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Here are the Chinese carmakers who want to conquer the world

We list the groups and start-ups that are excelling today in an increasingly saturated market, some of which will never make it.

Photo by: Motor1.com

By: Eleonora Lilli

Published by: Brian Potter

Jul 16, 2024 at 5:57am ET

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In recent years, new car manufacturers have emerged (and continue to do so) in China at an unprecedented rate. We've written about this on numerous occasions, and a new report from Jato gives us an up-to-date picture of the landscape. There are currently 140 different brands in China, around 50 in Europe and 14 in the US and Japan.

The rapid emergence of many new players in China means that the market is increasingly saturated and competition is fierce. The first challenge facing these brands is national survival, followed by global expansion.

The United States and Europe versus China

Between 2020 and 2023, Jato reminds us that sales of Chinese-branded cars outside the domestic market increased fivefold. However, while competition is useful in driving market development, the impacts associated with market saturation, oversupply and price wars mean extinction for some.

Once-promising EV manufacturers (such as Zotye, Qoros and Borgward) no longer exist. Others (such as Aiways, Hiphi and Weltmeister) are fighting for survival. To attract new customers, each is producing new products and focusing on technological innovations such as connectivity, driver assistance software and in-car entertainment.

At the same time, the inability to compete with the new Chinese manufacturers in terms of production capacity and price has prompted policymakers in Europe and the US to introduce stricter measures to protect domestic manufacturers (think tariffs on Chinese cars in Europe).

We'll find out the effects in the coming months, but in the meantime, we can mention that many Chinese manufacturers have also been focusing on emerging and developing economies. Between 2022 and 2023, the market share of Chinese brands in the Middle East rose from 12.9% to 16.8%, and in Eurasia - where cars are now most popular - their market share rose from 12.4% to 33.3%. South-East Asia and Africa also recorded growth of 1.9 and 2.3 percentage points.

Let's now take a look at the main Chinese groups and start-ups operating in the automotive market today and the collaborations underway.

The map of collaborations with Chinese carmakers

The main Chinese players on the market today

SAIC

SAIC (Shanghai Automotive Industry Corporation) is China's largest carmaker in terms of total sales volume. It is state-owned and its most successful brand is MG. Last year, SAIC sold 3.59 million units worldwide, including 1.38 million vehicles sold under its own brands, with MG accounting for two-thirds of sales. In addition to its own brands, SAIC has joint ventures with the Volkswagen Group and General Motors, which have enabled it to acquire the specific knowledge needed for its global expansion plans.

BYD

Founded in 2003, BYD has grown like no other Chinese company. This listed multinational also produces batteries and owns several other brands, including Denza, Dangwang and Fang Cheng Bao. In 2019, BYD also formed a joint venture with Toyota to research and develop battery-powered vehicles. Last year, it became the second best-selling BEV brand in the world, trailing Tesla by 234,000 units.

Chery

Although it already has a wide range of brands, including Kaiyi, Exceed and Jetour, Chery is attempting global expansion with the Omoda and Jaecoo brands (also launched in Italy). Chery is currently China's largest exporter, with sales outside China accounting for 50% of its volume last year. The only major joint venture with foreign manufacturers is with Jaguar Land Rover, signed in 2012.

Jaecoo 7

Omoda 5

BAIC

Beijing Automotive Industry Corporation (BAIC) was founded in 1958 and has had a chequered history over the years. Today, it manufactures most of Beijing's taxis under the 'Beijing' brand, one of several brands available, including Arcfox, BAIC and Foton. In 2023, BAIC sold 1.13 million units, 190,000 of which were exported abroad. The company has joint ventures with Mercedes and Hyundai.

Geely

The only Chinese manufacturer to own several Western car brands is Geely, which has links with over 14 brands worldwide, including ZEEKR, Volvo, Polestar and Lotus (in practice, it is on a par with Stellantis, which also has 14 brands to its name). This structure puts the group in an advantageous position. Thanks to Volvo and Polestar, for example, Geely is currently the only Chinese manufacturer in the United States.

Great Wall Motor

Great Wall Motor can be described as China's specialist in SUVs and pick-ups, which together will account for 99% of the group's total sales by 2023. In particular, its Haval brand focuses exclusively on SUVs and will account for 60% of total sales in 2023, while Great Wall concentrates on medium and large pick-ups (16%) and there is TANK (13%). In addition, the BMW Group has chosen GWM to develop the new electric MINI through Spotlight Automotive.

