On September 29, PwC released the "Review of China Automotive Industry M&A Activities and Trend Outlook in the First Half of 2022". The report shows that the long-term trend of M&A transactions in China's automobile industry will be positive in 2022, with the focus on new energy vehicle manufacturing. From 2020 to the first half of 2022, the total disclosed M&A investment in China's automobile industry has exceeded RMB 770.7 billion. Compared with the same period in 2020 and 2021, the first half of 2022 shows an overall growth trend.
Looking at the first half of 2022, against the background that the macro situation is becoming more complex, the automotive industry also faces both challenges and opportunities. With the gradual implementation of supportive and planned policies, technological upgrading driving the increase in industrial value, and considerable market demand, the scale of M&A transactions has grown rapidly compared with the same period in 2021. In the first half of 2022, China's automobile industry completed 254 domestic and overseas M&A transactions, with the disclosed transaction amount exceeding RMB 179.3 billion.
The number of large-scale transactions in the automotive industry in the first half of 2022 has declined compared with the same period in 2021, falling to 25. Judging from the average transaction value, the average transaction value of medium-sized transactions dropped by 22% compared with the same period last year. Driven by three major transactions exceeding 10 billion, the overall average transaction value increased compared with the previous year. Compared with the same period last year, the automotive industry has seen frequent mergers and acquisitions transactions, with strategic investments/acquisition-stage investments accounting for the largest proportion in both quantity and scale compared with other rounds.
In terms of the regional distribution of M&A transactions in the automotive industry in 2022, Guangdong, Shanghai, and Jiangsu have the strongest investment atmosphere, with the number of transactions each exceeding 30, benefiting from the rich overall industrial advantages of the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area. , policy support, concentration and initiative of talent and technology.
Jin Jun, PwC China Mainland and Hong Kong automotive industry leader, said: "To meet increasingly unknown challenges, it is crucial to master technological advantages and scale advantages. Both are supporting the rapid evolution of automotive industry players. In the market competition landscape, innovative breakthroughs are the main source of resilience and the ability to cope with unpredictable factors, and will become an important value growth point and win the favor of the capital market."
From a segmented perspective, in the first half of 2022 compared with the same period last year, the number and value of transactions in the auto parts and vehicle manufacturing fields increased significantly. In the field of auto parts, electrified auto parts, autonomous driving, smart driving and other tracks are gaining traction and attracting money. In the field of vehicle manufacturing, driven by the strong entry of new car-making forces and the acceleration of industrial integration by traditional auto manufacturers, the total investment amount is considerable; Affected by the macro environment, transaction growth in the automotive aftermarket sector has slowed down.
As a popular track, the auto parts field continues to attract the attention of investors from all walks of life. In the first half of 2022, the number of transactions reached 153, with a transaction value of 83.7 billion yuan. Compared with the previous year, there will be significant growth in scale and quantity in 2021, and the first half of 2022 will be close to the average level in 2021. 20In the first half of 2022, electric vehicle components and autonomous driving still won the favor of capital, with investment amounts of 57.4 billion yuan and 91.9 billion yuan respectively.
The number of transactions in the vehicle manufacturing field reached 31 in the first half of 2022, with a transaction value of 65.8 billion yuan. Among the top ten transactions, new energy vehicles have strong momentum. Traditional fuel vehicle manufacturers are accelerating their integration. Facing the development trend of the traditional fuel vehicle market with shrinking demand, supply shocks, and weakening expectations, inter-industry integration has given rise to scale advantages, and the scale effect has played a major role in bargaining power, initiative in strategic adjustment, etc. The factory will provide more support, which may provide more possibilities for its business spin-off and layout in the new energy track. The new energy vehicle market is full of competition, with a three-legged situation emerging: new energy brands endorsed by traditional car manufacturers, new car-making forces that have entered the mainstream stage, and Internet companies that have joined the battle across borders.
In addition, the implementation of autonomous driving in commercial scenarios continues. Autonomous driving has shown a relatively clear commercialization route, that is, it is gradually implemented in different scenarios and strives to increase penetration. Among them, heavy truck application scenarios include port logistics, mines, etc. Logistics, park logistics, etc. In addition, autonomous driving technology is also emerging in scenarios such as municipal sanitation and Robotaxi.
The pace of M&A transactions in the automotive aftermarket sector has slowed down. In the first half of 2022, the number of transactions reached 70, with a transaction value of 29.8 billion yuan. However, as technologies such as autonomous driving continue to improve or innovate related derivative services, and business models such as "Internet +" continue to empower them, the automotive aftermarket still has considerable room for development. Under the background of policy guidance and changes in consumer psychology, new energy vehicles are developing rapidly, and related supporting facilities are also facing major opportunities. While the charging market continues to develop, the battery replacement business has fast energy replenishment and is easier to alleviate " Competitive advantages such as range anxiety" stand out with the support of technological upgrades.
Lu Guchun, partner in charge of transaction services for the automotive industry in Mainland China and Hong Kong at PwC, said: “Looking back over the past period, policy, technology and demand have jointly driven the automotive industry to continue to unleash its growth potential, attracting various types of investors. Investors are paying close attention to it. Looking forward to the future, the automobile industry, as a strategic pillar industry of the national economy, will continue to become an important force in promoting China's economic development in terms of low-carbon transformation, cost reduction and efficiency improvement, and technological upgrading. ”
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Editor: Guo Xiao