Chinese electric vehicles are about 3-5 years ahead of global competitors in terms of products, technology, and industrial supply chain. This was stated by BYD CEO Wang Chuanfu in an interview with China’s national television broadcaster.
Wang Chuanfu was interviewed after a symposium with Chinese leader Xi Jinping and the country’s largest technology sector representatives. At this meeting, Wang was among the businessmen who delivered speeches.
As a reminder, in 2023, China overtook Japan to become the largest exporter of cars in the world. However, Chinese electric vehicle exports face tariff restrictions from the United States and the European Union. In particular, the EU has imposed a 17 percent duty on BYD electric cars.
Speaking to Yuyuan Tantian, a social media account affiliated with Chinese state broadcaster CCTV, Wang said that protectionist policies are not an effective strategy for quality products. He added that positive consumer feedback motivates the company to overcome all difficulties.
Chinese electric vehicles usually outperform global competitors in terms of price (which is often attributed to financial support from the Chinese government). Chinese counterparts are usually much cheaper. In addition, Chinese automakers usually offer a diverse portfolio of products to suit every taste and budget. Their entry into international markets has increased the available consumer base and further boosted sales.
It is worth noting that in 2024 BYD managed to break its own sales records and almost caught up with Tesla in terms of annual sales of electric vehicles. BYD’s total sales in 2024 reached a record 4.27 million NEVs (electric vehicles + hybrids). This is 41.26% more than in the previous year. Other Chinese electric vehicle manufacturers also did well, although they faced the consequences of price wars. For example, Geely Group increased sales by 32% to 2.18 million units, and Leapmotor doubled its sales.
However, in January 2025, car sales in China fell by 12% compared to January of the previous year. Although it is too early to talk about the beginning of a crisis. This may be due to local holidays: The Lunar New Year (when car sales decline) in 2025 fell in January, while last year it was in February.
Nevertheless, BYD and other Chinese manufacturers hardly stop and continue to announce new models almost every month. For example, in January alone, BYD offered electric cars Han L and Tang L with engines up to 1085 hp. and BYD Atto 2 electric crossover available. At the same time, Volkswagen is only sharing sketches of its future electric vehicles, which will be released at the end of 2025 (ID.2X) and in 2027 (ID.ONE).
Source: reuters