MINI Cooper SE

Changan

Changan Automobile is another major Chinese group. Last year, it sold 2.55 million units (+9%) and, although it focuses on selling vehicles in China, it also produces for Mazda and Ford. It recently launched the Deepal, Qiyuan and AVATR brands, a high-tech brand manufactured in cooperation with Huawei.

GAC Group

Guangzhou Automobile Group (GAC Group) was founded in 2008 and has rapidly become one of the top five BEV manufacturers in the world. In 2023, the company sold 2.51 million units, including 892,000 under its own AION, Hyper and GAC (Trumpchi) brands. Of this total, 486,000 units were pure electric cars, which means that the GAC group has one of the highest market shares for BEVs. The remaining 1.61 million units sold in 2023 will come from a joint venture between the GAC Group, Toyota and Honda.

Dongfeng

Dongfeng has a large sales volume and six different own brands, including M-Hero, Voyah and Forthing, as well as joint ventures with Honda, Nissan-Infiniti and Peugeot-Citroën. Dongfeng also has a joint venture with Nissan to produce Venucia cars. Last year, the group sold 2.09 million units.

SGMW

Founded in 2002, SGMW is a joint venture between SAIC, General Motors and Wuling. To develop its offering, the manufacturer has drawn heavily on the design and technology of existing GM models, and has established itself in markets such as India and South-East Asia. GM has taken advantage of this collaboration to export its products at competitive prices to Latin America.

FAW

First Automotive Works (FAW) was founded in 1956 and is the parent company of Hongqi, the luxury car brand considered the official vehicle of the Communist Party; other brands include Bestune and Jiefang. The group also produces cars for Volkswagen and Toyota: in 2023 alone, 2.12 million units out of a total of 2.64 million produced bore the Volkswagen or Toyota logo.

JAC

In 2023, JAC sold 592,500 units, an increase of 18% on 2022. In 2020, the brand formed a joint venture with Volkswagen to create Sol, a brand that now belongs solely to Volkswagen. Subsequently, JAC has continued to produce its cars under the Sehol brand and has managed to hold its own in several emerging markets in Eurasia, Africa and South Asia.

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Revenues and profits (RMB billion) in 2023

Group Revenues Profits Gross margin SAIC 734.2 25.9 3.5% BYD 602.3 121.8 20.2% Chery 315.1 2.93 0.9% Geely (foreign brands excluded) 179.2 24.4 15.3% GWM 173.2 32.4 18.7% Changan 151.3 34.6 22.8% GAC 129.7 5.53 4.3% Li Auto 123.9 27.5 22.2% Dongfeng 99.3 9.47 9.5% NIO 55.6 3.05 5.5% Xpeng 30.7 0.45 1.5% Leapmotor 16.7 0.08 0.5% SGMW 10.5 1.04 9.9%

Source: Jato

Start-ups

A separate section is reserved for start-ups, which include no fewer than 75 brands (we won't name them all). The most important are :

NIO, founded in 2014, has become one of China's most innovative carmakers. It is now present in Norway, Germany, the Netherlands, Denmark and Sweden, with a total sales volume of 160,000 units in 2023 ;
Xpeng, NIO's direct competitor, offers a range of all-electric saloons and SUVs, but its range is more limited. Available in China and several European markets, it sold a total of 141,600 units in 2023;
Li Auto, which specialises in large and luxury vehicles, offers a range of extended-range electric vehicles (with the exception of the Mega, an all-electric MPV). It is available in Russia, but has not yet made its official entry into European markets. In 2023, it sold a total of 376,000 units;
Xiaomi launched its SU7 at the end of 2023 and has big ambitions in China and abroad;
Leapmotor currently offers four models ranging from SUVs (C10 and C11) to saloons (C01) and city cars (T03). Last year, it sold a total of 144,200 units (+30%) and sold 20% of its business to Stellantis in order to accelerate its expansion in Europe;
AITO, founded in 2021 as a joint venture between Huawei and Seres, offers a range of SUVs using Huawei technology. In 2023, the brand sold a total of 94,400 units;
Hozon currently offers four models under its EV brand called Neta: the GT sports car, the S saloon and two SUVs (U and V). In 2023, it sold 127,500 units;
Hiphi' s range includes a large hatchback and two SUVs. Although its vehicles have a number of advanced features, the high selling price does not allow the company to achieve significant results. In 2023, it sold just 4,800 units.

Xiaomi SU7

Leapmotor C01

Leapmotor T03

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