As the electric vehicle (EV) industry evolves, Chinese EV OEMs are poised to enhance their dominance globally. Geographic expansion is becoming inevitable for most established Chinese EVs and start-up OEMs as competition intensifies in China’s EV industry. This Frost & Sullivan analysis provides an overview of the global retail approaches of Chinese EV OEMs, focusing on Europe, North America, and Asia. It highlights the retail and aftersales strategies of Chinese EV players operating in diverse geographies and discusses areas of opportunities for OEMs and aftersales stakeholders. Chinese EV OEMs’ adoption of retail approaches differs between home and global segments based on their regional goals. This analysis examines the implications of these strategies on Chinese EV automakers’ growth potential. Questions This Analysis Will Answer What are the retail strategies Chinese EV OEMs adopt in different regions? What are the main trends driving industry penetration for Chinese EV OEMs? Where do the Chinese OEMs stand against competitors in their respective regions? What is the impact of Chinese EV sales growth on local automakers? How will the political and regulatory environments in the respective regions impact the growth of Chinese EVs? As part of the strategy execution evaluation of Chinese EV OEMs, the analysis also covers regional desirability, product alignment, and capability to manage industry drivers and restraints.
Author: Jagadeesh Chandran
The Impact of the Top 3 Strategic Imperatives on Chinese EV OEMs’ Global Retail Approach
Geopolitical Chaos
Why
- Europe has initiated an anti-dumping investigation into Chinese car imports to protect local manufacturers’ interests.
- The import duty on Chinese cars in the United States is 27.5%.
- Because of border tensions and concerns about national security, India has tightened its restrictions on Chinese investments.
Frost Perspective
Chinese OEMs are adopting multiple strategies to tackle local regulatory barriers, such as vertically integrating relevant functions and leveraging the support of friendly nations whose regulations favor China.
- These strategies are expected to aid Chinese OEMs in competing in newer regions.
Customer Value Chain Compression
Why
- Chinese pure-play EV OEMs mostly opt for direct-to-customer (D2C) or omnichannel sales approaches (operating their own physical stores and online channels) to reduce retail operation and distribution costs, which they then transfer onto vehicle prices.
Frost Perspective
- Pure-play OEMs are exploring partnerships with retailers through customized agreements to provide customers with more choices and to leverage existing dealers’ local retail expertise to ensure competitive prices.
Competitive Intensity
Why
- Excessive incentives for EV manufacturing, continuous investments in EV R&D, and the entry of competent global players have intensified competition in China.
Frost Perspective
- To address the competitive dynamics prevailing in the rapidly growing Chinese EV industry, OEMs are targeting foreign markets as an alternative strategy for business expansion.
- Chinese OEMs are adopting innovative retail approaches through collaborations with non-automotive players to distribute their vehicles in other countries.
This report covers the following:
- Industry trends impacting online retailing
- Industry trends impacting Chinese EV OEM strategies globally
- Retail and aftersales models of Chinese EV OEMs
- Opportunities for Chinese EV OEMs by region
- Political climate and regional regulations
- Chinese OEMs’ go-to-market and customer engagement approaches
- Chinese OEMs’ impact on local stakeholders in the foreign market
Segmentation—Sales Channels/OEM Categories/Regions
Sales Channels
- Franchise Model
- OEM-owned Retail Model
- Agency Model
- Importer Model
OEM Categories
- Traditional OEMs
- Pure Players
- Diversifiers
Regional Focus
- North America
- Europe
- Asia
Competitive Environment
| Number of Competitors the Study Considers | 9 |
|---|---|
| Competitive Factors | Retail and aftersales approach |
| Leading Competitors | 3 |
| Region/Country Market Share of the Top 5 OEMs | 69.1% (Europe); 72.3% (United States); 71.1% (Canada); 94.7% (India); 88.8% (Japan); 61% (China) |
| Other Notable Passenger Vehicle Competitors | Zeekr, NIO, Xpeng, Polestar, Aiways |
| Route-to-Market Analysis | Franchise model, OEM-owned retail model, agency model, and importer model |
Growth Drivers
Chinese EV OEMs’ Global Retail Approach: Growth Drivers, Europe, North America, and Asia, 2024–2030
| Driver |
|---|
| State-owned Chinese Automotive Companies’ Market Focus |
| Existing/Ongoing Investments in Major Regions |
| Chinese Policies Promoting Battery Systems/Technologies |
| New Battery Facilities in Europe |
| Innovative Retail Approach |
Growth Restraints
| Restraint |
|---|
| Anti-subsidy Investigations |
| Underdeveloped Retail Network and Logistical Limitations |
| Consumer Preference for Innovation Over Low Costs |
| Infrastructure Availability |
| Brand Recognition |
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on Chinese EV OEMs’ Global Retail Approach
Chinese EV OEMs’ Retail Strategy—Overview
Definitions
Definitions (continued)
Research Methodology
Questions This Study Will Answer
Segmentation—Sales Channels/OEM Categories/Regions
Competitive Environment
OEM Competitors by Region
Key Growth Metrics
Key Growth Metrics (continued)
Market Share of Top 5 EV OEMs by Region
Market Share of Top Chinese EV OEMs by Region
Retail Channel Adoption of Chinese EV OEMs by Region—Comparison Summary
Retail Channel Adoption of Chinese EV OEMs by Region— Comparison Summary (continued)
