Last year, China became the world's largest exporter of cars, in addition to being the largest car market and the largest producer. It might be surprising

to those unfamiliar with the business, but Chinese cars are, in fact, entering more markets around the world. What explains it? Currently, internal combustion engine (ICE) powered vehicles still account for over half of the total exported cars from China. These come from both foreign companies who have set up shop in China and Chinese automakers. However, as the market for electric vehicles (EV) opens up, a greater proportion of them will be EVs. There, China has a significant edge over competitors. Strategic investments in the industry long before EVs became as popular as they are today, and before other governments acted, means that the Chinese EV producers are years ahead of the competition in all aspects of an EV, especially its price. According to JATO Dynamics, an automotive market research firm, the average EV price in China is now less than half the average EV price in Europe and the US. In H1 2023, an average EV cost $33,404 (€31,405) in China, $71,669 (€66,864) in Europe, and $72,912 (€68,023) in the US, as per the currency conversion rates on November 6, 2023.

Economics aside, why should a South Asian or European consumer choose a Chinese EV? In a nutshell, they're cheap, charge fast, and are cool. The cheapest model from BYD, the largest EV maker in China and the world ahead of Tesla, the Seagull subcompact EV, costs only $11,400 (78,800 yuan), compared to Tesla's cheapest, model 3, at $ 38,990(245,900

yuan). The latest EVs from China can charge as fast as, if not faster than, foreign models, and the world is dependent on Chinese supply chains in EV batteries at present. Huawei's new charger can run for 150 km with a charge of 5 minutes. Chinese EVs are pretty much like movie theaters, high-end microphones, and plush seats on wheels. Huawei was the first phone

maker to bring the phone experience onto the car. The large mounted screen on its models works almost exactly like its matepad device, only larger and with built-in navigation. You can even join a zoom call in your car stuck in traffic and pretend like you're at the office by using Huawei's HiCar. With its latest model, you can watch a movie on a 32-inch built-in projector

screen from the back while sitting on fully electric-adjustable seating. Huawei is not alone. Xiaomi, which has a large presence in phone markets in Asia and Europe, has launched its first EV and aims to become a top producer of cars in the next decade. Existing Chinese EV makers such as BYD, X-peng, and I were built to be more like tech companies than automakers, bringing a shorter product cycle, cooler features, and lower prices. The market within China is gradually consolidating and becoming saturated, leading companies to start looking abroad. The world has not yet seen the full power of Chinese EV exports. What's constraining exports is there are simply not enough boats to ship them. When that's resolved, a Chinese EV may well be coming to a store near you.