❓What are your thoughts on the impact of Chinese #electric #vehicle (EV) exports on established market players, particularly in the 🇺🇸#US and the 🇪🇺#EU?
While industrial policy aspects take center stage in the political debates on China's EV exports, what's often overlooked is the shift in the meaning of "Made in 🇨🇳#China". It no longer implies quantity over quality. Instead, China has emerged as a technological leader and competitor in sectors where other nations once led, with the #automotive #industry serving as a prime example.
👉 Electromobility has become a catalyst for green #transformation and #innovation within the Chinese automotive industry sector, boosting its potential for significant global expansion in the next 10 years.
❓Did you know that?
⚙️ China's EV production and sales account for 60+% of the global market share.
📈China’s #car exports jumped 39% Y-o-Y in March 2024 to 406,000 units.
🚗🔌Of the exported cars, around 120,000 were electric cars (+70.9% Y-o-Y; 20% Tesla), accounting for about 30% of Chinese car exports (smaller-sized A0-class pure electric cars account for 60%).
🌍The top three overseas markets/market entry gates for China-made electric cars are the #UK, #Belgium and #Thailand.
🚗 In 2023, #BYD, the world's biggest EV seller, exported 242,000 electric cars (+334% Y-o-Y). The company has entered 15 European markets, incl. the UK, #Germany, #France, #Italy, and #Spain and holds pure battery electric car market shares of 40% in Thailand and 72% in #Brazil.
💴 Chinese companies are increasingly investing in countries such as 🇲🇽#Mexico or 🇲🇦#Morocco, drawn by favorable production conditions and opportunities to enter the US and EU markets from there.
⛓ The global expansion of Chinese EVs is not solely due to #overcapacities in China and thus competitive pricing but driven by factors such as comprehensive policy support, diverse model offerings, scale advantages, integrated supply chains, high cost-effectiveness and technological innovation.
🚗📲 Examples for innovation include the #Xiaomi #SU7 and BYD #Seagull or #Seal, with the latter boasting a 15% cost advantage over Tesla's China-made Model 3 and over 30% edge against VWs ID.3.
🔋 #Battery innovation is particularly pivotal, empowering Chinese firms to seize a crucial opportunity (between 2017 and 2022, the cost of batteries in China plummeted by 40%, while the average energy density surged by the same margin). This has solidified China's position as a global leader in the battery industry, with six of the world's top 10 EV battery manufacturers hailing from China.
👉 While some political voices in Germany and the EU advocate for lifting the ban on combustion cars by 2035, China is strategically gearing up to advance its position in the 21st century industrial EV revolution.
❗️Ultimately, it's evident that the primary pathway to success for established players lies in the full commitment to innovation rather than erecting trade barriers.
