Chinese electric vehicle brands expand to global markets
1 of 16 |
Osamu Furukawa stands next to his new BYD ATTO 3 electric car, that’s parked besides a Volkswagen converted into an EV, in Yokohama, south of Tokyo, Tuesday, April 25, 2023. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Yuri Kageyama)Read More
2 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, poses with his car and a symbolically-made key at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
3 of 16 |
Osamu Furukawa stands next to his new BYD ATTO 3 electric car, that’s parked besides a Volkswagen converted into an EV, in Yokohama, south of Tokyo, Tuesday, April 25, 2023. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Yuri Kageyama)
4 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, poses with a symbolically-made key handed by Kazuhisa Okamoto, head of the Yokohama BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
5 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, gets in his car at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
6 of 16 |
Zeekr CEO Spiros Fotinos speaks during a rehearsal or a presser at the Auto Shanghai 2023 show in Shanghai, Monday, April 17, 2023. Geely’s Zeekr plans to launch an all-electric sedan and an SUV this year in the Netherlands and Sweden. Its mini-United Nations of Chinese and European designers is in Gothenberg, Sweden, adjacent to Volvo Cars, another Geely brand, while its factories are in China. (AP Photo/Ng Han Guan)
7 of 16 |
NIO’s founder and CEO, William Li speaks near the ES6 during an interview at the Auto Shanghai 2023 show in Shanghai, Tuesday, April 18, 2023. NIO Inc., which has persuaded buyers in China to pay Tesla-level sticker prices of up to 555,000 yuan ($80,000), says its latest SUV goes on sale this year in Europe. The ES6 boasts voice-activated controls and a range of 610 kilometers (380 miles) on a charge. (AP Photo/Ng Han Guan)
8 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, poses with his car and the symbolic key at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
9 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, sits in his car at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
10 of 16 |
Osamu Furukawa stands next to his new BYD ATTO 3 electric car, that’s parked besides a Volkswagen converted into an EV, in Yokohama, south of Tokyo, Tuesday, April 25, 2023. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Yuri Kageyama)
11 of 16 |
A BYD ATTO 3 electric sports utility vehicle gets charged as it is displayed at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
12 of 16 |
Flowers adorn a car from Ora at the Auto Shanghai 2023 show in Shanghai, Wednesday, April 19, 2023. In Europe, Great Wall’s Ora sells its 03 model starting at 140,000 yuan ($20,000). Ora tries to stand out among dozens of fledgling brands by marketing its cars as being designed for women, their body sizes and daily needs. (AP Photo/Ng Han Guan)
13 of 16 |
A visitor stands near a display of a car from Ora at the Auto Shanghai 2023 show in Shanghai, Wednesday, April 19, 2023. In Europe, Great Wall’s Ora sells its 03 model starting at 140,000 yuan ($20,000). Ora tries to stand out among dozens of fledgling brands by marketing its cars as being designed for women, their body sizes and daily needs. (AP Photo/Ng Han Guan)
14 of 16 |
A BYD ATTO 3 electric sports utility vehicle gets charged as it is displayed at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
15 of 16 |
A BYD dealership is seen on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
16 of 16 |
A BYD dealership is seen on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
Chinese electric vehicle brands expand to global markets
1 of 16 |
Osamu Furukawa stands next to his new BYD ATTO 3 electric car, that’s parked besides a Volkswagen converted into an EV, in Yokohama, south of Tokyo, Tuesday, April 25, 2023. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Yuri Kageyama)Read More
2 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, poses with his car and a symbolically-made key at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
3 of 16 |
Osamu Furukawa stands next to his new BYD ATTO 3 electric car, that’s parked besides a Volkswagen converted into an EV, in Yokohama, south of Tokyo, Tuesday, April 25, 2023. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Yuri Kageyama)
4 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, poses with a symbolically-made key handed by Kazuhisa Okamoto, head of the Yokohama BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
5 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, gets in his car at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
6 of 16 |
Zeekr CEO Spiros Fotinos speaks during a rehearsal or a presser at the Auto Shanghai 2023 show in Shanghai, Monday, April 17, 2023. Geely’s Zeekr plans to launch an all-electric sedan and an SUV this year in the Netherlands and Sweden. Its mini-United Nations of Chinese and European designers is in Gothenberg, Sweden, adjacent to Volvo Cars, another Geely brand, while its factories are in China. (AP Photo/Ng Han Guan)
