SHANGHAI, Jan 9 Reuters Chinese auto brands are set for better profitability in 2024 despite intensifying competition in the world39;s largest auto market, UBS analysts said on Tuesday, thanks to upgrades they have been making in their electric vehicle EV product mix.

The average selling price ASP of Chinesebranded cars has surged in the past two years and will see high singledigit growth this year, narrowing the gap with foreign brands, said Paul Gong, UBS39; head of China autos research.

Together with a market share increase to 63 in 2024 from 56 last year, the increased ASP will help Chinese brands to enjoy a 30 increase in revenue this year and account for 41 of the overall profit pool in China39;s passenger vehicle industry, Gong told reporters in Shanghai.

That compared to 10 of the profits for Chinese brands in their home market in 2019 and 17 in 2022, he added.

Foreign brands failed to bring good enough EVs to China market in recent years, which has forced Chinese consumers of premium cars to either choose gasoline cars of German brands or Chinesebranded EVs, Gong said.

The trend underscores efforts by Chinese automakers such as BYD , Great Wall Motor and Geely to move upmarket and sell their cars in a more lucrative segment, taking market share from foreign brands which were previously favoured by Chinese consumers.

Chinese automakers, despite rapid growth in sales volume and market share, had struggled to sell their cars at a price range higher than…