China and Europe: different number of models – different series levels
China and Europe have a very different production structure in terms of passenger cars (PC) production:
- different production quantities
- number of different models
- different serial levels
a) Different production quantities
All motorisations included, in 2023, the volume of Chinese passenger car production is twice that of Europe (EEZ perimeter = Economic European Zone = 33 countries which are EU + United Kingdom + Norway + Switzerland + Turkey + Serbia + Morocco).
In total, within this scope, China produced 26 million PCs in 2023 and Europe 13.8 million.
In total, within this scope, China produced 26 million PCs in 2023 and Europe 13.8 million.
b) Number of different models
In 2023, the number of models in China is 631, or 3 times more than in Europe (212 models).
c) Different serial levels
§ Average serial level.
By dividing the total volume of vehicles produced in Europe by the number of models produced in Europe, we obtain the average production level in Europe. This average production level in Europe is 65,000 vehicles per year (production 13.8 million/212 models).
A similar calculation for China enables us to achieve a result of 41,000 vehicles per year (production 26 million/548 models). A first-level of analysis therefore suggests that the average serial level in China is lower than in Europe. But this is just an optical illusion, due to the fact that China has a large number of very small series models, which artificially lowers the average.
A similar calculation for China enables us to achieve a result of 41,000 vehicles per year (production 26 million/548 models). A first-level of analysis therefore suggests that the average serial level in China is lower than in Europe. But this is just an optical illusion, due to the fact that China has a large number of very small series models, which artificially lowers the average.
§ Serial level of the most produced models.
In fact, to the previous analysis must be added a more detailed analysis taking into account the distribution of models by series levels and in particular the most produced models: see the following chapter concerning the Top 10. On the China side, we observe, all motorisations included, one model produced between 600,000 and 700,000 (Tesla Y), 3 models produced between 400,000 and 500,000 (3 BYD models), 2 models produced between 300,000 and 400,000, 17 models produced between 200,000 and 300,000, 60 models produced between 100,000 and 200,000, or 83 models produced at more than 100,000 units and therefore 548 models produced between 0 and 100,000 units. On the European side, no models are produced above 300,000 units in 2023, but 9 models are produced between 200,000 and 300,000 units, 38 models produced between 100,000 and 200,000, or 47 produced at more than 100,000 units and therefore 165 models produced between 0 and 100,000 units. We then see that the models which are the most produced in China have much higher production levels than those produced in Europe. This difference is further greatly accentuated if we focus on Plug-In vehicles (PIV= BEV & PHEV).
§ The average level of series for the Top 10 China is as follows:
- All motorisations: China: 375,000 per year and Europe: 220,000 per year.
- BEV: China 300,000 per year and Europe: 80,000 per year
- PHEV: China: 200,000 per year and Europe: 40,000 per year