[Car Talk Forest] Fierce Competition in Rankings of Electric Vehicles' 'Spring and Autumn Period'

Tesla Leads... Intense Competition for Top Rankings Begins

[Asia Economy Reporter Yu Je-hoon] The global automotive industry is entering a true "Warring States Period." This is because the market for electric vehicles, driven by the carbon-neutral, so-called Net Zero trend?where greenhouse gases emitted are absorbed?is rapidly expanding.

According to data from the Korea Automobile Manufacturers Association citing statistics from the automotive data agency MarkLines, Tesla was the only company to maintain its ranking among the top 10 global electric-powered vehicle (BEV, PHEV, FCEV) sellers last year compared to the previous year. All other companies ranked 2nd to 10th changed their positions. The electric-powered vehicle market grew by about 45% during the same period, reaching approximately 2.94 million units.

Notably, European manufacturers stood out. Volkswagen Group (8th → 2nd), Daimler Group (13th → 8th), and PSA (now Stellantis, 25th → 10th) all made significant advances.

The growth of European makers was largely influenced by the expansion of government incentives across European countries amid the unprecedented COVID-19 crisis last year. Supported by subsidies, electric vehicle sales in Germany nearly tripled, making Europe the largest market last year, accounting for 44% of the total electric-powered vehicle market. In response, traditional automakers actively pursued electrification. Volkswagen Group has been strengthening its electrification strategy, starting with the ID.3, the first model applying the dedicated electric vehicle platform 'MEB.'

The ranking changes among Chinese manufacturers, the world's largest market, were also dynamic. Beijing Automotive (BAIC) and Shanghai Automotive (SAIC), which were ranked 3rd and 10th respectively in 2019, fell out of the top 10. BYD (2nd → 6th) and Geely (6th → 9th) also experienced ranking declines. A consolation is that General Motors (GM) jumped to 3rd place overall, thanks to the ultra-compact electric vehicle 'Wuling Hongguang Mini,' jointly developed by SAIC, GM, and Liuzhou Wuling.

Chinese companies' sluggish performance is due to reduced subsidies. The Chinese government extended electric vehicle subsidies, which were set to end last year, by two years but excluded electric vehicles priced over 300,000 yuan (about 52 million KRW) from subsidy eligibility. Competition and challenges from new entrants were fierce. At the same time, Tesla strengthened its business in China, capturing much of the premium car demand. Demand for affordable models was also dispersed as electric vehicle specialists like Nio and Xpeng grew. Excluding European and Chinese companies, GM and Hyundai Motor Company and Kia showed remarkable growth.

From this year, even greater upheaval seems inevitable as both governments and manufacturers tighten their electrification strategies. In the U.S., President Joe Biden declared a major push for eco-friendly vehicle adoption upon taking office. Meanwhile, Hyundai Motor Company and Kia released their first dedicated electric vehicle models, the Ioniq 5 and EV6. In the second half of the year, the premium brand Genesis will also unveil its first dedicated electric vehicle model.

This content was produced with the assistance of AI translation services.