If global car makers think they can extend their dominance in China into the electric era, they may be in for a shock.
Kings of the combustion age such as General Motors and Volkswagen are falling behind local players in the booming electric vehicle market in China, a country that is key to funding and developing their electric and self-driving ambitions.
For Beijing office worker Tianna Cheng, 29, the main dilemma when she was buying a 180,000 yuan ($27,000) Xpeng electric crossover was whether she should go for a BYD car instead, or a Nio; she did not seriously consider overseas marques.
“If I was buying a gasoline car, I may have considered foreign brands,” Ms Cheng said as she drove home from work. “But I wanted an EV, and other than Tesla, I saw few foreign brands applying advanced smart technology properly.”
Buoyed by demand from consumers like Ms Cheng, electric car sales are rising steeply in China's roughly $500 billion car market, the world's biggest.
In the first four months of 2022, 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, according to data from the China Association of Automobile Manufacturers.
The cleaner technology accounted for 23 per cent of China's passenger car market, where overall vehicle sales fell 12 per cent, reflecting a steep decline in demand for petrol cars.
There are no foreign brands among the top 10 car makers in the new energy vehicle (NEV) segment this year, with the notable exception of US electric pioneer Tesla in third place, according to China Passenger Car Association data.
All the rest are Chinese brands, from BYD and Wuling to Chery and Xpeng.
China leader BYD has sold about 390,000 EVs in the country this year, more than three times as many as global leader Tesla sold there. The top-ranked traditional car maker is Volkswagen's venture with the Faw Group, in 15th place for EV sales.
Ms Cheng said that overseas marques, whether the Buick Velite 7 or Volkswagen's ID. series, failed to provide what she was looking for: an EV capable of giving her the “comfort” of having a smartphone-like experience in her vehicle.
“Foreign brands are so far from my life and lifestyle,” said Ms Cheng, whose digital assistant handles connections to apps such as Alipay and Taobao and “does everything for me, from opening the windows to turning on music”, while her car software provides over-the-air updates.
It is quite a reversal. Global brands have dominated in China since the 1990s, typically winning a collective 60 per cent to 70 per cent share of passenger car sales in recent years.
In the first four months of 2022 they captured 52 per cent, with their April monthly share at 43 per cent.
Signalling the scale of the challenge facing traditional car makers, Nissan chief executive Makoto Uchida told Reuters that some brands “could disappear in three to five years” in China.
“Local brands are becoming stronger,” said Mr Uchida, who was formerly Nissan's China chief.
The quality of EVs from Chinese makers has improved rapidly, with advances being made in the space of months, he said.
“There will be a lot of transformation in China and we need to carefully watch the situation.”
Mr Uchida said car makers had to be nimble in the design, development and launch of new models.
“In those aspects, if we were slow, we would be left behind,” he said.
Bill Russo, a former Chrysler executive who now heads Shanghai-based consultancy Automobility, said global brands need to turn the situation around quickly because they control less than 20 per cent of China's only growth car market.
“Chinese brands are winning the race to EV” and the consumer shift to cars that are essentially smartphones on four wheels appears irreversible, with traditional car makers having trouble keeping up, he said.
“I think it is a secular shift towards high-tech,” he said of the consumer demand for a “user-centric digital services experience” with a focus on interface, connectivity and apps.
“Traditional companies are not high-tech natives.”
Volkswagen Group brands, including Volkswagen, Audi, Bentley, Lamborghini, Porsche and Skoda, have led the market for much of the past two decades, alongside General Motors marques such as Buick, Chevrolet and Cadillac.
The two global groups had overall car market shares of about 13 per cent and 12 per cent, respectively, in China last year, according to LMC Automotive.
Detroit-based GM also has a 44 per cent stake in the locally controlled SAIC-GM-Wuling Auto (SGMW) venture, and includes its sales in group numbers, although SGMW does not make American brands, only Wuling and Baojun cars.
GM is now focused on winning over younger buyers in big cities that have, until now, largely snubbed its models, according to two sources.
The group has announced plans to spend more than $35 billion on electrification globally by 2025, including more than 30 new EVs, with more than 20 of them in China, starting this year with the launch of the all-electric Cadillac Lyriq crossover SUV.
The two sources said the Lyriq launch would be followed by an electric Buick SUV and a smaller, sportier electric crossover, both also planned for as early as this year.
Sales of Buicks have declined 32 per cent over the last five years to 828,600 vehicles in 2021, while Chevrolet's sales have shrunk by more than half to 269,000 vehicles, according to LMC Automotive.
GM told Reuters it was aiming to install capacity to produce one million EVs a year by 2025 in China.
Demand for the Buick Velite NEV family and Chevrolet Menlo EV “both grew significantly” in 2021 and the first three months of this year, GM said.
