The Rising and Falling of Electric Vehicle Brands: Which Car Companies Fell Behind in 2024?

At the dawn of 2024, HiPhi was in trouble, and by the end of the year, Jiyue followed suit. These electric vehicle (EV) "new forces" exemplify the turmoil within the industry. Adding to the rumors surrounding the collapse of NETA, it’s clear that the domestic electric vehicle market has entered a phase of rapid refinement. 2024 has become a pivotal year in the reshuffling process of the industry.

However, the overall perspective on the domestic new energy vehicle sector remains optimistic. Institutions project that by the close of 2024, China will have sold a staggering 13 million electric cars. New vehicle penetration rates are expected to surpass 50%.

The narrative of industrious cities sprouting from the burgeoning EV industry is also unfolding, with emerging automotive cities like Hefei and Changzhou becoming notable success stories.

Despite the promising market outlook, there remain significant challenges for many automobile manufacturers. In 2024, several car brands were unable to keep up due to technological, pricing, and consumer acceptance issues, leading to their elimination from the competitive landscape. This harsh reality serves as a potent reminder for surviving electric vehicle companies to strive forward and augment their competitive edge.

Looking ahead to 2025, several new electric car models are highly anticipated. Beyond new models, advancements in electric sedan technology continue to be a crucial driver of progress within the electric automotive field. Whether solid-state batteries and lithium-sulfur cells will achieve commercial viability by 2025 is a subject of much interest. Moreover, intelligent, networked, and automated driving technologies promise to continue their refinement, providing new horizons for electric vehicle experts and consumers alike.

A Boom in Electric Car Production: Surpassing Expectations

Currently, electric vehicles are extensively integrated into daily life across the nation. Strolling down the street, one can observe an array of electric sedans and new energy cars of various brands, underscoring the rapid adoption of EV technology. This shift owes much to the foresight of a legendary pioneer.

In 1992, Qian Xuesen, then aged 81 and known as an eminent contributor to China’s advancements in science and technology (“Two Bombs, One Satellite”), proposed to the government that China leapfrog traditional gasoline and diesel cars and move directly into new energy vehicles to reduce environmental pollution. He predicted that with advancements in battery car technology, a range of 250 to 300 kilometers per charge was reachable, heralding an era where China's electric vehicles could gain a significant advantage.

Fast forward more than 30 years, this vision has materialized, positioning China as a global leader in electric automobiles and an architect of industry standards. Stimulated by Qian’s advocacy and government prioritization, the implementation of the National High Technology Research and Development Program (863 Program) in 1986 saw electric vehicles being cemented as a major research focus.

The strategic planning and industry introduction phase since 2016 catapulted China’s electric vehicle industry into a high-speed development trajectory. The 2019 “New Energy Vehicle Industry Development Plan (2021-2035)” set an ambitious goal for the sale of 6 million electric vehicles by 2025. This target has been surpassed, with sales surpassing 6 million in 2022, three years ahead of schedule. Expected sales reaching 13 million by 2024 further affirm this remarkable growth.

Competitive Cities in Electric Car Manufacturing

Manufacturing cars requires an extensive industry network. As with traditional automotive manufacturing hubs like Changchun and Shiyan, the new energy vehicle surge has promoted cities like Hefei and Changzhou into prominence, capitalizing on this evolving industrial wave.

Currently, Hefe stands as a flagship EV city. By late 2024, Hefei's output exceeded an astonishing 1 million electric vehicles, surpassing the total production for 2023 in just the first three quarters. Hefei features six full-range vehicle manufacturing enterprises like JAC Motors, BYD, and NIO, alongside major brands like Volkswagen and Chang'an. The city has ambitious plans to establish itself as “the city of electric cars,” aiming to host multiple large-scale manufacturers by 2027.