CHENNAI: S&P Global Ratings said in a research report that Asian automakers are increasing their offerings and have some advantages over Tesla similar to what has happened in the internal combustion engine (ICE) vehicle sector.
The market is developing quickly, and S&P Global Ratings anticipates increased competition will change the competitive environment over the coming years. "Chinese automakers are under stiff competition from Tesla. The company, which benefited from a strong brand reputation and functioning products, was listed as the third-largest EV seller in China during the past three years "reports S&P Global Ratings.
With Tesla's entry into the China market, the local EV supply chain was upgraded more quickly and there was more competition in the market.
NIO Inc. and Li Auto Inc., two Chinese domestic automakers that compete in the luxury market, use the asset-light approach by outsourcing production to local manufacturers.
According to the survey, NIO and Li Auto have been boosting sales and have established a presence in the industry because they have a solid understanding of local consumer tastes.
The low-end and mass market categories are dominated by native Chinese manufacturers.
The most popular EV model is the inexpensive Wuling Hongguang tiny EV. Xpeng Inc. and Guangzhou Automobile Group Co. Ltd. offer good technical options for EVs in the mid-price category.
In reality, BYD surpassed Tesla in the first half of 2022. They provide plug-in hybrid EVs (PHEV) in addition to battery EVs, which allays consumer concerns about driving range. In the face of supply-chain upheaval, BYD also benefits from a more vertically integrated business model than its competitors.