Supply and manufacturing problems and the high price of electric cars manufactured in Europe are opening the door for Chinese manufacturers: in 2025 they will control 18% of the market.
Until the advent of electric cars, Chinese cars sold in the European market could be counted on the fingers of one hand. However, the technology is mechanically simpler than that required by a combustion engine, which opens the door for new companies to enter. Other circumstantial circumstances are added to this technical scenario. Chinese electric cars are more affordable than those made in the West, and European carmakers are struggling to supply enough vehicles to meet demand. In this scenario, the consulting firm Fitch Solutions assures that by 2025 one in six electric vehicles sold in Europe will come from a Chinese manufacturer.
Over the next three years, Chinese electric vehicle manufacturers will achieve 18% of the European market, up from 3% today, Fitch Solutions analyst Phoebe O’Hara said in a South China Morning Post webinar held on last November 4. Affordable vehicles come to meet customer demand that European manufacturers cannot meet. “The supply and supply capacity of Chinese manufacturers can fill the gap in that market,” she added.
In recent years, several Chinese manufacturers have begun to plan their arrival in Europe. Some are initially doing it with high-performance, high-end electric cars such as NIO, XPeng, or BYD, but others, such as MG and other brands that will arrive in a short time, are opting for a mass market, that of affordable cars that Europeans are not being able to reach.
In September, BYD introduced three all-electric models to the European market, and NIO began operating its first battery-sharing station outside of China, in Hungary. Great Wall Motor announced last year that it would start selling the Ola EV in Europe, offering at least 10 models by 2025.
In addition to affordable prices, there is another reason that supports the strength of the expectations of Chinese electric vehicle manufacturers. “These brands entered the metals and mining industry over the last decade, which allowed them to insulate themselves from the volatility we’ve seen in the market for battery materials, ” explains O’Hara. Chinese electric vehicle manufacturers will prosper in Europe for the next decade.”
According to China Securities Journal, China’s exports of new energy vehicles (NEV) have grown rapidly in the last two years due to the push toward the European market. In China, NEC vehicles are considered to be pure electric, plug-in hybrid, and hydrogen fuel cell vehicles. The information quotes Chen Shihua, deputy secretary general of the China Association of Automobile Manufacturers (CAAM) who assures that “almost 10 local companies have exported NEV vehicles to Europe, which already represent 10% of sales of this type of vehicle in Europe. Europe.