Chinese electric vehicle manufacturers, from BYD to start-up Dreame, are intensifying their expansion abroad as a fierce price battle at home clouds profit prospects, reported the South China Morning Post.
In a bid to capture a larger share of the global market, these companies are opting to either assemble vehicles abroad or expand their showroom presence internationally, targeting market share from established brands such as Volkswagen and Toyota.
Cui Dongshu, general secretary of the China Passenger Car Association (CPCA), said: “Chinese EVs [are proving] to be quite attractive to car users worldwide because of their design and quality.
“As a result, exports of Chinese-made EVs have rapidly increased since 2021. Trade barriers will not drag down their export growth.”
CPCA figures show mainland China’s roughly 50 EV manufacturers exported 2.01 million battery-electric and plug-in hybrid vehicles in the first eight months of the year, a 51% increase from a year earlier.
The industry body projects overseas deliveries of Chinese-made cars, including petrol models, will reach 5.46 million this year, up 14% from 2024.
BYD is targeting up to one million sales outside the mainland this year, which could represent about 20% of total deliveries, according to Li Yunfei, the company’s general manager of branding and public relations.
Overseas volumes made up less than 10% of BYD’s 4.26 million deliveries in 2024.
BYD’s pure electric models face a 27% tariff in the European Union, but Li said the bloc remains a priority as environmentally minded drivers shift to EVs.
Recently, carmaker Xpeng said it had started production in Europe through a partnership with Austria’s Magna Steyr and plans to deepen the collaboration over time.
In early September, Dreame’s CEO Yu Hao led a team to Germany to scout locations for a car plant, the Suzhou-based company said.
The overseas push aligns with the “Made in China 2025” strategy unveiled in 2015, which envisaged the top two domestic EV makers selling more than 10% of their vehicles abroad. Only BYD has achieved that target.
Last month, Dongshu said China’s automotive sector is targeting annual sales surpassing 40 million vehicles within the next five years. The outlook includes exports, which are expected to reach ten million units.
He highlighted the scope for growth in both domestic and international markets, noting vehicle ownership in China stands at 250 cars per 1,000 people, well below levels in developed economies.
