As one of the world's largest automotive markets, China is remarkable for its size. According to the data, the global automobile market size in 2022 will be about 90 million, and the number of cars sold in the Chinese market will be about 26.86 million, accounting for 30%. Compared with the three major markets of the United States, Japan, and Brazil, the Chinese market is larger and surpasses these markets. Due to its huge size, China's auto market has attracted global auto giants such as German, Japanese, American, Korean, and European auto giants, who have poured into the Chinese market to get a piece of the pie.
Compared with the United States, Europe, Japan, South Korea and other countries, China's start is relatively late by about 100 years. In the early stage, domestic cars were not competitive, and most of the domestic consumers bought imported cars or joint venture brands. Self-owned brand cars were once at the lowest end of the market, mainly on low-cost routes. However, even on the low-price route, sales are not ideal, and the share of domestic brands in the domestic market has been less than 20% in the early days.
With the continuous development of China's leading brands, many domestic brands have gradually emerged and are favored by consumers. Independent brands such as BYD, Great Wall, and Geely have gradually developed and expanded, and the acceptance of independent brands has gradually increased. Especially with the advent of the era of new energy vehicles, domestic car brands have begun to counterattack, after all, in the field of electric vehicles, except for Tesla, other brands cannot compete with domestic cars. By 2022, the penetration rate of new energy vehicles in China's auto market has reached 29%, and as of November 2023, this figure has exceeded 40%. The increase in sales of new energy vehicles has directly led to the rise of domestic cars, and the market share of domestic cars has also risen all the way, breaking through 40% and 50% successively. By November 2023, the sales of domestically produced automobiles in the domestic automobile market will reach 60%, a record high. The proportion of German brands is only 156% and 14% for Japanese brands6%, and 7 for American brands4%。The market share of other French, Korean and other European brands is negligible. These data show that China has truly risen, beating all foreign imported brands in the domestic market, including joint venture brands, and is gradually becoming an automobile power from a major automobile country.
In addition to the rise of the domestic market, China's auto industry has also shown strong strength on a global scale. At present, China has become the world's largest automobile exporter, surpassing traditional automobile powers such as Germany and Japan. Chinese auto companies are not only satisfied with their achievements in the domestic market, but also actively explore overseas markets and compete for market share in German, American, Japanese and Korean brands. For China, to truly become an automobile power, it is necessary to strengthen the development of overseas markets.
The historic moment of the rise of China's auto industry is coming. Domestic automobiles account for more than 60%, far exceeding international brands such as Germany, Japan, the United States, and South Korea. Behind this data, it reflects the rise and development achievements of China.
In the context of China's rapid economic development, people's demand for automobiles is increasing day by day. As one of the world's largest automotive markets, the Chinese market has attracted the attention of automotive giants due to its huge size. German, Japanese, American, Korean and other international brands have entered the Chinese market to compete for market share. However, China started late and once faced challenges in terms of technology, quality and brand recognition.
However, with the continuous development and growth of China, many domestic independent brands have gradually risen. With their own technological breakthroughs and product innovations, independent brands such as BYD, Great Wall, and Geely have gradually won the recognition and love of consumers. Especially in the field of new energy vehicles, China's domestic cars entered the market earlier and made great progress. Its technical strength and product quality have been continuously improved, and it has begun to emerge in the domestic market.
The advent of the new energy era has promoted the counterattack of domestic cars. In the field of electric vehicles, China's domestic car manufacturers have made great efforts in technological innovation and cost control, and have made remarkable achievements. Brands other than Tesla could not compete with domestic cars in the market, so domestic cars quickly occupied the new energy market. According to statistics, the penetration rate of new energy vehicles in China has reached 29% in 2022, and by November 2023, this figure has exceeded 40%. The growth of new energy vehicle sales has not only promoted the rapid development of China's auto market, but also directly led to the rise of domestic car brands.
Taking the proportion of domestic car sales as an indicator, we can see the rise of China's leading cars. By November 2023, the sales of domestic cars in the domestic auto market accounted for more than 60%, creating a historic high. At the same time, the proportion of German brands is only 156% and 14% for Japanese brands6%, and 7 for American brands4%。The market share of other French, Korean and other European brands can be said to be negligible. These figures reflect the competitiveness of China*** in the domestic market, which has beaten foreign imported brands, including joint venture brands. China is gradually moving from a big automobile country to an automobile power.
The rise of China's auto industry is not only reflected in the domestic market, but also in the global market. China has become the world's largest exporter of automobiles, surpassing traditional automotive powerhouses such as Germany and Japan. Chinese auto companies have not only achieved considerable sales performance in the domestic market, but also actively expanded overseas markets to compete for market share of multinational brands. This move demonstrates China's strength and competitiveness on the global stage.
Although China's automotive industry has made great achievements, it still faces a series of challenges. First of all, technological innovation and R&D capabilities still need to be strengthened. Although Chinese auto companies have made certain technological breakthroughs, there is still a gap compared with the international leading level. In order to achieve a greater competitive advantage in the global market, Chinese auto companies need to increase investment in technological innovation and R&D, and improve their independent R&D capabilities.
Secondly, brand building and promotion are still the direction that China's auto industry needs to work towards. International consumers' recognition and trust in Chinese auto brands are relatively low, and there is an urgent need to enhance consumers' desire to buy through brand building. Only by building a strong brand image can Chinese auto companies gain more opportunities and competitive advantages in the global market.
In addition, Chinese auto companies also need to accelerate transformation and upgrading, from traditional fuel vehicles to new energy vehicles. New energy vehicles are the development trend of the global automobile industry and an important direction for the development of China's automobile industry. To make the new energy vehicle industry bigger and stronger, it is necessary to increase investment in technology and industrial chain, and cultivate more professionals.
Looking ahead, China's auto industry still has huge room and potential for development. With the increasing support for new energy vehicles and consumers' increasing concern for environmental protection and energy saving, the new energy vehicle market will be further expanded. Chinese auto companies can seize this opportunity to strengthen technology research and development and brand building, and further improve product quality and competitiveness.
Summary: The historic moment of the rise of China's auto industry has arrived, and its scale is huge and continues to grow. Despite its late start, China's automotive industry has achieved great success in the domestic market thanks to technological innovation, the rise of its own brands, and the development of new energy vehicles. At the same time, China's auto industry has become one of the world's largest auto exporters, showing a strong global influence. In the face of future challenges, China's auto industry needs to strengthen technological innovation and brand building, and continue to promote the development of new energy vehicles to further consolidate its position in the global auto industry and become a true automotive power.