Car Market Dynamics in 2024
In 2024, the dominance in the automotive industry’s online discourse has shifted away from traditional automakers to former mobile phone manufacturers. Quite unexpected, isn’t it?
Previously, it was the collaboration between Huawei and Ceres that seized the spotlight with their Wanjie M7 and M9 models, snatching a significant share of the market. Wanjie outpaced the likes of Ideal and emerged as the top contender among the new players, with the M9 model taking a commanding lead.
Recently, Xiaomi’s SU7 has also made waves, swiftly capturing attention and sales. Since its release, it has been a frontrunner, with 50,000 pre-orders within 24 hours, an unprecedented feat.
They say, with fame comes criticism. Just as the Wanjie M7 and M9 faced their share of critiques, Xiaomi’s SU7 is also under fire, albeit more harshly, often targeted for negative attention.
Criticism comes in various forms, with detractors finding new angles to disparage. It seems there’s always a reason to criticize, even if it’s beyond imagination.
This phenomenon puzzles me because, whether it’s the rise of Huawei’s Wanjie or Xiaomi’s SU7, for the majority of consumers, purchasing any of these brands doesn’t entail any disadvantages, only benefits.
Take myself, for instance. Though I bought a BBA model and not a Xiaomi or Wanjie, I see no reason to disparage Xiaomi or Huawei. In fact, I’m quite grateful to them.
Why, you ask? Because Huawei and Xiaomi’s entry into the market pressures competitors to lower prices and improve product quality. From this perspective, isn’t it a good thing?
For example, before Huawei’s Wanjie entered the scene, the competition was fierce, and automakers seemed untouchable, almost godlike. But with the arrival of the Wanjie M9, the competition had to humble itself, resulting in lower prices and better service. This allowed me to purchase my car at a more affordable price. Shouldn’t we be thankful to Huawei for that?
Similarly, with the release of Xiaomi’s SU7, pressure mounts on other automakers, forcing them to reduce prices. If you’ve been following the news, you’d know that within days of the SU7’s release, several models saw price cuts.
This trend of price reduction will likely spread to more automakers, affecting both fuel and electric vehicles in the 200,000-300,000 RMB range. As everyone engages in price wars, it’s ultimately the consumers who benefit.
As competition intensifies, prices decrease, quality improves, and services get better. This is a market law, an eternal truth. Therefore, when disruptors enter the market, when there are new players stirring things up, it’s beneficial for the entire market. We have no reason to criticize Wanjie or Xiaomi, unless there are ulterior motives at play. What do you think?