Chinese electric vehicle (EV) manufacturers such as BYD, Great Wall Motor and Chery Automobile are becoming increasingly dependent on overseas markets as sales in China’s domestic EV market slow down.
According to a report by the South China Morning Post, David Zhang, general secretary of the Shanghai-based International Intelligent Vehicle Engineering Association, said, “Squeezed by fierce competition at home, China’s EV makers are shifting their focus to global markets.”
In February, BYD’s overseas sales reached 106,000 units, accounting for 53% of its total deliveries, according to a recent filing with the Hong Kong Stock Exchange.
However, its overall sales fell 41% year-on-year due to a 65% drop in sales in mainland China, despite a 50% surge in exports.
Great Wall Motor, another leading Chinese automaker, delivered 42,679 vehicles overseas in February — about 59% of its total sales of 72,594 — exceeding domestic deliveries for the first time.
Chery Automobile, China’s largest car exporter, also recorded higher overseas sales than domestic sales, selling more than 116,725 units abroad, or about 80% of its monthly total in February.
Meanwhile, Geely, China’s second-largest carmaker after BYD, more than doubled its exports in February to 60,879 units, while its overall sales rose 0.6%. The report said Geely sold about 70% of its cars domestically last month.
Chinese automakers have steadily expanded their overseas presence in recent years by building factories, establishing dealerships and partnering with local distributors, according to Tian Tian, deputy secretary-general of the China Automobile Dealers Association.
Tian expects vehicle exports to continue growing rapidly, while domestic sales in China are likely to rise only by single digits. She attributed the recent slowdown in local demand to the seasonal lull during the Chinese New Year and adjustments to consumer subsidies and tax rebates. Many buyers may be waiting to see how local governments implement the new policies, she said.
China’s used-car market also surpassed 20 million transactions for the first time, while total new-vehicle sales reached 34.4 million last year, including 7.1 million exported overseas.
Zhang remains optimistic about global EV sales this year, citing a softer stance from the United States and the European Union on imports. However, he warned that growth in the Middle East could slow if tensions between the US and Iran disrupt shipping and reduce household income in the region.
