[Inside Chodong] Why Chinese Cars Should Be Seen as a Constant, Not a Variable

Electric and Hydrogen Vehicles Sold in One Month in China
Match Over a Decade's Sales in Korea
Chinese Firms Launch Their Own Electric Cars
Substance Grows Alongside Expanding Scale

The perspective on China's rise in electric vehicles (EVs) is mixed with skepticism and caution. The doubt stems from the expectation that, just as China struggled to master internal combustion engine vehicles and advanced semiconductor technologies, it will not easily take the lead in electric vehicles either. This is because well-established advanced manufacturers from developed countries, who have honed their technologies over decades, are not easily outmatched.

On the other hand, some bet that China's EV ecosystem, built ahead of others, will further solidify its position in the future. This is why the United States and Europe blatantly discriminate against Chinese products, risking accusations of violating the World Trade Organization (WTO) principles of free trade.

Regardless of which view one emphasizes, what is certain is that China's EV ecosystem currently holds a comparative advantage over any other country. Last month, about 840,000 new energy vehicles (NEVs) were sold in China. NEVs refer to battery electric vehicles, plug-in hybrids, and hydrogen fuel cell vehicles?types that use next-generation power sources and are considered future mobility solutions. Even counting only battery electric vehicles, over 550,000 units were sold.

In South Korea, as of October this year, about 550,000 electric and hydrogen vehicles have been registered. Roughly comparing, the total number of electric and hydrogen vehicles sold in South Korea over more than ten years is about the same as the volume China sells in one month. Additionally, around 200,000 units were exported to neighboring countries. Including internal combustion engine vehicles, about 3 million vehicles were sold in China last month, making the electrification penetration rate about 35%. This contrasts sharply with South Korea, where the rate has just surpassed 10%.

Despite still being expensive and having inconvenient factors such as charging infrastructure, growth slowdown and calls for speed adjustment have already emerged months ago in countries like South Korea and the United States. Meanwhile, China is still cruising ahead. The basic principle of manufacturing?that producing more leads to better quality?likely applies well to China's EVs.

It is not just about size. On the first day of the Japan Mobility Show held in Tokyo last October, the busiest booth was not domestic brands Toyota or Honda, but China's BYD. BYD was also a finalist for the European Car of the Year. This is the first time a Chinese manufacturer has been nominated for the Car of the Year award, which evaluates new cars launched in Europe during the year. Tesla, BMW, and Nvidia have chosen China as the stage to refine autonomous driving. China not only tightly controls the supply chain for batteries, which are directly linked to the performance of electrified vehicles, but also leads in various applied technologies such as battery swapping.

Rumors that big tech companies like Apple or LG, or automotive electronics companies, would make cars have faded without substance. In contrast, Huawei and Xiaomi are gradually releasing their own electric vehicles. Established companies like Renault Korea Motors and KG Mobility openly acknowledge that they are importing electrification technologies from Chinese firms. Among Tesla owners, the prevailing opinion is that Chinese-made vehicles have better quality than those made in American factories. This is evidence that Chinese EVs have strengthened their substance as much as their outward growth.

Cars made in 19th-century Germany became popularized in the United States in the 20th century. From the mid to late 20th century through the early 2000s, Japan stood out. Now, as the competition for leadership in future mobility?using new energy sources and autonomous driving technologies?intensifies, China is the country best equipped with the most diverse arsenal to compete. Just over a decade ago, China was considered an insignificant variable in the global automotive industry, aside from being a huge market. It is time to accept that China has become not just an important variable but a constant factor. It is a formidable opponent.

Choi Dae-yeol, Deputy Head of the Industrial IT Department

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