Chinese EV makers unite to surpass Tesla

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【Summary】Chinese automaker, BYD, has called for unity among Chinese EV makers to surpass Tesla and become global leaders. BYD's founder emphasized the emotional need for Chinese brands to succeed globally. The call has received widespread praise but also raised concerns about regulatory risks for Chinese brands overseas. Chinese automakers are engaged in a price war and face consumer wariness and regulatory obstacles in global markets. BYD currently leads China's new-energy market with a 37% share.

FutureCar Staff Aug 18, 2023 7:50 AM PT

Chinese EV makers unite to surpass Tesla

A call for unity and global recognition by China's top automaker, Byd, has gained widespread attention and sparked both praise and criticism. Byd used a recent event to celebrate the growth of China's auto manufacturing industry and emphasized the importance of Chinese brands on a global scale. Byd's founder and chairman, Wang Chuanfu, spoke passionately about the emotional significance for the 1.4 billion Chinese people to see a Chinese brand succeed internationally.

The call by Byd, which is considered Tesla's closest competitor in the global electric vehicle market, highlighted the intense competition among China's carmakers both domestically and abroad. These automakers are currently engaged in a fierce price war that was initiated by Tesla earlier this year and continues to escalate. Additionally, they face challenges in global markets due to consumer skepticism and regulatory hurdles.

During the event, Byd released a video showcasing the history of China's auto industry, from state-run automaker FAW Group to recent EV startups like Xpeng, Nio, and Li Auto. The video emphasized the shared direction and aspirations of these companies, urging them to "demolish the old legends and achieve new world-class brands" under the banner of "Chinese Autos."

The video quickly went viral on Chinese social media, with executives from rival companies expressing their appreciation for Byd's message. However, some carmakers cautioned that this call to action could potentially expose Chinese brands to regulatory risks, particularly in Europe where Chinese EV exports may face anti-dumping scrutiny. A senior executive from Great Wall Motor urged Chinese manufacturers to embrace the reality of competition.

In July, the China Association of Auto Manufacturers retracted a pledge made by 16 firms, including Byd, to avoid abnormal pricing. The association acknowledged that the agreement had violated China's antitrust law. Despite these challenges, Byd has continued to strengthen its position in China's new-energy market, which includes plug-in hybrids and EVs, with a 37% market share in the first seven months of this year.

Overall, Byd's patriotic call for unity and global recognition has ignited a spirited debate within China's auto industry, highlighting the intense competition and the need for Chinese brands to establish themselves on the global stage.

Source: Reuters