Highlights
- China dominates the global electric vehicle market, producing 58% of the world’s EVs and accounting for 65% of global sales in 2023.
- BYD leads China’s EV market with $80 billion in revenue and is expanding into Mexico, potentially establishing local assembly operations.
- BYD’s vertically integrated supply chain, including in-house battery production and component manufacturing, gives it a competitive edge in the global EV market.
In China’s Strategy of Complete Domination: Without a Shot Fired Rare Earth Exchanges explained China’s three phase, multi-decade strategy to emerge as the world’s predominant super power economically all based on the initial phase 1 approach of rare earth elements supply chain domination. We now enter phase 2 and that nation’s execution of the next chapter in the shot-free pathway to world predominance. That would be the overwhelming dominance of key industries involved in the next phase of developed economies, including electric vehicles.
So, what is China’s current position in the electric vehicle market? While in America Tesla and Elon Musk are king in this space, that leading position may come to an end soon.
China is now the world’s largest electric vehicle (EV) market with the following facts for review below:
- Production: China produces around 58% of the world’s EVs.
- Sales: In 2023, China sold 9.05 million passenger EVs, which is more than half of the world’s EVs on the road.
- Exports: China exported more than 1.5 million EVs in 2023.
- Market share: In the first half of 2023, China accounted for 65% of the world’s EV sales.
- Government support: The Chinese government has provided support for the EV industry for years, and this industrial policy cannot be overlooked.
- Infrastructure: China has a strong infrastructure for EVs.
China’s EV market is expected to continue to grow, with a projected market volume of US$419 billion by 2029. However, the industry faces challenges, including oversupply and price war.
This should be familiar to not only how the nation using a hybrid state-capitalist model executed the domination of the rare earth supply chain.
As of 2024, the electric vehicle (EV) market is dominated by a few key players with significant market share:
| Brand | Market Share | Brand |
|---|---|---|
| Tesla | Tesla remains the leading EV manufacturer globally, with a large share in the U.S. and a strong presence in Europe and China. The company’s Model Y and Model 3 are among the most popular EVs. | Innovative technology, extensive Supercharger network, and consistent production scale |
| BYD | BYD is the largest EV maker in China and is expanding rapidly in Europe and other regions. BYD’s market share has risen substantially, making it a leading global EV brand. | Vertical integration (producing batteries and components in-house) and affordability across different EV classes. |
| Volkswagen Group | Volkswagen Group (including Audi, Porsche, and other brands) holds a strong position in Europe and is working to increase its U.S. market share | Wide range of EV offerings, established dealer network, and a strong brand reputation |
| General Motors | GM is a prominent player in the North American market, investing heavily in EVs through its Chevrolet, GMC, and Cadillac brands. | Significant investment in Ultrium battery technology and partnerships to increase EV accessibility |
| Hyundai Motor Group (Hyundai and Kia) | Hyundai and Kia hold a substantial market share in the global EV market, with popular models like the Hyundai Ioniq 5 and Kia EV6. | Focus on long-range EVs and unique design, along with good customer satisfaction |
| Ford | Ford has been gaining ground in North America with its electric models, such as the Ford Mustang Mach-E and F-150 Lightning. | Brand loyalty in trucks and SUVs and significant investment in EV infrastructure. |
| Rivian | While smaller in market share, Rivian is a strong newcomer focused on the premium electric truck and SUV market in the U.S. | First-mover advantage in electric trucks and partnerships with companies like Amazon. |
These companies lead the EV market based on sales volume, geographical reach, and brand influence. However, emerging brands and ongoing innovations are shaping the competitive landscape as EV adoption continues to rise worldwide.
What does the Chinese electric vehicle market look like? It’s growing fast. What follows is a breakdown of leading players in China and revenue:
| Brand | 2023 revenue | Profile | Strengths |
|---|---|---|---|
| BYD (Build Your Dreams) | $80b USD | BYD is the largest EV manufacturer in China and one of the biggest in the world. It produces both EVs and plug-in hybrid electric vehicles (PHEVs) and offers a range of models from affordable to premium. | Extensive vertical integration (producing its own batteries and components), focus on both consumer and commercial EVs, and global expansion in Europe and South America. |
| NIO | $7 billion | Known as the “Tesla of China,” NIO specializes in premium EVs, offering models like the ES8, ES6, and EC6 SUVs, as well as its sedan, the ET7. NIO is renowned for its battery-swapping technology and high-end design. | Premium brand image, strong user community, and battery-swapping technology that provides an alternative to traditional charging. |
| Xpeng Motor | $4 billion USD | Xpeng focuses on the mid-to-high-end EV market with a strong emphasis on autonomous driving and smart features. Its models include the P7 sedan, G3 SUV, and new flagship G9 SUV. | Heavy investment in autonomous driving technology, with a competitive position in software development and tech-focused features. |
| Li Auto | $3.5 billion USD | Li Auto focuses on extended-range electric vehicles (EREVs), which use a small gasoline engine to extend range. Its flagship model, the Li ONE, is very popular among families for its spacious interior. | Focus on extended-range technology and fuel efficiency, targeting customers with longer-distance travel needs. |
| Geely (Zhejiang Geely Holding Group) | About $45 billion USD (total revenue, including gasoline vehicles; EV-specific revenue around $6-8 billion) (2023). | Geely, one of China’s largest automakers, has made significant moves in the EV sector, producing EVs under various brands like Zeekr and Geometry. It also owns Volvo and Lotus, which adds to its global reach. | Diverse brand portfolio, strong focus on EV tech R&D, and a strategic global market position. |
| SAIC Motor Corporation | Around $140 billion USD (total revenue, including gasoline vehicles; EV-specific revenue approximately $5-7 billion) (2023). | SAIC is China’s largest automaker and a leader in EVs through its joint ventures with GM and VW, as well as its own brands like MG and Roewe | Extensive distribution network, partnerships with global automakers, and a steady growth strategy for EVs both domestically and internationally. |
| GAC Group (Guangzhou Automobile Group) | About $60 billion USD (total revenue; EV-specific around $3-5 billion) (2023). | GAC focuses on various automotive sectors, with a growing EV lineup under its Aion brand. Aion is one of the fastest-growing domestic EV brands in China. | Rapidly expanding EV lineup, strong R&D investment, and competitive pricing. |
| Leapmotor | Approximately $1 billion USD (2023). | Leapmotor focuses on affordable EVs and has gained attention for its budget-friendly, high-tech models like the C11 SUV and T03 minicar. | Affordable pricing, emphasis on in-house technology, and compact models that appeal to urban buyers. |
China has emerged as a powerhouse in the EV market, both domestically and globally. Here are some leading Chinese EV companies, ranked by revenue and market influence.
