Chinese EVs Face Stiffer Rivalry --- As makers boost production, foreign companies aim to win their market share back

 

"SHANGHAI -- China's car makers are going full throttle to increase production of electric vehicles, driving the world's shift away from gasoline-powered cars. But as foreign rivals seek to claw back their lost market share, the road ahead looks perilous.

Electric vehicles took the limelight at China's premier auto fair in Shanghai this week -- the first major automotive event since the pandemic began three years ago that has been accessible to both local and foreign visitors. Gathering the biggest crowds were the Chinese-brand cars.

The growing confidence of China's electric-car makers was evident in the array of new models on show, from BYD Co.'s Seagull, a four-seater hatchback with a starting price under $11,500, to premium offerings from up-and-comers such as Li Auto Inc., NIO Inc. and XPeng Inc.

Last year, a quarter of the new cars sold in China were electric or plug-ins, with the number of vehicles nearly doubling from 2021. Sales of internal-combustion-engine cars fell 13%. Foreign joint ventures are struggling to retain their share of the world's biggest car market, as domestic brands successfully captured consumer tastes in the booming EV segment.

But as the sector grows more crowded, brands must try harder to differentiate their products.

Displays as well as software and apps are among key interior features that Chinese consumers favor. Inside the L9, a six-seater plug-in hybrid produced by Li Auto, a wide display monitors the car's condition for the driver, while streaming videos and movies to entertain passengers.

Digital and infotainment features are important for Chinese customers, auto makers say -- an area in which the domestic players have taken a clear lead over foreign brands.

Sleek and futuristic exteriors are increasingly hallmarks of premium Chinese EVs that target the same segment of buyers as Tesla Inc. The inspiration for the design of XPeng's G6, a coupe SUV, came straight from science fiction, the auto maker says. An illuminated strip runs across the car's hood, and the finish of the body appears fluid.

Overall, the sophistication of Chinese electric cars on display in Shanghai is a sign of how far the local brands have come since a decade or so ago, when the country's auto shows were filled with awkward-looking homegrown vehicles.

At the time, China's consumers aspired to own foreign brands, which built a dominant presence as they rolled out their global models developed overseas.

Now, the tide has turned.

"Our approach needs to be: learn modestly," said Toyota Motor Corp. Executive Vice President Hiroki Nakajima. "The closest path to delivering the cars that Chinese customers want is to listen more closely to their voice and to do development in China." Toyota showed two concept electric vehicles at the show, which it plans to start selling next year.

International car makers, including Volkswagen AG and Ford Motor Co., as well as Nissan and Honda Motor Co., emphasized their decades of experience building cars, as well as their track records for safety and reliability." [1]

Russians are buying these Chinese cars as we speak. With all those sleek and futuristic exteriors... Is Landsbergis' family sleeping? All of it again? They promised us to  flood China with blood. What is happening? Never trust any Lithuanian politician again. Before elections they promise us Moon, Mars, Sun and other stars. After elections the best what we get is some stupid explosion of a huge rocket. Any little child can do this for Christmas in America. This is called fireworks, people....

1. Business News: Chinese EVs Face Stiffer Rivalry --- As makers boost production, foreign companies aim to win their market share back
Kubota, Yoko.  Wall Street Journal, Eastern edition; New York, N.Y. [New York, N.Y]. 21 Apr 2023: B.5.