Eight launch events in one day — new cars arrive twice as fast as phones, auto executives lament 'this is insane'

Industry
โดย 红星资本局·Read original
Summary · why it matters

On July 16, eight domestic automakers held launch events, six of which were new vehicle unveilings, a density that has sparked industry concern over excessively rapid product cycles. According to an incomplete tally by Red Star Capital Bureau, GAC Group, Geely Auto, Great Wall Motor, Xpeng, Leapmotor, SAIC's IM brand, Li Auto, and SAIC-GM-Wuling all had activities that day, rolling out a total of seven all-new or refreshed models. In the first half of this year, 630 new car models were introduced in China, averaging 3.5 per day, while only 173 new phone models hit the market in the same period — meaning new car launches are now more than twice as frequent as new phone releases. BYD executive He Zhiqi bluntly called it 'completely insane,' noting that a new car typically requires an investment of over 1 billion yuan and a development cycle of more than two years, yet the buzz rarely lasts three months. Dongfeng Nissan executive Sun Hao went further, likening the pace of new car launches to that of beverages. The rapid iteration has created a 'new car effect death valley,' where vehicles sell well at launch but demand fades just as production capacity ramps up, causing severe supply chain volatility. Several automakers have already booked massive asset impairment provisions — for example, SAIC Motor set aside 6.773 billion yuan in asset impairment provisions for 2025, while GAC Group's cumulative intangible asset impairments over the past three years have exceeded 3.2 billion yuan.

Impact on stocks 8

Electrification & Mobility▼ · 4 stocks
Geely Automobile Holdings Ltd
0175
▼ NegativeDemandrelevance

Rapid new car launches lead to short-lived demand, causing 'new car effect death valley' and supply chain volatility.

Li Auto Inc
2015
▼ NegativeDemandrelevance

Industry-wide rapid product cycles hurt demand sustainability; Li Auto held a launch event on that day.

Xpeng Inc
9868
▼ NegativeDemandrelevance

Xpeng held a launch event; fast product cycles cause demand to fade quickly.

Others▼ · 4 stocks
SAIC Motor Corp Ltd
600104
▼ NegativeCapitalrelevance

SAIC Motor booked 6.773 billion yuan in asset impairment provisions for 2025 due to rapid product cycles.

Great Wall Motor Co Ltd
601633
▼ NegativeDemandrelevance

Industry-wide rapid launches create 'new car effect death valley' where demand fades quickly, hurting sales.

BYD Co Ltd Class A
002594
± MixedDemandrelevance

BYD executive criticizes the pace as 'completely insane', but BYD itself is not directly impacted; the comment reflects industry concern.

Theme Impact 1

Off-coverage companies 1

SAIC-GM-Wuling AutomobilePrivate▼ Negative
Demandrelevance

SAIC-GM-Wuling held a launch event on July 16, contributing to the oversupply and short-lived demand cycle.

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