Written by Cláudio Afonso | LinkedIn | X
Chinese electric vehicle (EV) manufacturers are outpacing global brands in innovation and market presence, bank Bernstein said in a new research note released on Tuesday.
The bank noted that the country has surpassed its policy goals ahead of schedule as it achieved approximately 50 percent EV penetration rate in mid-2024.
Chinese companies now account for over 60 percent of global EV sales, outstripping adoption rates in Europe and the United States.
Sales of battery electric vehicles (BEV) in Europe dropped sharply in August with key European markets such as Germany and France plunging 68.8 percent and 33.1 percent respectively, according to ACEA.
The rapid growth is largely attributed to China’s “Made in China 2025” initiative, which aims to establish the country as a leader in the electric vehicle industry.
“China implemented the Made in China 2025 policy, aiming to establish itself as a leader in the electric vehicles industry,” Bernstein analysts said as initially reported by StreetInsider.
Naming the key areas where Chinese EV makers have advanced in the last years, Bernstein highlighted energy efficiency, driving range, fast charging technology, and advanced driver assistance systems (ADAS).
Moreover, Chinese brands hold a significant cost advantage over international competitors due to the widespread use of lithium iron phosphate (LFP) batteries, efficient supply chains, and large-scale manufacturing.
As a result, domestic brands have expanded their share of China’s passenger vehicle market to around 60 percent, up from 37 percent in 2016.
In the premium EV segment, Chinese automakers such as Li Auto, NIO, and BYD have captured about 25 percent of the market, challenging established German brands.
BYD achieved a new sales milestone in September, surpassing 400,000 vehicles including 164,956 fully electric models and 252,647 plug-in hybrids.
The firm stated that BYD is positioned as a “global EV champion,” as it aims to increase its international sales from 240,000 units in 2023 to 1.7 million units by 2030.
Looking ahead, Bernstein predicts that Chinese vehicle exports will reach 6 million units by 2030, with 2.8 million being EVs.
Chinese EV stocks have been surging over the last few weeks Chinese after the People’s Bank of China (PBOC) announced several strong measures to stimulate the economy and support liquidity.
The financial stimulus of at least 800 billion yuan ($113.7 billion) is the strongest one since the Covid-19 pandemic four years ago.
Written by Cláudio Afonso | LinkedIn | X
