Korean Media: Chinese Electric Vehicles Dominate Overseas Markets, Modern Motor's Global Share in Jeopardy!

On April 17, South Korean media outlet Herald Economic published an article stating that Chinese electric vehicle (EV) companies are rapidly expanding into overseas markets. These enterprises have swiftly enhanced their technological capabilities and, leveraging their strong domestic market presence, have rapidly risen to become one of the largest EV manufacturers globally.

Subsequently, building on accumulated local technical expertise, product quality, and reliability, they are expanding their influence across major regions such as Europe, Southeast Asia, and Latin America through local production and price competitiveness, further intensifying the global competition among automotive manufacturers.

Notably, since these markets significantly overlap with the regions where Hyundai Motor Group has historically grown, future market share dynamics may undergo substantial changes.

With the continued growth of the global EV market, Chinese companies are simultaneously increasing exports and consolidating local production bases. This strategy aims to reduce dependence on the domestic Chinese market and broaden overseas distribution channels.

As a result, the share of Chinese EVs in the global market is gradually increasing.

Data from market research firm SNE Research shows that BYD, China’s largest EV manufacturer, ranked third globally in the EV market outside China, with sales reaching 627,000 units last year.

At the same time, the Hyundai Motor Group recorded sales of 609,000 units, ranking fourth globally.

BYD has already surpassed Tesla to take the lead in the global EV market, maintaining its growth momentum by expanding sales in Europe, Southeast Asia, and Latin America, thereby extending its business beyond China.

The influence of Chinese EV brands in the European market is growing rapidly. According to data from automotive market research firm Dataforce, by November of last year, Chinese brands had captured 12.8% of the European EV market share.

In particular, BYD sold approximately 187,657 vehicles in Europe last year—nearly four times the volume sold compared to the previous year.

Sales of Chinese EV brands continue to rise in Southeast Asia and Latin America. Although Japanese and South Korean brands have long dominated these regional markets, in recent years, a clear trend of Chinese EV manufacturers capturing greater market share has emerged.

The competitiveness of Chinese EVs is on the rise, especially in emerging markets where price competitiveness is critical. According to assessments, Chinese EVs, by offering relatively affordable products, not only boost market penetration but also expand consumer choice.

In fact, the scale of Chinese EV exports is continuously expanding. According to statistics from the China Passenger Car Association, China’s EV export volume reached 2.42 million units last year—an increase of 78% compared to the previous year.

The proportion of EVs in China’s total car exports is also growing rapidly. The share of EVs rose from 25.8% in 2022 to 42.2% last year, indicating a significant structural shift in China’s auto exports, with EVs now occupying a substantial portion.

As Chinese EV manufacturers see rising sales globally, the competitive landscape among automakers appears to be changing.

The Hyundai Motor Group continues advancing its strategy to expand EV sales worldwide, but the market environment is becoming increasingly complex compared to before.

This is because EV demand growth is slowing down in certain regions, and the situation worsens due to intensified pricing competition from rival companies.

The Hyundai Motor Group has recently focused on expanding its lineup of small and mid-sized EVs for promotion. However, due to intense overlapping competition from Chinese companies in this segment, it is expected to be difficult to significantly increase market share.

Notably, China also boasts a powerful battery industry—the core component of EVs. BYD has established a vertically integrated system, achieving over 90% self-production rate for core components. As a result, the Hyundai Motor Group faces significant challenges in gaining a competitive edge in pricing.

Original Source: toutiao.com/article/1862681583114443/

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