Chinese automakers are emerging as a real threat to the global EV market as they expand overseas to grow. For the first time, half of the top ten global EV sales leaders were from China. While BYD is quickly catching up to Tesla, Chinese tech giant Xiaomi sold more EVs than Toyota after launching its first model in April.
Chinese EVs are the fastest growing in the world, surpassing Toyota
China is the world's leading EV market, but with a new wave of domestic competition coming, domestic leaders like BYD and Geely are rapidly expanding into new markets.
According to new data from MarkLines (via Nikkei), 2.52 million EVs were sold in 55 global markets in the third quarter. Tesla is on pace with 432,000 vehicles sold between July and September, a 2% increase compared to last year.
BYD, at number two, made a strong push, with Q3 sales up 9% to 424,000 units. EV leader China continues to rise in global sales, with low-cost electric vehicles undercutting ICE equivalents.
BYD's best-selling EV, the Seagull, is also very affordable, with prices starting at less than $10,000 in China. The Seagull was the best-selling car in China, with nearly 41,000 sold in August alone.
Chinese smartphone giant Xiaomi made an impressive start, selling more EVs than even Toyota last quarter. And that's after it launched its first car six months ago.
Xiaomi launched its first EV, the SU7, on March 28, 2024. In just six months, it has already sold many car manufacturers around the world, including Toyota.
In accordance with Alix partnersChinese brands are expected to control more than a third of the global EV market by 2030. Meanwhile, many US and European automakers are lagging behind. Volkswagen dropped to fifth place, down two places after sales fell 17% in Q3 to 170,000. Jeep manufacturers Stellantis and Mercedes both dropped out of the top 10, as sales fell by more than 20%.
GM placed fourth with 184,000 vehicles sold, a 27% increase. Most of them came from its joint venture in China, SAIC-GM-Wuling.
There are no Japanese brands in the top 20 as some of the biggest laggards in the switch to electricity. Nissan was at number 22 with 34,000 sold, while Toyota and Honda were ranked 23rd and 24th respectively.
Electrek's Take
While many of the world's leading car brands such as Toyota, Ford, GM, and Volkswagen continue to postpone new EV launches, battery technology, and other projects, Chinese companies are taking advantage.
China is already leading the global battery market. According to the data from CnEPPostChina's CATL and BYD control over 50% share of the global EV battery market until October 2024.
Some leading OEMs are closely monitoring the growing presence of Chinese brands in global markets. After flying the Xiaomi SU7 to Detroit and driving it for six months, Ford CEO Jim Farley said he “didn't want to give it up.” Farley called Xiaomi “an industry juggernaut.” He even said that it is “a much stronger consumer brand than the car companies.”
Xiaomi sells “10,000, 20,000 per month. “They were sold for six months,” said Farley The Fully Charged Podcast in October.
Farley explained that Ford's shift to smaller and more affordable EVs came after realizing that “the Ford plant is going to have a hard time competing with BYD.” Ford “needs a ground team,” which it has in California to keep pace.
Ford's chief previously warned rivals that if they fail to keep up with the Chinese, “20% to 30% of revenue is at risk.” Farley sounded the alarm, calling China's leading EV manufacturers an “existential threat.”
With companies like Xiaomi quickly emerging in the global car market, it will be interesting to see where prices drop in 2025.
Will US and European automakers take back control of the global EV market? With the latest delay and Trump's transition team reportedly planning to end the US federal EV tax credit, they may be far behind. Let us know what you think in the comments below.
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