Cars: The newest market China is set to dominate

[beijingwalker]

Cars: The newest market China is set to dominate
Sun, 8 January 2023, 6:01 PM GMT-5

The list of top-selling cars has had an unexpected shake-up. (Source: Getty)
The list of Australia’s top-selling cars for 2022 is out, and there’s a new pecking order.

From out of nowhere, China has muscled its way up the bestseller list with a Chinese-made, Chinese-owned vehicle. Jason Murphy investigates how the Australian motoring landscape may be in for a change in 2023.

The MG ZS, a small SUV, sits at number 7 on the list of top-selling cars in Australia for 2022. The badge on the front of the car was once a heralded British icon. MG stands for Morris Garages, a business that stood in Oxford, England, and started making sports cars between the wars. But the MG brand was sold to China in 2005 and ended up being owned by SAIC Motors, a Chinese state-owned enterprise.

They have done incredible things with it. The MG ZS is an amazing car, selling for as little as $22,990 new. It also comes in an electric variant, which is Australia’s cheapest new EV at as little as $44,670.

No wonder it is selling so well. As the next chart shows, the MG ZS is now selling as many units as the once-invincible Toyota Corolla.

A graph showing MG sales compared to Toyota Corolla sales in 2022.

China is making loads of EVs. Not only from well-known brands like MG but under their own brands. I drove past a BYD the other day for the first time, with a badge on the back that said: “Build Your Dreams”. The first model from BYD – the Atto 3 - was launched only a couple of months ago but has already sold more than 1,000 units in Australia.

EV sales rose sharply in Australia in 2022, with a new phenomenon occurring – electric sales are no longer just about Tesla. The Elon-Musk-owned brand was, for a long time, the dominant EV brand in Australia. And, while the Model 3 is also on the list of top-selling cars, in recent months, the market has become a lot broader. Thousands of non-Tesla EVs are sold each month, many from China.

Of course, the premium for buying an EV is still high, which means if you want to justify it in terms of the fuel saving, you need to drive a lot of kilometres every year - generally more than 20,000 km - to be able to pay the cost premium back within 10 years. That distance could be shorter if fuel prices stay elevated, though.

The China story​

China’s success is so strong that it just bumped Korea from the number 3 spot, as the next chart shows. This chart shows only where cars are made, not owned. The China line includes foreign brands made in China, like Tesla, not just cars from Chinese-owned companies. As you can see, Thailand is also a major location for car-making with Ford in particular making a lot of vehicles there.

A graph showing global car sales by country of manufacture.

The lessons here are two-fold:

• First is how fast China is rising, and how quickly it can learn. From nowhere, it now has a major position in the global automotive industry. China has weaknesses – not least its inflexible political system - but it also has strengths, especially its ability to move its economy into more and more sophisticated sectors.
• Second is the power of branding. Not long ago, few people wanted to drive an unknown Chinese car brand when it had a badge on it proclaiming Great Wall Motors, especially compared to well-known brands like Toyota, Ford or Hyundai - which continue to dominate some of the most popular car brands.

So, China has acquired some well-established brands, such as LDV and Volvo, and hasn’t looked back. LDV is another old British car brand also now owned by SAIC. I’m surprised GM hasn’t sold them the Holden brand since it isn’t using it anymore.

Cars: The newest market China is set to dominate

A Chinese-owned and built car has muscled its way up the bestseller list, foreshadowing how the Australian motoring landscape may change in the year ahead.

nz.finance.yahoo.com

 

[walterbibikow]

South Africa:The all-new Mahindra XUV700 has received an overwhelming response with 1,100 pre-orders in just 2 weeks which is a new record

Motoring Archives

We provide our readers with all the latest car and motoring industry news from South Africa and all over the world. Browse all our latest motoring news here!

www.google.com

 

[beijingwalker]

China Exported More Than 2.7 Million Vehicles In The First 11 Months of 2022​

January 7, 2023

From January to November 2022, China’s vehicle export volume reached 2.785 million units, a year-on-year increase of 55.3%, according to the China Association of Automobile Manufacturers (CAAM). Yin Tongyue, CEO of Chery Automobile, predicted that China’s vehicle export volume would exceed three million units in 2022.

https://carnewschina.com/2023/01/07...lion-vehicles-in-the-first-11-months-of-2022/

 

[beijingwalker]

China’s EV Boom Has Sent Its Car Exports Soaring​

Thu, January 5, 2023, 3:00 PM EST

Despite being a huge manufacturing country – the biggest in the world, in fact – until recently, China has not been on the radar when it comes to car manufacturing. Chinese automakers have never gained global attention for their high-quality petrol or diesel cars, with other U.S., European or Asian automakers proving more popular. However, as China takes the lead on renewable energy operations, the country is heavily focused on electric vehicles (EVs), with the government and private firms pumping billions into research and development.

