[Car Talk Forest] Nisshin Younisshin China New Energy Vehicle Market

[Asia Economy Reporter Yu Je-hoon] China's cumulative sales of eco-friendly vehicles this year have surged, surpassing 2 million units for the first time. This growth comes despite adverse factors such as the global automotive semiconductor shortage and the spread of the COVID-19 Delta variant. Notably, this surge is driven not only by established automakers but also by the rapid progress of emerging electric vehicle companies, offering significant implications for us as well.

According to data from the China Association of Automobile Manufacturers (CAAM) cited by local media including Xinhua News Agency on the 15th, cumulative sales of new energy vehicles (NEVs) from January to September reached approximately 2.16 million units, a 190% increase compared to the previous year. This is the first time cumulative sales have exceeded 2 million units, already surpassing last year's total NEV sales of about 1.2 million units.

China's NEV statistics cover battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCVs). Even excluding hybrid electric vehicles (HEVs), which are often considered synonymous with eco-friendly cars, the sector has shown strong growth. This contrasts sharply with the slowing growth of traditional internal combustion engine vehicles.

A notable aspect is the steep growth of emerging electric vehicle companies. Beyond established players like Tesla and BYD, new brands specializing in NEVs are gradually strengthening their competitiveness and solidifying their market presence. For example, the representative EV startup Nio recorded sales of about 42,000 units in the first half of this year, a 95% increase year-over-year. Xpeng and Li Auto also achieved sales exceeding 30,000 units in the first half alone. While these figures do not yet rival those of established automakers, considering their relatively short histories, they are steadily securing market competitiveness.

As the market expands, other players are also making active moves. Honda has announced plans to phase out internal combustion engine vehicles in the Chinese market by 2030. IT giant Xiaomi is preparing to enter the electric vehicle market with investments in the trillions of won range. The market is being shaped by government policy support, leading to the emergence of various competitive players and overall market growth.

Of course, interest in eco-friendly vehicles is also heating up in Korea. Starting with Hyundai Motor Company's first dedicated electric vehicle, the Ioniq 5, Hyundai Motor Group has introduced three dedicated electric vehicle models so far, receiving a warm market response.

However, it is regrettable that aside from Hyundai and Kia, no other players are visible. SsangYong Motor plans to launch its first electric vehicle, the e-Motion, but is currently in a survival-critical situation. Korea GM and Renault Samsung Motors have no immediate plans for independent electric vehicle production. Unlike China, there are virtually no emerging companies achieving clear results.

In this context, a recent joint statement by three labor-management organizations in the automotive industry has drawn attention. They requested a moderation in the future electric powertrain vehicle adoption targets, warning that excessively high targets could lead to the entire shortfall being met through imports, causing simultaneous failures among companies and parts suppliers without production plans. This highlights the need for careful pacing. It suggests that to maintain a ‘healthy’ eco-friendly vehicle ecosystem with multiple players coexisting, detailed support measures are necessary.

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