Electric vehicle manufacturers from China have flocked to this week’s IAA Mobility auto show in Munich, Germany. According to China’s official media, some 50 businesses, the largest-ever Chinese delegation at any international auto show, have traveled to the city, including industry heavyweight BYD and upstarts like Xpeng. And everyone was talking about them. Electric vehicles manufacturers from China have flocked to this week’s IAA Mobility auto show in Munich, Germany.
According to China’s official media, some 50 businesses, the largest-ever Chinese delegation at any international auto show, have traveled to the city, including industry heavyweight BYD and upstarts like Xpeng. And everyone was talking about them.
They are very competitive in the value chain for electric cars. De Meo stated on Monday on RTL Radio, “I believe they are a generation ahead of us. We must catch up as soon as possible.
Electric vehicles made in China are becoming popular in Europe, Australia, and Southeast Asia due to their lower prices compared to those made elsewhere. Chinese brands potentially taking over the global EV industry is a concern for rivals.
According to a post on the China Association of Automobile Manufacturers website, China beat Japan to take the top spot for the largest auto exporter in the first quarter of this year, propelled by robust demand from Russia and a growing interest in EVs worldwide.
According to data issued on Friday by the China Passenger Car Association, exports of passenger cars increased 72% to 2.3 million vehicles in the first eight months of the year, with a quarter of them being electric. BYD, the market leader in EV exports, sent more than 25,000 vehicles in August alone. Tesla China shipped 19,465 automobiles.
Sales of Chinese EVs are exploding in Europe, which is the top market for Chinese auto exports.
According to data from the China Passenger Car Association, Chinese companies exported more electric vehicles (EVs) to nine European countries in the first half of the year than they did in 2022. And imports of Chinese autos into the European Union have increased fourfold over the previous five years.
According to a recent projection by UBS, Chinese automakers could see their market share treble from 17% to 33% by 2030, with European companies suffering the greatest market share losses.
A few Chinese EV manufacturers, according to auto analysts, are becoming “new global champions.”
Much Less Expensive
Chinese EVs’ greatest asset may be their price advantage.
According to research company Jato Dynamics, Chinese cars are about 30% less expensive than comparable models from Europe and the US.
Last year, the company conducted a survey which revealed that the average cost of an EV in China during the first half was…
Supply Chain Benefit
The dominance of China in the EV battery supply chain is a significant factor in the cheaper cost of Chinese EVs.
Chinese producers accounted for 60 percent of the world’s EV battery market in 2021, according to a report by SNE Research, a South Korean consulting firm.
Nickel, cobalt, and lithium are among the battery ingredients under the country’s control in terms of production.
According to estimates, China produces more than half of the world’s lithium, and its advantage is boosted by cheaper labor costs.
However, the global push of Chinese EV manufacturers may be hampered by geopolitical unrest.
