Global automakers battle for shares of NEV market

SHANGHAI — Global automakers have battled to showcase their best new energy products for Chinese consumers at Auto Shanghai 2023, mirroring their efforts to gain a share of China's new energy vehicle market amid fierce competition.

The show's organizer said that around 1,500 vehicles were on display at the exhibition, which concluded at the end of last month, with NEVs accounting for more than half of the vehicle models. The arena, dominated by NEVs, also foreshadowed technological trends in the global auto market.

Intense competition

Chinese auto brands are moving into the fast lane by going electric and are rapidly taking up market share in China, putting more pressure than ever before on established global manufacturers.

According to the China Association of Automobile Manufacturers, China's NEV sales nearly doubled to 6.89 million units last year, accounting for over a quarter of total automobile sales in the world's largest auto market.

Despite a downturn in the overall Chinese car market in the first three months of this year, NEV sales totaled nearly 1.59 million units, increasing by 26.2 percent from a year ago. The market share of NEVs in China's auto market topped 26 percent during the same period.

"The speed of growth here is much faster than in other regions of the world," said Oliver Blume, chairman of the board of management of Volkswagen AG.

The NEV boom is becoming a driving force for China's economic growth and is regarded as a crucial "growth pole" by global auto companies.

"China is a big automotive market with strong competition, which is positive for customers, and it also shows the profit pools that the Chinese automotive market has,"Blume said.

Data show that China's leading NEV manufacturer BYD overtook Volkswagen and Toyota in China to become the best-selling passenger car brand in the first quarter, with a total sales of 440,798 vehicles.

Emerging local electric vehicle companies, which have seen stellar results, are also trying to promote their most cutting-edge technology and products during the exhibition.

Accelerated transformation

New local forces are also attracting attention from auto manufacturers of developed countries that once dominated the Chinese market, as well as global auto parts suppliers, prompting them to accelerate their transformation in response to market changes.

Ralf Brandstaetter, chairman and CEO of Volkswagen Group China, said: "Electro-mobility and digitalization are the major drivers of transformation in China. That is why Volkswagen is accelerating the development of intelligent and connected electric vehicles."

Volkswagen brought 20 electric vehicles to the exhibition, including the Volkswagen ID.7, which made its world debut at the event. By the end of 2030, the group will offer more than 30 all-electric models to customers in China.

"We come from a very strong position in the internal combustion engine market. We want to keep it for the next several years while joining the strong ramp-up curve of electric mobility," Blume said.

Blume said that Volkswagen will massively strengthen its local competency, not only in e-mobility, but also in the areas of digitalization and autonomous driving, including software and R&D.

"In the next five years, we will invest about 180 billion euros ($198 billion), with a major part going into electro-mobility, digitalization and connectivity, and the products in China will benefit from these investments," Blume said.

Japanese automaker Toyota unveiled two battery electric vehicle concept models at the auto show, which will be launched in the Chinese market in 2024 as two of the 10 BEV models that Toyota plans to release by 2026.

Even global luxury carmakers, such as Maserati, have set their sights on China's NEV market.

"The number of NEV brands that have been coming out in the last few years in China, and the quantity of the cars they've been able to produce, are staggering," said Mirko Bordiga, managing director of Maserati Greater China.

Xinhua