China's New Energy Vehicles Dominating Domestic Market Japanese, European Automakers Losing Ground

(MENAFN- AzerNews) Sales of new energy vehicles (NEVs), which include electric vehicles and plug-in hybrids (PHVs), are growing rapidly in China, Azernews reports, citing Japan News.

According to Chinese media, China's NEV output exceeded 10 million units for the first time this year and its annual output is expected to grow by 25% from the previous year. While Chinese automakers have been seeing growth in their NEV sales, Japanese and European auto brands are losing their presence in the Chinese market.

At the Auto Guangzhou 2024 trade show that kicked off Nov. 15 in Guangzhou, Guangdong Province, nearly 40% of the about 1,200 vehicles exhibited were NEVs. Chinese automakers in particular highlighted new NEV models, aiming to boost the vehicles' promotion to visitors.

China's leading EV maker BYD exhibited its high-end PHV minivan Xia. PHVs can be recharged from an external power source and by using engine can maintain the driving range in winter, when the driving range of EVs is reduced. BYD has been strengthening its PHV lineup, aiming to respond to demand in northeastern and inland China as well as foreign countries.

PHV sales are growing. BYD sold 440,000 EVs, up 3% year-on-year, for the July-September period, while the company's PHV sales significantly increased by 76% year-on-year to 690,000 units.

EVs, where Chinese companies have a strong competitive edge, continue to be popular in the Chinese market. Xiaomi, a major Chinese smartphone maker that made its debut in the EV market this spring, caught the attention of visitors at the auto show for showcasing its electric sports car priced at 810,000 yuan (about ¥17 million.)

Chinese booths at the auto show were popular with attendees while those of Japanese auto brands struggled. Dongfeng Honda Automobile Co., a joint venture between Honda Motor Co. and Dongfeng Motor Group Co., exhibited a total of 17 models at its booth. Most of the vehicles were not NEVs, with the booth showcasing seven gasoline-powered vehicles, six hybrids and four EVs. Few attendees visited the booth.

Dongfeng Honda Automobile did not exhibit PHVs because the vehicles were out of stock, according to an official. A Chinese man who visited the auto show said,“The company's models are lagging behind those of Chinese companies in terms of design and performance.”

On Nov. 14, China Central Television reported that the NEV output, including EVs and PHVs, has already exceeded 10 million units this year and is expected to reach over 12 million units annually. NEV production has rapidly expanded, exceeding 1 million units in 2018 and 5 million units in 2022.

NEVs accounted for about 40% of passenger cars sold from January to October this year, according to an industrial group.

In contrast with the growth of NEVs, the market share of Japanese automakers in the Chinese passenger car market has been declining. According to MarkLines Co., Japanese vehicles accounted for 11.4% of all passenger cars sold in China from January to October, down 50% from five years ago.

Japanese automakers are trying to regain lost ground in the NEV market. For example, Nissan's joint venture in China, Dongfeng Nissan, has locally hired Chinese engineers to develop EVs and PHVs. However, more than 100 companies are competing in the Chinese market. With price competition intensifying in the EV market, it appears that a rocky road lies ahead for Japanese automakers.

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