@article{018e9e59-732f-71ea-b930-2ad6814d93cf,
author = {Tomasz  Konewka, Tomasz Czuba},
title = {Product innovation strategies of Chinese EV manufacturers},
journal = {Gdansk Journal of East Asian Studies},
volume = {2023},
number = {Issue 24},
year = {2023},
issn = {2084-2902},
pages = {165-180},keywords = {},
abstract = {Climate change and the effects of global warming are one of the most important problems in the modern world. The effects of these phenomena affect the everyday life of societies and the functioning of enterprises, industries, and entire sectors of the world economy. Therefore, appropriate legal and economic regulations have been and are being introduced at state level. Reducing exhaust emissions is the primary goal of electrification of the automotive industry, because the internal combustion engine is inefficient in terms of energy (it burns a lot of fuel and emits large amounts of harmful exhaust gases). The result of this transformation of the automotive industry is the creation of a new product, the electric car (EV), which makes possible the decarbonization of transport.
In 2022, global EV sales totaled 10.5 million units, an increase of 55% compared to the previous year. The largest increase in EV sales in the world was once again recorded in China: by 82% year-on-year. China is by far the largest EV market, accounting for 59% of global EV sales in 2022.
Currently, the dynamic nature of the market environment for electric car companies influences the development of product innovations. The basis for shaping product strategies is the company’s designated goal, the size and structure of its resources, and its innovative potential. The size and structure of the resources at its disposal and its skills (especially in the field of research and development, technology and financial resources) determine the possibilities of taking creative actions in the field of products. This potential directly affects the range of products offered, their technical level and quality.
Activities located within the company’s long-term strategy should take into account changes in buyer preferences, technological progress, activities of competitors, as well as innovative activities of enterprises from supporting industries.
Vehicle manufacturers are introducing more and more EV models, contributing to the electrification of road transport. They see the direction of development in the coming years and know that the expansion of the BEV market is inevitable. However, many automakers have different strategies for transitioning to EVs. Tesla has been producing EVs from the beginning and has become a market leader, meeting consumer expectations by introducing various product innovations in terms of energy consumption, charging speed, and range on a single charge. Chinese manufacturers, like BYD or Geely, have started to play a significant role in this race.
The aim of the article is to discuss the basic forms of product innovation used by Chinese EV manufacturers. Additionally, the authors of the article try to answer the question as to whether Chinese EV manufacturers are able to achieve a significant share in other world markets by using product innovations in their EV vehicles, compared to their competitors’ meeting customer needs.},
doi = {10.4467/23538724GS.23.029.19025},
url = {https://ejournals.eu/en/journal/gsaw/article/strategie-innowacji-produktowych-chinskich-producentow-na-rynku-samochodow-elektrycznych}
}