Chinese EV Makers Expand Global Reach Amid Domestic Price Competition
- tech360.tv
- Oct 8
- 3 min read
Chinese electric vehicle makers are increasing efforts to enter overseas markets as profitability diminishes domestically due to fierce price competition. Companies like BYD and start-up Dreame are assembling vehicles abroad or opening more showrooms to promote smart EVs.
These vehicles feature sophisticated in-car entertainment systems and high-performance battery packs. The aim is to gain market share from international brands such as Volkswagen and Toyota.
Cui Dongshu, general secretary of the China Passenger Car Association, said Chinese EVs are attractive globally due to their design and quality. Exports of Chinese-made EVs have risen rapidly since 2021, and trade barriers will not hinder this growth, Dongshu added.
Mainland China's 50-plus EV builders exported 2.01 million pure electric and plug-in hybrid vehicles overseas in the first eight months of the year. This figure marks a 51 per cent increase from the same period a year earlier, according to CPCA data.
The government-backed industry consortium forecasts 5.46 million overseas deliveries of Chinese-made cars, including petrol vehicles, this year, up 14 per cent from 2024. Shenzhen-based BYD, the world’s largest EV assembler, aimed to deliver up to 1 million cars to customers outside the mainland this year.
This target was spurred by improved logistics and new model launches, potentially making up about 20 per cent of its total sales, Li Yunfei, BYD’s general manager of branding and public relations, told the Post last month. Overseas sales accounted for less than 10 per cent of its total 4.26 million deliveries in 2024.
Li said BYD focuses on markets in Asia-Pacific, Europe, as well as South and Central America. The company prioritises these regions in line with its plans to expand capacity worldwide. Despite a 27 per cent tariff in the European Union, the bloc remains a key target market as more eco-conscious drivers choose electric cars, Li noted.
Guangzhou-headquartered carmaker Xpeng announced on Sept. 15 that it began production in Europe. This partnership is with Austria’s Magna Steyr, and Xpeng intends to strengthen the tie-up with the contract manufacturer over time.
Early last month, Yu Hao, CEO of Dreame, led a team to Germany for site selection for a car manufacturing plant, the Suzhou-based start-up stated. Chinese carmakers held a 5.1 per cent share of the European market in the first half of 2025, nearly double the share from a year earlier, according to Jato Dynamics research.
Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service, said all signs indicate Chinese EV makers are determined to internationalise their businesses this year. These extensive plans involve significant capital expenditure and the deployment of many professionals in targeted markets, covering plant construction, showroom openings, new model launches, and logistics arrangements, Jinzhu explained.
BYD has established its own fleet of eight car carrier ships, with the largest capable of transporting 9,200 vehicles, to support its export drive. These vessels operate on ocean routes connecting China with major overseas markets like Europe and Southeast Asia.
Analysts suggest Chinese carmakers, led by BYD, are at the forefront of EV technology and production. This advancement is buoyed by government support and consumers’ willingness to adopt new innovations. Mainland EV sales accounted for more than 60 per cent of the global total in 2024, according to the CPCA.
William Li, CEO of Shanghai-based Nio, told a media briefing on Sept. 21 that car production is a two-way street. He added that Nio will establish local production facilities in Europe to share technologies and manufacturing capabilities, similar to European carmakers building assemblies in China.
Beijing’s “Made in China 2025” industrial strategy, unveiled in 2015, includes an ambitious target. Under this blueprint, the central government hoped the country’s top two unnamed EV makers would sell more than 10 per cent of their cars abroad. Only BYD has met this target.
Paul Gong, head of China automotive research at UBS, commented that the long-term growth potential in developing countries will outpace that of developed nations. These countries offer more growth opportunities for Chinese EV makers, with some embracing electrification at a quick pace, Gong observed.
However, Chinese EV makers are contending with discount wars and chronic overcapacity on the mainland, global consultancy AlixPartners reported in August. Goldman Sachs indicated that only half of the nation’s electric vehicle production capacity, approximately 20 million units, was utilised last year. Among the country’s EV builders, only BYD, Li Auto, Seres, and Leapmotor are profitable.
Chinese EV makers are expanding globally to counter intense domestic price competition and dimming profit prospects.
Exports of Chinese-made pure electric and plug-in hybrid vehicles increased by 51 per cent in the first eight months of the year, reaching 2.01 million units.
Companies like BYD and Xpeng are establishing overseas production and showrooms, targeting markets in Asia-Pacific, Europe, as well as South and Central America.
Source: SCMP
