Led by the likes of BYD Co. and Geely Automobile Holdings Ltd., Chinese firms grabbed more than 50% of total auto sales for the first time in July, according to Bloomberg’s analysis of data from the China Automotive Technology and Research Center.
As Chinese buyers increasingly favor local manufacturers, foreign firms are in retreat. South Korea’s Hyundai Motor Co. is selling production facilities, Ford has cut jobs and Stellantis NV last year shuttered its only Jeep factory in China. Mazda Motor Corp.’s Chief Executive Officer Masahiro Moro earlier this year openly fretted about falling sales and faltering earnings in China.
BYD alone holds an 11% share of China’s auto market. It’s strategy of selling a wide range of EVs at price points ranging from the budget Seagull and Dolphin to the top end of the market has helped fuel its rapid growth. Eleven of the 20 top-selling brands in China are now from local companies.