Recently, the sudden "crash" of Jiyue Automobile has caused an uproar in the market. This new car-making force, which is backed by the two giants of Baidu and Geely, has not only dragged down employees and suppliers due to the rupture of the capital chain and the loss of control of its operations, but also triggered a deep reflection on the entire new energy vehicle industry. Starting from the collapse of Jiyue Automobile, China Exportsemi will discuss the challenges and future directions of the new energy vehicle and semiconductor industry in the current economic environment based on market data, industry background and technological development.
Ⅰ Event Overview: The Dilemma of Jiyue Motors
1. Sales and financial fire and ice
The immediate cause of the collapse of Jiyue Automobile was the rupture of the capital chain, and this crisis affected the vital interests of the company's employees and suppliers. It is reported that as of the end of November 2024, although the sales volume of Jiyue Automobile has increased from 774 in 2023 to 14,055 units, this achievement is still not worth mentioning compared with the sales of hundreds of thousands of industry leaders.
2. Financials: High debt and divestments
Jiyue Automobile's problem is not only the sluggish sales, but also the serious financial crisis. According to reports, Baidu found a funding gap of 7 billion yuan in the company's due diligence in October 2024, and finally chose to withdraw its investment. Geely, due to the long-term arrears of OEM fees, has gradually lost its patience for support. The huge financial black hole directly led to the rupture of the capital chain and the declaration of "collapse".
3. The double pressure of employees and suppliers
Jiyue CEO Xia Yiping has publicly promised to solve the problem of wage arrears, but many employees have lost confidence in the company and have chosen to find a new way out. The supplier filed a lawsuit against the company over the payment collection. The shutdown of Jiyue Automobile's operation not only caused direct economic losses, but also had a certain impact on the reputation of the industry.
Ⅱ Capital alert for the new energy vehicle industry
1. From "Concept Hype" to "Landing Capability"
The failure of Jiyue is a typical case of the capital market re-examining new energy vehicle companies. In the past few years, capital has chased the "concept dividend" of new energy vehicle companies, and a hundred flowers have blossomed for a while. However, with the fierce competition in the market and the rising operating costs, investors are gradually turning to focus on the actual operating capacity and profitability of enterprises. According to statistics, the return on investment in the field of new energy vehicles in 2024 will drop by 30% compared with 2022, and capital is more cautious in investing in high-risk projects.
2. The industry has entered the stage of survival of the fittest
The new energy vehicle industry has grown from more than 300 car companies at its peak to less than 50 in 2024, reflecting that the industry is in a deep reshuffle stage. According to analysis, in the next five years, about 80% of new power brands will withdraw from the market. Those companies that lack technology accumulation, supply chain management and brand influence are doomed to be out in this round of competition.
3. Implications for the industry
Jiyue's failure reminds other companies to invest more in technology research and development, user experience, and financial management. It is difficult for enterprises without continuous innovation to attract capital, let alone win the recognition of consumers.
Pictured: The apocalypse of the crash of the Jiyue car
Ⅲ Supply Chain Restructuring in the Semiconductor Industry: Behind the Scenes of New Energy Vehicles
1. The trend of reshaping the global supply chain
At present, the semiconductor industry is undergoing major changes unseen in a century, and the international situation and technological competition have prompted the global supply chain to enter the fourth restructuring. As an important global semiconductor production and consumption market, Chinese mainland needs to be deeply embedded in the global industrial chain in this round of restructuring, while strengthening local substitution capabilities.
2. Supply chain stability and strategic significance
Semiconductors are the core components of new energy vehicles, and the stability of their supply chain directly affects the production rhythm of vehicle manufacturers. In the case of Jiyue Automobile, the shortage of chips in its supply chain was one of the factors affecting delivery. How to ensure the stable supply of key components will be a topic that new energy vehicle companies must face in the future.
3. Technological innovation drives industry change
The rapid iteration of semiconductor technology has made it a strategic, leading industry. In recent years, China has made breakthroughs in key areas such as IGBT (insulated gate bipolar transistor) and SiC (silicon carbide), which have provided technical support for the performance optimization of new energy vehicles.
Ⅳ Technology and market: new energy and semiconductors are deeply intertwined
1. Technical problems of new energy vehicles
Another reason for the poor sales of Jiyue Automobile is the lack of product competitiveness. Jiyue 01 has not shown obvious advantages in intelligent driving, endurance and cost performance. In contrast, the leaders in the market, such as BYD, NIO and other brands, have taken the lead in intelligent and differentiated competition.
2. The enabler of semiconductor technology
The core competitiveness of new energy vehicles is inseparable from the support of semiconductor technology. Advanced power devices, sensors, and computing chips determine the performance of vehicles in terms of intelligent driving and range optimization. In the future, the semiconductor industry will provide more efficient and stable solutions for the new energy vehicle industry through further technological iteration.
Ⅴ Data perspective: the coordinated development of new energy and semiconductors
1. Implications for market data
According to the data of the China Passenger Car Association, in November 2024, the retail sales of passenger cars in China reached 2.446 million units, a year-on-year increase of 18%. Although the overall market is improving, Jiyue Automobile has failed to seize the dividends of industry growth due to insufficient sales and product positioning errors.
2. The synergistic advantages of new energy and semiconductors
Advanced semiconductor technology provides stronger performance support for new energy vehicles, and the rapid popularization of new energy vehicles has brought a wide range of application scenarios to the semiconductor industry. The coordinated development of the two will be an important driving force for future industry competition.
Ⅵ Lessons from the Jiyue Incident: How to move forward in the future
1. Strengthen internal strength: management and technology at the same time
The occurrence of the Jiyue incident has exposed the shortcomings of enterprises in financial management and strategic planning. For other enterprises, strengthening internal management and optimizing the supply chain can be invincible in the future market competition.
2. Balanced development of capital and technology
New energy vehicle companies should not rely too much on capital transfusion, but should focus on technology accumulation and product landing capabilities. Only with hard-core technology and core competitiveness can we continue to gain the favor of the capital market.
3. Semiconductor empowerment to build core competitiveness
For new energy vehicle companies, the future competition is not only in vehicle design, but also in technological breakthroughs. Through in-depth cooperation with semiconductor companies, car companies can achieve differentiated competition in intelligent driving and energy management.
Ⅶ Conclusion: The Way Forward for Double Revelation
The "crash" of Jiyue Automobile reflects the fierce competition and operational challenges of the new energy vehicle industry from many levels. Despite the huge market potential, enterprises need to achieve sustainable development through technological innovation, refined management and supply chain optimization. At the same time, the supply chain restructuring of the semiconductor industry provides important support for the development of new energy vehicles.
In the future, the synergies between new energy vehicles and the semiconductor industry will become more and more obvious. Through deep integration, the two industries are expected to make greater breakthroughs in the global economic changes.
