Green cars Chinese Cos.unable to sell cheaply in Europe as at home
Green cars Chinese Cos. whose average price of an EV in China was less than 32 thousand euros ($35 thousand) in the first half of 2022 compared with around 56 thousand euros in Europe، plan to slash manufacturing costs and prices in order to conquer Europe and increase their market share in the European countries after they have raced past foreign rivals to top sales rankings at home.
Green cars Chinese Cos. face cost and consumer challenges to conquer Europe including import costs، and low brand recognition as well as a less developed electric vehicle -EV- market that represent some of the issues Chinese brands such as BYD، Nio and SAIC's MG will have to overcome to thrive in in the European countries.
Green cars Chinese Cos. in Europe، confront challenges
Economic Times reported that Green cars Chinese Cos. are arriving in Europe and confront a new set of challenges which they will have to overcome، so the Chinese electric vehicle newcomers will have to be at the top of their game after they have achieved top sales rankings at home over foreign rivals.
Spiros Fotinos، Europe CEO for Chinese brand Zeekr، owned by Geely electric vehicle Co. explaned thae logistics، sales taxes، import duty and meeting European certification requirements all add costs، and make Chinese green cars more expensive.
Green cars Chinese Cos. should pay attention to the risks in Europe
Researchers at Jato Dynamics autos consultancy stated that Green car Chinese Cos. should pay attention to the risks in Europe as currently companies might be over-stretched، stepping into every region without a clear focus in a less developed electric vehicle market as of new EVs sold in Europe so far this year، 8% were made by Chinese brands، up from 6% last year and 4% in 2021.
Autos consultancy Inovev announced that western automakers are rattled، with Carlos Tavares، the CEO of Peugeot-to-Fiat carmaker Stellantis warning last month of an invasion of cheap Chinese Green cars -EVs- in Europe as stereotypes of Chinese manufacturing tries to overcome some of the issues Chinese brands confront to thrive in Europe.
It isn’t smooth for Green cars Chinese Cos. to go global
Chen Shihua، deputy-general of China’s automobile manufacturing association، warned، at a briefing last week in Beijing، its members could be spreading themselves too thin in their expansion plans but it isn’t that smooth for Green cars Chinese Cos. to go global and they should pay attention to the risks in Europe.
Allianz، a German multinational financial services company headquartered in Munich، indicated in a recent study that at least 11 new، mass-market، China-made green cars will launch in Europe by 2025، and plan to slash manufacturing costs and prices، so the Chinese newcomers will be at the top of their sales but European electric vehicle companies are also fighting back with their own raft of less expensive EV launches.
Chinese electric vehicle Congress first time to be held abroad
In a sign of Green car Chinese Cos. ambitions، Chinese electric vehicle -EV- makers' World New Energy Vehicle Congress is taking place in Munich، Germany، this September as part of Germany’s IAA auto trade show، the first time the conference will have been held abroad as Chinese brands have to struggle to sell cars in Europe as cheaply as at home.
Chinese state-owned carmaker MG، the best-selling Chinese-made brand in Europe، said its biggest challenge was getting cars from China to European distribution sites through saturated ports with long lead times although some Chinese brands، such as MG، are well known in Europe، others like XPeng and Nio need to build trust.
European preferences add costs for Chinese EV
Alexander Klose، overseas chief of Chinese green cars startup Aiways revealed that European preferences، such as for big batteries to power longer trips، may also add costs and surveys indicate most potential EV buyers in Europe do not recognise Chinese brands while those who do are hesitant to purchase a Chinese car، reminiscent of Japanese and South Korean automakers' decades-long struggle to win trust and adapt to European tastes.
Several Chinese green car makers have secured five-star safety ratings under Europe's safety standards، going well beyond legal requirements to try to overcome customer doubts and Zeekr's Fotinos tries to win consumer trust through test drives and showrooms where European shoppers could assess the quality of its EVs first hand.
Chinese state-owned carmaker GAC opened a design bureau in Milan
When European shoppers come into contact with the Chinece products compared to comparable European products they would be used to as the quality and specs are much higher and that catches them by surprise and Chinese state-owned carmaker GAC، the third-largest EV seller in China، opened a design bureau in Milan to get a feel for consumers' preferences before moving to sales as the only way to get around the stereotyp) is to embrace the competition.
As our planet struggles under the weight of climate change and environmental degradation، responsible companies across the globe are doubling down on efforts to reduce their carbon footprint، recognising the urgent need for immediate action. especially by using green cars.
