The global auto industry is experiencing a significant shake-up from Chinese automakers who are rapidly expanding their presence worldwide. Companies such as BYD, Great Wall Motors, Geely, and Chery Automobile are gaining traction by offering relatively affordable electric vehicles (EVs) that boast sleek designs and cutting-edge interiors.
These Chinese companies are driven by the need to achieve scale to survive the intense competition in their home market. Unlike state-run giants like SAIC, BAIC, and Guangzhou Automotive, many of these successful exporters have unconventional backgrounds. For instance, Geely’s founder initially made refrigerators, while BYD built its expertise in battery technology, now its biggest advantage as the world’s largest-selling EV maker.
Key Players in China’s EV Expansion
Great Wall Motors
Great Wall Motors, with brands like Haval, Wey, Ora, Poer, and Tank, is relying on overseas sales to maintain growth after experiencing a nearly 15% decline in domestic sales last year. Despite this, the company’s net profit surged over 80%. Great Wall has factories in Russia, Thailand, and Brazil, where it competes directly with established brands. For example, its GWM Poer hybrid pickup challenges Toyota’s popular Hilux in these markets.
The company’s strategy includes acquiring existing factories to smooth its transition to overseas production. In Thailand, it took over a former General Motors factory, while in Brazil, it purchased a previous Mercedes-Benz plant. “It’s essential for volume to be big; otherwise, the cost of production is too high,” said Wei Jianjun, Great Wall’s chairman, during a media briefing.
Chery Automobile
State-owned Chery Automobile claims to be the first Chinese automaker to export vehicles overseas. It has sold over 15 million units across various models like Chery, Exeed, Omoda, and Jetour, primarily in developing and emerging markets including Turkey and Ukraine. Chery aims to sell 3 million vehicles overseas by 2025, up from 2.6 million last year.
Chery is rapidly expanding its overseas production capacity with factories in Russia and Spain. The company still sells more fuel-engine cars than EVs but has partnerships with major players like Huawei Technologies and e-commerce giant Alibaba. Chery’s battery electric vehicle arm produces mini-EVs like the eQ1 (Small Ant) and QQ Ice Cream.
BYD
BYD surpassed Tesla in EV production in 2024, manufacturing 1,777,965 vehicles compared to Tesla’s 1,773,443. The company sold 3.52 million EVs in China last year, a 28% increase from the previous year. BYD’s strength in plug-in hybrids has been particularly beneficial as Chinese consumers increasingly opt for this technology.
BYD has also announced an ultra-fast EV charging system capable of fully charging its latest EVs within five to eight minutes. The company plans to build over 4,000 of these new charging stations across China. While its premium models are priced up to about $40,000, BYD also offers more affordable EVs like the Seagull, which sells for around $12,000 in China.
Geely Auto
Geely Auto, founded as a refrigerator manufacturer in 1997, has grown into a significant player through strategic acquisitions. It purchased Sweden’s Volvo Car Co. from Ford in 2010 and acquired a stake in Malaysia’s Proton, gaining control of the luxury sports car brand Lotus. Geely formed a joint venture with Daimler AG to produce Smart city cars and collaborates with Renault on powertrains.
Geely has been expanding its global footprint, recently launching its Geely EX5 SUVs in Australia and New Zealand. The company also owns Zeekr Intelligent Technology Holding, a premium EV brand listed on the New York Stock Exchange.
Emerging Trends and Competition
The Chinese EV market is highly competitive, with brands like Nio, Xpeng, Li Auto, and Leap Motor also making significant strides. State-run giants such as Dongfeng Motor Group and Changan Automobile are expanding their EV sales through alliances with international partners like Nissan, Mazda, and Ford.
As competition intensifies in the home market, Chinese automakers are focusing on global expansion to achieve growth. Their ability to offer affordable EVs with advanced features positions them as significant players in the evolving global auto industry.