Retail Approach of Native Traditional OEMs vs Chinese EV OEMs—Comparison Summary
Retail Approach of Native Traditional OEMs vs Chinese EV OEMs—Comparison Summary (continued)
Retail Approach of Native Traditional OEMs vs Chinese EV OEMs—Comparison Summary (continued)
Growth Drivers
Growth Restraints
Potential Trends Impacting the Growth of Chinese EV OEMs Globally
Potential Trends Impacting the Growth of Chinese EV OEMs Globally (continued)
Chinese EV OEMs’ Innovative Vehicle Retailing Approaches
Chinese EV OEMs’ Innovative Vehicle Retailing Approaches (continued)
Key Findings—Current and Future Outlook
Chinese EV OEMs’ Global Retail Strategy—Summary
EV Sales Trend—China
Chinese EV OEMs Operating in China—An Overview
Chinese EV OEMs Operating in China—Key Highlights
Chinese EV OEMs’ Go-to-Market Approach in China
Rationale/Implications of Retail Approaches in the Domestic Market (China)
Types of Retail Models Chinese EV OEMs Adopt Globally
Aftersales Approaches of Chinese EV OEMs by Retail Models
Opportunities for Chinese EV OEMs Globally by Region
Chinese EV OEMs to Watch in Global Expansion
EV Sales Trend by OEM Origin and Category—Europe
Political Climate/Regional Regulations—Europe
Chinese EV OEMs’ Capabilities in Europe
Chinese EV OEMs’ Go-to-Market Approach—Europe
Chinese EV OEMs’ Customer Engagement Approach—Europe
Rationale/Implications of Chinese EV OEMs’ Retail Approaches—Europe
Price Analysis—Europe
Price Analysis—Europe (continued)
Price Analysis—Europe (continued)
Potential Revenue Opportunities for Aftermarket Stakeholders—Europe
Overview of Chinese EV OEMs Operating in Europe
Evaluation of Chinese EV OEMs’ Strategy Execution—Europe
Chinese EV OEMs’ Retail Impact on Local Industry Stakeholders—Europe
EV Sales Trend by OEM Origin and Category—North America (United States)
EV Sales Trend by OEM Origin and Category—North America (Canada)
EV Sales Trend by OEM Origin and Category—Asia (India)
EV Sales Trend by OEM Origin and Category—Asia (Japan)
Chinese EV OEMs’ Capabilities in North America and Asia
Political Climate/Regional Regulations—North America
Political Climate/Regional Regulations—Asia
Chinese EV OEMs’ Go-to-Market Approach—North America and Asia
Chinese EV OEMs’ Customer Engagement Approach—North America and Asia
Rationale/Implications of Chinese EV OEMs’ Retail Approaches—North America
Rationale/Implications of Chinese EV OEMs’ Retail Approaches—Asia
Price Analysis—North America and Asia
Overview of Chinese EV OEMs Operating in North America and Asia
Evaluation of Chinese EV OEMs’ Strategy Execution—North America
Evaluation of Chinese EV OEMs’ Strategy Execution—Asia (India/Japan)
Chinese EV OEMs’ Retail Impact on Local Industry Stakeholders—North America and Asia
Case Examples—Europe
Case Examples—Europe (continued)
Case Examples—North America and Asia
Case Examples—North America and Asia (continued)
Growth Opportunity 1—Ownership Choices and Service Innovation
Growth Opportunity 1—Ownership Choices and Service Innovation (continued)
Growth Opportunity 2—Localized Operations to Enhance Brand Recognition
Growth Opportunity 2—Localized Operations to Enhance Brand Recognition (continued)
Growth Opportunity 3—Data Monetization
Growth Opportunity 3—Data Monetization (continued)
Key Conclusions
Appendix—OEMs Operating by Region/Country
Best Practices Recognition
Frost Radar
Benefits and Impacts of Growth Opportunities
Next Steps
Take the Next Step
List of Exhibits
List of Exhibits (continued)
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As the electric vehicle (EV) industry evolves, Chinese EV OEMs are poised to enhance their dominance globally. Geographic expansion is becoming inevitable for most established Chinese EVs and start-up OEMs as competition intensifies in China s EV industry. This Frost & Sullivan analysis provides an overview of the global retail approaches of Chinese EV OEMs, focusing on Europe, North America, and Asia. It highlights the retail and aftersales strategies of Chinese EV players operating in diverse geographies and discusses areas of opportunities for OEMs and aftersales stakeholders. Chinese EV OEMs adoption of retail approaches differs between home and global segments based on their regional goals. This analysis examines the implications of these strategies on Chinese EV automakers growth potential. Questions This Analysis Will Answer What are the retail strategies Chinese EV OEMs adopt in different regions? What are the main trends driving industry penetration for Chinese EV OEMs? Where do the Chinese OEMs stand against competitors in their respective regions? What is the impact of Chinese EV sales growth on local automakers? How will the political and regulatory environments in the respective regions impact the growth of Chinese EVs? As part of the strategy execution evaluation of Chinese EV OEMs, the analysis also covers regional desirability, product alignment, and capability to manage industry drivers and restraints.
Author: Jagadeesh Chandran
| Deliverable Type | Market Research |
|---|---|
| Author | Jagadeesh Chandran |
| Industries | Automotive |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Chinese Ev Oems |
| Keyword 2 | Electric Vehicle Market |
| Keyword 3 | Ev Market Trends |
| Podcast | No |
| WIP Number | MH37-01-00-00-00 |
Strategic Overview of Chinese EV OEMs Global Retail Approach
Strategic Overview of Chinese EV OEMs Global Retail Approach
Shift Toward Localized, Digital-first Retail Channels Drive Growth Opportunities
RELEASE DATE
26-Apr-2024
26-Apr-2024
REGION
North America
North America
Deliverable Type
Market Research
Market Research
Research Code: MH37-01-00-00-00
SKU: AU_2024_675
$4,950.00
In stock
SKU
AU_2024_675