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Foreign investment coming to Huawei to reduce costs is an advantage for Chinese enterprises

Chinese battery manufacturers have shown positive performance in both the domestic and international markets, and have achieved remarkable results so far. However, this has raised concerns among many competitors, as can be seen from the actions of some foreign manufacturers coming to China.

Regarding the deployment of foreign battery manufacturers in China, GeekCar's article believes that from the perspective of landing pace, choosing to localize production in the Chinese market is more to reduce vehicle production costs. Regarding electric vehicles, the cost space for power lithium-ion batteries is the largest. As the new energy vehicle industry gradually matures, the cost competition among major automobile companies has also risen to a new level. What people are more willing to think about is how to seize this time window and supply products with competitive prices as soon as possible. In this situation, manufacturers usually choose to use power lithium batteries as the strategic entry point for new energy vehicles.

The article states that in terms of form, it can be divided into two types: self built battery factories by car companies or joint ventures with battery companies. If car companies choose to settle down and build their own factories, it is undoubtedly more conducive to the integration of their own product lines. However, without the help of traditional battery giants, they will inevitably encounter some challenges in terms of technical barriers. Once the decision is made to establish a joint venture with a battery company, it can reduce some technical difficulties and project risks.

Regarding the advantages and weaknesses of Chinese battery manufacturers, a reporter from Reference News Network interviewed Zhao Xiang, an analyst in the automotive travel industry. She believes that domestic policy incentives and government subsidies are strong, the overall environment is more friendly than foreign countries, and the production and research and development costs are relatively low. This is the advantage of our company.

At the same time, there are also weaknesses. Zhao Xiang stated that compared to foreign brands, the technical performance and lifespan of Chinese enterprises are slightly inferior, and there is still a lot of room for improvement, which is currently the most important weakness.

In fact, the establishment of foreign factories in China provides a very good opportunity and market for cooperation and exchange in improving the technology of local companies in China, but there are also competition and threats at the same time.

Zhao Xiang told reporters that the influx of foreign capital will cause competition and impact. For example, in terms of the supply choices of many high-end brands and car models, local brands' market share will be divided. However, cooperation and competition can stimulate the development and improvement of technology, preventing companies under policy protection from being unable to face market competition and challenges.

When faced with strong opponents, they will be strong, and good opponents will unleash more potential.

2019 will be a turning point for China's electric vehicles to truly move towards popularization. However, battery companies and car manufacturers are not on the same starting line. How to build an industrial chain from resource assurance, manufacturing to reuse, undoubtedly China will become a testing ground.

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