Unifying Chinese EV makers to surpass Tesla

author: FutureCar Staff    

A call for unity and patriotism in China's auto industry has gained widespread attention, both positive and negative. Byd, China's top-selling automaker, used a recent event to celebrate the rise of China as a global auto manufacturing powerhouse. Byd's founder, Wang Chuanfu, emphasized the emotional need for Chinese brands to become global, stating that it is important for the 1.4 billion Chinese people to see their own brands succeed on the global stage.

The call by Byd, which is considered Tesla's closest competitor in the global electric vehicle sales race, received praise and highlighted the intense competition among China's carmakers, both domestically and internationally. China's automakers are currently engaged in a price war initiated by Tesla earlier this year, and they also face challenges in global markets due to consumer wariness and regulatory obstacles.

At a recent event, Byd released a video that showcased the history of China's auto industry, from the founding of state-run automaker FAW Group in 1956 to the emergence of modern electric vehicle startups like Xpeng, Nio, and Li Auto. The video emphasized the shared direction and aspirations of Chinese automakers, urging them to "demolish the old legends and achieve new world-class brands" under the slogan "Chinese Autos". The video quickly went viral on social media in China, with executives from rival companies expressing their appreciation.

However, some industry experts warned that the patriotic message could potentially raise regulatory risks for Chinese brands overseas, particularly in Europe where Chinese EV exports may face anti-dumping scrutiny. A senior executive from Great Wall Motor responded by urging Chinese manufacturers to embrace the reality of competition.

It is worth noting that 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 pledge had violated China's antitrust law. Despite these challenges, Byd has continued to dominate China's new-energy market, which includes plug-in hybrids and EVs, with a 37% market share in the first seven months of the year.

Overall, Byd's patriotic call for unity in the Chinese auto industry has sparked both praise and concerns, reflecting the intense competition and challenges faced by Chinese automakers in the global market.

Source: Reuters

FutureCar Staff