It said it was using smart technology, including hands-free driver assistance on highways, “aviation-grade” cyber security and over-the-air software updates.
Volkswagen, which is spending about $55bn globally on EVs by 2026, launched its new-generation of ID. series in China early last year but missed its goal of selling 80,000 to 100,000 cars in 2021.
It aims to sell 160,000 to 200,000 ID. cars this year, although it has sold only 33,300 through April.
A key concern for foreign brands, according to one source and a Volkswagen insider, is that their new EVs are being designed more for American and European markets in mind, with a heavier focus on performance and durability.
“Autobahn speeds? In most big cities in China traffic is so congested people can't even drive above 60 kilometres per hour on most days,” said the source close to GM.
Volkswagen said NEV demand in China was strongly linked to the “smart car” theme. The car maker is investing in local research and development, especially in software.
“Our strategy will enable us to achieve our ambitious targets in China. By 2030, we also want to be the market leader in e-vehicles and thus ensure that Volkswagen remains the number one in China in the future,” it said.
The challenge for global brands is to find the formula to win over consumers in big cities with disposable incomes.
Li Huayuan, a civil engineer from Shanghai, only half-heartedly considered Japanese and German brands when he bought his BYD electric sedan last year for 290,000 yuan including insurance.
“Seems to me only Tesla stands out when it comes to American brands,” he said from his parked BYD car in the Sichuan provincial city of Mianyang, where he's working on a project.
“The other brands don't even look competitive to me.”
UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
Read more about the coronavirus
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THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Zayed Sustainability Prize
KILLING OF QASSEM SULEIMANI
Results
2.30pm: Dubai Creek Tower – Handicap (PA) Dh40,000 (Dirt) 1,200m; Winner: Marmara Xm, Gary Sanchez (jockey), Abdelkhir Adam (trainer)
3pm: Al Yasmeen – Maiden (PA) Dh40,000 (D) 1,700m; Winner: AS Hajez, Jesus Rosales, Khalifa Al Neyadi
3.30pm: Al Ferdous – Maiden (PA) Dh40,000 (D) 1,700m; Winner: Soukainah, Sebastien Martino, Jean-Claude Pecout
4pm: The Crown Prince Of Sharjah – Prestige (PA) Dh200,000 (D) 1,200m; Winner: AF Thayer, Ray Dawson, Ernst Oertel
4.30pm: Sheikh Ahmed bin Rashid Al Maktoum Cup – Handicap (TB) Dh200,000 (D) 2,000m; Winner: George Villiers, Antonio Fresu, Bhupat Seemar
5pm: Palma Spring – Handicap (PA) Dh40,000 (D) 2,000m; Winner: Es Abu Mousa, Antonio Fresu, Abubakar Daud
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
MORE ON TURKEY'S SYRIA OFFENCE
The five pillars of Islam
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Emirates exiles
Will Wilson is not the first player to have attained high-class representative honours after first learning to play rugby on the playing fields of UAE.
Jonny Macdonald
Abu Dhabi-born and raised, the current Jebel Ali Dragons assistant coach was selected to play for Scotland at the Hong Kong Sevens in 2011.
Jordan Onojaife
Having started rugby by chance when the Jumeirah College team were short of players, he later won the World Under 20 Championship with England.
Devante Onojaife
Followed older brother Jordan into England age-group rugby, as well as the pro game at Northampton Saints, but recently switched allegiance to Scotland.
Zayed Sustainability Prize
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Things Heard & Seen
Directed by: Shari Springer Berman, Robert Pulcini
Starring: Amanda Seyfried, James Norton
2/5
if you go
The flights
Air France offer flights from Dubai and Abu Dhabi to Cayenne, connecting in Paris from Dh7,300.
The tour
Cox & Kings (coxandkings.com) has a 14-night Hidden Guianas tour of Guyana, Suriname and French Guiana. It includes accommodation, domestic flights, transfers, a local tour manager and guided sightseeing. Contact for price.
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Zayed Sustainability Prize
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Napoleon
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Mohammed bin Zayed Majlis
Empire of Enchantment: The Story of Indian Magic
John Zubrzycki, Hurst Publishers
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Teams
Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan
Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals
COMPANY%20PROFILE
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Killing of Qassem Suleimani
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
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The years Ramadan fell in May
Mohammed bin Zayed Majlis
The specs
Engine: 6.2-litre V8
Transmission: seven-speed auto
Power: 420 bhp
Torque: 624Nm
Price: from Dh293,200
On sale: now
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
Checks continue
A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.
Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.
Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.
Mohammed bin Zayed Majlis
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KILLING OF QASSEM SULEIMANI
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
