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Pwc China Automobile Industry M&A Review and Outlook
Epidemic Prevention and Response to COVID-19 in the Automobile Industry Series Issue 2 — PwC China Automobile industry M&A Review and Outlook The epidemic has prompted many practitioners and managers in the industry to re-examine and plan for the medium-and long-term development of auto industry, accelerating industry transformation and upgrade. PwC auto team emphasizes on the following aspect of tax & legal, M&A and telematics system to analyze the related solutions. In this article, we mainly focus on the M&A aspect, hoping to give some inspirational idea to the practitioners in the industry. China’s automobile industry has developed rapidly in the opportunities. Moreover, an increasing number of companies past decade. Benefiting from “bringing in” and “going out” with advanced technology and capital will continue entering policy, both domestic and foreign OEMs have successfully into the market which fuels more M&A activities in the realized high growth through a series of mergers and automobile industry. acquisitions (M&A). Since 2018, the development of China In this article, we will analyze the automobile industry from automobile market has been slowing down, and the “CASE” four aspects: review of China’s auto industry M&A deals, trend has been having impact on OEMs. As new businesses main deal drivers and changes of auto industry, the future models are emerging, it has also led to blurring of M&A trend, and key initiatives in response to market boundaries between industries. Auto companies have been changes. actively using M&A deals to transform the automobile industry. At the beginning of 2020, the coronavirus outbreak severely impacted the supply chain of automobile industry, thus resulted in demands for business restructuring and transformation. -
Automotive Industry Weekly Digest
Automotive Industry Weekly Digest 25-29 January 2021 IHS Markit Automotive Industry Weekly Digest - Jan 2021 WeChat Auto VIP Contents [OEM Highlights] Great Wall to reshape brand image with new models 3 [OEM Highlights] VW begins sales of ID.4 CROZZ in China 4 [Sales Highlights] Chinese new vehicle sales contract 2% during 2020; demand rebound expected in 2021 6 [Sales Highlights] VW Group reports sales decline of 9.1% in China during 2020 8 [Technology and Mobility Highlights] Huawei develops smart roads in Wuxi that communicate with driverless vehicles 10 [Technology and Mobility Highlights] Geely teams up with Tencent to develop smart car technologies 10 [Supplier Trends and Highlights] DENSO collaborate with AEVA to develop next-generation FMCW lidar system 12 [Supplier Trends and Highlights] Freudenberg Sealing Technologies develops new DIAvent valves for safer lithium-ion batteries 12 [GSP] India/Pakistan Sales and Production Commentary -2020.12 14 [VIP ASSET] Stellantis: Scale Creates Opportunity 16 [VIP ASSET] Stellantis expects scale to support strong brand stable, investment into new tech 17 Confidential. ©2021 IHS Markit. All rights reserved. 2 IHS Markit Automotive Industry Weekly Digest - Jan 2021 WeChat Auto VIP [OEM Highlights] Great Wall to reshape brand image with new models IHS Markit perspective Implications Great Wall has delivered satisfactory sales results during 2020 despite the disruption from the coronavirus disease 2019 (COVID-19) pandemic. The automaker's sales rose by 5% to more than 1.11 million vehicles during 2020 on the back of strong demand for its new models, including the Haval H6 and the Pao pickup. The sales volumes of 1.11 million units exceeded the company’s target set for the year, which was 1.02 million units. -
Automotive Manager Foreword
2019 THE OLIVER WYMAN AUTOMOTIVE MANAGER FOREWORD IDEAS TURN INTO STRUCTURAL CHANGE Dear Readers, Several revolutionary ideas shaped the development of the automotive industry over the past decade, but until recently none had reached mass market status. Now, the thoughts show signs of turning into reality and unleashing unprecedented change on the industry and on people’s way of moving. This year’s Automotive Manager maps out the most exciting areas of structural change. Electric vehicles are overcoming users’ doubts over their practicality, as batteries become cheaper and their range increases. So far, they have taken off in one small European market, Norway, and sales are increasing in China. We explain why they are about to become a mass product elsewhere. New models of use such as car-sharing and ride-hailing are gaining popularity in cities throughout the world, and still others, such as car subscription, are being invented and rolled out. The flow of investment funds points to the most promising areas. In an interview, Oliver Blume, CEO of Porsche AG, told us that the company systematically scouts the international startup scene for innovative technologies and business models that will provide it with external expertise. The market changes are expected to shake the industry’s foundations. Most of the evolving products depend heavily on digital technology, leading to cooperative relationships with new partners. There are also signs of a shift in industry power to China, by far the biggest producer of electric cars and a leader in lithium-ion battery technology. The new technologies will have less-obvious impacts too. -
