The Chinese are confident that only they can challenge Tesla in the electric car market

China electric cars

Chinese new-energy vehicle makers currently have high valuations in the US market, which, while bubbly, is also a reaction to investors’ good expectations for the future, according to the China Passenger Car Association (CPCA).

The CPCA today released its report on the development of China’s auto market from November 16 to November 22, in which it noted that the recent strong performance of new Chinese carmakers has exceeded expectations.

The report does not directly name NIO, Li Auto or XPeng, but they are the only three new Chinese carmakers listed in the US.

According to the CPCA, there seems to be no other carmaker that can catch up with Tesla’s development line like the new Chinese carmakers, and the reaction of US investors is a recognition of this move and future trends.

So it’s good that they’re giving a higher valuation to Chinese companies listed in the US, the CPCA said.

The new Chinese carmakers are selling their vehicles at higher prices and achieving better performance with higher prices and higher sales. With higher sales volume, the gross profit status has improved significantly.

Due to the lack of an effective price reference for new energy high-end models, and the high prices and mediocre performance of some international OEMs’ new energy vehicles, it is difficult for them to compete with the new powerhouses in the short term, the report said, adding that local Chinese new powerhouses are able to gain market recognition for their products, even at higher prices.

According to the report, local Chinese new power products are more competitive, intelligent, quality is recognized, channels are tested and fully recognized by the market, which forms a good characteristic for a breakthrough in the high-end market.

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