Latest news with #ChineseCars
Forbes
2 days ago
- Automotive
- Forbes
While The US Is Closed To Chinese Cars, Australia's Door Is Wide Open
The US's America First policy and its high tariffs are keeping Chinese cars out of the market. Tariffs as high as 100% have been slapped on Chinese autos, especially EVs making them prohibitively expensive for American showrooms. Australia already boasts some 23 Chinese brands on its shores But while America's doors are still closed to cars from China, several countries including Russia, Mexico, Australia, Belgium, Norway and the UAE have become huge testing grounds for Chinese cars. While both Russia and Mexico currently import around 30 different car brands from China, Australia is presently hovering at around 23 brands and more are expected to arrive in the next year or so. Let us focus on Australia here as it it the closest to the US in terms of cultural origins, cultural diversity, lifestyle and language. Australia expects around 40% of all cars sold there by 2035 to be Chinese, significantly outperforming established Japanese and Koreans brands. In fact, if the US ever wanted to see what a Chinese car onslaught looked like, they just need to look at the Australia car market. Chinese brands making waves Downunder include big names like BYD, Geely, GWM, and Chery, as well as newer entrants such as Jaecoo, LDV, Leapmotor, Deepal, Avatr, Foton, Livan and Zeekr. MG, while technically a British brand, is also now owned by a Chinese company (SAIC) and is a significant player in the Australian market. While some brands offer hybrids and plug-in hybrids to appease those buyers not yet ready to make the switch to full-electric, most Chinese cars sold in Australia are electric. The Australian market is seeing a surge in Chinese car brands due to several factors with the first being that the country does not place tariffs on car imports. Other reasons include competitive pricing—especially when compared to rivals like Japanese and Korean cars, more pleasing designs and features, improved safety levels, increased manufacturing capacity in China, and growing consumer interest in electric vehicles. In fact, BYD is the biggest selling Chinese carmaker in Australia. In June 2025, BYD achieved a top five sales result of 8,156 units—which is a 367% increase over sales of June last year—becoming the first Chinese brand to do so, largely driven by the Shark 6 pickup truck, or ute according to WhichCar. BYD also surpassed Tesla in total sales in Australia for the first half of 2025 according to The Sydney Morning Herald.
Daily Mail
10-07-2025
- Automotive
- Daily Mail
Is the Chinese EV bubble about to burst? Oversupply sparks crushing price war in China
Chinese cars have been stealing a march on the UK market of late. Despite their infancy, a number of East Asian newcomers have well and truly stamped their mark this year, latest industry sales figures show. In June, BYD, officially now the world's biggest electric vehicle maker, sold more cars in Britain than Mazda, Mini, Citroen and Dacia - a remarkable achievement for a brand that launched in the UK only two years ago. And when you combine its sales with other recent Chinese debutants Omoda (launched August 2024) and Jaecoo (launched January 2025), the trio of relatively unknown marques last month delivered as many motors as Audi. Given that a decade ago Chinese brands had little to zero presence in the UK, the speed and scale of their recent growth is unprecedented - and largely driven by their cheap, well-equipped EV models. But as the wave of new battery-powered arrivals from the east continued this week with the confirmation that Geely, Denza and Chery will bring their sizeable profiles to the UK in 2025, a saturation of manufacturers is having a crushing impact on China's domestic market. Oversupply has resulted in overwhelmed competition, sparking a debilitating price war that some experts say could overflow into the UK market. Others believe it will result in a 'bloodbath' of Chinese brands, with around only one in ten existing marques likely to survive. So, could the Chinese EV bubble be about to burst? The noise coming out of China right now suggests the government is on the brink of tightening the reins on its bulging electric car segment. But it has largely been the maker of its own issues. Its recent industrial policy has engineered a remarkable transformation to electric vehicles in what is now the world's largest auto market. But in so doing, Beijing's incentivised backing has spawned far more brands than can possibly survive. Even as the headline sales numbers soar to new heights and China is projected to produce in excess of 33million cars in 2025, long-simmering concerns about oversupply and a crippling price war is coming to the fore. Price cuts of more than 30 per cent have been introduced by manufacturers for EVs in their home market. Industry observers says the sheer volume of makers - which now exceeds 100 different EV manufacturers - and the level of discounting taking place will lead to a 'bloodbath' of brands. In late May, BYD launched a fresh round of price cuts to 25 different models due to excess inventory. This saw it secure its best monthly sales performance in June, but it has kickstarted another price war in China as rivals have discounted pricing in response BYD's sales are up 31% in the first half of the year. Some 2.1 million motors branded with Build Your Dreams were bought between January and June, figures show Fingers pointed at BYD BYD is prime example of the problems facing China's electric car segment. It has taken advantage of its dominant position, triggering price wars over four years that has caused losses across the industry, according to Murthy Grandhi, an India-based financial risk analyst at GlobalData. BYD's sales are up 31 per cent in the first half of the year. Some 2.1 million motors