Chinese EV Makers: The world’s largest electric vehicle (EV) business, China’s, is looking to Europe to achieve this aim, despite its challenges. Several issues relate to this purpose.
BYD, Nio, and SAIC’s MG must overcome many challenges to enter Europe. Preconceived notions about Chinese production, import costs, and Europe’s underdeveloped EV scene are some of these obstacles. BYD, Nio, and SAIC’s MG must overcome these issues to succeed. China sold 8% of new electric automobiles in Europe this year. That’s up from 6% in 2021 and 4% the year before, according to Inovev.
According to Allianz, at least 11 Chinese mass-market electric cars will be available in Europe by 2025. Because of this, Western automakers are warning. Stellantis CEO Carlos Tavares expressed these concerns and mentioned the projected flood of Chinese electric cars on the European market at comparable pricing.
However, the West is awake. They’re building their own electric cars and making them cheaper as a response. If Chinese producers want their products to be seen worldwide, they must improve them. Chen Shihua, a senior member of China’s automobile group, advised enterprises against rapid growth without a targeted strategy. Chen commented in a China Vehicle Association article.
Munich, Germany will host the World New Energy Vehicle Congress in September. Near the famed International Automobile Trade Show. At this occasion, an exhibition will highlight how China intends to become a world power. From whence does China get its best power? Comparable prices to competitors. Jato Dynamics reported that China’s first-half 2022 electric car prices averaged $35,000. This is significantly cheaper than Europe. About $70,000 was the average European electric car pricing.
But European sales won’t be as affordable because the standard of living is higher. The European CEO of Chinese company Zeekr, Spiros Fotinos, says logistics, European compliance fees, sales taxes, and import tariffs all add up.
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The Zeekr marketplace lets users directly trade goods and services. MG, which leads Europe in selling Chinese-made cars, has highlighted organizational issues such port delays. This is because MG leads Europe in selling Chinese-made automobiles.
Alexander Klose, CEO of Chinese electric car startup Aiways, says the price could rise if the company meets European consumers’ need for larger batteries for longer trips. We learned this from Alexander Klose.
Chinese automakers still struggle to promote their products. MG is well-known in Europe, whereas XPeng and Nio are still developing. MG is famous across Europe. In 2022, YouGov found that 95% of respondents knew Tesla and 10% were considering buying from the firm. However, Chinese enterprises had a low awareness quotient and a buying consideration of 1% or less. This shows that Chinese don’t consider buying these items.
Aiways didn’t highlight its Chinese heritage because it concerned about European customers. The corporation wanted to keep European clients, hence this decision was made. A few Chinese automakers have received five stars for meeting Europe’s stringent safety criteria to directly challenge these preconceptions. This immediately challenged existing ideas. Fotinos employs experiential marketing to change people’s minds about their products so they’ll buy more of them through test drives and other hands-on events.
As part of a plan, Chinese corporation GAC opened a design facility in Milan before selling in Europe. The Chinese government funds GAC. Because of this, they understood market preferences better. It was obvious when Klose from Aiways suggested that competing with the competitors may be the only way to counter widespread assumptions. He mentioned it.
Our Reader’s Queries
Who is China’s biggest EV producer?
BYD Auto Co., Ltd. is the automotive arm of BYD Company, a Chinese multinational manufacturing company that’s publicly listed. They specialize in producing new energy vehicles (NEVs), which include passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
Who makes Chinese electric cars?
In 2023, the top 10 Chinese electric car brands are expected to generate significant revenue from their EV sales. Leading the pack is BYD with a whopping 288 billion RMB, followed by SAIC with 64.08 billion RMB and NIO with 49.27 billion RMB. GAC is also a strong contender with 45.57 billion RMB in revenue. These brands are paving the way for a greener future in the automotive industry and are worth keeping an eye on.
Which is the best Chinese EV company?
China has taken the lead in the electric vehicle (EV) market, surpassing traditional automotive giants such as Germany and Japan. In fact, China now accounts for almost 60% of global EV sales. The country’s new EV sales have surged by 82% in 2022, further solidifying its position as the dominant player in the industry.