China accounts for around 28.7 percent of the global manufacturing output, followed by the U.S., at 16.8 percent. And yet, most people worldwide are far more aware of American car brands, with the U.S. earning $47.6 billion in car exports in 2020. But China is no longer focused on expanding its internal combustion engine (ICE) car market, as it directs its attention to EVs. Long before many other cities, in 2017, Beijing announced plans to ban the use of new ICE taxis, instead requiring any new taxi to be run on an electric battery, at an expected cost of $1.3 billion for the total conversion. This is not surprising considering that China has led the way in several types of green energy and related technologies, despite its continual reliance on fossil fuels for its domestic energy demand. And this is just one of the hundreds of initiatives that have given way to the rise of EVs.

Several EV manufacturers have boomed in China in recent years, with around 450 EV makers registered. By mid-2022, the four biggest included BYD, valued at $149 billion, with a 27.9 percent market share, SGMW with a 10.1 percent share, Chery at 4.9 percent, and GAC with a share of 4.2 percent. The EV and hybrid manufacturer BYD has attracted greater attention in recent years, as the world’s biggest EV producer, overtaking Tesla to claim the title in July 2022. Warren Buffet is among its famous investors. BYD now plans to launch three new EV models in Europe in competition with some of Europe’s most prominent automakers’ offerings.

Despite the lack of global awareness of Chinese car brands, China overtook Germany to become the world’s second-largest car exporter in 2022, shipping 2.6 million vehicles in the first 10 months of the year. This has been supported by investments from the major automakers in their own ships, to transport their cars from China to other markets. BYD ordered six ships in October at a cost of $710 million, with a capacity for 7,700 cars. Meanwhile, state-owned SAIC Motor Corp. intends to purchase seven new ships to transport 8.900 vehicles.

China’s biggest car export markets in the past have been concentrated in Africa and the Middle East. However, thanks to the rise of its EVs, it is beginning to develop export markets in North America and Europe, offering higher-end options than previously available from the Chinese market. In the first half of 2022, Western Europe accounted for around 34 percent of China’s passenger vehicle exports, with Belgium as the biggest importer. This is a trend that is set to continue as the global EV market continues to expand – with Europe leading this growth.

With Chinese automakers having risen to compete with the likes of Tesla in recent years in China, many of these manufacturers believe they can compete with other major car makers such as Volkswagen and BMW, which have only just begun their foray into EV development. Most European automakers continue to manufacture ICE vehicles, with strong demand for fossil fuel-powered cars expected to continue until city and country bans come into place, starting in 2030. This means that very few car makers are focusing solely on the development of their EV models and markets. By comparison, heavy subsidies from the Chinese government have made it possible for Chinese EV manufacturers to emerge quickly and become highly competitive with foreign rivals.

And while European manufacturers have the advantage of close access to the European market, as does Tesla thanks to its first European factory in Berlin, China is a manufacturing giant when it comes to electric batteries – providing around 75 percent of the world’s total – and other EV components. It is also the biggest lithium producer in the world, offering around 60 percent of the world’s lithium – a vital component in electric battery manufacturing.

Recent estimates from Fitch Solutions suggest that the share of Europe’s EV market from Chinese automakers could increase to 15 percent in 2025, from around 5 percent in 2022. This is largely thanks to their low-price offerings, which many European manufacturers simply cannot compete with. But can this boom last? Ana Nicholls, director of industry analysis at the Economist Intelligence Unit, explains: “It's hard to see how the EV market can carry on expanding at quite this rate in the future.” And other Asian, European, and North American automakers are rapidly rising to compete with major EV makers, with plans to release several new EV models in the coming years. As demand rises, so will supply, and competition will become fiercer. But, for now, China looks likely to lead the way in the EV market in the coming years.

