The Electric: Foreign Automakers Prepare to Challenge Chinese Brands on Their Home Turf

Today's column is from Dalibor Petkovic, a researcher specializing in Chinese industrial policies. Since 2017, he has focused on the Chinese EV market, as well as smart cities, urban logistics and battery recycling management.

Chinese makers of electric vehicles are enjoying their best year for domestic sales in three years, as foreign EV manufacturers struggle with the legacy of shifting bureaucratic rules and pandemic-era disruptions. But the home-field advantage may not last long, as big names including Volkwagen, Toyota and Honda are introducing new EV models in China. 

Chinese brands accounted for 83.5% of EV sales (including plug-in hybrids) in the first half of the year, according to the China Passenger Car Association, the first time since 2019 that their share exceeded 80%. Byd was the top seller, with sales more than quadrupling over the first half of 2021. Byd captured 28.2% of the Chinese market over the six months, followed by SAIC-GM-Wuling Automobile and Tesla. The American EV maker was the only foreign manufacturer to crack the top five, with 8.8% of sales. Volkswagen was the next–best-selling foreign brand; its two joint ventures ranked 14th and 15th with a cumulative 3.6% of sales.