Gasgoo Munich- Lu Fang, chairman of Voyah Automotive Technology Co., Ltd., took to his personal Weibo account on May 14 to highlight two recent market developments grabbing headlines: the historic breach of a 60% penetration rate for new energy passenger vehicles in April, and a wave of price hikes announced by more than 15 NEV automakers.
Image source: Weibo screenshot
For Lu Fang, the convergence of these trends validates his earlier prediction that 2026 will be the "decisive year" in the battle between new energy vehicles and internal combustion engine (ICE) models. The accelerated replacement of fossil-fuel cars by NEVs, he argues, is now irreversible. At the same time, cost pressures from rising raw materials will inevitably transmit from the supply chain to the end market, exerting a tangible impact on product prices. He emphasized that this represents the "inevitable law of industrial cycle evolution."
Addressing the industry's recent surge in price increases, Lu Fang noted that this round marks a pivotal shift: market competition has pivoted from "who can offer the lowest price" to "who has the most stable systemic strength, such as supply chain resilience." For automakers navigating the current landscape, the real test lies not in whether to raise prices, but in their systemic capabilities and capacity for innovation.
Lu Fang argues that possessing systemic control over the entire value chain—spanning R&D, production, supply, sales, and service—is the fundamental way to weather market volatility. He emphasized that Voyah is actively leveraging technological and management innovations to optimize costs and operational efficiency, aiming to "ensure that users receive consistent quality, service, and experience regardless of market fluctuations." He described this independently controlled systemic strength as Voyah’s "greatest certainty."
Turning to consumer purchasing decisions, Lu Fang pointed out that as NEV penetration continues to climb, their advantages over ICE vehicles in purchase price, running costs, and driving experience have become increasingly pronounced. He advised consumers to opt for new energy vehicles, calling it "a rational choice for lowering the total cost of ownership, and the optimal path to align with consumption upgrades and enhance quality of life."
