Chinese Electric Car Invasion: Is BYD the New Tesla Threat?

Rapidly Growing Chinese Electric Vehicle Brands
Which Will Dominate in 10 Years?

In the global electric vehicle market, another brand is gaining a significant presence along with Tesla: China’s BYD. This brand is penetrating the market with its affordable prices. Of course, other Chinese automakers also show a rapid growth rate each year.

In 2023, while Tesla held the top spot in the global electric vehicle market with a 20.8% share, BYD came in second with 16.5%. In addition, Chinese automakers such as Shanghai Automotive Industry Corp. (SAIC), Geely Auto, and Guangzhou Automobile Group ranked 5th to 7th.

Chinese Electric Cars Facing Resistance
MG4 EVs Popular in Europe

All these companies increased their market shares compared to 2022, with SAIC’s share rising from 3.5% to 5.0%. During the same period, Hyundai’s and Kia’s market share decreased from 4.4% to 3.9%. Due to their steady growth, there are concerns that Chinese automakers might dominate the electric vehicle market in 10 years. In response to this trend, the U.S. is considering imposing up to 125% tariffs on Chinese batteries.

It’s hard to see Chinese electric vehicles in Korea, so knowing which models are selling well in the global market is challenging. For example, SAIC’s sub-brand MG’s MG4 EV and MG5 EV are very popular in Europe, including the UK. The MG4 EV is a 5-seat electric hatchback with a 50.8 kWh battery that can travel 218 miles according to WLTP standards. It delivers a maximum output of 168 horsepower, costing 26,995 pounds ($36,000). It is more than $10,000 cheaper than the Volkswagen ID.3 of the same class, which has helped it penetrate the European market.

The Polestar 2 also launched in Korea
Not Outperformed by Model Y

Geely Auto’s sub-brand, Polestar, is selling in major countries like the U.S. and Europe, and it has also launched the Polestar 2 in Korea. It is equipped with a 79 kWh battery, which allows it to travel 279 miles when fully charged, nearly 62 miles more than the Model Y of the same price. A 299-horsepower electric motor with a maximum torque of 50kg-m is mounted on the rear wheels.

Many ponder between the two models because the Polestar 2 has a higher output and more extended range than the Model Y. The Polestar 2 has a competitive edge, earning the highest 2022 U.S. safety evaluation rating. The domestic price of the Polestar 2 is around $46,000, and it can be purchased at around $42,000 after receiving subsidies.

Offering a Competitive Configuration at a Price in the $23,000 Range

Guangzhou Automobile Group has a sub-brand called Aion. The Hyper HT launched by Aion has a design similar to Porsche and has been a topic of conversation in Korea. The base model has a single motor mounted on the rear wheels, delivering a maximum output of 241 horsepower and a maximum torque of 355 Nm. According to Chinese standards, it is equipped with a 72.7 kWh battery and can travel 373 miles per charge.

The higher trim is equipped with an 800V system, delivering a maximum output of 335 horsepower and a maximum torque of 430 Nm. The car measures 194 inches in length, 76 inches in width, 67 inches in height, and has a wheelbase of 116 inches. The second row features a door opening mechanism similar to the Falcon Wing door. The interior features a flat floor, and a large central entertainment display, and the rear seats can be folded back to place a footrest behind the front seats.

The passenger seat can be folded flat so second-row passengers can stretch their legs, and a full panoramic sunroof is standard. The starting price for this configuration in the Chinese market is 213,900 yuan (about $33,000). As the global market gradually recognizes Chinese electric vehicle brands, it is predicted that if they continue this sales strategy, they could threaten Tesla in 10 years.