China’s EV Boom Has Sent Its Car Exports Soaring

The aggressive growth of China’s electric vehicle industry has made it a major car exporter, and it is set to gain a lager market share in both Europe and North America

www.yahoo.com

 

[mike2000 is back]

The MG ZS, a small SUV, sits at number 7 on the list of top-selling cars in Australia for 2022. The badge on the front of the car was once a heralded British icon. MG stands for Morris Garages, a business that stood in Oxford, England, and started making sports cars between the wars. But the MG brand was sold to China in 2005 and ended up being owned by SAIC Motors, a Chinese state-owned enterprise.

They have done incredible things with it. The MG ZS is an amazing car, selling for as little as $22,990 new. It also comes in an electric variant, which is Australia’s cheapest new EV at as little as $44,670.

No wonder it is selling so well. As the next chart shows, the MG ZS is now selling as many units as the once-invincible Toyota Corolla.

Seems the state owned Auto makers can only depend on western brands to make a name for themselves..its like Tata motors of India claiming credit for the popularity of Jaguar/Range rover cars abroad which they bought from UK as well. Lol
The Chinese car company im impressed with is BYD since they are getting popular and making a name for themselves abroad with their own homemade brands, not like others relying on western brands to sell abroad.

Moreover even Thailand is a major car exporter, so the main point is how many if those cars are made by the local country's own homegrown car brands inhouse not just relying on western car brands for sales.

 

[beijingwalker]

Seems the state owned Auto makers can only depend on western brands to make a name for themselves..its like Tata motors of India claiming credit for the popularity of Jaguar/Range rover cars abroad which they bought from UK as well. Lol
The Chinese car company im impressed with is BYD since they are getting popular and making a name for themselves abroad with their own homemade brands, not like others relying on western brands to sell abroad.

Moreover even Thailand is a major car exporter, so the main point is how many if those cars are made by the local country's own car brands not just relying on western car brands for sales.

Different markets require different sales approaches, Chinese brands had already gaining popularity in emerging markets, next step will be western markets.

 

[mike2000 is back]

Different markets require different sales approaches, Chinese brands had already gaining popularity in emerging markets, next step will be western markets.

Dude most of your car exports are from western brands repackaged by Chinese companies, since they know their own brands might not be that appealing abroad(seems only BYD is doing well with its own brand, Geely is trying as well, heard of NIO bit dont know how well they are fairing with their own brand). Why do you think that your state own companies like SAIC stick with MG brand to market those MG cars instead of using their own brand? Lol same with using Chevrolet, Cadillac, Iveco, Škoda, Volkswagen, Audi etc. They rely on this brand for sales and making quick easy money(nothing wrong in that though, guess it just makes them lazy to build their own homegrown inhouse brand).
Seriously even with all the support and massive cash flows your government provided your state owned auto companies, they have been a failure giving all the huge state support and favours they got from government with forced tech transfer (alias "JV") with western car companies. Compared to your private car companies who got little to no such support, ill say your car companies like BYD,Geely etc have done pretty well despite the odds against them.
As i said before, those your state owned companies are used to relying on western car brands and not doing much to really market their own brand name and make a name for themselves. You guys should just disband them at one point and give them to BYD (or other serious private car maker who is showing serious growth)who seem to be doing a great job and in future will be the only chinese car brand i see challenging Tesla. Your SOE just seem to me to be a waste and legacy auto makers. Time will tell anyway.

 

[Sharma Ji]

the sad demise of the internal combustion engine : (

 

[从八品主簿]

Dude most of your car exports are from western brands repackaged by Chinese companies, since they know their own brands might not be that appealing abroad(seems only BYD is doing well with its own brand, Geely is trying as well, heard of NIO bit dont know how well they are fairing with their own brand). Why do you think that your state own companies like SAIC stick with MG brand to market those MG cars instead of using their own brand? Lol same with using Chevrolet, Cadillac, Iveco, Škoda, Volkswagen, Audi etc. They rely on this brand for sales and making quick easy money(nothing wrong in that though, guess it just makes them lazy to build their own homegrown inhouse brand).
Seriously even with all the support and massive cash flows your government provided your state owned auto companies, they have been a failure giving all the huge state support and favours they got from government with forced tech transfer (alias "JV") with western car companies. Compared to your private car companies who got little to no such support, ill say your car companies like BYD,Geely etc have done pretty well despite the odds against them.
As i said before, those your state owned companies are used to relying on western car brands and not doing much to really market their own brand name and make a name for themselves. You guys should just disband them at one point and give them to BYD (or other serious private car maker who is showing serious growth)who seem to be doing a great job and in future will be the only chinese car brand i see challenging Tesla. Your SOE just seem to me to be a waste and legacy auto makers. Time will tell anyway.

