The car industry in Europe is going through big changes as electric vehicles (EVs) become more popular. This shift has created a good opportunity for Chinese EV manufacturers to enter the European market. However, these new companies face challenges in convincing European customers who might have doubts about their brands and concerns about the quality and reliability of their cars.
The success of American EV maker Tesla has shown that European customers are open to buying foreign brands in the EV market. This has given Chinese brands the confidence to try different ways to attract buyers, like offering ownership options that are easy to commit to and suit the preferences of today’s customers.
One Chinese brand that has done well is BYD, whose Atto 3 model was the best-selling EV in Sweden in July. BYD wants to be successful in Europe and plans to have 50 dealers in Germany. They know that it’s important to use Europe’s car dealerships to gain market share.
Another Chinese company, Great Wall Motor, has made a deal with Emil Frey to sell its Ora and Wey cars. This shows how important it is to have a good distribution network to reach European customers effectively.
MG, which is owned by China’s SAIC Motor, sold over 100,000 cars in Europe last year. This shows that Chinese EV makers can sell cars in Europe and have a big impact.
But there might be political problems between the European Union and China because the EU is investigating if China’s government supports its EV makers. If there are problems because of this investigation, it will be harder for Chinese companies to sell cars in Europe.
One big problem for Chinese EV makers is that European customers don’t know their brands. To solve this, Chinese brands are spending a lot of money on dealerships. For example, BYD has made a deal with rental company Sixt to give them 100,000 EVs by 2028. This partnership shows that Chinese EV makers can meet the demand for sustainable transport and also helps European customers trust them more.
As more car sales happen online, the industry will become more concentrated. This is both a challenge and an opportunity for Chinese EV makers who want to be bigger in Europe. They need to change with what customers want and use online platforms well to reach more people and be more competitive.
China’s control of the battery supply chain is also important for Chinese EV makers in Europe. Because they have a lot of control over batteries, they can offer good prices and always have enough power for their cars. This helps them sell more cars in Europe.
German car maker BMW has also shown it’s serious about competing with Tesla by showing its Neue Klasse concept electric car. This shows that established European car makers are aware of the competition from Chinese EV makers and want to be leaders in the market.
Chinese EV makers currently have a small part of the European market, but it’s expected to be between 5% and 20% by the end of the 2020s. This shows that Chinese brands will become important in Europe’s car industry.
In conclusion, as Europe moves to electric cars, Chinese EV makers see a good chance to get more customers. Even though it’s hard to convince European customers, these companies are working hard to be successful with dealerships, different ownership options, and partnerships with European companies. With more concentration in the market and China’s control of the battery supply chain, Chinese EV makers have a good chance to be important in Europe’s electric car market.