7 of 16 |
NIO’s founder and CEO, William Li speaks near the ES6 during an interview at the Auto Shanghai 2023 show in Shanghai, Tuesday, April 18, 2023. NIO Inc., which has persuaded buyers in China to pay Tesla-level sticker prices of up to 555,000 yuan ($80,000), says its latest SUV goes on sale this year in Europe. The ES6 boasts voice-activated controls and a range of 610 kilometers (380 miles) on a charge. (AP Photo/Ng Han Guan)
8 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, poses with his car and the symbolic key at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
9 of 16 |
Ohta, who just bought a brand new BYD ATTO 3 electric sports utility vehicle, sits in his car at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
10 of 16 |
Osamu Furukawa stands next to his new BYD ATTO 3 electric car, that’s parked besides a Volkswagen converted into an EV, in Yokohama, south of Tokyo, Tuesday, April 25, 2023. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Yuri Kageyama)
11 of 16 |
A BYD ATTO 3 electric sports utility vehicle gets charged as it is displayed at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
12 of 16 |
Flowers adorn a car from Ora at the Auto Shanghai 2023 show in Shanghai, Wednesday, April 19, 2023. In Europe, Great Wall’s Ora sells its 03 model starting at 140,000 yuan ($20,000). Ora tries to stand out among dozens of fledgling brands by marketing its cars as being designed for women, their body sizes and daily needs. (AP Photo/Ng Han Guan)
13 of 16 |
A visitor stands near a display of a car from Ora at the Auto Shanghai 2023 show in Shanghai, Wednesday, April 19, 2023. In Europe, Great Wall’s Ora sells its 03 model starting at 140,000 yuan ($20,000). Ora tries to stand out among dozens of fledgling brands by marketing its cars as being designed for women, their body sizes and daily needs. (AP Photo/Ng Han Guan)
14 of 16 |
A BYD ATTO 3 electric sports utility vehicle gets charged as it is displayed at a BYD dealership on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
15 of 16 |
A BYD dealership is seen on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
16 of 16 |
A BYD dealership is seen on April 4, 2023, in Yokohama near Tokyo. BYD Auto is part of a wave of Chinese electric car exporters that are starting to compete with Western and Japanese brands in their home markets. They bring fast-developing technology and low prices that Tesla Inc.’s chief financial officer says “are scary.” (AP Photo/Eugene Hoshiko)
Competition in China’s domestic new energy vehicle market is intense, so many auto companies are accelerating their expansion plans to overseas markets.
In comparison, the competitive landscape in overseas markets is generally lower than that in China’s domestic new energy vehicle market. In addition, Chinese auto company new energy vehicles have excellent product performance and have more opportunities to set competitive prices, thereby achieving a large profit margin.
In 2021, China’s auto exports began to grow significantly, exporting 2 million vehicles, up 101% year-on-year. In 2022, as the market penetration rate of China’s new energy vehicles continued to accelerate, so did exports, which estimated to 3.11 million vehicles in 2022, up 55% year-on-year. In the first quarter of 2023, China exported 990,000 vehicles, becoming the world’s largest auto exporter.
Since the beginning of 2023, based on the low base in the first half of 2022, China’s new energy vehicle passenger vehicle exports increased significantly. Fom January to May this year, China’s cumulative exports of new energy passenger vehicles reached 406,000, up 162.1% year-on-year.
Demand from the European new energy vehicle industry is growing rapidly, which is an important driving force for the global new energy vehicle market. Therefore, Europe has become the first stop for China’s EV auto companies to go overseas. For example, in the European Norwegian market, NIO and XPeng have already delivered models.
Therefore, while China’s leading EV auto companies are grabbing up the local Chinese market, they are also actively developing in overseas markets. Compared with companies occupying China’s low-end car market, this is also the advantage of Weilai, XPeng and Li Auto. Higher-end products will complement higher product capabilities and jointly provide profit margins for exports.
In the short to medium term, Chinese auto companies will use their own domestic production capacity to export vehicles overseas. However, local supply to the automotive industry also has strong economic benefits (IRA). Therefore, from the mid to long-term perspective, it is foreseeable that Chinese auto companies will rely on their own local advantages and learn from Tesla’s strategy of setting up factories around the world to increase their overseas market share.