• Chinese EV Makers Set Their Sights on Europe: A Battle Against Tesla and Legacy Automakers

    Chinese EV Makers Set Their Sights on Europe: A Battle Against Tesla and Legacy Automakers

    Since the 1980s, European automakers have dominated the Chinese market, achieving impressive sales figures with little local competition. However, the tables are turning as Chinese electric vehicle (EV) giants BYD, Chery, and Great Wall Motor (GWM) prepare to launch an onslaught of products in Europe. With about 20 new models planned over the next five years, these manufacturers are investing heavily in sales, marketing, and infrastructure. In this high-stakes battle, they aim to challenge Tesla and established European automakers on their home turf.

    Chinese EV makers have meticulously studied European car-buyers, hiring industry veterans and selecting distributors with extensive local knowledge. Their groundwork includes understanding consumer preferences, market dynamics, and regulatory requirements. Armed with this insight, they are poised to disrupt the status quo.

    Breaking into the Market: Tactics and Strategies

    To gain a foothold in Europe, Chinese automakers are employing a multifaceted approach:

    1. Brand Awareness and Sponsorship: By sponsoring high-profile sporting events, they raise awareness of their brands. These efforts aim to introduce Chinese EVs to European consumers who may be unfamiliar with them.
    2. Dealership Networks: Building out robust dealership networks is crucial. Chinese manufacturers are strategically expanding their presence across Europe, ensuring convenient access for potential buyers.
    3. Resale Value Focus: Fleet buyers, a significant segment in the European market, prioritize resale value. Chinese automakers recognize this and are investing in service-and-repair operations to maintain strong resale values.

    Sales Growth and Model Expansion

    While Chinese automakers’ European sales remain modest due to brand recognition challenges, they are rapidly gaining ground. For instance:

    • BYD tripled its Europe sales to 15,000 vehicles in 2023, following exponential growth in China and other export markets.
    • Great Wall Motor plans to launch a new model annually in Europe for the next five years.
    • Chery will introduce eight SUV models under the Omodo and Jaecoo brands within the next two years.

    In comparison, Tesla currently offers only two volume-selling models: the mid-priced Model 3 and Model Y.