branded with Build Your Dreams were bought between January and June, with almost a half-and-half split between EVs and plug-in hybrids (having culled combustion engine cars in 2022). But in late May, it came under thinly veiled criticism when it launched a new round of price cuts to 25 different models due to excess inventory - a move that saw it secure its best monthly sales performance in June. However, several competitors followed suit, downgrading their pricing to make their vehicles more attractive to customers - further compressing margins for manufaturers. The chairman of Great Wall Motors said he is growing increasingly concerned that the industry could come under threat if it continues on this trajectory, with the government expected to step in to force a dramatic reshaping on the nation's EV landscape. On 23 May - the day BYD initiated its price cuts - GWM's Wei Jianjun said he was pessimistic about what he called the 'healthy development' of the EV market, drawing comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover. 'The Evergrande in the automobile industry already exists, but it is just yet to explode,' he said in a video message posted on social media. Two days later, a BYD executive rejected any comparison to Evergrande. 'To be honest, I am confused and angry and it´s ridiculous,' Li Yunfei, BYD's general manager wrote on social media. 'All these [comparisons] come from the shocking remarks made by Chairman Wei of Great Wall Motors.' But sector commentators say the finger is understandably being pointed at the world's biggest EV producer. 'When volumes get bigger, it´s just much harder to manage and you become the bullseye,' Lei Xing, an independent analyst who follows the industry, told Associated Press. He said the Chinese government is now trying to rein in what is called 'involution' - a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere. The government and an industry association too has weighed in on the argument. The China Association of Automobile Manufacturers called for fair competition and healthy development of the industry, noting that major price cuts by one automaker had triggered a new price war panic. And the Ministry of Industry and Information Technology vowed to tackle involution-style competition in the auto industry, saying that recent disorderly price wars posed a threat to the healthy and sustainable development of the sector. 'That price cut might have been the final straw that irked both competitors and regulators for the ruthlessness that BYD continues to show,' Lei said. Experts say Chinese brands now need to identify markets outside their own to sell their surplus of vehicles - and the UK is particularly attractive given its low tariffs and maturing charging infrastructure Could China's problems overflow into the UK? There's already over a dozen Chinese brands selling cars in Britain today - and more have confirmed their arrival for 2025 or 2026. While MG is the brand we know best - having relaunched a much-loved British badge in the early 2010s - its rivals have only broken into the market more recently. Huge manufacturers with various marques under their banners have been drip-feeding new names into the segment - and Britons have been snapping them up at a staggering rate. But with Chinese manufacturers already imposing average EV discounts of 17 per cent - a new record - in their domestic market, the ripple effects could impact new and used car values across Europe and the UK, experts have said. Andy Shields, Indicata's global business unit director, warned: 'Chinese OEMs [original equipment manufacturers] are facing massive oversupply and intense competition in their domestic market. 'They need to find markets outside of China to sell their vehicles, and Europe represents their most viable and profitable export destination.' The Indicata analysis also pointed to Chinese manufacturers facing significant new barriers in other major markets. The US market remains largely inaccessible due to high tariffs, while other global markets outside Europe currently lack the suitable charging infrastructure to support mainstream EV adoption. 'Whilst there are tariffs in place for BEVs [battery electric vehicles] in the EU, it's still possible for Chinese manufacturers to sell BEVs in Europe more profitably than in their home market,' Shields explained. 'The UK market is particularly exposed as there are currently no additional tariffs on Chinese BEVs,' he warned. Of the 129 Chinese makers currently selling EV and PHEV models, experts believe only 15 will survive a 'bloodbath' of brands linked to the oversaturated market and increased competition Just one in ten Chinese brands will survive 'bloodbath' Only 15 out of the 129 brands that currently sell EVs and plug-in hybrids (PHEVs) in China will be financially viable by 2030, as the intensifying competition and market-wide price cuts forces consolidation and some to exit the market, consultancy AlixPartners said last week. These 15 brands are projected to account for approximately 75 per cent of China's EV and PHEV market by the end of the decade, each averaging annual sales of 1.02 million units, AlixPartners said, without specifying brand names. However, consolidation in China is expected to proceed more slowly than in other markets, said Stephen Dyer, head of AlixPartners´ automotive practice in Asia, because local governments may continue supporting non-viable brands due to their importance to regional economies, employment and supply chains. Despite Chinese regulators calling time on the price war, Dyer said it is likely to continue, but through 'hidden' factors such as insurance subsidies and zero-interest financing rather than direct discounting. Capacity utilisation ratio at Chinese car plants has fallen to an average 50 per cent in China last year, the lowest in a decade, pressuring profits, Dyer added.
