Global automakers and budding EV startups showcased their latest creations at the Beijing International Automotive Exhibition, illuminating China’s swift automotive industry transformation. The exhibition highlighted a shift towards digitalization and new-energy vehicles, as China solidifies its position as a significant market and production hub. Toyota and Nissan announced collaborations with Chinese technology giants to cater to the growing demand for AI-enabled connectivity in vehicles. BYD, China’s leading EV manufacturer, flaunted two “dual-mode” plug-in vehicles designed to operate solely on electricity or as hybrids. Additionally, they introduced a hybrid off-road SUV under their luxury Yangwang brand, priced above 1 million yuan ($140,000). Lu Tian, head of sales for BYD’s Dynasty models, emphasized the success of BYD’s EVs in replacing traditional fuel-powered cars, marking an irreversible trend. Li Xueyong, a deputy general manager at Chery, presented a more conservative perspective, envisioning a future with 40% fuel-powered vehicles, 30% hybrids, and 30% electric vehicles. Chery aims to develop both fuel-powered and new-energy vehicles. BYD has swiftly expanded into international markets, introducing its budget-friendly Dolphin Mini (marketed as the Seagull in China) to Latin American countries this year. The company is constructing a factory in Brazil, utilizing the former site of a Ford plant that closed following the American automaker’s departure from the country. Two other Chinese automakers, including Chery, already have established factories in Brazil. BYD captured 41% of EV sales in Brazil during the first quarter of this year, despite the overall low number of EVs sold. Chinese vehicles have also made significant inroads in Mexico, increasing their market share from 2.6% in 2021 to 19.2% in the first quarter of 2023. However, the majority of these vehicles are gasoline-powered due to the limited availability of charging stations and the high cost of home charging. Chinese automakers are also making headway in Europe, raising concerns among some countries about potential threats to European automakers and employment. The EU is considering imposing tariffs on China-made EVs due to government subsidies that have fueled the industry’s growth. The proliferation of EV manufacturers, driven by tax incentives and green-energy subsidies, has sparked a fierce price war that is expected to result in industry consolidation and shakeouts in the coming years. Foreign automakers, aside from Tesla, have been challenged to accelerate the development of new electric car models to maintain competitiveness in the world’s largest auto market. Volkswagen CEO Oliver Blume acknowledged the rapid pace of China’s automotive industry transformation during a preview event for the auto show. He stated that the market has become a “fitness center,” requiring automakers to work “harder and faster” to keep up. Other automakers echoed similar sentiments. Nissan’s President, Makoto Uchida, emphasized the need to understand the evolving Chinese market and customer needs, recognizing that failure to do so could jeopardize their presence in China. Toyota announced a partnership with Tencent, the creator of the widely used WeChat messaging and e-payment app. Volvo, a Swedish brand acquired by China’s Geely group, emphasized a simpler approach to digitalization, focusing on user-friendly features and sustainable materials in its new EX30 electric SUV. The EX30 will retail for 210,000 to 260,000 yuan ($29,000 – $36,000) in China. American brands present at the show included Lincoln, Cadillac, Buick, and Chevrolet. Ford showcased its heritage-inspired muscular designs, highlighting the evolution of the Mustang and Bronco models from their initial launch as a “sports utility vehicle” in 1966 to their latest iterations.
Beijing Auto Show: China’s Automotive Industry Transformation Dominates
dev
