Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Get free updates
Register easily Electric vehicles myFT Digest — delivered straight to your inbox.
China’s best-selling automaker BID sold a record number of electric vehicles and hybrids globally last year, despite fierce competition in the domestic market.
Tesla’s biggest competitor In the year 4.3mn EVs and hybrids are expected to be sold by 2024, up from the 3.6mn it had previously forecast, according to a company statement. “Champion of China, champion of the world,” the company said on social media late Wednesday.
BYD sold more than 1.76mn pure EVs last year, narrowing the gap with Tesla. It is poised to become the world’s largest selling EV company by 2024. To achieve 1.81mn EVs sold by 2024.
Li Auto, China’s first profitable EV startup, Stellantis-backed Leapmotor and smartphone maker Xiaomi also surpassed their targets of selling 500,000, 290,000 and 135,000 EVs by 2024, respectively.
China is expected to sell more EVs, including clean battery-powered cars and plug-in hybrids, by 2025 thanks to hundreds of billions of dollars in government subsidies for the first time.
Automakers have helped consumers buy old gas-powered cars with EVs for Rmb20,000 ($2,740) in a trade-in scheme launched last April.
But while some big names are good, High competition And a prolonged price war has put pressure on many players. Dozens of companies like Xpeng and Nio have fallen short of sales targets even as they post growth.
“Competition in the market is very intense,” said Yale Zhang, managing director of Shanghai-based consultancy Automotive Archesite. “The big companies are taking more and more of the pie, most of the smaller groups are struggling.”
Consolidation is already shaping the world’s largest EV market. High-flying startups like HiPhi and Baidu-backed Jidu have failed in the past year. Auto conglomerate Geely merged its sub-brands Zikr and Lynk & Co in November to “streamline operations”.
“As the industry shifts to EVs, economies of scale are more important than ever for automakers,” Zhang added.
Analysts have also pointed out that the entry of technology groups such as Xiaomi and Huawei has intensified competition.
In the year December 31, Xiaomi has sold more than 135,000 units of its exclusive model, the SU7 sedan, which was launched in late March, surpassing the target of 130,000 cars. Founder Lei Jun said on Wednesday that the group aims to more than double that by delivering 300,000 EVs by 2025.
“The country’s EV market is huge, so even a good segment can see high demand,” said Li Yanwei, a member of the China Automobile Dealers Association’s expert committee.
“The Xiaomi SU7 sedan has captured consumer demand for a personalized (car) with an impressive price tag.”
President Xi Jinping acknowledged the industry’s success in his New Year’s address. “(China’s) annual volume of new energy vehicles has exceeded 10 million units,” Xi said in a televised speech on Tuesday.