Dude most of your car exports are from western brands repackaged by Chinese companies, since they know their own brands might not be that appealing abroad(seems only BYD is doing well with its own brand, Geely is trying as well, heard of NIO bit dont know how well they are fairing with their own brand). Why do you think that your state own companies like SAIC stick with MG brand to market those MG cars instead of using their own brand? Lol same with using Chevrolet, Cadillac, Iveco, Škoda, Volkswagen, Audi etc. They rely on this brand for sales and making quick easy money(nothing wrong in that though, guess it just makes them lazy to build their own homegrown inhouse brand).
Seriously even with all the support and massive cash flows your government provided your state owned auto companies, they have been a failure giving all the huge state support and favours they got from government with forced tech transfer (alias "JV") with western car companies. Compared to your private car companies who got little to no such support, ill say your car companies like BYD,Geely etc have done pretty well despite the odds against them.
As i said before, those your state owned companies are used to relying on western car brands and not doing much to really market their own brand name and make a name for themselves. You guys should just disband them at one point and give them to BYD (or other serious private car maker who is showing serious growth)who seem to be doing a great job and in future will be the only chinese car brand i see challenging Tesla. Your SOE just seem to me to be a waste and legacy auto makers. Time will tell anyway.

It is too difficult to develop the fuel vehicle market with new brands in Western markets, but in emerging markets, China's own gasoline vehicle brands still have a certain market share. Of course, the development of China's own brands in the electric vehicle market will be very rapid, and it is believed that they will be able to occupy 20% of the non-US western market within five years
In addition, Thailand does not have a strong self-owned brand. Thailand's export of cars is mainly foreign brands, while China's auto exports are mainly self-owned brands。

 

[mike2000 is back]

Thailand does not have a strong self-owned brand. Thailand's export of cars is mainly foreign brands, while China's auto exports are mainly self-owned

Not yet..China's auto export is not mainly chinese homegrown brand. Its mostly foriegn brands for now. Reason I made that point. Your state owned giants are basically relying/resting on the shoulder of Western car brands(and western auto "joint ventures" brands) as always for exports . Your own homegrown auto brands barely make even 10% of EV sales(which is what will count in future going forward) abroad. Just fo some reseacrh and see for yourself.

Its almost like western brands like iphones being made in China and exported worldwide, compared to a homegrown brand like Xiaomi or Huawei doing the sales of their own brand for example. So you guys still have a long way to go especially your State owned car giants(they are the most depended on western brands for sales abroad unlike the private ones who are at least trying on their own.

 

[从八品主簿]

Not yet..China's auto export is not mainly chinese homegrown brand. Its mostly foriegn brands for now. Reason I made that point. Your state owned giants are basically relying/resting on the shoulder of Western car brands(and western auto "joint ventures" brands) as always for exports . Your own homegrown auto brands barely make even 10% of EV sales(which is what will count in future going forward) abroad. Just fo some reseacrh and see for yourself.

Its almost like western brands like iphones being made in China and exported worldwide, compared to a homegrown brand like Xiaomi or Huawei doing the sales of their own brand for example. So you guys still have a long way to go especially your State owned car giants(they are the most depended on western brands for sales abroad unlike the private ones who are at least trying on their own.

Not yet..China's auto export is not mainly chinese homegrown brand. Its mostly foriegn brands for now. Reason I made that point. Your state owned giants are basically relying/resting on the shoulder of Western car brands(and western auto "joint ventures" brands) as always for exports . Your own homegrown auto brands barely make even 10% of EV sales(which is what will count in future going forward) abroad. Just fo some reseacrh and see for yourself.

Its almost like western brands like iphones being made in China and exported worldwide, compared to a homegrown brand like Xiaomi or Huawei doing the sales of their own brand for example. So you guys still have a long way to go especially your State owned car giants(they are the most depended on western brands for sales abroad unlike the private ones who are at least trying on their own.

First of all, I am not talking about electric vehicles (the current Chinese electric vehicle brands are not enough to cope with overseas markets due to production capacity constraints), so half of them are Tesla, but 2023 will be the year when BYD and other electric vehicles increase their production capacity, what I said China's auto exports in 2022 will be overall, including fuel vehicles, not just electric vehicles.

