Chinese EV makers are on track to secure a foothold on the global stage. According to the latest report from TrendForce, Chinese car brands will gain more traction in 2023. They are estimated to account for 9% of the Western Europe EV market.
New energy vehicles (NEV), including battery and plug-in hybrid EVs, took up a quarter of China's auto exports in the first quarter of this year.
TrendForce said on June 30 that Europe has set up a clear timetable to phase out fossil-fueled cars. The continent is also suffering from ongoing inflation. The situations create an opportunity for China-made NEVs in the European market, as the cars are known for their affordability and intelligence.
According to TrendForce's estimation, China-based car brands will see their market share in the Western Europe EV market grow from 6% to 9% in 2023. The growth will largely be driven by SAIC Motor's flagship brand, MG. Other companies that have entered the market include leading EV manufacturer BYD and emerging brand Nio.
Chinese automakers are also projected to dominate the Southeast Asian NEV market with a penetration rate of 63% this year, TrendForce's data showed. The number was 52% in 2022. The research firm said the situation poses a significant challenge to Japanese automakers in the region.
Several factors facilitate China-based carmakers' success overseas. TrendForce said China began to scale up its NEV industry early, fostering robust supply chain and production capabilities. For example, the country hosts several leading battery makers who have developed their cost-effective LFP products and secured lithium resources worldwide.
According to TrendForce, Chinese automakers' ability to maintain a competitive edge while shouldering additional expenses is the key to their global success. The expenses encompass the costs of establishing showcase centers, after-sales service systems, charging infrastructure and complying with local regulations.
