In January 2023 Tesla (TSLA:NASDAQ) had an 8% share of the Chinese new energy vehicles market according to figures from the China Passenger Car Association. However, the world leader in electric vehicles faces significant domestic competition in China.

Who are the main players? BYD (1211:HKG) is Tesla’s biggest rival and outsells the US company in China. In 2022 the company sold 1.86 million cars (including plug-in hybrid vehicles) and expects that to translate to a net profit of $2.37 billion to $2.52 billion.

Alongside its electric vehicle businesses BYD also operates in areas like solar panels and rechargeable batteries. It was founded in the 1990s. and is listed on the Hong Kong and Shenzen stock exchanges.

Smaller challengers include Li Auto (LI:NASDAQ), Nio (NIO:NYSE) and Xpeng (XPEV:NYSE).

Li Auto was founded in 2015 and listed on Nasdaq in 2020. It is focused primarily on premium electric sports utility vehicles for the Chinese market. It has currently announced four models, Li One, Li Auto L9, Li Auto L8, Li Auto L7. Total deliveries were up 47.2% in 2022 to 133,246.

Shanghai-headquartered Nio has been listed on the New York Stock Exchange since September 2018, four years after its inception. The company has targeted a doubling of sales year-on-year to 250,000 electric vehicles in 2023.

Also listed in New York, Xpeng aims to differentiate itself with a ‘smart’ operating system, assisted driving features and extended range. It delivered 120,757 vehicles in 2022.

This outlook is part of a series being sponsored by Templeton Emerging Markets Investment Trust. For more information on the trust, visit here

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