These are the Chinese car companies that want to conquer the world

These are the Chinese car companies that want to conquer the world

In recent years in China, there have been born (and continue to be born) new car houses with a speed never seen before. We have written about it many times and a new report from Jato gives us an updated picture of the panorama. At this moment, in Chinese There are 140 brands several, in Europe around 50, in the United States and Japan 14.

The rapid emergence of numerous new operators in China means that the market is increasingly saturated and fierce competition. The first challenge these brands must overcome is national survival, then, to follow, expansion in the world.

USA ed Europe VS China

Between 2020 and 2023, Jato reminds us that sales of Chinese brand cars outside the domestic market increased fivefold. However, while competition is useful in driving market development, the impacts associated with market saturationoversupply and price wars mean extinction for some.

Automakers once promising EV producers (such as Zotye, Qoros and Borgward) they do not exist anymore. Other companies (such as Aiways, Hiphi and Weltmeister) are struggling to survive. To attract new customers, each is churning out new products and focusing on technological innovations such as connectivity, driver assistance software and in-car entertainment.

Meanwhile theinability to compete with new Chinese manufacturers in terms of production capacity and cost-effectiveness has pushed policy makers in Europe and the United States to introduce tougher measures to protect domestic producers (think of the tariffs on Chinese cars in Europe).

We will discover the effects in the coming months, in the meantime we can remember that for this very reason many Chinese manufacturers have also concentrated on emerging economies and in development. Between 2022 and 2023, the market share of Chinese brands in the Middle East grew from 12.9% to 16.8%, and in Eurasia – where they are now the most popular cars – their market share grew from 12.4% to 33.3%. Southeast Asia and Africa also recorded growth of 1.9 and 2.3 percentage points, respectively.

Now let’s see which are the main Chinese groups and start-ups operating in the car market today and what are the ongoing collaborations.

The map of collaborations with Chinese car manufacturers

The main Chinese players on the market today

SAIC (Shanghai Automotive Industry Corporation) is China’s largest automaker in terms of total sales volume. It is state-owned and its most successful brand is MG. Last year, SAIC sold 3.59 million units worldwide, of which 1.38 million vehicles were sold by its own brands, with MG accounting for two-thirds of sales. In addition to its “own” brands, SAIC has joint ventures with Volkswagen Group and General Motors which have also given it the specific knowledge needed for its global expansion plans.

Founded in 2003, BYD has grown like no other Chinese company. The publicly traded multinational also produces batteries and owns several other brands, including Denza, Dangwang, and Fang Cheng Bao. In 2019, BYD also formed a joint venture with Toyota to research and develop battery-electric vehicles. Last year, it became the world’s second-best-selling BEV brand, overtaking Tesla by 234,000 units.

Although it already has a wide range of brands, including Kaiyi, Exceed and Jetour, Chery is attempting global expansion with the Omoda and Jaecoo brands (launching in Italy). Chery is currently China’s largest exporter, with sales outside China accounting for 50% of its volume last year. Its only significant foreign joint venture is with Jaguar Land Rover in 2012.

