Auto Shangai 2025: Lynk&Co is aiming for a new lease of life in Europe
- 说明
Auto Shangai 2025: Lynk&Co is aiming for a new lease of life in Europe
- The Chinese brand Lynk&Co (one of the many brands of the Geely group ) has been distributed in Europe since 2021. At the beginning, It had bet on an unconventional purchasing process for this market, since it was a non-binding subscription system applied on the Internet and accredited on its only model marketed in Europe, the Lynk&Co 01 SUV, this model being based on the Volvo XC40 plug-in hybrid (Volvo is also a brand of the Geely group ).
- The formula worked for two years but has been in decline since 2023. While sales in China are trending upwards, reflecting the growth of the Chinese automotive market and a more traditional distribution system, in Europe, sales have been at their lowest since 2023. It should be added that only one model is available on a restricted number of European markets (Belgium, Germany, France, Italy, Netherlands, Spain, Sweden) and nine different models on the Chinese market. The lack of a network has not worked in favor of the formula in Europe. Today, the brand is backtracking and returning to a more traditional distributor and paying (direct purchase or long term leasing) systems. Around thirty distributors are planned for 2025 for Europe, including around ten in France.
- It is in this context that Lynk&Co is launching the 02, a compact SUV based on the Volvo EX30 and Smart #3. In fact, this model has been known for several months in China under the name Lynk&Co Z20. It is a battery electric rear-wheel drive SUV measuring 4.46 m long, which is 22 cm longer than its cousin, the Volvo EX30, which is part of the B segment, and 3 cm longer than the Volvo EX40, which is part of the C segment. The Lynk&Co 02 can therefore be classified in the C segment.
Auto Shangai 2025: challenges: presentation of a large number of models in a strongly competitive market
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Auto Shangai 2025: challenges: presentation of a large number of models in a strongly competitive market
- The Auto Shanghai Show 2025 is bringing together 70 brands and around 100 new models, at the heart of a battle around battery electric and plug- in hybrid vehicles, which will represent half of the Chinese market in 2025. The BYD (6th largest group in the world), Geely (11th largest group in the world) and Chery (12th largest group in the world) groups will be the stars of the show. These camakers have quickly gained influence thanks to a strategy combining technological innovation, competitive prices, and large-scale production.
- By early 2025, Chinese carmakers will account for nearly 70% of China's car production and foreign carmakers, whose market share is shrinking a little more each year, want to rely on the 2025 Shanghai Motor Show to regain ground in the face of increasingly technological and bold Chinese competition. However, their position is weakened by the persistent price war and the rapid evolution of Chinese consumers' expectations. The Auto Shanghai Show therefore marks a strategic turning point. On one hand, Chinese brands like BYD are redoubling their efforts to impose new technological standards. On the other, foreign carmakers are trying to adapt to an ultra-competitive market, where constant launches of new products, rapid innovation and attractive prices are becoming essential.
Auto Shangai 2025: Production of Chinese groups in 2023 and 2024
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Auto Shangai 2025: Production of Chinese groups in 2023 and 2024
Auto Shangai 2025: Exports from China
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Auto Shangai 2025: Exports from China
- China exported 507,000 vehicles in March 2025, up 1% year-on-year. In the first quarter of 2025, vehicle exports reached 1.42 million units, up 7.3% year-on-year . At the current rate, China could export between 5.7 million and 6.0 million vehicles in the whole of 2025, marking a new record.
- In total, China will export between 18% and 20% of its automobile production this year.
- Among the top ten vehicle exporters in March, Chery Group led the way with 86,000 units shipped, up 2.8% year-on-year, and accounting for 17.1% of China's total exports. From January to March 2025, Chery exported 254,000 vehicles, an annual rate of one million vehicles.
- BYD recorded the fastest growth, exporting 73,000 vehicles, up 88.4% year-on-year. MG (SAIC) is the third largest exporter, delivering its vehicles (72,000 vehicles) mainly to Europe 30 countries (EU + UK + Switzerland + Norway) while Chery delivers mainly to Russia. Next come Changan (50,000 vehicles), Geely (43,000 vehicles) and Great Wall (32,000 vehicles). The other manufacturers deliver less than 30,000 vehicles each.
Auto Shangai 2025: The context: the Chinese market and production in China continue to grow (2/2)
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Auto Shangai 2025: The context: the Chinese market and production in China continue to grow (2/2)
B. Analysis of the 1st quarter 2025
- In March 2025, China's passenger car (PC) production reached 2.574 million units and registrations 2.468 million units, representing an increase of 44% and 36% respectively compared to March 2024 (source: CAAM). In the first quarter of 2025, passenger car (PC) production reached 6.513 million units and registrations 6.419 million units, representing an increase of 16% and 12% respectively (source: CAAM).China's production and registration volume therefore remains in full growth, boosted both by the domestic market and exports (particularly to Europe and Russia).
- In this context, production of Chinese carmakers continues to increase, now approaching 70% of Chinese production and registrations. Foreign carmakers are seeing their market share shrink dramatically, with some close to disappearing completely from the Chinese market.
- For the motorisations, BEVs represented 2.023 million units produced in the first quarter of 2025, up 53.6% compared to the first quarter of 2024, and 1.928 million units registered over the same period, up 47.7%. PHEVs, for their part, represented 1.158 million units produced, up 45.3% and 1.145 million units registered, up 46.1%. The market share thus stands at 31% for BEVs in production and 30% in registrations. For PHEVs, the market share stands at 18% in production and 18% in registrations, with Chinese PHEVs exporting less than Chinese BEVs.
- The total number of PHEVs and BEVs therefore represents 49% of production and 48% of registrations, or nearly half of the total Chinese production or the Chinese market. If we take into account the fact that Chinese carmkers produce many more BEVs and PHEVs than foreign carmakers in China, the market share of BEVs and PHEVs within these carmakers is well over 50%, even approaching 60%.
- The total number of PHEVs and BEVs therefore represents 49% of production and 48% of registrations, or nearly half of the total Chinese production or the Chinese market. If we take into account the fact that Chinese carmkers produce many more BEVs and PHEVs than foreign carmakers in China, the market share of BEVs and PHEVs within these carmakers is well over 50%, even approaching 60%.
- BYD remains largely the leader among Chinese carmakers (with 986,000 vehicles produced in the first quarter of 2025 ) but also among carmakers of all nationalities on the Chinese market, up 58% compared to the first quarter of 2024. BYD is also the leader among global carmakers of BEVs (416,000 units) and PHEVs (570,000 units), ahead of Tesla (360,000 BEVs).