The Boao Forum for Asia 2024 Annual Conference recently held a sub-forum on “The Future of New Energy Vehicle Track”, where Oliver Wyman Managing Partner Bei Zhemin highlighted the importance of localization for new energy vehicle companies to succeed in market competition.
During the conference, Bei Zhemin emphasized the significance of understanding the diverse characteristics of overseas markets, specifically in Asia and Africa where 50% of China’s electric vehicle exports are sold. Many Chinese new energy vehicle companies have established partnerships with local companies in these regions to better grasp consumer demand, infrastructure, and government regulations.
While four-wheeled electric vehicles have been the focus, there is a growing demand for two- or three-wheeled vehicles in Southeast Asian and African countries. Bei Zhemin noted that factors like consumer habits and market preferences vary significantly across regions, requiring companies to adapt and innovate to meet local needs.
Addressing the competitive landscape, Bei Zhemin discussed how Chinese companies are facing competition from local manufacturers in emerging markets. Despite the challenges, he highlighted the growth of new players like Euler Motors in India, producing electric three-wheelers and environmentally friendly electric trucks for export.
In conclusion, Bei Zhemin stressed the importance of understanding market dynamics and diversification in the global new energy vehicle industry. With competition intensifying and market entities evolving, companies must focus on localization, innovation, and strategic partnerships to thrive in this competitive landscape.
Overall, the forum provided valuable insights into the future of the new energy vehicle market, emphasizing the need for companies to adapt to changing market trends and consumer preferences to stay ahead in the industry.