LONDON. Despite growing concerns within the European automotive industry, Chinese electric vehicle (EV) manufacturers are gaining traction among European consumers due to affordable pricing, advanced features, and stylish designs. As climate-conscious car buyers in Europe contend with rising living costs, Chinese EVs have become a popular choice, challenging established European brands.
Laima Springe-Janssen, a resident of Copenhagen, Denmark, opted for a compact SUV from China’s BYD when replacing her gasoline-powered SUV. She cited the affordable price, which was equivalent to about $50,000, and the inclusion of features like a 360-degree dash cam, two years of free charging, and an extra set of winter tires. Her enthusiasm for the vehicle highlights how Chinese automakers are making significant headway in Europe’s EV market, which plays a crucial role in the continent’s transition to green energy.
This trend has prompted the European Union (EU) to initiate an investigation into Beijing’s support for its EV industry. The competitive threat from Chinese EVs has added to technology-related tensions between the West and China, which is one of Europe’s largest trading partners and the world’s biggest auto market.
Chinese automakers are targeting Europe due to lower import tariffs compared to the United States and the region’s status as the world’s second-largest EV battery market after China. This appeal has drawn Chinese EV manufacturers to Europe, and they are rapidly gaining market share.
While Chinese automakers account for only about 3% of Western Europe’s overall car market, they make up 8.4% of the EV market, a significant increase from 6.2% in the previous year and almost nothing in 2019, according to data from independent auto analyst Matthias Schmidt.
European Commission President Ursula von der Leyen expressed concerns over the flood of cheaper Chinese electric cars in global markets and the impact on European car manufacturers and jobs. The EU investigation, formally launched this month, could result in import duties.
Stellantis, which owns brands such as Peugeot, Citroen, Alfa Romeo, and Fiat, is planning to compete against Chinese EVs with new offerings. Executives at Shanghai-based Aiways, a startup focused on Europe and Israel, rejected claims of subsidies and called for fair competition to drive the transition to a green future.
Chinese EV manufacturers are distinguishing themselves through innovative designs and features, and they are targeting specific market segments. Brands like MG, owned by China’s SAIC Motor, are becoming increasingly popular in Europe, offering affordable options with impressive features. While Chinese EVs currently represent a fraction of European car sales, their rapid growth poses a significant challenge to the established players in the region’s automotive industry.
Gary P Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
