Korean Media: Chinese Electric Vehicles Enter European Market, Traditional Giants Struggle!
On June 23, South Korean media outlet *Herald Economic* published an article stating that Chinese automakers are rapidly expanding their share in the European electric vehicle (EV) market, putting pressure on traditional automakers. As Chinese companies move beyond low-cost EVs and now lead the market with plug-in hybrid electric vehicles (PHEVs) and premium brands, European giants such as Volkswagen and Stellantis are even considering utilizing their factories and collaborating with Chinese firms.
Data from market research firm Dataforce shows that in April, Chinese companies including BYD and Chery sold 38,281 pure electric vehicles in Europe—more than double the same period last year.
The share of Chinese brands in Europe’s pure EV sales has surpassed 15% for the first time. In the broader European automotive market, Chinese brands’ market share is also approaching 10%.
China’s push is not limited to pure electric vehicles. In April this year, Chinese brands captured nearly 29% of the European plug-in hybrid market. Chinese enterprises are swiftly broadening their product lines—from competitively priced entry-level EVs to PHEVs, SUVs, and premium brands—to win over European consumers.
The rapid expansion of Chinese cars in the European market is primarily driven by price and technological competitiveness. European automakers have failed to offer enough affordable EVs that truly satisfy consumers, while Chinese companies are targeting end users by emphasizing relatively lower prices, longer driving ranges, advanced software, and convenient features.
The UK market serves as a typical example of China’s swift expansion. Sub-brands under Chery, such as Jaecoo and Omoda, are gaining increasing popularity in the UK market, with the Jaecoo 7 SUV even topping the list of best-selling vehicles in the country in March this year.
Chinese enterprises are accelerating local production, moving beyond simple exports.
BYD is seeking to build its own factory within the EU, while companies like Geely are exploring ways to utilize underutilized factories owned by European firms.
Concerns among traditional European auto giants are growing. Volkswagen is considering opening its European factories to Chinese automakers. Last year, Volkswagen shut down its Dresden plant—the first closure in the facility’s 88-year history. In the first quarter of this year, Volkswagen’s operating profit was approximately €2.5 billion, a 14.3% decline compared to the same period last year, with revenue also falling by 2.5% to €75.66 billion.
Stellantis is committed to leading the electrification process and has partnered with Chinese EV manufacturer Zhejiang Leapmotor to establish a system supporting overseas sales of Chinese brands. With marques like Peugeot, Fiat, and Opel under its umbrella, Stellantis’ collaboration with Chinese firms indicates that European companies no longer regard Chinese brands as latecomers.
The expansion of Chinese enterprises marks a transformation in the European automotive landscape. In the past, the European market was dominated by traditional giants such as Volkswagen, Renault, Stellantis, Mercedes-Benz, and BMW. However, as Chinese companies rapidly penetrate the market during their transition to electrification—with advantages in pricing, R&D speed, and battery supply chains—existing players’ positions are being challenged.
The European auto industry faces multiple challenges: transitioning to electrification, maintaining profitability, and sustaining factory utilization rates. Coupled with the growing market share of Chinese brands, the European market is transforming from a stronghold of traditional automakers into a fiercely contested battlefield between Chinese firms and established industry titans.
Original source: toutiao.com/article/1868749500894208/
Disclaimer: The views expressed in this article are solely those of the author.