China’s EV giants head overseas as domestic price war bites

Chinese electric vehicle (EV) makers, from bellwether BYD to start-up Dreame, have stepped up efforts to crack overseas markets as earnings prospects at home look dim amid vicious price competition.

They are choosing to either assemble vehicles overseas or open more showrooms abroad to promote their smart EVs fitted with sophisticated in-car entertainment systems and high-performance battery packs, in hopes of taking market share from international marques like Volkswagen and Toyota.

“Chinese EVs [are proving] to be quite attractive to car users worldwide because of their design and quality,” said Cui Dongshu, general secretary of the China Passenger Car Association (CPCA). “As a result, exports of Chinese-made EVs have rapidly increased since 2021. Trade barriers will not drag down their export growth.”

According to CPCA data, the 50-odd EV builders in mainland China exported a total of 2.01 million pure electric and plug-in hybrid vehicles overseas in the first eight months of the year, up 51 per cent from the same period a year earlier.

The government-backed industry consortium forecasts 5.46 million overseas deliveries of Chinese-made cars, including petrol vehicles, this year, up 14 per cent from 2024.

  

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