Korean Media: Surged 59%, One Fifth of Electric Vehicles in the European Market Come from China!
On July 14, the Korean media "Chosun Ilbo" published an article stating that despite high EU tariffs, Chinese automakers are accelerating their entry into the European market. With fast R&D capabilities, Chinese manufacturers have adopted a strategy of diverse models and regional layouts, and their market share is continuously increasing.
Sales of Chinese automakers in Europe are growing rapidly. Data from the market research company JATO Dynamics show that in April, the share of Chinese brand cars in all new registered vehicles in the EU was 4.9% (53,000 units), twice that of the same period last year (2.4%).
The recovery of electric vehicle sales is also evident. In October last year, the EU decided to impose additional tariffs, which caused a decline in the sales of Chinese electric vehicles. However, in April this year, the sales of Chinese electric vehicles surged by 59% year-on-year, far exceeding the overall growth rate of the European electric vehicle market during the same period (26%). As of the first quarter of this year, one out of every five electric vehicles sold in Europe came from China.
The secret of Chinese automakers' rapid entry into the European market lies in their strategic flexibility. Since the high tariffs imposed by the EU mainly target pure electric vehicles, Chinese automakers have increased the proportion of internal combustion engine vehicles and hybrid vehicles exported, and focused on selling lower-priced models.
In fact, as of the first quarter of this year, pure electric vehicles accounted for only one third of the cars sold by Chinese companies in Europe.
The diversified sales area strategy is also considered effective. For a long time, the European automotive market has favored local brands centered around Germany and France, making it difficult for companies outside Europe to enter. Volkswagen, which produces Audi and Skoda, holds 28% of the European new car market, while Stellantis, which owns Peugeot and Citroën, holds nearly 16%.
Therefore, Chinese companies seem to have targeted the southern European market where brand loyalty is relatively low. Two-thirds of Chinese car sales in the first quarter were in Italy, Spain, and the UK. In Italy, consumer loyalty to local manufacturer Fiat has sharply declined, while Spain lacks competitive car manufacturers. Moreover, the UK is not an EU member state, so it does not need to pay tariffs, which provides a more favorable condition for the market. Additionally, the lack of electric vehicle charging infrastructure is also a characteristic of these regions.
Certainly, having excellent manufacturing capabilities is also a fundamental competitive advantage. Pier Giacomo Capella, CEO of an Italian import car dealer, said: "German companies take at least two years to develop a new car, while Chinese companies such as BYD, Geely, and Chery can easily complete it within six months."
The growth speed of Chinese automakers in Europe has already exceeded competitors such as Toyota and Hyundai. According to data from the European Automobile Manufacturers Association, in April, Toyota and Hyundai accounted for about 8% of the EU new car registrations, while Ford was only 3%. General Motors also has a small market share, selling only Cadillac electric vehicles.
It is expected that Chinese automakers will accelerate their entry into the European market in the future. Especially BYD, which plans to start production bases in Hungary and Turkey next year, is expected to increase its market share.
Original: https://www.toutiao.com/article/1837602141266249/
Statement: The article represents the views of the author.