China’s booming electric vehicle industry is set to further solidify its global dominance this year, surpassing US and European attempts to catch up. On top of that, it poses a threat to foreign groups that depend on the world’s largest car market, according to the Financial Times in a report. Chinese consumers will buy between 8 and 10 million electric vehicles in 2023, up from a record 6.5 million vehicles last year and 3.5 million in 2021, according to industry and analyst forecasts. If we compare this with the western markets of Europe and the US, we will see what is happening, since the first is expected to sell almost three million cars, and the second two million. “China is expected to have the largest total sales with 35% annual growth in 2023 after two years of extremely fast growth. By comparison, seven out of ten electric vehicles are now sold in China,” said Neil Beveridge, an analyst at Bernstein in Hong Kong. Analysts say that what is being hailed as a new golden age for China’s auto industry is mainly benefiting from a group of fast-growing local companies outpacing foreign automakers. In particular, Tesla rival BYD, backed by Warren Buffett and considered China’s brightest electrification star, expects EV sales to reach 3 million units this year after selling more than 1.85 million units last year, BYD management said in a discussion. with Citibank. Analysts told her the estimate was “conservative”.

The market share of Chinese brands in the domestic electric vehicle segment increased from 78% in 2021 to 81% last year.

China remains one of the largest manufacturers, contributing to the profits of many international automakers, leaving them especially vulnerable if they fail to catch up with local groups – after all, the market is rapidly shifting towards electric vehicles. However, groups such as BYD, XPeng, Li Auto and Nio are now enjoying increasing popularity with Chinese consumers. The market share of Chinese brands in the domestic electric vehicle segment increased from an impressive 78% in 2021 to 81% last year. This is comparable to the fact that about 10 years ago, foreign groups held 70% of the market, before the massive growth in sales of electric vehicles and cars in China just overtook sales in the US. Bernstein predicts that the pace of growth means that by the end of 2025, half of the cars sold in China will be electric, making it the first major economy to do so. BYD told Citi that the government’s target of 40% by 2030 could be reached this year.

It will also be well ahead of Europe, the next most developed EV market, where battery car market share is slowly growing. About a third of sales in the region were all-electric or electric hybrids, which are listed as electric “new energy vehicles” in China in the last quarter of 2022. The US is lagging behind because 12% is electric, but there will be an increase due to President Biden’s huge subsidies. Raymond Chang, China automotive expert at consulting firm Bain, said Chinese companies continue to produce better and more competitive vehicles using their battery industries and resources in general. Jing Daily, which tracks the Chinese luxury market, notes that while Elon Musk’s Tesla has cut prices in China and the Model 3 hit $33,515, BYD’s rival Seal sedan is still cheaper at $31,000.