Chinese electric vehicle manufacturers face challenges in conquering Europe.


To thrive in Europe, Chinese brands like BYD, NIO, and SAIC Motor's MG must overcome several issues, such as stereotypes about Chinese manufacturing and import costs.

Chinese electric vehicle (EV) manufacturers, having surpassed their foreign competitors domestically and topping the sales charts, are ambitiously planning to conquer Europe. However, the journey of Chinese car companies into Europe may face a series of challenges. To thrive in Europe, Chinese brands such as BYD, Nio, and SAIC Motor's MG must overcome issues such as stereotypes about Chinese manufacturing, import costs, and more.

Data from automotive consulting firm Inovev shows that, from the beginning of the year to date, Chinese brands account for 8% of new electric vehicles sold in Europe, up from 6% last year and 4% in 2021. Additionally, a study by Allianz reveals that by 2025, at least eleven new Chinese-made electric vehicles will be launched in Europe.

The influx of Chinese automakers has unsettled European local manufacturers. Carlos Tavares, CEO of Stellantis, a car manufacturer under the Peugeot-Fiat umbrella, warned that cheap Chinese electric cars are "invading" Europe, and European carmakers need to launch a large number of electric vehicles and reduce manufacturing and sales prices.

As part of the German International Motor Show (IAA), Chinese car companies will hold the World New Energy Vehicle Congress in Munich this September. It will be the first time the conference is held outside of China, showcasing the ambition of Chinese car companies.

However, Chen Shihua, deputy president of the China Association of Automobile Manufacturers, stated last week that the expansion plans of the association's members might be too dispersed, indicating that the global strengthening of Chinese car companies might not be smooth. He highlighted the risks of overexpansion and entering other markets without a clear focus.

Researchers at Jato Dynamics highlight that the biggest advantage for Chinese automakers is price. In the first half of 2022, the average price of a Chinese electric car was less than €32,000 (around $35,000), compared to the European average of about €56,000. However, due to factors such as logistics, sales, import tariffs, and European certification, this price advantage might disappear once they enter Europe.

Europe's best-selling Chinese brand, MG, mentioned that its biggest challenge is how to transport cars from China to European distribution points through congested ports. Additionally, Alexander Klose, oversea director for the Chinese electric vehicle startup Aiways, noted that European preferences, such as the use of large batteries for long trips, could significantly increase the costs for Chinese automakers.

Although brands like China's MG have a certain degree of recognition in Europe, emerging automakers such as XPeng and Nio still need to build their brand awareness. A YouGov survey of 1,629 German consumers in 2022 found that only 14% were aware of BYD, 17% had heard of the premium brand Nio, 10% knew of Geely's Lynk & Co, and 8% were familiar with XPeng.

The survey also showed that 95% of consumers knew of Tesla, but among those aware of Chinese brands, only 1% or less would consider purchasing a Chinese brand. Aiways has stated that due to consumer hesitation towards purchasing Chinese-manufactured products, it might not adopt its domestic marketing strategies in China.

To assuage the doubts of European consumers, several Chinese car companies have already received five-star safety ratings in line with European safety standards. Fotinos from Zeekr expressed hope that by offering test drives and showroom displays, they can win consumer trust and let European customers directly assess the quality of their electric vehicles.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End


Balance of Trade

The trade balance, also known as the balance of trade, refers to the difference between the total exports and imports of a country or region over a certain period (usually one year). It is a significant indicator used to measure the international trade status of a country or region.

Related News

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.


Contact Us

Social Media