As the shift away from internal combustion engine vehicles heats up, established carmakers are beginning to worry that Chinese automakers might run them off the road. Lower comparative costs from heavy investment in supply chains give Chinese firms an edge.
China overtook Japan as the world’s biggest auto exporter in
2023, in part because of surging sales of competitively priced EVs. Chinese
auto exports have nearly quintupled since 2020 to approach 5m last year.
China’s BYD beat Tesla as the world’s biggest manufacturer of battery-electric
vehicles (BEVs) in Q4 2023, selling 526k of them to the American firm’s 484k. That
means Tesla has been toppled off the perch it has held since 2012 when it
launched the Model S luxury sedan.
China’s EV brands are rapidly gaining market share, even as
consumers remain somewhat way of Chinese brands. Chinese EV exports soared 78%
to 1.2m in 2023. The push towards exports came as Chinese EV production rose 38%
to 9.5m last year.
Chinese EV shipments to Europe have jumped by 361% from 2021.
The country’s share of EVs sold in Europe has risen to 8% and could reach 15%
in 2025, according to the European Commission, which noted that prices are
typically 20% below EU-made models.