Cango Newsletter 20240118

Date: 2024-01-18

Cango Newsletter 20240118


Cango (NYSE: CANG) is a leading automotive transaction service platform in China, connecting dealers, financial institutions, car buyers, and other industry participants. Follow us on Twitter ( for updates.


Below please find our latest Cango newsletter. Our goal is to share the most newsworthy articles in today’s macro economy, auto industry, as well as our recent developments. Below please find the abstract and news link for more details.

Macro Economy

1. China’s "Three Trillion-Yuan GDP Club" Expands from Three to Five Cities

Both Chongqing and Guangzhou recently announced that their regional GDP for the year 2023 surpassed the three trillion-yuan mark, making them the latest additions to China's "Three Trillion-Yuan GDP Club" following Shanghai (2017), Beijing (2018), and Shenzhen (2021). Notably, Chongqing is the first city in western China to enter the "Three Trillion-Yuan GDP Club." [Link]

2. Guangdong Encourages Private Enterprises to Engage in Mixed-Ownership SOE Reform

The Guangdong Provincial Committee of the Chinese Communist Party and the People's Government of Guangdong Province have unveiled the "Implementation Opinions on Promoting the Development and Growth of the Private Economy and Further Advancing the High-Quality Development of the Private Economy." This strategic policy document advocates a shift towards digitalization, network-empowered initiatives, smartification and intelligent technologies, as well as environmentally sustainable practices. It also sets forth a wholehearted commitment to elevate "Big Industry, Big Platform, Big Project, Big Enterprise, and Big Environment." Private enterprises are actively encouraged, with comprehensive support, to engage in innovative industrialization, thereby enhancing industrial supply chains’ resilience and security. The opinions emphasize the importance of thorough implementation of digital transformation within industrial clusters, promoting collaborative "chain-style" digital evolution among large, medium, and small enterprises, and fostering widespread cloud adoption. To guide private enterprises in accelerating technological upgrades, a robust industrial investment jump-start plan will be set in motion. The development of flexible manufacturing will be expedited, enhancing enterprises’ ability to expand production capacity and swiftly respond to emergencies. Private enterprises are urged to embark on energy-efficient and carbon reduction transformations and to adopt green, low-carbon technologies and equipment across more diverse application scenarios. Recognizing the pivotal role of small and medium enterprises (SMEs), the document also pledges increased policy support for SME industrial clusters, with an ambitious target to establish 15 national-level and 100 provincial-level SME industrial clusters within five years. [Link]

Automobile Market

1. China to Set over 30 Key Standards for Automotive Chips by 2025

On January 8, China’s Ministry of Industry and Information Technology (MIIT) released the "Guidelines for the Establishment of a Comprehensive Set of National Standards for Automotive Chips." According to these guidelines, China plans to create over 30 pivotal standards for automotive chips by 2025. These standards will define essential criteria such as environmental considerations, reliability, electromagnetic compatibility, and operational and information security. They will also set forth precise technical specifications for critical products and applications, spanning control, computation, storage, power, and communication chips. The goal is to establish matching test methods for both entire vehicles and critical systems, thereby ensuring compliance with basic requirements for the secure and reliable application of automotive chip products as well as pilot demonstrations. By 2030, more than 70 standards related to automotive chips will be developed, which will further improve the universal requirements for foundational, product and technology applications as well as matching tests. This strategic move will effectively support forward-thinking and integrated advancements in automotive chip research and development. With these standards, China aspires to comprehensively cover typical automotive chip application scenarios and testing methods, advancing the nation’s goal of establishing a secure, open, and sustainable automotive chip ecosystem. [Link]

2. NEV Range Reduced by Half in Low Temperatures, Highlighting Ongoing Thermal Management Challenges

In early December, auto media outlet Dongchedi conducted its annual winter testing of new energy vehicles (NEVs) in Mohe, Heilongjiang Province, the coldest city in China. The test assessed the performance of over fifty NEVs under extreme cold conditions, with temperatures as low as -40°C. Key performance indicators evaluated included vehicle range, uphill capability, and intelligent driving features. Surprisingly, in the “Pure Electric PHEV Range Achievement Rate Ranking,” Huawei AITO M7 ranked last with an unexpectedly low pure electric achievement rate of only 31.6%. Several other models from Geely and Great Wall Motor also demonstrated reduced winter ranges of less than 40%. [Link]

3. NEV Makers’ 2023 Journey Overseas: Expansion, Challenges and Breakthroughs

On January 12, the General Administration of Customs released automotive export data for full-year 2023. China’s automotive exports surged to 5.221 million vehicles in 2023, marking a significant year-over-year increase of 57.4%. This substantial growth surpassed Japan's auto export volume for the corresponding period, officially making China the world's largest automotive exporter. China’s leapfrog advancement in automotive exports is attributable to new energy vehicles’ robust growth momentum. Notably, Chinese automaker BYD surpassed Tesla in quarterly BEV sales for the first time during the fourth quarter of 2023, a milestone event that made BYD the world's largest EV seller. In the global EV arena, China has unequivocally emerged as a rising force. However, despite these achievements, Chinese automakers continue to face various challenges from overseas markets as they expand globally. [Link]

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