Global Automakers Face Electric Shock in China

If global automakers believe they can maintain their dominance in China in the electric era, they may be in for a rude awakening. General Motors and Volkswagen are falling behind local players in China's booming Electric Vehicle (EV) market, a country critical to funding and developing their electric and autonomous ambitions.

When Tianna Cheng, a Beijing office worker, went to buy a 180,000-yuan ($27,000) Xpeng electric crossover, her main decision was whether to go with a BYD or a Nio; she did not seriously consider overseas marques.

As she drove home from work the 29-year-old said, "If I was buying a gasoline car, I may have considered foreign brands. But I wanted an EV, and other than Tesla, I saw few foreign brands applying advanced smart technology properly."

Electric car sales are skyrocketing in China's roughly $500 billion auto market, the world's largest, thanks to consumer demand like Cheng. According to data from the China Association of Automobile Manufacturers, the number of new energy passenger cars - pure EVs and plug-in hybrids - more than doubled from a year earlier to 1.49 million cars in the first four months of 2022.