Chinese automakers may face the same situation as Huawei

Mondo Cars Updated on 2024-03-07

In recent years, the market competitiveness of Chinese auto companies has been greatly improved, and the market share and number of automobile exports of Chinese auto companies have increased rapidly. Chinese auto companies not only occupy an absolute advantage in the field of new energy vehicles, but also make major breakthroughs in the mid-to-high-end automotive segment.

In terms of automobile exports, from 2020, China's automobile exports have surpassed South Korea in one year, Germany in two years, and Japan in three years. In 2020, China exported one million vehicles. In 2021, the export volume increased by more than 100% to exceed 2 million units. In 2022, the export volume reached 31110,000 units. In 2023, China will export 5.22 million vehicles, ranking first in the world.

In the field of new energy vehicles, the leading edge of Chinese enterprises continues to expand. According to data from consulting firm Cleantechnica, Chinese brands accounted for 16 of the top 20 best-selling electric vehicle models in the world in 2023. China's new energy vehicle companies have a global market share of more than 60%, and BYD's market share is 2101%, ranking first in the world. In addition to electrification, Chinese companies are also significantly ahead in terms of intelligence and networking.

In the field of mid-to-high-end automobiles, the market share of Chinese auto companies is also increasing rapidly, and BYD has accumulated 3,653 units in just over two months after the U8 was launched. The Wenjie M9 Dading launched by Huawei and Cialis has also quickly exceeded 50,000, and Chinese companies are expected to dominate the domestic mid-to-high-end automobile market in the future.

The rapid rise of China's auto companies has caused unease in Europe and the United States, and the West represented by the United States has not only launched the best protection measures for China's new energy vehicles, and the United States and the United Kingdom have begun to postpone the development plan of new energy vehicles, but also are brewing more measures for Chinese companies.

According to Reuters, on February 29, local time, Biden declared that Chinese cars may flood the U.S. market, "bringing risks to our ***". He also announced that the United States would respond with "unprecedented action."

U.S. Secretary of Commerce Raimondo recently said out of nothing that if 3 million Chinese cars are running on the roads of the United States, China can make them stop at the same time.

Biden and Raimondo's statements indicate that the United States is likely to introduce more targeted measures, making it more difficult for Chinese companies to expand into the North American market.

As a result, Chinese auto companies will face the same situation as Huawei, and may be affected by more non-market factors in the European and American markets in the future.

Hotspot Engine Program However, the markets of China, BRICS countries and countries along the "Belt and Road" will also provide huge development space for Chinese auto companies. The surge in China's auto exports in recent years is largely due to the breakthroughs made by Chinese companies in countries along the Belt and Road, such as Russia and Mexico. Currently, the BRICS countries account for about 46% of the world's population, and in terms of purchasing power, the total GDP of the 10 BRICS countries in 2023 is 63$2 trillion, significantly higher than the G7's 52$3 trillion. In US dollar terms, in 2022, the total GDP of the BRICS countries was 286 trillion US dollars, accounting for about 29% of the world's total GDP.

At present, 34 countries are applying for BRICS membership, and the BRICS countries may further expand their capacity and further rise their global economic status.

As of October 2023, China has signed Belt and Road cooperation documents with 152 countries, and the number of countries that have joined the Belt and Road has accounted for 77% of the world's countries, and the number of countries that have joined the Belt and Road accounts for 65% of the world's total population.

Even if they are collectively attacked by European and American countries, with the huge market advantages of China, BRICS countries and countries along the Belt and Road, Huawei and ZTE still have a clear advantage in the global mobile communication equipment market. According to the latest data from Dell'oro, an authoritative consulting company in the industry, in 2023, Huawei ranked first in the global 5G wireless equipment market with a revenue share of 32%, and achieved market share growth for the first time since 2021. ZTE's market share is 15%, and Huawei and ZTE occupy an absolute advantage in the global mobile communications market with a market share of 47%.

In the future, Chinese auto companies will also be like Huawei, eliminating the obstacles of the United States and other Western countries, and continue to make greater breakthroughs in the global auto market.

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