Examination of the Electrified Automotive Transformation: Chinese Progress goes Beyond Traditional Borders
In the ever-evolving e-mobility landscape, German giants like BMW, Mercedes-Benz, and Volkswagen find themselves losing their grip on the market. According to the International Council on Clean Transportation (ICCT), General Motors, Ford, Renault, and manufacturers from Japan and South Korea are also struggling, while Chinese competitors thrive.
The ICCT's annual "Global Automaker Rating" on e-mobility shows that European automakers, particularly the German ones, missed a golden opportunity in 2024. Despite the electrification of global car markets gaining speed, the export-dependent German manufacturers are slipping behind, feeling the heat of competition. This bleak assessment highlights the contrast between their sluggish pace and the rapid advance of Chinese competitors.
These giants have dropped significantly in the rankings over the years. BMW, once third, is now fifth, Mercedes-Benz, fourth, is now seventh, and the Volkswagen Group, fifth two years ago, is now eighth, one place lower than last year. On the other hand, Chinese brands like Geely (Volvo's parent company) and SAIC, manufacturer of MG, have overtaken both BMW and Mercedes to take third and fourth place, respectively. Other Chinese brands such as Chang'an, Chery, and Great Wall have also made impressive improvements.
Peter Mock, ICCT Europe Director, comments, "2024 was a missed opportunity for European automakers. While the electrification of global car markets is accelerating, export-dependent German automakers are lagging behind."
At the top of the rankings, Tesla and BYD remain in the lead. BYD even surpassed Tesla in global battery electric vehicle sales for the first time in 2024, demonstrating the fierce competition German firms are finding hard to keep up with.
The ICCT evaluates the transition to emission-free vehicles of the 21 largest automakers worldwide based on their market dominance, technological performance, and strategic vision. These criteria encompass aspects such as energy efficiency, resource use in production, and coverage of various vehicle classes.
Sadly, German manufacturers lose points across almost all categories, while their Chinese competitors rack up points. For example, BMW slides due to delays in electric ramp-up for the Mini brand, and Mercedes and Volkswagen face criticism for lacking evidence of announced battery recycling.
On the brighter side, Stellantis, the parent company of Opel, Peugeot, and Fiat, made significant strides to tie with BMW in fifth place. Yet, US companies General Motors and Ford, as well as Renault from France, still lag far behind the German manufacturers. Publicly shamed as laggards in e-mobility, Japanese and South Korean manufacturers occupy the bottom of the rankings.
However, things are looking up for Tata, the Indian company that owns Jaguar and Land Rover. After being classified as a laggard, they made their first leap to the transformation category, moving away from fossil fuel-powered engines towards emission-free models. All German and European manufacturers also belong to this group.
In conclusion, German manufacturers are struggling in the e-mobility market because of slower adaptation to the electrification trend, missed strategic opportunities over the years, and the rapid rise and strong domestic support enjoyed by Chinese automakers, leading to a relative decline in their global position [1][2][3].
- The International Council on Clean Transportation's annual report reveals that European automakers, particularly German ones, are slipping behind in the e-mobility market, as Chinese competitors such as Geely, SAIC, and BYD have overtaken many of them.
- The analysis indicates that German manufacturers like BMW, Mercedes-Benz, and Volkswagen are facing criticism for delayed electric ramp-ups, lack of evidence for announced battery recycling, and overall slower adaptation to the electrification trend.
- On the other hand, Chinese companies like BYD and Tata Motors (owners of Jaguar and Land Rover) have demonstrated rapid advancements in the e-mobility market, with BYD even surpassing Tesla in global battery electric vehicle sales in 2024.