These companies contribute significantly to China’s growing EV industry, driven by high domestic demand and government support for clean energy vehicles. With the rise of autonomous technology and connectivity, these brands are increasingly competitive on the global EV stage. Of course, a cornerstone of their success reflects the ongoing dominance of the REE supply chain.
BYD in Mexico
Adjacent to the large U.S. car market, Chinese BYD has been expanding its electric vehicle (EV) operations in Mexico as part of a larger strategy to grow its footprint across Latin America. The company entered the Mexican market with its EV lineup, aiming to establish itself as a key player in the region’s growing EV sector.
Key Details on BYD’s Presence in Mexico include the following
Starting with sales and distribution, BYD launched its electric passenger vehicles in Mexico, initially bringing models such as the BYD Tang EV (an electric SUV) and the Han EV (an electric sedan) to the market. It collaborates with local distributors to market and sell its vehicles.
As far as manufacturing and assembly potential, while BYD has not yet established an EV manufacturing facility in Mexico, it has expressed interest in potential local assembly as demand grows. BYD is known for building local assembly lines in international markets, so a future plant in Mexico is possible.
And in fact, as reported in August of this year (opens in a new tab) BYD Americas CEO Stella Li said earlier this year that the plant in Mexico will be located centrally in the country. In one report picked up by Reuters the company has three states under consideration, purportedly offering “many benefits” including fiscal, land, management, and preferential pricing incentives.
The company has forged ahead with various partnerships and charging Infrastructure.
BYD has partnered with local firms to expand the EV charging infrastructure in Mexico. This is part of its strategy to make EV adoption more accessible and practical for Mexican consumers. Moreover, the company’s focus on public transport and fleet vehicles shows robust promise. BYD also supplies electric buses and fleet vehicles in Mexico, targeting city governments and companies looking to reduce emissions with electric public transportation options.
BYD’s expansion into Mexico reflects its aim to capture market share in Latin America, where demand for EVs is rising due to favorable regulations and a focus on sustainability. Also, the ability to produce and ship directly into Noth America becomes an important imperative.
The BYD Supply Chain
BYD’s supply chain is highly integrated, allowing the company to maintain a competitive edge in electric vehicle (EV) production and reduce its reliance on external suppliers. The key elements of BYD’s supply chain reflect this vertically integrated approach, especially in battery production, component manufacturing, and quality control.
Some key aspects of the electric car maker’s supply chain include first and foremost battery production. BYD is one of the few EV manufacturers that produces its own batteries, specifically the Blade Battery. This lithium iron phosphate (LFP) battery is designed to improve safety and reduce costs while maintaining high energy density.
The company sources raw materials for batteries, including lithium, iron, and phosphate, through partnerships and long-term contracts with global suppliers. China’s strong position in battery raw material refining gives BYD additional resilience in this area as can be expected.
On to the components used for the firm’s vehicles. BYD manufactures most of the critical components for its vehicles, such as motors, controllers, and power electronics. This reduces dependency on third-party suppliers, especially for complex EV systems.
With such scale and global market share aspirations quality control must be of the highest priority. Enter BYD’s approach to component manufacturing gives it greater control over product quality and production timelines, which is essential in an industry with frequent supply chain disruptions.
But what about assembly and manufacturing: where does this occur? BYD’s primary production facilities are in China, where it assembles both electric passenger vehicles and commercial vehicles (like buses and trucks). It also has production operations in other countries for buses and fleet vehicles, supporting its international markets.
Research and development (R&D) remains a vital commitment**.** With an in-house R&D for battery technology, autonomous driving, and connected vehicle tech, BYD is a leader in EV technology. Its vertical integration in R&D allows BYD to create custom solutions rather than depending on third-party technology.
BYD continues to invest heavily in battery recycling technology and sustainable sourcing practices, aligning with its strategy to create a circular supply chain for battery materials.
Other fundamental core aspects of the company’s supply chain include its global logistics and distribution and clear-cut advantages across its supply chain which include 1) vertical integration 2) cost control and 3) quality.
BYD’s integrated supply chain strategy not only makes it more resilient but also positions it as a competitive force, especially in international markets where supply chain stability is critical to meeting demand.
Daniel
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