September sales of New Energy Vehicles (NEVs) in China increased at the slowest pace in five months, providing fresh hints that relentless COVID lockdowns and a slowing Chinese economy may be taking a toll on the Chinese consumer.
“The recovery trend is far lower than our expectation. The market is overall relatively weak,” said Cui Dongshu, secretary general of the China Passenger Car Association (CPCA).
This slump in the domestic market is giving new impetus for brands like BYD, the world’s largest EV manufacturer, to look abroad for new sources of growth. But unlike Vietnam’s VinFast brand, which plans to spend billions to break into the U.S. EV market, BYD and other Chinese brands are taking a more conservative approach and instead focusing on developing countries with lower barriers to entry:
- INDIA: BYD launched its Atto 3 electric SUV on Tuesday, marking its formal entry into the Indian market. The company says it plans to sell 15,000 vehicles over the next year. (REUTERS)
- MEXICO: BYD is on a roll in Mexico, announcing a slate of deals to sell electric taxis, tractors and its new BYD Han passenger vehicle that arrived in the market last year. (YICAI)
- THAILAND: Last month, BYD announced that its first electric car manufacturing plant outside of China will be located in Thailand. Production in Thailand will allow BYD to supply the entire ASEAN market duty-free. (INSIDEEVS)
- ZIMBABWE: BYD made its debut in the African market last year with the opening of a dealership in the Zimbabwean capital Harare, where it sells electric vans and the E6 passenger vehicle powered by the company’s cobalt-free Blade battery. (CLEANTECHNICA)
SUGGESTED READING:
- Nikkei Asia: After beating Tesla in China EV sales, BYD plots global expansion by Takashi Kawakami
- China Daily: Asia emerging as new market for China’s electric carmakers by Li Fusheng
