China automakers’ EV rush culminates in “Crazy Thursday”

The "Crazy Thursday" phenomenon in China's automotive sector, where multiple automakers launched new NEV models on a single day, points to a market in flux. While overall NEV sales grew significantly last year, domestic growth is slowing, and overall automotive sales are shrinking. This puts immense pressure on automakers like BYD, which saw its first-half sales decline for the first time in six years, and Great Wall Motor, projecting a 60% drop in net profit. Automakers are caught between the need to innovate with new models and the reality of strained earnings due to intense competition and rising costs for batteries and semiconductors. Nio CEO William Li's observation that the market must shift from volume growth to one based on existing vehicle ownership suggests a fundamental change in strategy is needed. The government's plan to raise NEV share to 30% by 2030, up from 13% in June, indicates continued policy support, but the immediate challenge for Chinese automakers is navigating a brutal, shrinking domestic pie.