In recent times, the automotive landscape, particularly the new energy vehicle sector in China, has seen turbulent shiftsThis past year, the sector witnessed a dramatic upheaval, highlighted by the meteoric rise and fall of HAAH Automotive, which became the first casualty of 2025 in the new wave of car manufacturersEmerging from a lineage of strong backing from established giants such as Guangzhou Automobile Group and NIO, expectations were high when HAAH burst onto the scene in 2018. However, in a mere two years, it transitioned from a promising player—reportedly selling nearly 20,000 units annually—to a distressed identity, facing legal actions and financial instability, ultimately being designated as a dishonest entity under enforcementThe rapid decline of such a company prompts a deeper examination of the pressures plaguing the broader electric vehicle (EV) industry.

As we venture into 2025, the pressure continues unabated for electric vehicle companies, with others, such as Jiyue Motors, teetering on the brink of collapseMeanwhile, brands like Neta have found themselves entangled in a web of negative publicity, pushing the industry further into a competitive survival of the fittestThe year is shaping up to be an even more ruthless selection process for car manufacturers.

In response to the daunting challenges, Neta Motors has tightly grasped the lifeline of international expansionEarlier this January, the company opened its first overseas dealership in West Java, Indonesia, announcing ambitious plans to establish over 30 additional dealers by year-endFollowing that, Neta celebrated the openings of its inaugural stores in Brazil and CambodiaSuch strategic moves toward globalization may serve as a critical countermeasure against the impending fears that loom over many Chinese automotive brands.

For consumers, these turbulent times evoke a significant sense of anxiety about the reliability and sustainability of new energy vehicles

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Issues like unpaid wages, mass layoffs, plant shutdowns, frozen assets, and legal disputes have become the narrative for many, painting a precarious picture of the EV industry as we close out 2024. This portrait of duality—where some companies celebrate burgeoning successes while others fall into bankruptcy—frosters an environment rife with fear and uncertainty.

Data from the China Association of Automobile Manufacturers illustrates this dichotomy vividly; in 2024, China's automobile production reached an astonishing 31.28 million units, reflecting a remarkable growth of 3.7% year-on-year, with sales figures similarly on the riseHowever, alongside this growth, a fierce price war has intensified and many brands find themselves facing extinction—a stark reality as 35 automotive companies, including prominent names like Dongfeng Yulon and WM Motor, succumb to dissolution and restructuring, totaling an estimated 6 million vehicles no longer on the road.

This volatile environment spawns a profound fear among consumersThe dread of acquiring a 'zombie car'—a vehicle from a brand on the brink of collapse—runs deepMany owners express grave concerns about the loss of all rights associated with car purchases, fearing that their vehicles may transform into unsafe and unpredictable liabilities without ongoing support or serviceThe following accounts illuminate these fears: one owner laments that ownership has become a constant source of anxiety, worrying about where to have repairs conducted if their car meets with misfortuneA driver recounts a particularly troubling scenario where despite purchasing a WM Motor vehicle for its low price, he soon faced critical battery issues and could not source replacement parts anywhere.

This pervasive anxiety about 'product death' is reflected not just in individual experiences, but also in systematic brand loyalty erosionCar owners, once excited about their electric vehicles, now increasingly question the viability of their purchases as brands like WM Motor leave them stranded without viable service options or replacement parts

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As confidence in these emerging brands wanes, consumers are instinctively gravitating towards larger, more established manufacturersThe ongoing shift from a competitive 'growth phase' to a more sobering 'survival phase' necessitates that companies reevaluate their business strategies to stabilize their conditions.

Reports indicate a dramatic reshuffling within the leadership of numerous automotive firms as they scramble to keep pace with these mounting challengesIn 2024 alone, it is reported that over 50 companies undertook significant managerial changes affecting more than 150 personnel across various sectors such as design, production, and salesThe intel from sources like Tyancha suggests that these changes are vitally necessary in navigating the intensity of market conditions.

As we navigate through 2025, we are seeing notable changes within prominent companies like General Motors and ToyotaToyota, for instance, recently appointed Li Hui as general manager for Toyota China, amidst restructuring aimed at adapting to the rapid pace of the automotive industryHowever, while leadership changes are essential, they represent only a fraction of the necessary transformations; the imperative challenge for automakers is to rejuvenate their value propositions and regain consumer trust.

In order to establish an irreplaceable market position, companies must harness consumer-centric value propositions that resonate profoundly with targeted demographic sectorsThe latest insights indicate that modern tier consumers exhibit a demand for personalized vehicle experiences with varied expectations of aesthetic appreciation and differentiated value proposals.

Research highlights that over 70% of price-sensitive electric vehicle consumers are male, characterizing a group that is notably cautious about pricing movements and future reductionsTheir expectations of declining prices complicate purchasing plans, leading to elongated decision-making periodsCompanies must therefore craft distinct product lines that embrace this multiplicity of consumer personas, addressing their varied tastes through thoughtful design and innovative user experiences

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Geely’s CEO, Yan Jiyue, articulated this principle succinctly, asserting that ‘design is one of our core competitive advantages.’ Firms must delve into visual language and aesthetics that reflect their unique qualities, carefully designing touchpoints to enrich user interaction, transcending mere expectations.

Furthermore, strategic community building through social engagement will serve as a powerful avenue for promoting user interactionThe emotive component adds another significant layer to brand development, necessitating that firms identify core emotional touchpoints to foster deeper connections with usersIn cultivating these narrative touchpoints, automotive brands have the opportunity to forge competitive differentiation and establish a solid consumer base that is committed to their products.

The aggressive pursuit of technological advancements continues to redefine the landscapeMajor automotive stakeholders are increasingly pivoting towards smart automotive technologies, wherein the potential for artificial intelligence will play a critical role in optimizing the entire supply chainLeading companies like BYD are positioning themselves to invest heavily in this shift, earmarking substantial funds for research dedicated to smart technological evolution.

Particularly notable is the intersection of developments in flying vehicle technology with that of electric cars, signaling a broader trend of fusion within the transport sectorThe ascent of low-altitude economy pioneers has brought to light the potential of flying cars—vehicles designed for both terrestrial and aerial mobility, holding promise for revolutionizing personal transportAs articulated by officials from China's Civil Aviation Administration, low-altitude economy projections reveal an outlook exceeding 5 trillion yuan by 2030.

Finally, collaboration between manufacturers and suppliers emerges as a critical pillar of survival and growthNumerous emerging brands, such as WM Motor and Neta, now face a barrage of lawsuits from suppliers, reflecting ongoing tensions that impede operational continuity

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