Guangzhou Automobile Group's 2022 | Assessment of Transformation of Traditional Domestic Automobile Enterprises.

Top 10 Domestic Auto Companies Annual Performance Review

(1) NIO, Committed to Long-termism

(2) Xpeng, Technology-first

(3) Li Auto, Winner in Segment Market

(4) Leapmotor, Self-developed and Integrated

(5) Kopren, Bestselling Brand Among Emerging Auto Makers in 2022

We have reviewed the performance of ten traditional foreign auto companies, and just like them, the Chinese auto industry is undergoing a major transformation. For our domestic review, we have selected five emerging auto makers and five traditional domestic auto companies. Our selection criteria mainly focused on total sales volume, new energy vehicles, and operation efficiency.

◎ BYD: rose from 718,000 to 1,603,000, a year-on-year increase of 123.42%.

◎ Changan: slightly decreased from 1,156,000 to 1,152,000, a year-on-year decrease of 0.42%.

◎ Geely: decreased from 1,279,000 to 1,086,000, a year-on-year decrease of 15.13%.

◎ Great Wall: decreased from 993,000 to 738,000, a year-on-year decrease of 25.67%.

◎ GAC: rose from 437,000 to 515,000, a year-on-year increase of 17.79%.

Of course, we also noticed that Wuling and Chery have good sales volume, but we are more interested in the richness of their products in the new energy vehicle market (to round it up to 10).

▲Figure 1. Major Auto Players in China by Total Sales Volume

Looking at new energy vehicles, BYD has crossed the one-million mark and is developing towards two million or more, while Wuling hovers around 500,000. Most car companies are beginning to break through 100,000 and move towards 200,000 or more.“`markdown
▲Figure 2. Sales of new energy vehicles by domestic auto companies

In terms of penetration, the penetration rate of domestic enterprises into new energy vehicles has reached a very high level. As the sales of fuel vehicles decrease, the new energy penetration rate of all auto companies is increasing, and it has generally reached the level of 20% and is moving towards the level of 40%.

▲Figure 3. Penetration rate of domestic auto companies

In this article, we will choose GAC Group as the starting point.

Overview of GAC

GAC passenger cars are mainly divided into three categories: traditional fuel cars, HEV/PHEV product line, and the Aion product line of pure electric vehicles.

◎Aion: The terminal data is 213,000 units.

◎HEV and plug-in hybrid: 28,000 units.

◎Fuel car sector: Only 274,000 units of pure fuel cars.

Currently, the overall situation is like this. With Aion independent, the entire GAC brand should strive to electrify and increase the conversion of HEV and PHEV, which also fits in with the path of large-scale development, such as large hybrid cars like M6, M8 and GS8.

▲Figure 4. Three directions of GAC

GAC’s new energy brand: Aion

In terms of pricing, the Aion series of mass-produced products mainly revolve around products priced at around 150,000 yuan, with the 10-15,000 yuan products close to 150,000 units, accounting for about 70%. The 15-20,000 yuan products have 61,600 units, and there are relatively few products priced over 250,000 yuan.

▲Figure 5. Sales price segmentation of Aion

From the perspective of price positioning of Aiways, it is difficult to sustainably reduce costs given the current cost structure. By diversifying procurement, Aiways is relying on the competition with different battery suppliers and early adoption of lithium iron phosphate battery in major vehicle models as supports for its explosive growth in 2022. To further decrease costs, it does rely on investing in and operating its own battery companies. We will observe whether it can successfully lower the costs of batteries.

▲Figure 6. Price Positioning of Aiways

Looking back at Aiways’ sales, they have been relatively stable after May. The overall delivery data of Aiways is smooth, without overdrafts to meet subsidies.

▲Figure 7. Overall Sales Overview of Aiways

Summary: From the situation of GAC, it is a good implementation path to split pure electric vehicles and hybridize original brands. This operation mode is indeed a feasible path, separating the operation of fuel vehicles and electric vehicles.


This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email