The 2024 Paris Motor Show opened on October 14, during which the words of Zhu Jiangming, CEO of Leapmotor, caused ripples. He boldly predicted that with the fierce competition in the domestic automobile market and the continuous surge in the penetration rate of new energy vehicles, three years later, domestic pure fuel vehicles may completely withdraw from the historical stage, and only exist as a collection or special-purpose vehicle for a few car enthusiasts. This prediction has not only attracted wide attention from the industry, but also triggered a heated discussion among the public about the future direction of the automotive market.
1. Industry trends: the rise and change of the new energy vehicle market
Zhu Jiangming's prediction is not groundless. In recent years, the rise of the new energy vehicle market has become a force to be reckoned with in the automotive industry. According to the latest data released by the China Passenger Car Association, in September 2024, the retail penetration rate of new energy vehicles in China has reached 53.3%, an increase of 16.4 percentage points compared with the same period last year. This data not only highlights the rapid development momentum of the new energy vehicle market, but also indicates that the traditional fuel vehicle market is facing unprecedented challenges.
At the same time, the retail sales of conventional fuel vehicles have shown a significant downward trend. In stark contrast to the booming NEV market, retail sales of conventional fuel vehicles fell by 22% year-on-year in September 2024. This drop and rise not only reflects consumers' increasing preference for new energy vehicles, but also indicates that the automobile market is undergoing a profound change.
Picture: Zhu Jiangming, CEO of Leapmotor at the 2024 Paris Motor Show, predicts that domestic pure fuel vehicles will disappear in three years
2. Technological innovation: Leapmotor B10 leads a new era of intelligent driving
In this revolution, Leapmotor is undoubtedly at the forefront. At the Paris Motor Show, the new model B10 launched by Leapmotor has become a highlight of the show with its excellent performance and forward-looking technical design. The B10 is based on Leapmotor's latest LEAP3.5 technology architecture, which is not only equipped with the only LiDAR + 8650 chip intelligent driving solution in its class, but also equipped with an 8295 chip intelligent cockpit system. These advanced technical configurations not only improve the intelligent driving ability of the vehicle, but also bring a more comfortable and convenient driving experience to passengers.
The launch of Leapmotor B10 not only demonstrates the technical strength of Leapmotor in the field of intelligent driving and new energy, but also indicates the development direction of the future automotive market. With the continuous advancement of technology and the increasing demand of consumers for intelligent driving, new energy vehicles will gradually replace traditional fuel vehicles and become the mainstream of the automobile market.
3. Global perspective: the irreversible trend of new energy vehicles
From a global perspective, the development of new energy vehicles has become an irreversible trend. Not only in the Chinese market, but also in developed countries and regions such as Europe and the United States, they are also vigorously promoting new energy vehicles. Governments around the world have introduced relevant policies to encourage consumers to buy new energy vehicles, and at the same time increase investment and support for the new energy vehicle industry. The introduction of these policies has not only promoted the rapid development of the new energy vehicle market, but also accelerated the decline of the traditional fuel vehicle market.
Major automakers are also actively responding to this trend. They have increased investment in the field of new energy vehicles to accelerate the research and development and market layout of new energy vehicles. Some automakers have even announced plans to fully transform their NEVs to meet the challenges posed by market changes.
4. Market challenges and opportunities: the short-term existence of fuel vehicles and the long-term trend of new energy vehicles
Although the new energy vehicle market is booming, fuel vehicles will not disappear immediately in the short term. Due to the time required for the popularization of new energy vehicles, as well as the differences in market conditions and consumer habits in different regions, fuel vehicles will still occupy a certain market share in the short term. However, this does not mean that the ICE vehicle market is without challenges. With the continuous progress of new energy vehicle technology and the reduction of costs, as well as the improvement of consumers' awareness of environmental protection and energy saving, the share of the fuel vehicle market will gradually shrink.
For automakers, how to grasp the opportunities of the new energy vehicle market and accelerate the R&D and market layout of new energy vehicles will be the key to determining future competitiveness. At the same time, they also need to pay attention to the changes in the fuel vehicle market and adjust their product strategies and market layout in a timely manner to meet the challenges brought about by market changes.
5. Future prospects: the dominance of new energy vehicles and the stable development of the manufacturing industry
Looking forward to the future, new energy vehicles will undoubtedly become the dominant force in the automobile market. With the continuous progress of technology and changes in the market environment, the market share of new energy vehicles will continue to expand, while the market share of fuel vehicles will gradually decrease. This trend will not only change the competitive landscape of the automotive market, but also promote the transformation and upgrading of the entire automotive industry.
However, the rapid development of the new energy vehicle market also faces some challenges. How to ensure the quality and safety of new energy vehicles? How to reduce the cost of new energy vehicles? How to establish a complete network of charging facilities? These are all issues that require governments, businesses and consumers to work together to solve them.
At the same time, the government and enterprises also need to strengthen cooperation to promote the stable development of the manufacturing industry. They need to strengthen labor-management communication, improve the working environment, and improve the welfare and vocational skills of employees. Only in this way can we ensure that the manufacturing industry remains competitive in the ever-changing market environment and achieves long-term stable development.
In summary, Zhu's prediction reflects a profound change that the automotive industry is experiencing. With the rapid development of the new energy vehicle market and the gradual decline of the fuel vehicle market, automakers need to seize the opportunities, respond to the challenges, accelerate the transformation and achieve upgrades. Only in this way can we be invincible in the fierce market competition.
