Western automakers are losing the “battle” for China

China’s auto market, the largest in the world, It’s accelerating toward an electric future — but it’s leaving automakers in the West far behind.
Global Automotive Directors gathered in Shanghai for the auto show that starts on 4/18, but found that their return was in a very different market from the one they left in 2021, when industry representatives gathered for a Covid19 lockdown event.
The big change is as follows: Chinese automakers are now leading the way in the key auto parts industry, and their rise is fueled by the production of new electrified models that are gaining share at home and abroad.
He was the biggest winner BYDwhich will use the Shanghai exhibition to showcase the new electric car to value-for-money buyers and the most affordable electric SUV model.
BYD sales in China up 69% in the first months of 2023, and now has 11% market share in China’s total auto market, higher than Volkswagen and Toyota, according to an analysis of sales data.
“The stratification of China’s market between clear winners and losers has become apparent,” he said. Bill Russo, founder of Automobility Consulting in his note. There are very few winners and many losers.”
China’s passenger car sales fell 13 percent in the first quarter, according to data from the China Passenger Car Association.
However, sales of electric and hybrid vehicles — an area now dominated by Chinese automakers led by BYD — rose 22%.
Accordingly, sales of vehicles with internal combustion engines decreased.
The result was a huge blow to companies like Volkswagen, General Motors, Honda and Nissan Which led to a decline in both its sales and market share.
More than 40 car brands have followed Tesla in lowering the prices of electric cars Since January in a price war that has boosted sales of electric vehicles and hybrid electric vehicles (PHEVs), both of which are classified as “new energy vehicles” in China, a move that has also severely limited profitability across the auto industry, analysts say.

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