JATO Dynamics
THE RACE FOR EV LEADERSHIP: Lessons learned from China JATO The race for EV leadership: Lessons learned from China Contents Summary Using exclusive industry insights drawn from 01 JATO’s proprietary data and team of experts, this whitepaper aims to shed Context light on the current state 02 of play of the Electric Vehicle (EV) market in China alongside global markets and explore the China’s regulation, workings and successes incentivisation and 03 of Chinese OEMs to date. consumer demand As the global EV market changes What can the world following subsidy reduction in China, learn from China? this report also examines the global 04 ambitions of Chinese OEMs and their potential impact on global markets as they seek to establish a strong Different presence outside of Asia. 05 consumers, different levels of success Finally, it will consider how Europe and the US can learn from China’s success. Market predictions: 06 what’s next for china in a post-subsidy era? A green powered 07 bounceback in Europe? What’s next for 08 China’s OEMs? 09 Conclusions 2 The race for EV leadership: Lessons learned from China JATO Summary In the race for automotive electrification, China has set the bar high, securing a stronghold in the EV market. But with the Chinese government pulling 01 back on subsidies, the race is far from over. CHINA MILES AHEAD OF of electric vehicles. This can be seen in COMPETITORS the differences between Chinese and EU consumers. The former known for being the Despite sales data showing signs of an ‘smartphone generation’, tech-savvy and at impending slowdown, once subsidies are fully the forefront of digital technologies. -
Article No.12
Originally published on LinkedIn on 11th November 2020: https://www.linkedin.com/pulse/chinese- customer-premiumization-budgetization-product-dr-jan-burgard/ Dr. Jan Burgard Executive Partner; Co-Founder at Berylls Strategy Advisors 4 successful brand strategies for the Chinese automotive market in 2020 and 2021 Chinese OEMs and to a lesser extent Western brands are introducing a number of new upscale/premium and budget brands • Volume brands are pressured to opt for premium and/or budget strategies because markets drift apart • The budget strategy requires superior cost structure and the premium strategy means an uneasy uphill battle which quite a few players may fail. The world of gasoline vehicles is difficult to penetrate while NEVs offer vastly more new chances • Berylls has identified 4 key success factors for any OEM to successfully set up its own new premium or budget brand Market drifts apart Our “CUSTOMER BEHAVIOR IN THE FACE OF COVID-19” study has revealed some interesting findings. It shows that a large portion of Chinese consumers are planning to buy a premium vehicle despite the COVID-19 pandemic. BERYLLS STRATEGY ADVISORS GmbH CONTACT www.berylls.com Dr. Jan Burgard T +49 89 710 410 40-0 [email protected] Maximilianstraße 34 [email protected] 80539 Munich On the other hand, market share of local Chinese brands has been constantly increasing up until 2018. Chinese local brands are mostly volume/budget brands. It seems, the market is drifting apart. New brands change the landscape Just a few years ago the Chinese automotive landscape was clear. There were basically 4 types of players. -
Mackevision Expands Management Team in APAC to Foster Growth in the Region
Press Release Mackevision Expands Management Team in APAC to Foster Growth in the Region -- Beatrix Frisch, General Manager China, is promoted to Regional Director APAC, based in Beijing April 8, 2019, Beijing – Mackevision, an industry leader in Computer Generated Imagery (CGI), has recently announced new appointments for its APAC operations. Beatrix Frisch, General Manager China operations, was promoted to Regional Director for the APAC region. Mrs. Frisch is now responsible for the management and coordination of Mackevision’s overall business in the APAC market. Meanwhile, Mrs. Frisch continues to serve as General Manager for China, leading the team to provide visualization and CGI services for the Chinese market. As part of the promotion round, Mr. Johannes Rammensee, formerly Head of Production, China, has been promoted to Head of Production for APAC. Mrs. Frisch joined Mackevision in 2015 with over 15 years’ experience in the automotive industry in China, serving a number of leading automotive manufacturers in the volume and high-end segments. She set to reorganize Mackevision China and establish the company’s first China production center in Beijing, opened in 2016. Her excellent management skills and thorough understanding of the Chinese market led her and the China team to achieve significant business growth, providing high quality visualization service for many automotive customers including SAIC, Car & Home, Weltmeister, AIWAYS and Mercedes-Benz. The team provides services in still imagery, film and real-time applications. Talking about Mrs. Frisch’s new role, Armin Pohl, Global CEO of Mackevision, said: “The APAC region is going through tremendous digital development which offers great potential for Mackevision, especially in China’s fast-growing economy. -