Yahoo
04-07-2025
- Automotive
- Yahoo
One in 10 cars sold in UK made in China
One in 10 cars sold in the UK in June were made in China, according to the latest industry figures. New Chinese brands such as BYD, Jaecoo and Omoda are growing rapidly in the UK. There has been a particular surge over the past few months, at a time when most other G7 countries have levied significant extra tariffs against their imports. Around 18,944 cars made by Chinese-owned brands, including MG and Polestar, were sold in June, which is 10% of overall UK sales, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). That is up from 6% in the same month a year ago. Across the first half of this year, more than 8% - or 1 in 12 - cars sold were Chinese, up from 5% in 2023 and 2024. This was mainly but not exclusively electric vehicles. By comparison a study by Jato Analytics for the first five months of the year put Chinese brands at 4.3% of the market across the EU, and just 1.6% in Germany and 2.7% in France. Spain was higher though at 9.2%. Its analyst Felipe Munoz said: "The fact that the UK has not imposed tariffs is a big opportunity for the Chinese, along with the popularity of electric cars. "MG is also playing like a local brand, and unlike France and Germany, the UK doesn't have a big local industry to protect." However, some industry grandees have warned that the UK industry will struggle to compete, and Britain might have to introduce quotas. Chinese firms and their franchises have been buying up car showrooms. "Chinese manufacturers are producing cars which are better, cheaper and more innovative in every sector of the market," said John Neill, former SMMT President and ex-chief executive of Unipart. "If they are going to sell here we are going to have to get the Chinese to manufacture here." The government has so far faced little pressure from existing suppliers on copying the tariffs imposed by the EU, US, and Canada on electric cars. The majority of EU member states backed big taxes being imposed on imports of EVs from China, which can be as high as around 45%, and Canada announced its imposition of a 100% tax on Chinese made EVs. The EU and China are in negotiations to replace the tariff with a minimum price system. Some Chinese manufacturers are also in the process of opening factories in the EU which could export across Europe including the UK tariff-free. The SMMT said that one in four buyers of new cars in the UK are now purchasing electric cars - although the transition to electric has been driven by "unsustainable" discounting by manufacturers, says Mike Hawes, the SMMT's chief executive. "As we have seen in other countries, government incentives can supercharge the market transition," he said. The race to better 'the electric vehicle experience' China's electric cars are becoming slicker and cheaper - but is there a deeper cost?
