The electric tyrant in China reshapes the car market

It surprised the speed and size of the revolution of electric vehicles in China, and analysts say this trend does not show any sign of slowdown.

Timing CEO Elon Musk It was among those who It was reduced The potential of EV manufacturers in China.

In 2011, Musk BYD refused to laugh at its products during an interview with Bloomberg. “Did you see their car?” The musk said. “I don’t think it is especially attractive, technology is not very strong. BYD as a company has severe grass problems in China. I think their focus is, it should be, to make sure it does not die in China.”

BYD seems to have the last word. The company was in forefront Who paid the aggressive EV in China, expanding the local market quickly and Override Tesla as the largest EV factory in the world through revenues in 2024.

Chinese startups such as NIO and Li Auto, along with the most firm car manufacturer including Geely and Saic Motor, are also leading manufacturing companies in this field. Catl giant battery Meanwhile, he was a major player in operating these vehicles.

Henner, vice president of competitive intelligence, market analysis, expected at the S&G Global Mobility, said the Chinese EV industry has become a “great power” in reshaping the global auto market.

“Only two years ago, Linny told CNBC by e -mail:” only two years ago, local car makers in China were not seen as real competitors in the global auto industry in force. But that changed quickly within a few years, “Lenny told CNBC.

He added: “Byd alone has been growing about 1 (million) a year over the past three years in a row, giving a smile in the faces of many product managers from old car makers. Competition is not only in China.”

It is worth noting, in 2023, China It exceeded Japan As the world’s largest auto source. Then sales of local cars Balloon To a record number 31.4 million units last year, as the new EVS is exactly about 41 % of the total producing vehicles.

The growth of the giant Asian auto sector is attributed to subsidies and tax incentives, and between 2009 and 2023 estimated 230 billion dollars in EV development costs. Analysts were also martyred at the costs of low employment, the weakest yuan, innovative technological developments and a strong battery supply chain between Beijing’s main advantages.

The rise of China has since led to an organizational audit in the western markets, in the middle Allegations One of the anti -competition practices. Both the American and European Union have slapped duties on Chinese EVS to traditionally dominant American and European brands.

“It is just as it did with solar panels. Building ships, drones and steel in recent years,” said Michael Den, CEO of Dunne Insights and a researcher in the car market in China.

By 2030, Dunne CNBC told that it is expected that China will make 36 million cars annually, or four of every 10 cars that were built globally at the time. Beijing is also expected to export an estimated 9 million cars annually, from only one million in 2020.

“Countries with smaller industrial industries such as Thailand, South Africa and Spain already feel pressure from Chinese imports,” Dan told CNBC.

In the United Kingdom, for one, Chinese EV sales rose. Trademarks for Chinese owned cars It has been calculated For about 10 % of all new car sales in June, a significant increase from previous years.

Chinese brands also quickly I made ways In the friendly Norway EV. From the first delivery of the MG to the North Country in January 2020, Chinese brands continued to obtain a combined market share of about 10 %.

Rila Soskin, stock analyst in Morning Star, said that the growing competitiveness of Chinese vehicles in many parts of the world has just begun.

“It is very saturated in China so that they have to search elsewhere. We are now at the time that exports to the rest of the world are only just started only. We have not even started seeing the beginning of the matter.”

In this context, the EV industry was in China I found recently To spend more on factories abroad more than home for the first time, during 2024.

Perhaps the story of the Chinese EV players Not very pink In their local market, however. Analysts told CNBC that they expect to get rid of the industry a long time ago, as many startups are struggling to make a profit in an increasingly crowded field.

ACEA represents 16 car manufacturers based in Europe, including proverbs Volkswagenand BMWand Stelantisand Renault And Volvo. The European Union has repeatedly called for action to ensure the ability of the competitive bloc on the road to a complete electrification.

To help European car makers compete with the Chinese EV giant, ACEA from De VRIES said that the level of the political stadium will make a meaningful difference.

“We have to realize that some of this level of Earth, speaking about the European Union, can be achieved on their own conditions. It is the organizational framework, the cost of leadership, and suffocation of innovation rather than launching the spirit of initiative,” said De Fais.

Acea’s de VRIES added that although Europe will not be able to significantly influence China or the United States, the bloc’s organizational framework can be modified “to try to create the best possible environment for business in Europe.”

The European UNHCR, the European Union’s executive arm, did not respond to the CNBC request for suspension.

CNBC Evelyn Cheng He contributed to this report.