China to Dominate the Global EV and EV Battery Markets
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The Chinese Party-state has long supported the domestic producers of electric vehicles (EVs), with the strategic aim of building a globally competitive vehicle industry; an industry that is at the core of the largest global manufacturing grouping. The advent of the electric vehicle has greatly aided Chinese manufacturers as it removes the one thing that they were not competitive at, the internal combustion engine (ICE) drivetrain, while also leapfrogging European, Asian and US “legacy” manufacturers weighed down by massive ICE investments and competitive edges. These legacy manufacturers have been slow to move to EVs, greatly aiding the Chinese manufacturers’ (and Tesla’s) competitive advantage; especially in China where ICE car sales are predominantly from foreign legacy manufacturers (e.g. VW, Toyota, Honda). As recently as the first quarter of 2020, German brands had a 25.7% share of the Chinese car market, Japanese 25% and American 9.4%; with China brands only at 33.3%. This is now changing, for the whole of 2021 foreign brand share fell to 45.6% from 51.1% the previous year - with sales drops for German (8.9%), Japanese (1.8%) and South Korean (25.9%) brands. This trend continued in Q1 2022, with German brands falling to a 22.5% share, Japanese 21% and American 8.8%.
China to Dominate the Global EV and EV Battery Markets
China to Dominate the Global EV and EV…
China to Dominate the Global EV and EV Battery Markets
The Chinese Party-state has long supported the domestic producers of electric vehicles (EVs), with the strategic aim of building a globally competitive vehicle industry; an industry that is at the core of the largest global manufacturing grouping. The advent of the electric vehicle has greatly aided Chinese manufacturers as it removes the one thing that they were not competitive at, the internal combustion engine (ICE) drivetrain, while also leapfrogging European, Asian and US “legacy” manufacturers weighed down by massive ICE investments and competitive edges. These legacy manufacturers have been slow to move to EVs, greatly aiding the Chinese manufacturers’ (and Tesla’s) competitive advantage; especially in China where ICE car sales are predominantly from foreign legacy manufacturers (e.g. VW, Toyota, Honda). As recently as the first quarter of 2020, German brands had a 25.7% share of the Chinese car market, Japanese 25% and American 9.4%; with China brands only at 33.3%. This is now changing, for the whole of 2021 foreign brand share fell to 45.6% from 51.1% the previous year - with sales drops for German (8.9%), Japanese (1.8%) and South Korean (25.9%) brands. This trend continued in Q1 2022, with German brands falling to a 22.5% share, Japanese 21% and American 8.8%.