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The Chinese are confident that only they can challenge Tesla in the electric vehicle market
The China Passenger Car Association (CPCA) releases a report on the current development of China’s auto market today. The CPCA considers the highest rating of Chinese electric vehicle manufacturers by American investors to be the main indicator of the state of the local auto industry. Moreover, it seems that there are no other manufacturers in the world who could catch up with Tesla in their development, the association notes.
According to sources, the CPCA report does not directly mention NIO, Li Auto or Xpeng, but these are the only three new companies listed in the US. The “overly enthusiastic” reaction of American investors, the association believes, is a recognition that in the future, Chinese electric vehicle manufacturers will be the only ones who can develop their products to the level of Tesla electric vehicles.
Due to the lack of an effective pricing benchmark for new premium EVs, and the high prices and mediocre performance of new “new energy” vehicles, some international OEMs find it difficult to compete with emerging Chinese EV makers in the short term.
In particular, the report says that new Chinese manufacturers can gain market recognition for their products at even higher prices, which they do. They sell EVs at higher prices and in ever-increasing numbers, which demonstrates excellent profitability and is met with enthusiasm by investors.
According to the report, the local Chinese new “energy products” are more competitive, intelligent, with recognized quality, and the supply chain is tested and fully recognized by the market, which is a good characteristic for a breakthrough in the high-end market.