The latest auto show opened in Beijing, showcasing how far ahead China is compared to German, Japanese, and American automakers on the path to an electric future. The show confirms that the Chinese have chosen to develop their electric cars before conquering Western markets, even as the United States and Europe have tried to protect their automotive industries and internal combustion engines through tariffs.
Rapid expansion of the Chinese automotive industry
Chinese manufacturers showcased electric vehicles capable of reaching 100 km/h in 2 seconds at the Beijing Auto Show, along with advanced batteries that recharge at a rate of one kilometer per second. They even promised pre-orders for flying cars by next winter.
The Beijing Auto Show highlights the rapid development of the Chinese automotive industry, which is replacing traditional market players from ( Germany, Japan, and the United States ). Notably absent from the show is Tesla, the main Chinese rival in the electric car market. According to Elon Musk, the Western automotive industry will face a loss of competitiveness against China without government protection.
Chinese cars : More efficient and cheaper
Chinese automakers are currently the most competitive globally. Last year, for the first time, Tesla lost its position as the world’s leading electric car manufacturer to BYD, a Chinese company that sold more cars. Under pressure from Chinese manufacturers, Tesla is experiencing a decline in profits, forcing it to lower its prices.
Chinese cars are similar to their Western counterparts but cheaper. The Dongfeng eπ 007 sedan, for instance, resembles the Tesla Model 3 but is nearly 10,000 USD cheaper. Volvo, owned by Chinese company Geely, presents its EX30 as an alternative to the Tesla Model Y, but at a price 8,000 USD lower.
Chinese automakers are also surpassing their Western competitors in terms of the number of models and the speed of implementing developments into production. This year, 278 models are displayed at the Beijing Auto Show, including 117 new ones.
China : World leader in electric car production
China is determined to lead the world in electric car production. The country is saying goodbye to the internal combustion engine, although it still produces gasoline and diesel cars for export to poorer countries and Russia.
In April, just before the opening of the Beijing Auto Show, a symbolic milestone was reached in the Chinese car market: more than half of the new cars sold were electric (either electric vehicles or plug-in hybrids).
China holds a leading position in electrification. According to the International Energy Agency (IEA), the share of electric cars in China will be 45 % in 2024, compared to 25 % in Europe and only 11 % in the United States.
More efficient and faster Chinese production system
Chinese companies, where engineers work according to the 9-9-6 schedule (from nine in the morning to nine in the evening, six days a week), have shortened the development and implementation cycle to about a year and a half, compared to three years or more elsewhere in the world.
Western automakers are not yet able to match this pace. At last year’s Munich auto show, Volkswagen promised to reduce the current 4.5-year timeline for introducing new models into production.
Volkswagen used to be the leader in China, and German cars from Audi, BMW, and Mercedes were always perceived as luxury. This period of glory for the Western auto industry is now over. The share of foreign-branded cars in China fell below 50 % for the first-time last year. It is rapidly decreasing: 48 % today compared to 57 % two years ago.