China’s EV sales increased by 87% YoY in 2022, nearly doubling.
The market was dominated by BYD, with the GM Group, Tesla, Geely Holding, and GAC Group following.
In 2023, it’s anticipated that China’s EV sales would surpass 8 million units.
Every One in Four Car is an EV in China
According to the most recent data, China’s sales of passenger electric vehicles (EVs) nearly doubled in 2022, up 87% YoY. In China, one in every four new automobiles sold today is an EV. Surprisingly, plug-in hybrid EVs (PHEVs) increased their proportion to 24% in 2022, while battery EVs (BEVs) saw a decline in the country’s overall EV sales. In terms of sales, China ranked second among the top 10 EV markets worldwide in 2022. With a YoY rise of 119%, Japan came out on top. Nonetheless, China was responsible for approximately 59% of the total volume of EV sales worldwide.
The Market Dynamics are such that “China’s EV industry is the most dynamic globally. Almost 300 models are available from over 94 brands, with prices ranging from $5,000 to over $90,000. Local brands control 81% of the EV market, with key competitors including BYD, Wuling, Chery, Changan, and GAC. Several EV start-ups in China, including Nio, Xpeng, Neta, AITO, IM Motors, Zeeker, Aiways, and Livan, are doing well and fiercely competing with well-known international names.
Chinese EVs Beating Tesla in its own Game
Tesla’s market share in China decreased by over 5% YoY as a result of production interruption in April and May 2022 brought on by the revival of COVID-19. A limited product mix, higher costs due to a problematic supply, competition from more affordable options provided by EV start-ups, and local attitude all made it difficult for Tesla to maintain its market share in China, even after production began at peak capability in June. Six among the top 10 models on the Chinese market were produced by BYD in 2022, up from just three in 2021, and the company had a YoY increase in market share of more than 11%.
Almost 45% of all EV sales in 2022 came from the top 10 models, a 3% decline from 2021. This shows that emerging businesses are fiercely challenging existing ones. Moreover, the Wuling Hongguang MINI EV’s eight-quarter run as the best-selling EV model came to an end in Q4 2022 when the BYD Song overtook it.
What BYD Said
Assistant Director Brady Wang commented on the industry prognosis while saying, “We anticipate EV sales to approach 8 million units in 2023. BYD increased the price of its electric vehicles by $250 to $900 in January 2023 as a result of growing raw material costs and the elimination of EV purchasing subsidies. Then, in February, BYD revealed price reductions in response to Tesla. Prices for the Han and Qin models in 2021 were decreased by an average of $2,500. New BYD models now cost between $860 and $1,150 less. As companies compete for market share, the phase-out of subsidies and the affluence of EV players could easily result in a price war.
Follow EAutoArena On Telegram, Twitter, Google News & Youtube