<p>Jaecoo 7</p> <p>” width=”16″ height=”9″ loading=”lazy”/> </source></source></picture> </section> <section contenteditable= <p>Omoda 5</p> <p>” width=”16″ height=”9″ loading=”lazy”/> </source></source></picture> </section> </section> <p>Beijing Automotive Industry Corporation (BAIC) has existed since 1958 and has had a turbulent history over the years. Today, it produces most of Beijing’s taxis under the “Beijing” brand, one of several brands available, including Arcfox, BAIC, and Foton. In 2023, BAIC sold 1.13 million units, of which 190,000 were exported overseas. The company has joint ventures with Mercedes and Hyundai.</p> <p>The only Chinese manufacturer that owns several Western car brands is Geely, which has ties to more than 14 brands worldwide including ZEEKR, Volvo, Polestar and Lotus (in practice it is on the same level as Stellantis, which also has 14 brands under its name). This structure puts the Group in an advantageous position, for example through Volvo and Polestar Geely is currently the only Chinese manufacturer in the United States.</p> <p>Great Wall Motor can be defined as the Chinese specialist in SUVs and pick-ups, which together accounted for 99% of the group’s total sales in 2023. In particular, its Haval brand focuses exclusively on SUVs and accounted for 60% of total sales in 2023, while Great Wall focuses on medium and large pick-ups (16%) and then there is TANK (13%). In addition, the BMW Group has chosen GWM for the development of the new electric MINI through the Spotlight Automotive company.</p> <section contenteditable= <p>MINI Cooper SE</p> <p>” width=”16″ height=”9″ loading=”lazy”/> </source></source></picture> </section> <p>Changan Automobile is another major Chinese group. Last year it sold 2.55 million units (+9%) and although it focuses on selling vehicles in China it also produces for Mazda and Ford. It recently launched the brands Deepal, Qiyuan and AVATR, a high-tech brand created in collaboration with Huawei.</p> <p>Guangzhou Automobile Group (GAC Group) was founded in 2008 and has quickly become one of the top five BEV manufacturers in the world. In 2023, the company sold 2.51 million units, of which 892,000 were from its own brands: AION, Hyper, and GAC (Trumpchi). Of these, 486,000 units were pure electric cars, meaning GAC Group has one of the highest market shares for BEVs. The remaining 1.61 million units sold in 2023 came from a joint venture between GAC Group, Toyota, and Honda.</p> <p>Dongfeng has a large sales volume and six different brands of its own, including M-Hero, Voyah and Forthing, as well as joint ventures with Honda, Nissan-Infiniti and Peugeot-Citroen. In addition, Dongfeng has a joint venture with Nissan to produce Venucia cars. Last year, the Group sold 2.09 million units, down 15% from 2022.</p> <p>Founded in 2002, SGMW is a joint venture between SAIC, General Motors and Wuling. In developing its offerings, the automaker has relied heavily on the design and technology of existing GM models and has established itself in markets such as India and Southeast Asia. GM has leveraged this partnership to export its products at competitive prices to Latin America.</p> <p>First Automotive Works (FAW) was founded in 1956 and is the parent company of Hongqi, the luxury car brand considered the official vehicle of the Communist Party; then among the various brands there are also Bestune and Jiefang. The group also produces cars for Volkswagen and Toyota: in 2023 alone, 2.12 million units produced out of a total of 2.64 million had the Volkswagen or Toyota logo.</p> <p>In 2023, JAC sold 592,500 units, an increase of 18% compared to 2022. In 2020, the brand formed a joint venture with Volkswagen to create Sol, a brand now exclusively owned by Volkswagen. JAC later continued to produce its own cars under the Sehol brand and managed to stay in several emerging markets in Eurasia, Africa, and South Asia.</p> <div class=
Group Income Profits Gross margin
SAIC 734.2 25.9 3,5%
BYD 602.3 121.8 20,2%
Chery 315.1 2.93 0,9%
Geely (excluding foreign brands) 179.2 24.4 15,3%
GWM 173.2 32.4 18,7%
Changan 151.3 34.6 22,8%
GAC 129.7 5.53 4,3%
Li Auto 123.9 27.5 22,2%
Dongfeng 99.3 9.47 9,5%
NIO 55.6 3.05 5,5%
Xpeng 30.7 0.45 1,5%
Leap motor 16.7 0.08 0,5%
SGMW 10.5 1.04 9,9%

Source: Jet

Le start up

We reserve a separate chapter for start-ups, which in total include 75 brands (which we do not mention all). The most important are:

  • NIOfounded in 2014, has grown to become one of the most innovative automakers in China. Today, it is present in Norway, Germany, the Netherlands, Denmark and Sweden, with a total sales volume of 160,000 units in 2023;
  • Xpenga direct competitor of NIO offers a range of fully electric sedans and SUVs, but its lineup is more limited. Available in China and several European markets, it sold a total of 141,600 units in 2023;
  • Li Autowhich specializes in large and luxury vehicles, has a range of electric vehicles with extended range (with the exception of the Mega, an all-electric MPV). It is available in Russia, but has yet to officially enter European markets. In 2023, it sold a total of 376,000 units;
  • Xiaomi launched its SU7 at the end of 2023 and has big ambitions in China and abroad;
  • Leap motor currently offers four models ranging from SUVs (C10 and C11), sedans (C01) and city cars (T03). Last year, it sold a total of 144,200 units (+30%) and sold 20% of its operations to Stellantis in an attempt to accelerate its expansion in Europe;
  • REALfounded in 2021 as a joint venture between Huawei and Seres offers a range of SUVs that use Huawei technology. In 2023, the brand sold a total of 94,400 units;
  • Hozon currently offers four models under its EV brand called Neta: the sporty GT, the sedan S and two SUVs (U and V). In 2023, it sold 127,500 units;
  • Where has a range consisting of a large hatchback and two SUVs. Although its vehicles offer a number of advanced features, the high selling price does not allow the company to achieve significant results. In 2023, it sold a total of just 4,800 units.
<p>Xiaomi SU7</p> <p>” width=”16″ height=”9″ loading=”lazy”/> </source></source></picture> </section> <section contenteditable= <p>Leap motor C01</p> <p>” width=”16″ height=”9″ loading=”lazy”/> </source></source></picture> </section> <section contenteditable= <p>Leap engine T03</p> <p>” width=”16″ height=”9″ loading=”lazy”/> </source></source></picture> </section> </section> <section class=

Source: it.motor1.com