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Advanced tech and efficient production: How Chinese car makers are becoming global EV leaders

Improved battery technology and the ability to scale rapidly are key reasons why Chinese automakers seizing substantial market share

Chinese automaker BYD’s manufacturing facility in Rayong, Thailand. The company is driving global growth in electric vehicles. PHOTO: REUTERS

China has rapidly become the global leader in electric vehicles, with its innovative automakers transforming the country into an EV powerhouse.

In 2023, China accounted for over half of global EV sales. The trend continues in 2024, with six of the top 10 best-selling EV brands worldwide coming from China. BYD leads this charge, maintaining a significant margin over competitors, according to data from market intelligence platform EV Volumes.

Brands like GAC Aion, Maxus, Omoda, Xpeng and Zeekr are also rising fast, contributing to China’s influence in shaping the global EV landscape.

To understand China’s growing dominance in the EV market, it is crucial to examine the advancements in production that have propelled the industry forward.

Chinese automakers’ advantage in EV production lies in their ability to scale rapidly, leveraging automation and innovative partnerships with tech companies.

Brands like BYD and Xpeng have optimised their production processes, making electric cars more accessible and affordable.

For instance, BYD’s vertical integration ensures that it manufactures crucial components, like batteries and chips, in-house, reducing costs and enhancing efficiency. Vantage Automotive’s managing director Anthony Teo is in awe of the agility of BYD’s development prowess.

In 2023, the distributor for BYD in Singapore put in an official request to the brand for an Atto 3 model suitable for Singapore’s Category A certificate of entitlement (COE) class. EVs in Category A produce up to 110kW of power and command smaller COE premiums.

“When we first launched our Atto 3, it was a Category B car,” he says, noting that COE premiums between both categories differed by $30,000 back then.

“There weren’t many options then. So, we discussed it with the BYD headquarters, and within two months, we received a Category A Atto 3 in Singapore.

“That’s never happened with any other automotive company – that kind of speed. Vertical integration helped during the Covid-19 pandemic too. We didn’t face any supply shortage when a lot of car manufacturers faced chips or logistics issues,” explains Mr Teo.

While BYD exemplifies the efficiency of established players, the Chinese EV industry is also seeing growth from newer entrants, each bringing unique strengths to the market.

Omoda, a subsidiary of Chery, demonstrates the country’s efficient production capabilities, creating stylish, tech-forward EVs aimed at younger consumers.

Meanwhile, Maxus, known for its electric commercial vehicles, is expanding globally, targeting markets in Europe and South-east Asia with large vehicles, including family-friendly multi-purpose vehicles (MPVs).

XPeng has gained popularity among drivers due to its cutting-edge autonomous driving technology and smart EV features.

Its proprietary Xpilot system offers advanced driver assistance, while the Xmart OS creates an interactive and connected in-car experience. Its creations combine sleek design with impressive range and charging speeds, positioning it as strong competitors in the EV market.

The Chinese government’s support has played a crucial role. Subsidies, tax incentives and a robust charging infrastructure have fostered rapid growth in the country.

Breakthroughs in battery technology

While production capabilities have been crucial to the industry’s success, China's dominance in battery technology has also been a core pillar in its EV success.

Brands like battery manufacturers CATL and BYD are leading innovators, making lithium-ion batteries more affordable and efficient.

BYD’s Blade Battery is a game changer, boasting improved safety, durability and cost-effectiveness. This breakthrough not only enhances performance, but also drives down EV prices.

Vantage Automotive’s Mr Teo says BYD’s Blade Battery addresses one of the main concerns drivers have about EVs – battery fires.

“Our LFP (lithium iron phosphate) battery has gone through very stringent tests, including the nail penetration test. I think all these add up to the advantage that BYD has over other Chinese EV brands,” he says, adding that BYD’s eight-year battery warranty and six-year vehicle warranty help to give customers confidence in buying its cars.

In addition to lithium-ion batteries, Chinese companies are exploring next-generation solid-state batteries, aiming for even greater range and faster charging.

There are plans by the Chinese government to invest more than six billion yuan (about S$1.1 billion) into the research and development of solid-state batteries as part of efforts to maintain the country’s lead in the international EV market.

Shaping global trends

Advancements in battery technology have boosted EV performance and market appeal, enabling Chinese automakers to influence global trends through competitive pricing, cutting-edge features and strategic expansion into international markets.

For example, Xpeng is expanding into the US with a focus on autonomous driving technology. It is also making strides in Singapore.

Customers in Singapore, notes an Xpeng spokesperson, are ready for a transition to more sustainable mobility solutions, with the country having always been at the forefront of embracing technological change.

Having achieved a five-star European New Car Assessment Programme (Euro NCAP) safety rating for its cars, the Xpeng spokesperson says: “EVs offer many new functions and conveniences that traditional internal combustion engine vehicles cannot offer. Xpeng’s artificial intelligence capabilities allow drivers to have a peace of mind behind the wheel while putting safety as the top priority.”

The EV maker has grand plans for Singapore – in the final quarter of 2024, it will open its first flagship store and launch its G6 and X9 models.

Ms Sng Khai Hing, executive director of Vertex – distributor of Omoda in Singapore – reveals that the company is introducing even more models to Singapore under the Omoda Jaecoo brand. Plans to bring the J7 and J8 plug-in hybrid electric vehicle (PHEV) models are under way.

“By combining the benefits of an electric vehicle with the convenience of a hybrid engine, PHEVs offer the best of both worlds – reducing emissions and increasing driving range,” she says.

While China’s EV industry is poised for further growth, challenges loom. Increasing competition from Western automakers such as BMW and Volkswagen, coupled with supply chain disruptions, may slow the expansion of Chinese brands abroad.

Securing raw materials for battery production, including lithium and cobalt, presents another challenge. Furthermore, geopolitical tensions could complicate trade relationships, affecting exports.

China's electric vehicle revolution shows no signs of slowing down. Chinese marques are likely to continue innovating, ensuring their competitiveness in the global EV landscape. Continued investment in battery technology and autonomous driving technology will be key to maintaining their leadership position in driving the global transition to electric mobility – and shaping the future of transportation.

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