Korean Media: China's Automotive Industry Rises Strongly, Global "Big Three" Face Trouble!

On September 3, South Korean media outlet THE GURU published an article stating that the global automotive "big three"—Toyota, Volkswagen, and Hyundai—have been struggling in the market this first half of the year. This is amid rapid expansion of influence by Chinese original equipment manufacturers (OEMs), who lead in price competitiveness and localization strategies, while traditional global automakers continue to face persistently low sales in China, a core market.

Data released by the China Association of Automobile Manufacturers shows that China’s auto exports rose by 65.3% year-on-year in the first half of this year, reaching approximately 5.096 million units. The total export volume for all of last year was around 7.1 million units.

The penetration rate of Chinese OEMs in global markets is also growing rapidly. According to the Korea Automotive Mobility Industry Association, Chinese manufacturers’ global market share reached 29.9% last year—a rise of 11.9 percentage points from 18% in 2020.

Regionally, Asia leads with 51.6%, followed by Europe outside the EU at 21.4%, up about sixfold compared to five years ago. In contrast, China’s market penetration in North America remains only 0.8%.

The success of Chinese automakers is not solely based on low pricing. Through localized production, they have effectively reduced tariffs and logistics costs. Moreover, their strategy of simultaneously offering pure electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), tailored to local charging infrastructure and consumer preferences, has yielded significant results.

BYD, China’s top-selling automaker, with production bases in about 11 countries worldwide, has set a goal to increase its overseas sales share to 50% by 2030. BYD’s overseas sales surpassed 1 million units for the first time last year.

Geely Auto is also actively expanding into overseas markets using production facilities in approximately five countries across Europe and ASEAN. It adopts a dual approach—expanding local sales and service networks while rolling out globally strategic models. The electric SUV EX5 has been launched in over 30 countries across ASEAN, the Middle East, and Latin America, customized according to each country’s standards. According to statistics, Geely Auto’s overseas sales last year amounted to around 420,000 units, with over 120,000 being electrified vehicles.

Facing the aggressive expansion of Chinese automakers, the world’s top three automakers by sales all performed poorly in the first half of this year. Toyota Group, which ranked first globally in car sales last year, recorded sales of 5.39 million units in the first half of this year—a decline of 2.8% compared to the same period last year. Based on these figures, performance has now declined for two consecutive years. A sharp 17.1% drop in sales in China, coupled with supply disruptions due to model adjustments for its flagship RAV4, both negatively impacted results.

Volkswagen Group, second in global sales, faced similar challenges. Its sales dropped by 8.4% year-on-year to 4 million units. Particularly in China—the largest market—intensifying competition with domestic companies led to a sales decline of nearly 30%, dragging down overall performance.

Hyundai Motor Group sold 3.59 million units, a mere 1.6% increase compared to the same period last year.

Original source: toutiao.com/article/1875271259839689/

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