Chinese Exports: Everywhere All At Once
MG, BYD, Tesla, Chery, Polestar, Zeekr, NIO, Xpeng
The Big 5 This Week
Dear Reader: I have been working in overdrive on a top secret project. That is why you have seen fewer editions of this newsletter in recent weeks. Now it is time to step back into rhythm. Today’s edition is packed with good stuff. Enjoy. - Michael J. Dunne.
1. Chinese Cars Go Everywhere. By now you will have read that China is the world’s No. 1 car exporter, blowing past Japan. And yet, we hardly see any Chinese cars on US streets – aside from Geely-owned Volvos and Polestars. So, where are the millions of Chinese cars landing? Answer: Just about everywhere except America. Fastest growing export destinations are Russia (political buddies), Saudi Arabia and Mexico. Link
2. China’s 10x Battery Lead. Simon Moores, CEO, Benchmark Mineral Intelligence, sat down with me to talk batteries on the Driving With Dunne podcast this week. Simon reminded me that China enjoys a stunning 10x lead in batteries. “Ten times the battery capacity. And a 10-year lead in building giga factories.” Even as it adds a record number of giga factories on its own battery belt, America is still miles behind the PRC. Link
3. The Great MG Renaissance. Remember that iconic brand, Morris Garages? Nanjing Auto bought MG in 2005. Shanghai Auto (SAIC) inherited the brand when it later took over Nanjing. China-built MG shipments to Europe are up 143 percent in the first 6 months of 2023. SAIC says it will soon elect a venue for a European factory. Link
4. VinFast To Break Carolina Ground. The Vietnamese are arguably the world’s most relentless people. They just don’t give up. Despite a painfully rocky debut in the US market, the company will start building a factory near Raleigh North Carolina in the coming weeks. I will be there to witness the ground-breaking ceremony this Friday. Link
5. Thailand As The Electric Canary? My good friend Mark Leonard shared some head-turning sales data from Thailand. Chinese brands, led by MG, BYD and Great Wall Ora account for 96% of EV sales in the Kingdom. Japanese automakers, utterly dominant in Thailand since the 1980s, look like deer in headlights. Link
Future EVs, Batteries, Charging
Electrics
A Bolt Comeback. GM CEO Mary Barra revealed this week that GM will soon start production of an updated Chevy Bolt. The new Bolt will be powered by the Ultium battery, an upgrade over the ill-fated LG Chem battery that was beset by fires and recalls. Link
Batteries
Indonesian Nickel Boom. Indonesia is emerging as the future global nickel king. Within the next few years, Indonesian producers could account for 50% of all nickel going into car batteries, up from 2% in 2015. Link
Charging
Who’s Not In? Companies now signed on to join NACS, the Tesla standard for charging: Ford, GM, Rivian, Mercedes, Nissan, Volvo, Polestar. Still on the fence: Volkswagen, Hyundai and Toyota (but not for long). Link
New Developments / Milestones
Europe. BEVs and PHEVs took a record 23% of the European market in June. BEV sales alone were up 66% year on year in June. Also this: The Tesla Model Y became the best-selling car in Europe. Link
BYD New Highs – Again. BYD sold 1.2 million vehicles in the first six months of 2023. With the introduction of lower cost models, the company could achieve 3 million deliveries for the year. NIO and Li Auto continue to gain momentum. But Xpeng remains a laggard. Link
USA. Americans are expected to buy a record 1 million electric vehicles in 2023, about 7% of the total passenger vehicle market. Link
EV Leaderboard (Projected Sales in 2023)
China: 8.2M
European Union: 2.5M
USA: 1M
Global Total: 13.6M million
And…Your Weekly Modicum of Wisdom
"It is silly to try to escape others people’s faults. They are inescapable. Just try to escape your own.” – Marcus Aurelius
BYD: The Roar of China’s EV Powerhouse
Host Michael J. Dunne and Producer Chris Donovan
Listen to the Driving With Dunne podcast via Apple, Spotify, Amazon or wherever you take your podcasts.
Visit: www.zozogo.com