Chinese electric vehicle manufacturers are now starting to step into the European market after climbing to the top of the sales rankings, surpassing their foreign competitors in the domestic market. But in this new market, they will have to face different challenges, such as the stereotypes of Chinese production, import costs and a less developed electric vehicle market.
Sales of Chinese brands in Europe are gaining momentum, according to automobile consulting firm Inovev. In 2023, 8 percent of new electric vehicles sold in Europe belong to Chinese brands. This rate was 6 percent last year and 2021 percent in 4. Targeting at least 11 new global markets, the Chinese-made electric vehicle will launch in Europe by 2025, according to a study by Allianz.
Western automakers, on the other hand, closely follow the development of their Chinese rivals. Stellantis CEO Carlos Tavares last month warned Europe of an "invasion" of cheap Chinese-made electric vehicles.
But Western automakers are also countering with their own electric vehicle launches and plans to cut production costs. Therefore, newcomers from China will have to put on their best performance to stay competitive.
For Chinese automakers, the road to success is not just based on cost advantages. Factors such as logistics, sales taxes, import duty, and meeting European certification requirements do not make Chinese brands as cheap to sell in Europe as they do in the domestic market. One of the biggest challenges for Chinese brands will be to bring vehicles from China to Europe with long delivery times through ports.
However, Chinese electric vehicle manufacturers have the resources and capability to gain a significant share of the European market. As the European electric vehicle market continues to grow, Chinese brands will continue to become more competitive in this market.
