2023-08-17 17:07:00
The Chinese economy is struggling to revive. Since the health crisis, which was particularly painful in human and financial terms, the country has experienced an unprecedented economic slowdown, which is disrupting the markets. But one Chinese industry seems to stand out: BYD. Last May, the Chinese manufacturer, which specializes in electric and hybrid vehicles, broke its monthly sales record, with 240,220 cars sold.
Even better for the Chinese company: while it took thirteen years to sell one million vehicles, the company managed to double the number in six months, and nine months to go from 2 to 5 million. With these spectacular sales, the manufacturer is positioning itself as the Chinese number 1 in the electric car market, with a market share of 37% in 2022, according to Les Échos. It is thus positioned in second place of all manufacturers, just behind Tesla.
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To celebrate this meteoric rise, BYD’s founding president, Wang Chuanfu, held a grand ceremony, complete with speech. And what we can say is that he does not hide his ambitions by not hesitating to speak bluntly. “I believe the time has come for Chinese brands”, launched the CEO at the event before continuing “The Chinese feel the need to see a Chinese brand go global.” The tone is set.
Also during the ceremony, a video was broadcast, reports Les Echos. And the message is unequivocal: it calls for “Tearing down old legends and creating new world-class brands.” A call for a new impetus from the Chinese automotive industry? It looks like it and the other buildings in the country have understood the message. “I feel proud for the Chinese auto industry. We all need to learn from BYD’s success,” said Nio CEO William Li.
But stiff competition in the world’s biggest car market may not make it easy for Chinese companies.
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Tesla and Volkswagen keep watch
Since the beginning of the year, competition in the Chinese automotive market is in full swing. With Tesla in particular. The American carmaker, which has a large factory in Shanghai, has reduced the prices of its Model S sedan and its Model Y SUV by 70,000 yuan (nearly 9,000 euros). Volswagen also followed the trend, with price reductions of 2,000 to 7,000 euros on certain models. At the local level too, the offers are experiencing strong discounts: Nio, XPeng and Li auto. In total, more than thirty constructions have decided to introduce tariff discounts, ranging up to 40%.
The opportunity for Chinese manufacturers to establish themselves in the West. Several brands like MG have already succeeded in establishing themselves. BYD, meanwhile, is making its debut in Europe, but it’s still too early to determine whether it will be successful.
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