Global sales of electric cars (various hybrids and electric cars) increased by 31% to 13.6 million units in 2023, sort of British consultancy Rho Motion. At the same time, the growth rate has slowed down: in 2022, the growth in sales of such cars was 60%.
Thanks to Russia, China became the largest exporter
China in 2024, according to the China Association of Automobile Manufacturers was exported 5.26 million vehicles, an increase of 52% compared to the previous year. Thanks to deliveries to Russia, where 840 thousand vehicles are sent annually, the Chinese managed to increase exports. The total volume of vehicles sold in China and abroad reached 30 million vehicles in 2023.
The Chinese have succeeded in removing Japan from its position as the world’s largest exporter.
Automakers in the Land of the Rising Sun sold 4.4 million cars in 2023, to witness Data from the Japan Automobile Manufacturers Association.
This earned Chinese companies approximately $102 billion. China’s annual exports of electric vehicles are estimated at 1.7 million units, which is 57% more than the previous year.
BYD brand in 2023 by production volume passed American Tesla and has sold more than 3 million electric vehicles. Tesla sold 1.84 million cars in the same period.
They started to get scared
European countries are already beginning to consider the danger of the expansion of Chinese automakers supported by state subsidies. European Union working on Restrictive measures on the import of Chinese cars, including electric ones, into the country.
In September 2023, European Commission president Ursula von der Leyen announced the launch of an investigation into the artificial lowering of prices of Chinese electric cars, which have appeared in large numbers in Europe.
“Today, global markets are flooded with cheap Chinese electric vehicles. And their prices are kept artificially low thanks to government subsidies. “This causes disruption in our markets,” he said.
Electric cars are getting cheaper in China, and the opposite is happening in Europe and the USA. Wrote Forbes.
No decision has been made on this issue yet, but French authorities published a list of electric vehicles whose purchase is supported by the state in December. Receiving subsidies depends on the level of emissions in the production process, and Chinese cars are practically excluded from this list, reported Nikkei agency.
Almost monopoly
Experts say that in terms of automobile production and the availability of raw materials and technologies required for it, China is the most notable player in the world, although not a monopolist.
“The European Union is already dealing with the issue of importing Chinese electric vehicles, which are becoming increasingly better and cheaper. Europeans’ fears about Chinese expansion are justified, and mechanisms to protect the market will definitely be discussed,” Sergei Burgazliev, an independent consultant on the automotive industry, told socialbites.ca.
He added that in terms of raw material production, China is actively working with North and Central African countries and has its own raw material resources. China is very strong in terms of batteries, control electronics and microchips. Burgazliev argues that the European Union’s massive investment in its own microchip production is a clear example of fatigue with dependence on China.
“China can produce cheap batteries and control electronics for electric vehicles. I followed a very correct path in terms of the development of the automobile industry and electric transportation.
“They attracted a large number of competent specialists, acquired a lot of advanced technologies, saved time and became one of the leaders of the global automotive industry,” concluded Burgazliev.
Maxim Kadakov, editor-in-chief of Za Rulem magazine, believes that from the perspective of the transition to electric traction, the global auto industry has not yet finally decided and China’s expansion may be limited.
“There are already many Chinese hybrid and electric cars in both the UK and Sweden. In the future, everything will depend on real political decisions both in America and in Europe,” Kadakov told socialbites.ca.
In the European Union, duties on Chinese cars may be increased and an outright ban introduced. He added that the automobile market cannot be considered separately from other markets and the political situation.
“Currently the dependence of both European and American automobile companies on the Chinese component base in automobile production is very strong.”
– admits Kadakov.
According to him, cars with internal combustion engines are more promising in the Russian market because they are 40-50% cheaper than electric cars of similar capacity.
“Our electric transportation should focus on urban use. As for the suburbs and intercity areas, gas engine fuel is more promising here,” concludes Sergei Burgazliev.