The automotive battle to watch isn't Tesla; it's China vs the world, Chinese auto exports are exploding

[beijingwalker]

The automotive battle to watch isn't Tesla; it's China vs the world​

• Chinese auto exports are exploding

Adam Button
Friday, 27/01/2023 | 23:56 GMT+8

China is certainly seen as the manufacturing hub of the world but there's one area of global production that's largely untouched and it's the biggest one: Automotive.

There aren't many countries where you would see an Chinese built or designed vehicle on the roads but that may soon change, and it could be far more disruptive than Tesla.

"China has suddenly become a major global competitor," he writes.

The US has been shocked by the rise of the Chinese automotive industry and Setser argues that's the big reason behind the latest round of US subsidies. However, that has caused fresh problems in Europe, with it now claiming the subsidies are illegal.

I have no idea how this is going to go down but the EV playing field is still up for grabs and China is putting out some impressive cars, capturing the domestic market. Given their manufacturing expertise, the next big wave in the automotive industry might not be Tesla but China taking on Europe, the US and Japan.

Bloomberg has more here.

The automotive battle to watch isn't Tesla; it's China vs the world | Forexlive

Chinese auto exports are exploding

www.forexlive.com

 

[beijingwalker]

In Two Years, China More Than Doubles the US on Car Exports, Catches GermanyChina is now exporting cars like mad, and they are high quality as well.
Jan. 27 2023

Sudden Surge in Chinese Car Exports

Brad Setser has an interesting thread on China's sudden surge in car exports.

https://twitter.com/x/status/1618815976556081153

https://twitter.com/x/status/1618817362404450305

https://twitter.com/x/status/1618819328656408577

Bloomberg reports The US Hasn’t Noticed That China-Made Cars Are Taking Over the World

Overseas shipments of cars made in China have tripled since 2020 to reach more than 2.5 million last year, according to data from the China Passenger Car Association. That’s only a whisker (about 60,000 units) behind Germany, whose exports have fallen in recent years. China’s numbers, behind Japan but ahead of the US and South Korea, herald the emergence of a formidable rival to the established auto giants.
Chinese brands are now market leaders in the Middle East and Latin America. In Europe, the China-made vehicles sold are mostly electric models from Tesla Inc. and Chinese-owned former European brands such as Volvo and MG, and European brands like Dacia Spring or the BMW iX3, which is produced exclusively in China. A raft of homegrown marques like BYD Co. and Nio Inc. are ascending as well, with ambitions to dominate the world of new-energy vehicles. Backed by Warren Buffett’s Berkshire Hathaway Inc., BYD is already charming EV buyers in developed countries such as Australia.
It’s just the beginning, according to Xu Haidong, deputy chief engineer at the state-backed China Association of Automobile Manufacturers. The target is to sell 8 million passenger vehicles overseas by 2030—more than twice Japan’s current shipments, he says.
The trend underscores that China has moved beyond being the “world’s factory” for low-cost consumer electronic devices, appliances and Christmas toys. By shifting to more complex and sophisticated products for competitive, highly regulated markets, Chinese companies are moving up the value chain in manufacturing—a key driver of growth that transformed the once-struggling communist economy into today’s quasi-capitalist $18 trillion juggernaut.
“The switch to battery means the motor is no longer a differentiator,” says Alexander Klose, executive vice president for overseas operations at Aiways Automobiles Co., a pure-Chinese EV maker, which has sold several thousand vehicles in Europe. Technologically, “it’s created a level playing field,” he says.

https://twitter.com/x/status/1618877948072980480

A: Western firms set up shop to supply the JVs, China has a deep manufacturing ecosystem, China's government provided a ton of support for EVs and batteries and Chinese engineers are good. And now they have an exchange rate assist when exporting.

Meanwhile the US and EU are bickering over the implications of Biden's Inflation Reduction Act.

Biden's IRA will not do a damn thing to reduce inflation but it has EU business leaders very concerned.
Under WTO rules, much of Biden's IRA is really an illegal subsidy. The EU cannot do in 5 years what the US can pass in a session if one political party is in clear control.
Importantly, Germany is upset because the US is handing out free money clean energy subsidies despite WTO rules and it can't. Germany's export model is now burnt toast.

In Two Years, China More Than Doubles the US on Car Exports, Catches Germany

Sudden Surge in Chinese Car Exports Brad Setser has an interesting thread on China's sudden surge in car exports. The US Hasn’t Noticed That China-Made

mishtalk.com

 

[beijingwalker]

China may lose some share of her apparel export but she has moved up the value chain.

Global value added manufacturing