Euro NCAP Rounds Off a Busy Year with the Results of Ten More Vehicles
Mgr Ladeuzeplein 10 3000 Leuven Belgium T: +32 (0)2 400 77 40 Email: [email protected] VAT: BE 0465 041 160 Press Release Golf, Puma and Juke join the ranks of top performers, MG surges while Opel Zafira Life tanks Euro NCAP rounds off a busy year with the results of ten more vehicles. Five stars were awarded to the Ford Puma, MG ZS EV, MG HS, Nissan Juke, VW Golf and Audi Q8. Three stars were handed out to the Aiways U5, the VW up! and its twins, the SEAT Mii and Škoda CITIGO. The VW Golf has been a benchmark of compact cars since its debut 45 years ago. Previous versions tested by Euro NCAP have rated well against the requirements at the time and the all-new eighth-generation Golf again has achieved the five full stars thanks to excellent crashworthiness and standard fit of number of assist systems. The Golf is also the first ever Volkswagen to make use of V2X connectivity (vehicle to vehicle, vehicle to infrastructure) to enable advance hazard warnings, an important new technology that will be soon be included in Euro NCAP’s rating. However, after the Sharan released last month, the Golf was the second successive VW tested by Euro NCAP to suffer a door opening in a side impact crash test. VW states that the Golf has been type-approved with a standard automatic door-locking function and believes this would prevent such door-opening in real-world accidents. Nevertheless, VW is looking into the root-cause of the door behaviour as it has not been seen in Golf tests before. -
BMW Rolls Forward with China Strategy in 2020
CHINA DAILY | HONG KONG EDITION Monday, January 20, 2020 MOTORING | 17 BJEV’s new electric Short Torque Charging stations hit models to meet Europe’s highways European automakers’ network of highway charging stations for mobility demands batterypowered vehicles is tak ing shape ahead of an expected surge in electric car sales as By LI FUSHENG manufacturers strive to meet new emission limits. Ionity, the BJEV, a subsidiary of China’s Our goal is beyond joint venture created among BAIC Group, is planning to offer automakers to build the net around 40 electric models based being No 1 in China. work, said on Thursday it has on three purposebuilt platforms We want to grow the completed more than 200 sta in 10 years as part of its goal to tions and expects to have 400 become a worldclass carmaker, new energy vehicle operating by the end of the year. according to a top executive. industry and give it Each station has 46 charging Ma Fanglie, president of BJEV, columns. The highway network said the move will further enrich our best.” is seen as a key step in convin cing car buyers they can switch the company’s lineup of models to Ma Fanglie, president of BJEV meet mobility demands. He added to electric vehicles and still take that the vehicles will feature smart long highway trips without wor functions and highlevel autono rying about running out of juice. mous driving. 150,000+ Ma made the remarks last week vehicles Production slides at an event inaugurating the sec delivered by BJEV last year in South Korea ond decade of the carmaker, which was established in 2009. -
Disgnostic List SERVICE RESET V7.90
Disgnostic List SERVICE RESET_v7.90 Remark: 1.√: means that the system has this function 2. -: means that the system doesn't have this function 3. Compared with the last version, the new added function is marked in red font Function Menu Automatic reset Manual reset Remark (Other Functions) Demo mode VW √ -- Chinese CHERY H3 series, Eastar, FY2, Tiggo 3 √ √ Chinese CHERY Tiggo, A3, A5, Cowin 3, G2, E5 √ √ Chinese CHERY G3, V5 series, H5 series, X5 series √ √ Chinese CHERY E3, New Eastar, new QQ, Tiggo 5, ARRIZO 3, ARRIZO M7 √ -- Chinese CHERY Eastar/Cowin 5, MC22 √ -- Chinese Transit JMC Transit √ √ Chinese MG MG3, MG5, MG7, MG7 (type 2), MG3 ZERO √ -- Chinese MG MG6, MG6 EU √ -- Chinese MG New MG3/GS √ -- Chinese MG MG7-L √ -- Chinese MG MGTF √ -- Chinese MG AP12, AP13 √ -- Chinese BAIC C70G, E series, C50E, C65X, D70, X65 √ -- Chinese BAIC D50 √ -- Chinese BAIC C60F √ -- Chinese BAIC BJ20 √ -- Chinese BAIC BJEV BAIC-WW 307 √ -- Chinese BAIC BJEV BAIC-WW 308EV √ -- Chinese BAIC BJEV EV150 economy type √ -- Chinese BAIC BJEV EV160 √ -- Chinese BAIC BJEV EV200 √ -- Chinese BAIC BJEV EV200/EV1600 √ -- Page 1 Disgnostic List SERVICE RESET_v7.90 Remark: 1.√: means that the system has this function 2. -: means that the system doesn't have this function 3. Compared with the last version, the new added function is marked in red font Function Menu Automatic reset Manual reset Remark (Other Functions) Chinese BAIC BJEV EU220 √ -- Chinese BAIC BJEV EU260 √ -- Chinese BAIC BJEV EH300 √ -- Chinese BAIC BJEV ARCFOX-1 √ -- Chinese SUZUKI New Aotuo, -
