Affordable Chinese-made EVs accelerate adoption in Asia and South America, report reveals

Chinese electric automakers continue to advance in the global electric vehicle industry with their affordable offerings, essentially making the country the largest EV market worldwide.

Auto market research firm JATO Dynamics’ latest report demonstrated Chinese-made EV models’ dominance in South Asia and South America.

Chinese automakers’ dominance

Jato Dynamics’ “EV price gap: a divide in the global automotive industry” report revealed that Chinese EVs accounted for the largest portion of the total sales in various emerging markets in the first six months of the year. Refer to the data below:

“With global ambitions, China’s 170 local car brands have made efforts to ensure they have targeted every segment with models suited to the preferences of consumers across the world. 

This approach differs to that taken by Western [manufacturers], which have historically positioned EVs within the premium segments.”

Jato Dynamics

Apart from offering high-tech and quality electric vehicle models, Chinese automakers’ significant lead over other foreign brands is also largely due to their affordability. According to InsideEVs, these brands include XPeng, BYD, and MG, whose models have continued to become common sights in Europe and even in North America.

Average EV retail price in H1 2023

Presented below is the comparison of Chinese and non-Chinese brands pricing in different countries across the world:

Cheapest new EV in H1 2023

The report also indicated the most affordable brand-new EV models in different markets in the January to June period:

Chinese automakers’ significant lead is expected to continue in the coming years, as Detroit automakers delayed their mass-market EV model development initiatives by several years. Meanwhile, Chinese brands actively work to improve their models, technologies, safety, and build quality.

“As China becomes an increasingly influential player on the global automotive stage, its brands are becoming more visible in countries where, just a few years ago, consumers would not have considered them a viable alternative.

JATO Dynamics global analyst Felipe Munoz

According to Engineering News, the major support of the Chinese Government largely contributed to China-made EVs’ success in the global industry. The country offers cheaper raw materials, production, and labor costs compared to North America and Europe.