China's automotive industry is experiencing an incredible rise, with BYD and Geely among the world's TOP 10 car manufacturers. What is behind this breakthrough and what does it mean for European and American competition?
China's automotive industry is accelerating, turbo-charged, so to speak. In the third quarter of 2024, it was a moment for history: China placed two of its many competitors among the top ten car manufacturers in the world – BYD and Geely. The former landed in sixth place, and the latter in ninth. It's time to take a closer look at this blockbuster on the Chinese car scene, which has long since been confined to the roads of Beijing or Shanghai. What are the reasons for this impressive growth and can they seriously threaten the long-standing giants like Volkswagen and General Motors?
BYD - Chinese electric mobility giant
When we talk about BYD, we are talking about a company that is not just one of the biggest manufacturers of electric vehicles in the world, but also about the innovator who is getting closer and closer Tesla. In the third quarter of 2024, BYD sold as many as 1.13 million units, which represents an incredible 38% growth compared to the previous year. Among these vehicles are many electric and plug-in hybrids, which means that BYD is skillfully chasing and building on the demand for sustainable mobility.
With an impressive range of models – from luxury sedans to sporty SUVs – BYD is building a name that appeals to both domestic and foreign buyers. In the electric vehicle segment, BYD is already very close to Tesla's sales record, with only 19,500 units separating it. If the trend continues, BYD could already overtake Tesla as the leader in electric mobility in the coming years.
Geely - Engineering adapted to the global market
Another Chinese brand that climbed into the world's top ten is Geely, owner of well-known brands such as Volvo and A half-year-old. With sales 811,800 units in the third quarter, they managed to push Suzuki out of the top ten and overtake Nissan. With its sub-brands such as Lynk & Co, ZEEKR and Geely Galaxy, Geely is becoming more and more recognizable in the global market.
A big plus for Geely is its presence in the US through the Volvo and Polestar brands. With this, Geely secured an insight into one of the toughest car markets in the world, where domestic manufacturers usually dominate. With high-tech and sustainable vehicles, Geely successfully competes with more reputable brands.
The World Market: China Against All
While China is gaining momentum, many traditional markets are in decline. Globally, the market sold about 22 million units in the third quarter, a 2.7 percent drop. Toyota's market share is still large (13 %), but the company experienced a 3.8% drop in sales due to reduced demand in China. The same applies to the Volkswagen concern and Hyundai Motor Company, which recorded declines of 7.1 % and 2.6 %, respectively, due to growing Chinese interest in domestic brands.
The biggest drop among the top five global manufacturers was recorded by Stellantis, which struggled with a 21% decline, mainly due to lower demand in North America and Europe, and increasing competition from Chinese brands in South America.
The dominance of Chinese brands is here
According to data from the third quarter of 2024, Chinese automakers sold more vehicles than European competitors for the first time. Chinese brands together sold just 5.07 million units, which represents a 10% increase compared to the previous year. Meanwhile, the Europeans sold 4.99 million units, which is for 11 % less than last year. Thus, the global market share of Chinese manufacturers increased to 23.6 %, which is a significant jump compared to last year, when it was 20.8 %.
With their strategy based on mass production and innovation, the Chinese have created competitive products that are affordable and technologically advanced. The domestic market has always been considered huge, but now Chinese manufacturers are opening the door to foreign markets, putting competition in a difficult position.
Conclusion: The future of the global car market?
Although Toyota, Volkswagen and Hyundai remain at the top of the global manufacturers, it is clear that the automotive world must prepare to compete with Chinese brands. BYD and Geely have shown how Chinese brands can go from local players to global giants in a few years. With rapid growth and increasing market share in major global markets, the two Chinese giants have warned the competition that the future of the automotive industry may be different from what we have known so far.
Something is certain: European and American brands will have to find new ways to defend against the Chinese invasion if they do not want to lose their position in the global automotive industry. Of course, only with innovations and a price war. And reinvestment in innovation!
| Car group | Results Third Quarter 2023 | Results Third Quarter 2024 | % Change |
|---|---|---|---|
| Toyota | 2,844,990 | 2,736,904 | -4% |
| Volkswagen Group | 2,343,279 | 2,176,363 | -7% |
| Hyundai Motor Company | 1,824,213 | 1,777,300 | -3% |
| Stellantis | 1,478,000 | 1,174,000 | -21% |
| General Motors | 1,322,000 | 1,147,000 | -13% |
| BYD | 824,001 | 1,134,892 | +38% |
| Ford | 1,086,000 | 1,095,000 | +1% |
| Honda | 1,033,000 | 910,000 | -12% |
| Geely | 703,135 | 811,797 | +20% |
| Nissan | 833,000 | 809,000 | -3% |
