Sony Honda CEO Criticizes Chinese Electric Cars

#ChineseCar #NewEnergy #ElectricVehicles

Believe it or not, it's up to you.When your opponent is furious, it shows that you have become powerful.In recent days, Kawasei Izumi, CEO of Sony Honda Mobility, criticized Chinese electric cars, saying they "lack technological substance and only make flashy displays." These remarks have sparked significant controversy.

On June 16, 2020, Sony Group and Honda Motor Co. announced the official signing of an agreement to establish a joint venture called Sony Honda Mobility. The joint venture aims to sell electric vehicles and provide mobility services, with Sony and Honda holding equal 50% shares. Yasuhide Mizuno, former head of Honda China, is appointed as the Chairman and CEO of the joint venture, while Izumi Kawasei, President and CEO of Sony Mobility, will serve as the President and COO of the joint venture. The new company is scheduled to commence operations in 2022, with sales and services expected to launch in 2025.

Criticism of the competitors before the launch of the new car has drawn responses from netizens, who suggest that it can only indicate two possibilities: first, that Chinese electric cars are indeed formidable, and second, that Japanese cars are no longer as dominant as before.

First, let's take a look at the impressive performance of Chinese new energy vehicle manufacturers. BYD's global sales in 2022 surpassed Tesla, the previous leader in electric vehicles, with over 500,000 units sold. In September 2023, BYD's sales reached 287,454 units, surpassing the previous record of 274,386 units in August and setting a new historical high. As of the first nine months of 2023, BYD's cumulative sales reached 2.07 million units, already surpassing the full-year sales of 2022 when they sold 1.81 million units.

Looking ahead to the remaining three months, if BYD maintains an average monthly sales of 310,000 units, its total sales for 2023 could surpass 3 million units. The fourth quarter is traditionally a peak season for car consumption, and considering BYD's recent record-breaking monthly sales, it is highly likely that they will achieve this milestone.

In addition to BYD, the new automaker, NIO, has also demonstrated strong performance in recent months. In September, NIO achieved another record high with sales of 36,060 units, a 212.7% year-on-year growth. It is worth noting that NIO has consistently delivered over 30,000 units for four consecutive months, and their cumulative deliveries for the first nine months of this year have reached 244,225 units.

Today, Stellantis Group and Chinese electric vehicle startup Leapmotor jointly announced that Stellantis plans to invest 1.5 billion euros (approximately 11.5 billion RMB) to acquire a 20% stake in Leapmotor. Volkswagen Group also announced a deep collaboration with the Chinese electric vehicle startup, Xiaopeng Motors, as the sales of the Wask M7 have been impressive, and blind pre-orders for the M9 have already exceeded expectations.

If Chinese electric cars were truly as superficial and lacking in technology as stated by Izumi Kawasei, consumers would not be so resolutely choosing Chinese new energy vehicles. Furthermore, let's also take a look at the performance of Japanese car brands in the Chinese market.

On the evening of October 24, GAC Group released an announcement titled "Announcement on Related Transactions of GAC Mitsubishi Reconstruction." The announcement stated that GAC Group plans to implement equity adjustments and other restructuring matters for GAC Mitsubishi and GAC Mitsubishi Motor Sales Company.

On one hand, the three shareholders (GAC Group, Mitsubishi Motors, and Mitsubishi Corporation) will jointly increase their investment in GAC Mitsubishi and its sales company to repay debts. GAC Group will invest no more than 1.577 billion yuan, while Mitsubishi will collectively invest no less than the aforementioned amount. On the other hand, GAC Group will acquire 30% and 20% equity stakes in GAC Mitsubishi from Mitsubishi Motors and Mitsubishi Corporation, respectively, for a consideration of 1 yuan, meaning that Mitsubishi will completely withdraw from the Chinese market. The reason behind this decision is the declining sales and failure to keep up with the new pace of automotive development.

[edwardkon]

Sony Honda ceo will have to swallow his words. Even when their Afeela makes its debut in 2025, Chinese battery electric automakers' global position would be entrenched.

[justtherecord]

Can’t wait for Afeela to launch. Want to see how it fails lol

[FallaoKaw-evsp]

They feels threaten, frustating, fear, jealous etc, all the negative feelings and energies around them😂

[tedchandran]

Jai Hinduja. Don't like Don't buy