The arrival of Chinese models in Europe could materialize with BEVs
- At the beginning of the 2000s a few number of Chinese carmakers attempted to market products in Europe (notably Landwind, Brilliance) but these attempts were unsuccessful. Geely had another strategy (and opportunity): the takeover of a European carmaker in 2010 (Volvo) which quickly enabled Geely to acquire the technologies developed by an established carmaker but also to better understand the European market.
- But the priority for Chinese carmakers is above all to supply their fast-growing national market before focusing on the European market (growth interrupted since 2018 should resume from 2021). The market share of Chinese carmakers in China is still low (it does not exceed 35%) and they can therefore further strengthen their presence in this market. For this, the Chinese government is strongly pushing for a greater concentration of the Chinese automobile industry to create carmakers with the capacity to meet the challenges of today and of the future (electrification, ADAS ...).
- In Europe, however, the presence of Chinese electric vehicles is already a reality. MG (former English brand) is trying to penetrate the European market with a low-cost B-segment electric SUV (10,000 sales per year). Also, the future Electric Smart and Electric Dacia produced in China will be exported to Europe. The electric car market in Europe is emerging, and potentially more easily penetrated than the combustion engine market, especially for low-cost vehicles.
- The switch from the European A-segment from thermal to electric (therefore more expensive) could create an opportunity for Chinese carmakers to establish themselves in this segment, with electric vehicles that are cheaper than European electric vehicles. China has indeed become an expert in 100% electric vehicles at low prices (at least locally). Inovev has analysed and compared the prices of electric vehicles sold in China and in Europe. The results of this analysis will be available soon in a specific study.
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