New Emissions Standards Push Dealers to Sell Old Models Faster
18 | Monday, June 10, 2019 MOTORINGMotoring CHINA DAILY HONG KONG EDITION Denza brand created by Daimler and BYD targeting NEV market By ZHANG DANDAN [email protected] The unveiling of the Daimler AG and BYD are team- ing up for a joint venture. Shenz- all-new Denza hen Denza New Energy Concept X is another Automotive is a bid to make the Denza brand a success in China’s milestone in the new energy vehicle market. long-term, close and Beijing Mercedes-Benz Sales Service — a subsidiary company friendly cooperation of Daimler — will take charge of between BYD and part of the Denza’s business, including sales, marketing, brand Daimler.” communication and customer Wang Chuanfu, chairman and service, on July 1. That’s according president of BYD to information released by the German auto giant at the 23rd Shenzhen-Hong Kong-Macao combines the technical strength of International Auto Show this both sides and makes positive con- month. tribution to the industry develop- The auto show was held from ment. June 1-9, in Shenzhen, South Chi- “The unveiling of the all-new na’s Guangdong province. Denza Concept X is another mile- Integrating the sales channel of stone in the long-term, close and Denza into Mercedes-Benz will friendly cooperation between BYD Visitors examine cars at the 2019 Shenzhen-Hong Kong-Macao International Auto Show held in Shenzhen, Guangdong province in early allow more customers to access and Daimler.” June. PHOTOS PROVIDED TO CHINA DAILY the Denza brand and its products, The Denza Concept X is a seven- said Nicholas Speeks, president seat sport utility vehicle, set to be and CEO of BMBS. -
The Fuel Cell Industry Review 2018
The Fuel Cell Industry Review 2018 1 FUEL CELL INDUSTRY REVIEW 2018 ACKNOWLEDGEMENTS We gratefully acknowledge the contribution of many individuals and companies within the fuel cell industry in providing information for and assistance with the compilation of the Fuel Cell Industry Review 2018. The Fuel Cell Industry Review 2018 is based on information available up to November 2018. COPYRIGHT & DISCLAIMER The Fuel Cell Industry Review 2018 is the copyright of E4tech. Material from this publication may be reproduced without prior permission provided that E4tech is acknowledged as the source and a link given to www.FuelCellIndustryReview.com. E4tech endeavours to ensure the accuracy of the information and materials contained within this report, but makes no warranty as to accuracy, completeness or suitability for any particular purpose. E4tech accepts no liability whatsoever in respect of reliance placed by the user on information and materials contained in this report, which are used expressly at the user’s own risk. In particular, this report and the information and materials in this report are not, and should not be construed as, an offer to buy or sell or solicitation of an offer to buy or sell, any regulated products, securities or investments, or making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated products, securities or investments including, without limitation, any advice to the effect that any related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated products, securities or investments should not be made in reliance on any of the information or materials in this report. -
Trump Says in No Hurry to Sign Deal with China As Trade War Escalates
WAIVERS END: Page 4 Sinopec, CNPC skip Iran oil buy for May Saturday, May 11, 2019 Ramadan 6, 1440 AH NATIONAL SECURITY CONCERNS: Page 12 US FCC bars China GULF TIMES Mobile from market; reviewing other BUSINESS Chinese carriers Turkish banks Trump says in no hurry sell dollars to support lira Reuters The move to suspend one-week to sign deal with China Ankara repo auctions for the second time in less than two months will gradually raise the average Turkish state banks sold more cost of funding from the bank’s than $1bn on Thursday and benchmark one-week repo rate overnight, sources said, helping of 24% to the overnight lending the lira to firm more than 2% at rate of 25.5%. Some analysts as trade war escalates one stage and stem declines have said a more eff ective meas- triggered by a decision this week ure to stem the lira’s fall would US tariff increase on Chinese goods growth,” French Finance Minister Bruno to re-run Istanbul’s mayoral be a straightforward hike in the takes eff ect; China to retaliate, does Le Maire said yesterday. Many business election. policy rate. not immediately give details; US, groups have opposed the tariff s, saying The lira traded at 6.0975 at 1315 “The steady trend of (lira) depre- Chinese off icials start second day they will be disastrous for companies and GMT, up from Thursday’s close ciation could potentially push in- of talks lead to higher prices for consumers across of 6.1935. flation significantly higher than a range of products.