Chinese Automakers Navigate EU Tariffs and Domestic Competition

Despite increased sales projections for Chinese automakers like Xpeng, Geely, and Xiaomi, they face challenges from heightened competition and new EU tariffs on Chinese-made EVs. While some manufacturers are forming European partnerships to circumvent these tariffs, the impact on sales is already evident. Xiaomi`s EV venture is anticipated to become a significant growth driver, with projected sales reaching 27 billion yuan in 2024. Meanwhile, NetEase is predicted to experience lackluster results in the gaming sector due to intense competition and struggles in expanding its overseas presence. Xpeng`s sales, likely driven by SUV models, are expected to show improvement, but profitability remains a concern. Kuaishou Technology`s growth has likely plateaued due to increased competition and a slowdown in China`s live-streaming market. Xiaomi`s sales are predicted to surge, fueled by its new EV model, although profitability might be affected.