Sleek machine: A Zeekr 001 electric vehicle by Geely on display at a car show in Shanghai. Chinese brands are expected to lead in smart and software-based vehicles because they are quicker to adopt new technologies and launch new models. — Reuters
SHANGHAI: Local brands’ popularity in the Chinese vehicle market is growing, according to analysts, as a result of their quick shifts toward electrification and the incorporation of cutting-edge smart features into new models.
Last month, sales of Chinese-branded vehicles topped 1.3 million units, up 9.8% year-on-year (y-o-y). They accounted for 54.4% of China’s passenger vehicle segment, which went down 5.6% y-o-y, according to statistics from the China Association of Automobile Manufacturers.
In the first 11 months of this year, sales of Chinese-branded vehicles reached 10.48 million units, up 24.2% y-o-y.
They seized a 49.2% share of the Chinese market from January to November, up more than five percentage points compared with the same period in 2021.
The rising trajectory of Chinese brands started around 2020, when they accounted for less than 40% of the market.
Their popularity has since been on the rise, while German and Japanese volume brands are losing ground.
Analysts said Chinese brands have seized the opportunities brought about by electrification, offering a richer variety of choices than their international rivals that dominated in the petrol car era.
Major Chinese carmakers BYD and Geely now sit high on the lists of candidates instead of Volkswagen and Toyota for volume car buyers, while Chinese startups Nio and Xpeng are gaining an upper hand over established premium ones from BMW to Mercedes-Benz.
Edward Wang, managing director of syndicated research at J.D. Power China, said Chinese brands are expected to lead in smart and software-based vehicles because they are quicker to adopt new technologies and launch new models.
“Such innovation is injecting momentum into Chinese brands in a rapid, effective and continuous way,” said Wang, adding that smart features and exciting onboard experiences are becoming increasingly important factors when car buyers make decisions.
“They are not necessarily buying a model solely for these functions, but they certainly would not buy it if it didn’t have such functions,” he added.
J.D. Power China’s findings released earlier this year showed that 53% of respondents said they would choose Chinese vehicles, and 67% of those who currently drive them said they would choose Chinese brands again.
BYD, which stopped selling petrol cars earlier this year, is now the world’s largest maker of new energy vehicles (NEVs), with its monthly sales hitting records several times this year.
According to the company’s report, its deliveries last month hit a new high of 229,942 units, including electric vehicles and plug-in hybrids, which is 155% more than in 2021.
Its deliveries of NEVs have exceeded 3.1 million units. The carmaker expects its performance to grow even further in 2023, with its premium marque Yangwang unveiled to explore the high-end segment.
Other Chinese NEV makers are working to sharpen their competitive edges as well.
In November, GAC Aion, based in Guangzhou, Guangdong province, unveiled its latest electrical and electronic architecture.
The architecture, called Xingling, features one of the world’s most powerful sensing systems to improve the safety of smart vehicles, according to the carmaker.
The system comprises 39 sensors, including three second-generation lidar units with variable focal lengths.
It also involves infrared remote sensing technology, which can detect objects that cameras and radar may fail to spot.
The Xingling architecture came days after its latest vehicle platform, called the AEP 3.0, was introduced.
GAC Aion said it introduced hypercar technology into the platform so its vehicles can take on Tesla in terms of acceleration.
The carmaker kicked off a large power battery project earlier this month.
The project, with an investment of 10.9 billion yuan (US$1.56bil or RM6.9bil) and an area of about 44.4 hectares, will be engaged in battery research and development, design, intelligent manufacturing, sales and services. — China Daily/ANN
