Chinese cars have taken over the global auto market this way

An achievement that Chinese automakers are particularly proud of is that their BYD company has officially surpassed America's Tesla to become the world's largest electric vehicle manufacturer in terms of output.

The target market for Chinese cars is not Europe or the US, but developing countries in Southeast Asia, the Middle East, Latin America and Africa.

In the world's auto industry, a silent revolution is taking place. China, from being a latecomer with products that were considered "lacking class" in 2009, has now risen to become the world's leading auto manufacturing power.

Chinese automakers such as BYD, Chery, Geely and SAIC not only dominate the domestic market but are also pursuing ambitions to surpass giants like Volkswagen and Toyota in the international market.

The impressive export figure of 4.7 million vehicles last year – three times the figure three years ago – is a clear testament to this. By 2030, Citigroup forecasts, that figure could reach 7.3 million vehicles.

It is worth noting that, contrary to conventional wisdom about the expansion of Chinese electric vehicles in Europe, nearly 75% of exports are still internal combustion engine vehicles.

Their target market is not Europe or the US, but developing countries in Southeast Asia, the Middle East, Latin America and Africa.

This strategy is no coincidence. With the domestic market saturated with 23 million vehicles sold a year and price wars increasingly fierce, Chinese manufacturers are forced to look for new markets. They are targeting countries with high growth rates, less stringent emissions regulations and no strong domestic auto industry.

The results have been very positive. In the Middle East and Africa, the market share of Chinese cars has reached 8%, in South America it is 6% and in Southeast Asia it is 4%. In Russia in particular, after Western carmakers withdrew due to sanctions, the market share of Chinese cars has skyrocketed from 9% in 2021 to 61% in 2023.

Chinese manufacturers are not only exporting but are also building factories abroad.

BYD already has factories in Thailand and Uzbekistan and is preparing to expand to Brazil, Hungary, Indonesia and Türkiye.

It is predicted that by 2030, Chinese car manufacturers will be able to produce 2.5 million cars abroad.

This expansion is putting huge pressure on Japanese and Korean carmakers in Asia and the Middle East, as well as Western carmakers such as Volkswagen, General Motors and Stellantis in South America.

With increasingly improved quality and competitive prices, Chinese cars are gradually gaining the trust of global consumers.

Source: https://baoquocte.vn/xe-trung-quoc-da-thau-tom-thi-truong-o-to-toan-cau-bang-cach-nay-304403.html