BBC News
04-07-2025
- Automotive
- BBC News
Record growth of Chinese cars in UK
One in 10 cars sold in the UK in June were made in China, according to the latest industry Chinese brands such as BYD, Jaecoo and Omoda are growing rapidly in the has been a particular surge over the past few months, at a time when most other G7 countries have levied significant extra tariffs against their 18,944 cars made by Chinese-owned brands, including MG and Polestar, were sold in June, which is 10% of overall UK sales, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). That is up from 6% in the same month a year ago. Across the first half of this year, more than 8% - or 1 in 12 - cars sold were Chinese, up from 5% in 2023 and 2024. This was mainly but not exclusively electric industry grandees have warned that the UK industry will struggle to compete, and Britain might have to introduce quotas. Chinese firms and their franchises have been buying up car showrooms."Chinese manufacturers are producing cars which are better, cheaper and more innovative in every sector of the market," said John Neill, former SMMT President and ex-chief executive of Unipart."If they are going to sell here we are going to have to get the Chinese to manufacture here."The government has so far faced little pressure from existing suppliers on copying the tariffs imposed by the EU, US, and Canada on electric cars. The majority of EU member states backed big taxes being imposed on imports of EVs from China, which can be as high as around 45%, and Canada announced its imposition of a 100% tax on Chinese made EU and China are in negotiations to replace the tariff with a minimum price Chinese manufacturers are also in the process of opening factories in the EU which could export across Europe including the UK SMMT said that one in four buyers of new cars in the UK are now purchasing electric cars - although the transition to electric has been driven by "unsustainable" discounting by manufacturers, says Mike Hawes, the SMMT's chief executive."As we have seen in other countries, government incentives can supercharge the market transition," he said.
Gulf Business
02-07-2025
- Automotive
- Gulf Business
Chinese car brands gain ground in UAE's growing used vehicle market
Sebastian Fuchs, managing director of AutoData Middle East. Chinese car brands are rapidly gaining traction in the UAE's used car segment, reflecting shifting consumer preferences and a broader realignment of market dynamics in the region, reveals Sebastian Fuchs, managing director of AutoData Middle East. Fuchs, whose firm operates the Vehicle Report platform, a data-driven tool launched last year to boost transparency and trust in used vehicle transactions, says Chinese brands are accelerating in both sales and long-term value retention. 'Chinese brands have notably accelerated, with Jetour growing 150.4 per cent YoY, becoming the 4th most popular brand,' Fuchs told Gulf Business . 'Among newer entrants, the Jetour X70S STD stands out with 88 per cent retention after one year and 82 per cent by year three, reflecting growing trust in competitively priced Chinese SUVs.' In Q1 2025, used car buyer demand has centred around models from 2015–2020 , priced between Dhs10,000 and Dhs90,000 , with sedans like the Toyota Camry and SUVs like the Nissan Patrol remaining top search choices. However, there's growing attention on newer electric and hybrid models, especially as more Chinese EVs enter the resale market backed by generous warranties. Read: 'Electric vehicles have also surged, growing 62.2 per cent YoY in Q1 2025, with Tesla leading the segment at 43 per cent market share,' Fuchs noted. 'Consumer confidence is backed by extended warranties, particularly from Chinese brands, offering up to 7-year or 200,000 km warranties.' Auto lending rates in the UAE have become more attractive, aided by Q4 2024 rate cuts in the US. 'Financing has become more attractive, with auto lending rates decreasing approximately 0.5 per cent. Banks have intensified promotions like limited-time 0 per cent financing offers with mandatory 20 per cent down payments,' said Fuchs. This environment, combined with an influx of residents ( Dubai added over 51,000 people in Q1 2025 ) is pushing demand for affordable mobility options. 'The UAE used car market is expected to remain on a strong growth path, driven largely by population growth,' he said. On pricing and consumer behaviour, the UAE diverges from other GCC markets. 'In 2025, UAE GCC-spec vehicles averaged Dhs 180,000 with a model year around 2019, compared to KSA's average of SAR130,000 (Dhs127,252) for 2020 models,' said Fuchs. 'UAE buyers are more digitally driven, with 83 per cent starting their search online… while KSA buyers still favour traditional dealerships.' Looking ahead, Fuchs expects geopolitical trade policies to impact inventory flows. 'Recent global developments, such as new US tariffs, could lower used car prices in the UAE by increasing availability and competition among European and Chinese automakers,' he said. As trust in newer brands and digital platforms increases, AutoData's Vehicle Report platform is tapping into a more discerning and digitally savvy buyer base. 'This behavior indicates a growing segment of consumers who favour independent sellers and online platforms that offer more transparency and variety rather than the traditional franchise route,' Fuchs added.
