The exhibition hall, which is the size of 32 soccer fields (230,000 m2), was crowded from the morning with reporters from all over the world. In particular, the BYD and Xiaomi booths were constantly visited by reporters. Xiaomi, which introduced its first self-developed electric car ‘SU7’ in March, sold 70,000 units in just two months. Hundreds of reporters flocked to the Xiaomi booth that Xiaomi Chairman Lei Jun stopped by, and they even had to stand in line to take pictures of the inside of the vehicle.

Hyundai Motor Group competes through differentiation with high-performance cars

The prestige of Korean cars, which were once the most loved cars in China, has waned in recent years. According to the China Automobile Manufacturers Association, the Korean automobile market share in China, which once exceeded 10%, fell to 1.6% last year.did. This is because it was pushed out by German and Japanese automakers such as Toyota and Volkswagen, and allowed Chinese companies with low-cost electric vehicles to catch up.

On this day Hyundai Motor Group declared that it would regain its former reputation in the Chinese market with premium, high-performance electric vehicles.. Hyundai Motor Company will bring its high-performance electric vehicle ‘Ioniq 5N’ to the forefront at this auto show. I took it out. Genesis unveiled the world’s first fully electrified model of the luxury large sedan G80.did. also The ‘Genesis Magma’, which adds high performance to luxury, was introduced, and the ‘G80 Electrified Magma Concept’ applying it was also introduced.. Kia is launching the ‘EV5 Long Range’ model, a compact electric sports utility vehicle (SUV).was put forward.

Oh Ik-kyun, vice president of Hyundai Motor Company’s China business, said at a press conference that day, “We will respond in earnest to the Chinese market by introducing products sequentially from 2025 to 2027. Success in the Chinese market will lead to success in the global market.”

The Chinese people’s reactions were mixed. Mr. Jeong, a Chinese automobile journalist who met at Hyundai Motor Company’s booth, said, “If Korean cars add a low-price strategy to their current performance, they will be able to achieve another success in China.” On the other hand, another Chinese reporter, Mr. Jang, predicted a low possibility of a rebound for Korean cars, saying, “Chinese brands that have recently grown rapidly are rapidly replacing Korean cars.”

There were also active movements by domestic parts companies to target Chinese electric vehicle companies. Samsung Electronics’ Device Solutions (DS) division participated in the Beijing Motor Show for the first time today.sun We set up a booth with a memory system LSI foundry and welcomed Chinese company officials.. Hyundai Mobis also tried to attract fast-growing Chinese automobile companies as customers by introducing 14 core technologies, including variable displays.

Volkswagen Group exhibited 44 models at this motor show. Volkswagen cars have been the ‘best-selling’ brand in China for 15 years since 2008, but lost first place to BYD last year. Audi unveiled its electric SUV ‘Q6 e-tron long wheelbase’ model for the first time in the world, and Mercedes-Benz also introduced ‘The All New Mercedes-Benz G580’, an electrified model of the premium model G-Class, for the first time at this event.

Beijing= Youngbin Cho correspondent [email protected]

Kang Hee-kyung reporter [email protected]

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