China became the world’s largest automobile market and largest automobile producer in 2008. But even though China exported more cars last year than any other country, few people, especially in developed countries, can name the Chinese manufacturers. Perhaps this is due to the number of companies operating in the Chinese market and the diversity of brands.
The Chinese market is constantly evolving, and recent years have seen a major shift towards what China calls new energy vehicles (NEVs), a collective term for fully electric vehicles and plug-in hybrids. According to recent data, it will account for more than 35% of sales in 2023.
It’s very difficult to pick the top five companies in such a dynamic market, but based on revenue and market capitalization, these are the companies you should know about right now.
1. BYD
BYD may have burst onto the world stage seemingly overnight, but its roots are as a battery manufacturer founded in 1995 and began producing cars in 2005. The company has specialized in NEVs since 2022 and sells cars under four brands: mass-market brand BYD and three other luxury brands: Denza, Leopard (Fangchengpa) and Yang Wang. BYD is currently the fourth largest car brand in the world.
There are two things that set BYD apart from other manufacturers. First, the company is probably the most vertically integrated automaker in the world. Second, the company not only develops and produces its own automotive batteries, but also supplies batteries to other manufacturers through FinDreams, a subsidiary of BYD. The company’s Blade battery delivers world-class energy density with lithium iron phosphate batteries, which are considered cheaper and safer.
2. Geely Automobile
Geely Automobile, long known primarily as the owner of Volvo, sold 2.79 million cars last year. In recent years, the brand portfolio has expanded significantly and now includes many brands focused on electric vehicles, such as Polestar, Smart, Zeekr and Radar. The company also produces brands such as Lynk & Co and London taxi maker LEVC, and has majority stakes in Proton and Lotus.
3. SAIC Engine
For 18 consecutive years, SAIC has sold more vehicles than any other automaker in China, and sales in 2023 will reach his 5.02 million units. For a long time, sales volumes were primarily driven by joint ventures with Volkswagen and General Motors, but in recent years sales of its own brands have increased rapidly. SAIC Motor’s own brands include MG, Roewe, IM, and Maxus (LDV), which sold 2.775 million units last year, accounting for 55% of total sales. Additionally, SAIC has been China’s largest car exporter for eight years, selling 1.208 million cars overseas last year.
4. Changan
The core brand Changan has been one of the best sellers in China for many years. But it’s unlikely that many people will sign up, as many of the sales are in rural areas around the base in Chongqing, or many of the sales involve minivans. The joint ventures with Ford, Mazda, and the former Suzuki have never been as successful as other joint ventures.
Along with the main brand Changan, there is also Osan as an SUV and MPV brand. In recent years, his three new energy brands – Changan Nevo, Deepal and Avatr – have emerged, covering everything from entry-level to premium markets.
5. CATL
Although CATL is not a car manufacturer, it plays a very important role in China’s car market, supplying about half of all battery packs used in NEVs. CATL has also formed partnerships with manufacturers that extend well beyond supplier relationships to shared ownership of some brands. For example, in the case of Avatr, where CATL holds his 24% stake.
CATL already supplies products to manufacturers outside China, with a factory in Germany and others under construction in Hungary and Indonesia.