Advanced technology, manufacturing automation, and the ability to provide feature-rich products at competitive prices have given Auto Manufacturers in China an advantage for Global expansion.
According to Counterpoint Research's report on global passenger electric vehicle (EV) model sales tracking for the third quarter of 2024, by the first half of 2024, China's share in the global passenger electric vehicle market will exceed 60%. The leading position of China Auto Manufacturers in the electric vehicle sector is attributed to several key factors: supportive government policies, modular development approaches, localized automotive supply chains, and a startup-driven work culture. Advanced technologies, manufacturing automation, and the ability to provide feature-rich products at competitive prices have equipped China Auto Manufacturers with advantages for global expansion. With the rapid growth of the Chinese electric vehicle market, China Auto Manufacturers leverage advanced technology to accelerate automobile development.
In a recent meeting, Tesla CEO Elon Musk acknowledged that China Auto Manufacturers are the company's strongest competitors and warned that without "trade or tariff barriers," some traditional Auto Manufacturers may be forced to exit the market. To respond to competitive pressure, Volkswagen has partnered with Chinese electric vehicle startup Xpeng Motors, aiming to shorten market launch time by 30%; meanwhile, Stellantis is collaborating with Li Auto to produce cost-effective electric vehicles more efficiently.
Supportive government policies, localization of the automotive supply chain, modular development approaches, vertical integration efforts by OEMs, and a startup culture have helped China Auto Manufacturers launch more models equipped with the latest features at more affordable prices, such as L2+ autonomous driving, digital cockpits, 5G connectivity, and longer ranges. The number of models launched by China Auto Manufacturers is similar to how Chinese Smart Phone manufacturers have established a global market presence through well-known brands. As automotive technology continues to evolve and consumer demands change, the lifecycle of cars is shortening, with an increasing number of models launched in China each year. The number of models in the European market is also rising, with the penetration rate of Chinese brands in the region continuing to increase. Counterpoint Research found that nearly one-third of new models launched in Europe in the first half of 2024 came from Chinese brands.
