Mouayad Alzoubi
There is a noticeable spread of Chinese cars in the markets of the Middle East. Wherever you go, you will find Chinese cars from various brands. Despite some criticism regarding the quality of Chinese cars, there is one point we must all acknowledge: Chinese cars have achieved the equation desired by the markets in the Middle East and other regions. They offer cars with advanced technology at reasonable prices.
During the past years, with the increasing fuel costs in many countries in the region and the transition to clean energy strategies in most Middle Eastern nations, the entry of electric cars into our markets became necessary. However, what hindered such a move was the high prices of electric cars compared to traditional ones. Nevertheless, with the entry of Chinese electric car manufacturers or the shift of many global brands to China for electric car production, the prices of electric cars started to decrease, making it easier for consumers to own them.
Indeed, China’s significant capabilities in producing electric cars and accumulating expertise in this field are remarkable. Particularly, CATL, a Chinese company, stands as the world’s largest lithium battery manufacturer and the major supplier of electric vehicle batteries. It holds approximately 32.6% of the global electric vehicle market, making China the world’s factory for electric cars. China now accounts for nearly 60% of the global electric vehicle manufacturing market. According to the China Association of Automobile Manufacturers, China produced around 7.06 million and sold 6.89 million units of new energy vehicles in 2022, with a surge of 96.9% and 93.4% respectively. Furthermore, in a recent electric and hybrid car exhibition held in Lebanon, about one-third of the showcased brands were from China.
According to data from the China Association of Automobile Manufacturers, China’s car exports increased by 54.4% on an annual basis in 2022, reaching 3.111 million units, making it the second-largest car exporter in the world. Analysis data also shows that Chinese branded car sales in Saudi Arabia exceeded 100,000 units in 2022, with an annual increase of 22.2%. Chinese branded cars hold over 10% of the Middle East market, not to mention global brands manufactured in China. This indicates that Chinese companies are entering the Middle East car markets strongly and are likely to have a significant presence in the coming years.