As I’ve discussed in this entry from April, BYD initiated price war is having a real affect on the Chinese auto market. It has significantly weakened the position of legacy JV brands that relied on achieving sales through undercutting NEVs with ICE cars. At the same time, the presence of AITO M9 atop the 500k+ RMB market has weakened the sales of BBA. The presence of Yangwang U8 has weakened the sales of 1 million+ RMB market. Porsche sales have really been hurting in the past 2 months. But how bad are things really?
Well, I think this is the best chart of all thanks to 痛快舒畅
As recently as 2020, China’s own brands had under 40% market share in the domestic market according to CPCA. Now, this is a little tricky, since it seems to also include exports. However, Chinese brands sales have risen to 63.5% in April. That’s an astonishing rate of climb in just 4 years.
At the same time, German brands have fallen to 16.6%, while Japanese and American brands have fallen to 12.2% and 7.5% respectively. It has gotten so bad for GM, that CNBC even did a segment on it recently. Yes, GM is in a lot of trouble. Cadillac has seen huge sales slump in the past 2 years. It even reported its first loss in China in this past quarter. If you have followed my tweets, you’d know that Honda and Nissan have seen huge sales slump. Not just in number of sales, but also average price. Qin+ DM-i has really done a number on them.
This chart from April shows BYD with more sales than FAW VW and SAIC VW combined, but the even more interesting chart is below
According to Dongchedi, the number of registrations for BYD cars (not including its other brands) outnumbered VW and Toyota combined in April. That’s a huge change since VW by itself outsold BYD in January. How things have changed.
So, as everyone focuses on the almost non-existent Chinese automaker exports to Europe and America, they completely miss out on the world’s largest auto market. The reality is that German, Japanese and American automakers sell far more cars in China than vice versa. So, how is a trade war actually going to help foreign automakers? That’s always been the puzzling part for me when looking at this. Reporters don’t bother even looking at the facts. The politicians will say whatever they need to say to get elected. It’s only the automakers themselves that understand the risks at hand.
BYD gains far more from Toyota, Honda, Nissan and GM leaving the Chinese market than trying to get to 5% market share in America. Every Chinese automakers knows that they have to be competitive in China to surive.
Ok thanks , would be great know who BYD is sourcing maps from.
Hi just wanted to check , if you have a view of Tesla and Baidu partnership around autonomous driving ..
1) What is BYD doing in the self driving space , does it have a tie up with Baidu or similar
2) Is Baidu becoming Waymo of china , it could be lucrative given large number of emerging EV players