In recent years, the new energy vehicle sector has been developing at a fast clip worldwide. Except for the Nordic countries and the U.S. that took the lead in proposing de-fueling, there is no denying that China is playing an indispensable role in such a trend and has become the focus. As a result of the policy support from the Chinese government, new energy vehicles see a momentum of rapid growth in China, and has triggered the country to become the world’s largest market. Many Chinese local companies are ambitiously planning to tap the enormous “gold mine”.
Interestingly, as technology advances and costs fall, Chinese carmakers seem to adopt creative market expansion strategies: they not only focus on the competition in new energy vehicles but also begin to adopt targeted strategies to capture the market share of fuel-powered vehicles, as well as blur the market boundary between fuel-powered vehicles and pure electric vehicles. While many international carmakers have repeatedly poured scorn on fuel vehicles in public, there is no precedent for challenging the fuel market from a corporate perspective.
Such a challenge is made at the Guangzhou International Automobile Exhibition 2020 that just opened: GAC AION, a Chinese new energy vehicle company, has released Aion Y, a class-A pure electric SUV that “makes breakthroughs in stereotype”. Manufactured based on GEP2.0 pure electric exclusive platform (the second pure electric platform in the world), it has an extraordinary appearance and larger driving space among the vehicles of the same level. As a product from the major country in terms of 5G technology, Aion Y is also equipped with 5G V2X vehicle-mounted intelligent communication system, ADiGO 3.0 self-driving system (reported to reach L3), full-scenario one-button remote parking and other competitive ICV technologies. It is noteworthy that GAC AION also claims that this is an “endurable” smart vehicle. It is reported that the vehicle is equipped with the latest-generation battery technology, featuring zero fire, long battery life and long service life. In short, GAC AION intends to grab the market share of fuel-powered vehicles by means of this model and sound the clarion call for grabbing the market share of fuel vehicles by class-A joint venture brands.
However, the effect of such a strategy remains to be proved on the market.