The Chinese market, which holds mammoth potential for EV manufacturers, has now become a crowded field. Apart from homegrown companies, U.S.-based EV pioneer Tesla, Inc. (NASDAQ: TSLA) and several legacy automakers, either on a standalone basis or in partnerships, are also vying for a piece of the Chinese EV pie.

Domestic EV Makers Stand Tall: NIO Inc.’s (NYSE: NIO) ES6 SUV took the honors as the best quality luxury battery electric vehicle, according to results of J.D. Power 2021 China New Energy Vehicle Initial Quality Study.

XPeng Inc.’s (NYSE: XPEV) G3 SUV topped the chart in the compact BEV segment. The company’s P7 sedan was the second best in terms of quality in the midsize BEV segment.

In the midsize segment BYD Company Limited’s (OTC: BYDDF) Han ranked first in quality.

Li Auto, Inc. (NASDAQ: LI) was the best quality mass market plug-in hybrid EV, the study showed.

Among the small BEV vehicles, Great Wall Motors’ ORA R1 was named as the best quality vehicle.

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The study, according to J.D. Power, measures new-vehicle quality by examining problems experienced by NEV owners in China within the first two to six months of ownership. New-vehicle quality is determined by problems cited per 100 vehicles, with a lower number of problems indicating higher quality.

The study also found that new energy vehicles, an umbrella term used for referring to BEVs, plug-in hybrid EVs and fuel-cell EVs, saw an improvement in quality in 2021, with BEVs accounting for much of the improvement.

BEVs, the survey found, had fewer quality problems in smart features, while plug-in hybrid EVs had fewer problems in basic features.

Why It’s Important: Quality is one of the key aspects that can help win over customers at a time when competition is heating up.

Tesla suffered a backlash earlier this year when users protested against quality issues with its Model 3 vehicle. An owner created a ruckus at the Shanghai Auto show, stating that brake failure with the Model 3 vehicle caused an accident and the mishap occurred due to faulty brakes.

An accent on quality could given an edge to take dominant position in the most-happening EV market.

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