China has amassed a ferocious pack of EV-makers, led by the world's top producer BYD, that are not only forcing price cuts but are also pushing the envelope on autonomous vehicles. This is helped by the fact that some of its EV-makers such as Huawei started out as smartphone manufacturers and have been quite adept at making cars smarter.
Major Chinese electric carmaker BYD reported lower-than-expected revenue for the first quarter of 2024 on Monday, as an aggressive domestic price war and Western regulatory pressure weighed on the company's growth. Its profit in the first quarter was 4.57 billion yuan, up 10.62% from a year ago, BYD said on Monday.
Chinese consumers, especially younger ones, rank "technology luxury" as an important consideration, and Chinese automakers are taking the lead on such features, said Raymond Tsang, a Shanghai-based Bain & Company partner.
BYD's Denza Z9GT challenges Mercedes-Benz in the premium EV market, showcasing advanced technology and upmarket push to increase profitability amid a saturated domestic market and international scrutiny.
China's EV market experiences fierce competition as new models flood the market, leading to price reductions. Innovative approaches by companies like Hesai and Launch Design are reshaping the industry dynamics and accelerating EV development.
EV concessions for Chinese firms like BYD in India face obstacles due to national security concerns and FDI requirements under the new policy. The GTRI report warns of potential large-scale entry of Chinese auto firms in the local market.
Most of the Fangchengbao lineup features a plug-in hybrid system called Dual Mode Off-Road (DMO) that BYD developed for improving off-road driving experiences with better fuel economy and high horsepower, its chief scientist, Lian Yubo, said at the event.
Chinese EV giant BYD has already entered the Indian market and has plans to cover 90 per cent of the market this year itself. Last year in November, China's largest automaker SAIC Motor inked a joint venture (JV) agreement with the JSW Group to accelerate the transformation and growth of MG Motor in India.
India's EV policy invites Tesla with reduced customs duty, sparking competition with Tata Motors. BYD eyes 90% market share. Mahindra's XUV400 competes. Xiaomi's SU7 threatens Indian EV players, priced competitively at INR 25 lakh.
Thailand's February car output drops 19.3% year-on-year on EV imports, lower pickup truck sales. Thailand is Southeast Asia's biggest autos production centre and an export base for some of the world's top carmakers, including Toyota and Honda, with pickup trucks among the key vehicles manufactured. In recent years, Chinese EV brands like BYD and Great Wall Motor have been making inroads into the Thai auto sector, helped by government tax incentives and subsidies.
Xiaomi's $8 billion stock rally hinges on its first electric vehicle SU7 launch in China, challenging Tesla and BYD. Analysts predict positive momentum but foresee profitability challenges in China's competitive EV market.
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