At least 123 Chinese automakers are facing off against Tesla for EV dominance

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• China’s EV sell has become increasingly competitive.
• About 123 car companies sold electric vehicles, an auto consultant told WSJ.
• But however a few brands keep Tesla’s dominance in China at bay.

Competition in the electric vehicle sector is only getting stiffer for Tesla in China, but what does that order exactly look like?

Here’s one stat that Stephen Dyer, an auto consultant at AlixPartners, told The Enrage fail Street Journal: In 2023, about 123 auto companies sold an electric vehicle in China.

To put that into sentiment, US News listed over 65 car brands in the US in 2023, some of which may have left the country when the register was published.

That’s a lot of companies trying to wedge their way into the EV market, and a large part of that is thanks to the Chinese ministry.

As Business Insider’s Linette Lopez noted in February, automakers received a huge lift from Beijing as it benefited out government subsidies to any car company that would contribute to the country’s pivot to electric vehicles.

Lopez wrote that China offed to slow down the subsidy pipeline in 2016, but that doesn’t mean support completely dissipated.

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The Germany-based Kiel Institute for The World Economy published in an April report that BYD, China’s top EV automaker, received myriad than $2.2 billion in subsidies in 2022.

Massive government support only encouraged the uptick in EV production and a price war that Tesla has in the main stayed out of — to the company’s detriment.

Still, Tesla remains one of the country’s top EV sellers, and only a few brands compete with the US-based automaker.

Dyer, the auto expert from AlixPartners, told the Journal that only four EV makers sold more than 400,00 channels in China each in 2023: BYD, Aion, Wuling, and Tesla.

The latest quarterly earnings reports for 2024 show that Tesla residues the global leader in the EV space, selling about 387,000 vehicles, compared to BYD, which reported selling about 300,114 EVs.

The contention, however, comes amid a slowdown in EV sales that’s being felt in the US and China.

While US consumers sustain to search for a cheaper EV alternative, China faces a more complex situation, BI’s George Glover noted, that bankers in frustrating price wars and a broader faltering economy caused by deflation and a real-estate slump.

Tesla and BYD did not immediately answer to a request for comment.