China is facing an influx of electric cars, with automakers expected to launch 110 new EVs and plug-in hybrids in 2024. This surge in offerings, dominated by Chinese brands, will add to the almost 400 “new energy” models already in China’s showrooms. Despite the risk of overcapacity in the market, analysts believe that the intense competition has led to significant advancements in vehicle development, speed to market, and pricing advantages that foreign rivals cannot match. Chinese brands are at the forefront of this technological revolution.
China’s EV market, the world’s largest, is experiencing a period of hyper-competition with the top-selling 10 EVs, led by BYD and Tesla, accounting for over half of sales this year. Overcapacity in manufacturing has resulted in falling prices domestically and increased exportation of EVs. New competitors like smartphone makers Huawei and Xiaomi are entering the market through partnerships with established automakers. State-backed companies are also launching EVs to support the government’s mandate to build China’s lead in networked cars.
Companies like Hesai are cutting car development time to 18 months, enabling Chinese EV makers to take advantage of falling prices for technology like LIDAR remote sensing. By innovating quickly, China’s EV market is able to offer cheaper products at a faster rate. Smartphone makers like Xiaomi have entered the EV market with flashy launches, targeting sales in the hundreds of thousands. Dongfeng, a state-owned automaker, is promoting its new EV sedan, the eĎ€-007, with marketing tactics reminiscent of Elon Musk’s style.
Despite concerns that the current situation in China’s EV market is “unhealthy” due to unsustainable spending and potential profitability challenges, some industry experts see an opportunity for disruption. Launch Design, a Shanghai-based auto design and engineering firm, has developed a platform called “Launch EV One” to create quick-to-market EVs for potential partners, including in developing markets. The company aims to lower the barriers to entry in the industry and create a new kind of revolution by catering to brands that do not yet exist.
Launch is betting on the success of its platform by offering customised EVs for overseas brands, handling engineering, sourcing, safety testing, and even production at its plant in southern China. The company has a team of hundreds of engineers and designers working long hours to bring new EVs to market faster than competitors. By leveraging China’s market standards for cost and speed, Launch believes it can ride the wave of disruption in the industry and avoid being overwhelmed by competition. As the EV market in China continues to evolve rapidly, companies like Launch are positioning themselves to capitalize on the changing landscape and drive innovation in the sector.
