China’s EV makers set sights on global markets

Chinese automaker BYD recently celebrated the production of its five millionth electric vehicle, with its founder declaring that “We are now powerful enough to lead the transition of the global auto industry”.

Why electric vehicles in China matter

China has come a long way in the 50 years since ownership of a Flying Pigeon bicycle (at one point reported to be the single most popular mechanised vehicle on the planet) was a sign of prosperity. It’s now at the forefront of an EV revolution – the country accounts for around 60% of global EV sales last year – with the capability to manufacture millions of cheap vehicles. The only thing that’s arguably missing is a trusted brand that consumers outside China will buy into in the same way they currently do with, say, German marques like VW and BMW. 

Context 

• In the first half of 2023, China has already become a leading exporter of cars. According to a report from Nikkei Asia, the country exported 2.14 million vehicles, on a par with Japan. 
• Around 25% of these were new energy vehicles such as EVs, plug-in hybrids, and fuel cell cars (and that includes exports of foreign marques made in China).
• The government strategy is that China’s two leading EV makers generate 10% of sales in overseas markets by 2025.
• BYD was the world’s top EV manufacturer in 2022 but almost all its sales are made in mainland China. 

Key quote

“China has yet to create a single international marque of its own that is universally recognised and respected. It is time for Chinese carmakers to upend the order of the global automotive industry and chart a course into a new vast territory,” said Wang Chuanfu, founder and chairman of BYD, as reported by South China Morning Post.

Sourced from South China Morning Post, WION