There is no doubt that Chinese manufacturers are leading the revolution towards sustainable mobility. For decades, China has applied an investment strategy and technological approach to the entire electric car production chain: batteries, raw materials, vehicles, etc.
So much so that the current figures and forecasts for the future demonstrate the clear dominance of the electric vehicle market. This is his domain The Chinese market accounts for 59% of electric cars sold worldwide and has a market share of 28% in the Asian country.
Numbers that are above the forecasts of the Chinese Ministry of Industry, which called for a share of 25% by 2025. Your dominance is so great. China’s top electric car makers are expanding overseas, and their arrival on the European market is already a reality.
The hurdles Chinese brands face in Europe
When we look at the prices of electric cars sold in China, we realize that there is a big difference compared to Europe. To give you an idea, the average price for an electric car in China in 2022 was 32,000 euros, according to data from JATO Dynamics, while in Europe it was around 56,000 euros.
Although the Chinese electric car price is their biggest asset, they will not have such an easy time in Europe. Their beginnings are not bad: by the beginning of 2023, they will have already achieved 8% of the market share of electric cars sold in Europe, compared to 4% two years ago. In addition, many electric cars are coming along with five Euro NCAP safety stars under their hood.
Still, Chinese brands face different hurdles: the import costsLogistics issues (crowded ports with long delivery times), sales taxes, compliance with European certification requirements, production of stereotypes in a still underdeveloped market, etc., as well as different needs of the European customer that is looking for larger batteries to be able to handle longer journeys, which would ultimately lead to higher prices
Obstacles, some of which are gradually being overcome. Who doesn’t remember the similar problems Japanese and South Korean brands faced a few decades ago?
European brands are already concerned
Western manufacturers, European and North American, are nervous about the upcoming tsunami in China and begin to act, as do the rulers relief plans on the purchase, production, and development of new batteries, also with the aim of reducing dependence on the Asian giant.
However, from there, issue several warnings: Chinese Automobile Manufacturers Association Deputy Director-General Chen Shihua warned that landing his brands in Europe could over-accelerate “Without a clear focus. We should pay attention to the risks.”
The news that shows signs of this expansion is that, for the first time, The world Congress for new energy vehicles from Chinese manufacturers takes place in Europe on the occasion of the Munich Motor Show in early September.
Especially in Germany, there is a new Chinese brand awareness survey. While 95% of respondents knew about Tesla, only 14% knew about BYD, the second largest electric car maker in the world; only 17% had heard of Nio, 10% of Geely, and 8% of XPeng.
However, Chinese brands still have a long way to go They are already beginning to take action to overcome these problems, such as the creation of factories, exhibition centers, test drives, and even design offices (in the case of GAC in Milan) to better understand the European customer and make known first-hand the quality of their electric cars.
