Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
China’s homegrown EV makers are making waves overseas while facing a slowdown at home.
What Happened: In the first quarter of 2024, local car brands saw a 40% increase in overseas sales compared to the same period last year, reaching a total of 470,000 units exported, as per CnEVPost, which cited data from the China Passenger Car Association.
Who’s Leading The Charge? Leading the pack are established Chinese automakers like SAIC, Chery, Great Wall Motor, and BYD Co. (OTC:BYDDY) (OTC:BYDDF).
SAIC, the biggest exporter among them, contributed a quarter of all local brand exports with over 126,000 units shipped overseas. Chery, Great Wall Motor, and BYD followed closely behind, collectively accounting for over half of the total exports from local brands.
Europe & Asia Take Notice: The success story extends to the electric vehicle (NEV) market as well. Chinese NEVs are finding eager buyers abroad, evidenced by the $11.1 billion worth of NEVs exported in the first quarter, an 18% year-on-year jump. Europe and Asia are the primary destinations, with over 337,000 Chinese-made cars finding new homes in these regions.
In terms of NEV sales overseas, BYD, SAIC, Geely and Great Wall Motor were the leaders, with Xpeng (NYSE:XPEV) and Nio (NYSE:NIO) witnessing modest success.
| EV Maker | NEV Overseas Sales Q1 2024 |
| BYD | 47,238 |
| SAIC | 31,018 |
| Geely | 13,384 |
| Xpeng | 1,432 |
| Nio | 388 |
Innovation Driving Sales? Facing a slowdown in the domestic market, some Chinese EV manufacturers are introducing unconventional features like in-car beds and kitchens, aiming to entice overseas buyers and stand out from the competition.
BYD’s Premium Strategy: BYD, China’s top EV maker, is taking a different approach in Europe. Instead of flooding the market with budget-friendly options, BYD is commanding premium prices, a strategy that appears to be paying off with healthy profits.
Chinese EV traders are also reportedly using a unique way to navigate trade barriers in key markets such as the United States, by capitalizing on a policy that allows used car exports without manufacturer authorization. This loophole lets them register new cars in China and then immediately ship them overseas, technically making them “used” and bypasses export restrictions.
Photo via Shutterstock
Read Next: Global Gasoline Demand Growth To Halve By 2024 Amid Rising EV Demand In China, US
Engineered by
Benzinga Neuro, Edited by
Ramakrishnan M
The GPT-4-based Benzinga Neuro content generation system exploits the
extensive Benzinga Ecosystem, including native data, APIs, and more to
create comprehensive and timely stories for you.
Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.