Chinese NEV manufacturers make rapid entry into overseas market

New energy vehicles (NEVs) are providing a boost for Chinese carmakers looking to expand their overseas markets as China makes its way toward the goal of becoming an automotive powerhouse.

Chinese NEV manufacturers, including Voyah FREE, BYD, and NIO, are hitting the overseas market at a quicker pace. Chinese carmakers, which previously competed with their foreign rivals by selling cost-effective products, are now entering the higher end of the market. They have incorporated more cultural elements in their products and are leading this trend globally.

Fuel-powered vehicles manufactured by Chinese carmakers are mostly exported to developing countries. However, Chinese NEVs are targeting developed markets.

For instance, NIO gained a license to mass-produce its flagship electric SUV ES8 in all EU countries in June 2021, and completed its first batch of vehicle deliveries in Norway three months later.

The company announced this October that it would unveil three new models in Germany, the Netherlands, Denmark and Sweden.

Workers assemble new energy vehicles at an automobile company in Liuzhou, south China's Guangxi Zhuang Autonomous Region, Aug. 12, 2021. (Xinhua/Li Hanchi)

China had sold a total of 11.08 million NEVs as of the end of May this year, up from 20,000 in 2012. The country has maintained its position as the world's largest producer and seller of NEVs for seven consecutive years.

In addition, Chinese enterprises have increased the energy density of power batteries by 1.3 times from a decade ago, while the price is now 80 percent lower.

Six of the top 10 best-selling NEV models in the world in 2021 were manufactured by Chinese carmakers, and six Chinese companies made it into the world's top-10 list for power battery shipment.

Insiders said that as China continues its policy support for the NEV industry, the sector has constantly improved its capability in automotive designing, R&D and production. They believe the rapid growth of China's NEV exports was an inevitable result of the efforts the country has made over the past years.