Dongfeng Xiaokang K07s New Energy Commercial Vehicle

From the traditional automotive industry to the rise of new energy vehicles, the Chinese automotive industry has never escaped the common situation of scattered and chaotic, and the economies of scale within the industry are not obvious. China has a vast territory, with significant differences in the form of enterprises in various regions, and limited market supervision. Although there have been multiple industrial restructuring and resource integration, it cannot fundamentally form a scale effect of over 90% market share of the three American car manufacturers. The research and development of new energy vehicles require a large amount of capital and technical talent investment. In the absence of industrial scale effects, various enterprises may create problems such as inconsistent technical standards and inconsistent industrial development pace by working in isolation, which is not conducive to the formation and subsequent development of the new energy vehicle industry. In addition, the new energy vehicle industry is facing a frenzy and overcapacity caused by profit seeking and subsidy competition. Regional automobile industry alliances have been established in Beijing, Guangzhou, Chongqing, Hubei, Shanghai and other places. The members within the alliance closely cooperate, but there is little interaction between them, resulting in a situation of feudal separatism.

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