Automotive analyst Lei Xing said the international expansion of Chinese automakers is a "natural evolution" for companies facing mounting pressure at home, as fresh industry data showed a sharp rise in vehicle exports and a widening push into overseas markets.
Domestic Pressure Pushes Carmakers Beyond China
Xing, an independent consultant and co-host of the China EVs & More podcast, told The Wire China that the current globalization drive is the logical next step after many companies reached operational maturity in China. "The domestic market has been feeling the pressure," Xing said. "It's just a natural evolution now that a lot of these companies are becoming global."
Reiterating that view in an X post on Tuesday, he added, "I think we always need to look at this with a glass half-full half-empty perspective," referring to the overseas expansion of Chinese EV makers.
Export Boom Strengthens Global Expansion Drive
The comments came after the Associated Press reported on April 10 that China's passenger car exports jumped 82.4% in March from a year earlier to about 748,000 vehicles, up from 586,000 in February. Exports of new energy passenger vehicles, including battery electric and plug-in hybrid models, rose more than 140% from a year earlier to 363,000 units, up 31% from roughly 276,000 in February.
AP said major automakers, including BYD Co., Ltd. (OTC:BYDDF) (OTC:BYDDY) and Geely Automobile Holdings Ltd. (OTC:GELYF) (OTC:GELHY), have stepped up overseas sales efforts and expanded production outside China.
It added that expectations are growing that the war in Iran's energy shock and higher fuel prices could push more drivers toward EVs.
How Chinese EV Stocks Fare Against US EV Giants
| Stock | Market | Latest close | 1 yr change | YTD change | 5 yr change |
|---|---|---|---|---|---|
| Tesla Inc. (NASDAQ:TSLA) | US | $386.42 | +62.38% | -11.79% | +58.94% |
| Rivian Automotive Inc. (NASDAQ:RIVN) | US | $17.15 | +50.97% | -11.64% | -86.80% |
| Nio Inc. (NYSE:NIO) | China | $6.43 | +71.47% | +25.10% | -84.35% |
| Xpeng Inc (NYSE:XPEV) | China | $17.21 | -9.75% | -15.76% | -48.32% |
| BYD Co., Ltd. (OTC:BYDDY) | China | $13.80 | -15.70% | +8.15% | +77.15% |
According to Benzinga Edge Rankings, NIO shows positive performance trends across the short-, medium-, and long-term.
BYD’s OTC stock, meanwhile, offers a strong growth score but fares poorly on the ‘Price Trend’ metric across the board, according to Benzinga Edge Rankings.
Photo Courtesy: somkanae sawatdinak on Shutterstock.com
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