BBC : Bill Russo on Chinese Auto Exports [BBC VIDEO] - Automobility
Creating the Future of Mobility
venture capital, investment advisory, automotive, management consulting, legal services, merchant banking
20807
post-template-default,single,single-post,postid-20807,single-format-standard,qode-quick-links-1.0,ajax_fade,page_not_loaded,,qode-theme-ver-11.2,qode-theme-bridge,wpb-js-composer js-comp-ver-5.2.1,vc_responsive
 

16 Jul BBC : Bill Russo on Chinese Auto Exports [BBC VIDEO]

Posted at 21:47h in Media Mentions by

Bill Russo made an appearance on BBC’s Asia Business Report on July 5 to discuss China’s surging car export market.

Highlights from the interview:

  • Car exports from China have tripled from 2020 to 2022 and will quadruple in the full year of 2023
  • EV exports represent just 23.2% of the total (as of 1st quarter) – internal combustion engine vehicles constitute the vast majority of exports
  • China has prioritized exports especially to Europe and Asia, with the largest market being Russia so far in 2023

Further, Bill noted in the interview that China’s export focus coincides with a slowdown in domestic demand. China’s auto market has not grown in size since 2017, and sales of gasoline powered vehicles have declined by 8 million units since then.

The overhang of excess capacity in China is fueling exports, and the oversupply pressure is higher for gasoline powered cars than for electric vehicles.

Bill also discussed the comparison between Tesla’s performance in Q2 2023 in comparison with BYD, and it is important to note that BYD sells Battery Electric Vehicles (BEV) as well as Plug-in Hybrid Vehicles (PHEV).  Tesla only sells BEV.

  • BYD outsells Tesla in BEV in China.
  • Tesla sales are greater than BYD BEV sales globally, as BYD is only getting started in their global sales
  • Tesla makes more than half of their cars in China
  • 42.6% of Tesla China’s production was exported in 2023 (through May)

For Further Reading

The book “Selling to China: Stories of Success, Failure, and Constant Change” aims to clarify the dilemma facing multinational corporations in China by bringing front-line business experience to bear on the question of whether to continue to invest in China. The book sheds practical light on doing business in current US-China geopolitical environment.

Bill Russo’s chapter is titled “China’s Auto Industry: The Race to a Sustainable Future”

Scan the QR code to order your copy of Selling to China.

No Comments

Sorry, the comment form is closed at this time.