 

[从八品主簿]

In addition, you are also talking about the European market. The car export I am talking about does not only refer to the European market, but also includes all regions outside of China.

Dude most of your car exports are from western brands repackaged by Chinese companies, since they know their own brands might not be that appealing abroad(seems only BYD is doing well with its own brand, Geely is trying as well, heard of NIO bit dont know how well they are fairing with their own brand). Why do you think that your state own companies like SAIC stick with MG brand to market those MG cars instead of using their own brand? Lol same with using Chevrolet, Cadillac, Iveco, Škoda, Volkswagen, Audi etc. They rely on this brand for sales and making quick easy money(nothing wrong in that though, guess it just makes them lazy to build their own homegrown inhouse brand).
Seriously even with all the support and massive cash flows your government provided your state owned auto companies, they have been a failure giving all the huge state support and favours they got from government with forced tech transfer (alias "JV") with western car companies. Compared to your private car companies who got little to no such support, ill say your car companies like BYD,Geely etc have done pretty well despite the odds against them.
As i said before, those your state owned companies are used to relying on western car brands and not doing much to really market their own brand name and make a name for themselves. You guys should just disband them at one point and give them to BYD (or other serious private car maker who is showing serious growth)who seem to be doing a great job and in future will be the only chinese car brand i see challenging Tesla. Your SOE just seem to me to be a waste and legacy auto makers. Time will tell anyway.

 

[从八品主簿]

Not yet..China's auto export is not mainly chinese homegrown brand. Its mostly foriegn brands for now. Reason I made that point. Your state owned giants are basically relying/resting on the shoulder of Western car brands(and western auto "joint ventures" brands) as always for exports . Your own homegrown auto brands barely make even 10% of EV sales(which is what will count in future going forward) abroad. Just fo some reseacrh and see for yourself.

Its almost like western brands like iphones being made in China and exported worldwide, compared to a homegrown brand like Xiaomi or Huawei doing the sales of their own brand for example. So you guys still have a long way to go especially your State owned car giants(they are the most depended on western brands for sales abroad unlike the private ones who are at least trying on their own.

This is China's auto exports from January to September. There is no annual report (excluding foreign joint venture brands), but SAIC should include MG. SAIC just announced its overseas sales today, which should include foreign brand cars, but he announced that the cumulative overseas sales of its own brand SAIC MAXUS exceeded 220,000. In addition, Chery Automobile also announced its export volume in 2022. In 2022, the cumulative sales of Chery Holding Group will reach 1,232,727 vehicles, an increase of 28.2% year-on-year, and 451,337 vehicles will be exported. If there is a full year of 2022 in the future, share it.

 

[theBill]

Dude most of your car exports are from western brands repackaged by Chinese companies....

MG and Lotus were failed brands, pretty lucky Chinese companies bought them out and allow Lotus workers to keep their jobs.

 

[Beast]

Dude most of your car exports are from western brands repackaged by Chinese companies, since they know their own brands might not be that appealing abroad(seems only BYD is doing well with its own brand, Geely is trying as well, heard of NIO bit dont know how well they are fairing with their own brand). Why do you think that your state own companies like SAIC stick with MG brand to market those MG cars instead of using their own brand? Lol same with using Chevrolet, Cadillac, Iveco, Škoda, Volkswagen, Audi etc. They rely on this brand for sales and making quick easy money(nothing wrong in that though, guess it just makes them lazy to build their own homegrown inhouse brand).
Seriously even with all the support and massive cash flows your government provided your state owned auto companies, they have been a failure giving all the huge state support and favours they got from government with forced tech transfer (alias "JV") with western car companies. Compared to your private car companies who got little to no such support, ill say your car companies like BYD,Geely etc have done pretty well despite the odds against them.
As i said before, those your state owned companies are used to relying on western car brands and not doing much to really market their own brand name and make a name for themselves. You guys should just disband them at one point and give them to BYD (or other serious private car maker who is showing serious growth)who seem to be doing a great job and in future will be the only chinese car brand i see challenging Tesla. Your SOE just seem to me to be a waste and legacy auto makers. Time will tell anyway.

Does it matter? As if the profit and money will not go into the Chinese.

MG and Lotus were failed brands, pretty lucky Chinese companies bought them out and allow Lotus workers to keep their jobs.

Now they are rising fast and MG4 EV s taking Europe by storm due to its highly value for money offer.