Just a few years ago, China had roughly 300 different EV manufacturers, a number that analysts say will dwindle to a dozen or so over the next few years. Although local brands dominate China’s electric vehicle market, they also face competition from foreign automakers such as General Motors and Volkswagen, which are trying to enter.
Just like their counterparts in the US. and elsewhere, the profitability of Chinese electric vehicle makers is threatened by excess capacity and a price war launched in January by Tesla, which has a factory in Shanghai. The China Automobile Manufacturers Association backed away from a commitment this month by 16 automakers, including Tesla, to avoid «abnormal pricing,» citing antitrust law.
Faced with domestic pressures, China’s EV makers are now looking to expand abroad, especially in emerging markets. Last year, China’s electric vehicle exports rose 131.8% on-year to around 680,000 units, official data showed. Thanks in part to rising electric vehicle sales, China overtook Japan as the world’s top auto exporter in the first quarter of this year.
One place those exports aren’t going is to the US, amid geopolitical tensions with China and efforts to bolster US domestic manufacturing.
“American automakers are present in China, but there are no Chinese automakers present in the United States,” Mandal said.
Chinese industry leader BYD, a Shenzhen-based company whose name means «Build Your Dreams» and which is backed by American investor Warren Buffett, now rivals Tesla as the world’s biggest seller of electric vehicles, including hybrids. .
The Seagull, a subcompact hatchback that BYD unveiled at the Shanghai Auto Show, is the world’s cheapest electric vehicle at around $11,000, compared with $25,000 for a Toyota bZ4X and Toyota bZ4X. $40,000 for Tesla’s best-selling Model Y.
Tesla CEO Elon Muskwho laughed when asked about BYD’s competition in a 2011 interview with Bloomberg, now says his view of the company has changed.
“That was many years ago,” he said. wrote on Twitter In May. «Their cars are highly competitive these days.»