Chinese EV expansion in Europe accelerates

author: FutureCar Staff    

The Chinese push into Europe's electric vehicle (EV) market is growing rapidly, with Chinese manufacturers exporting more EVs than ever before. Brands like BYD, XPENG, NIO, MG, and Polestar are leading the import of Chinese-manufactured EVs into Europe.

A recent report by ABI Research predicts that by 2030, the European Union (EU) will import around 1.2 million Chinese-made battery electric vehicles (BEVs). In China, BEVs already account for 24% of all car sales, and Chinese companies hold a 56% market share in battery manufacturing.

Dylan Khoo, an industry analyst at ABI Research, believes that the focus and experience of Chinese manufacturers in the EV industry will lead to increased import of Chinese BEVs into Europe. Chinese-owned brands like MG and Polestar have already established themselves in the European market and are selling well.

The Chinese push into Europe is also causing a shift in the trade flow of car imports and exports. Since 2018, exports of European cars to China have slightly decreased, while the import of Chinese cars into the EU has grown nearly four times. China has become the largest importer of cars into the EU, with 28% of its BEVs coming from China.

However, Western auto manufacturers are still using China as an exporting base, producing cars and parts in overseas factories before importing them back into the EU. For example, Tesla's Giga Shanghai factory exports 40% of the cars it produces, which make up 80% of Teslas in Europe. BMW also exclusively produces its iX3 model in China for sales in both the local and European markets.

According to Khoo, Chinese OEMs are looking to overseas markets like Europe due to overcapacity, economic slowdown, and intense competition in the domestic market. The European automotive supply chain will face disruption from both Chinese brands expanding into Europe and Western OEMs building production capacity in China for export to Europe.

In conclusion, the Chinese push into Europe's EV market is gaining momentum, with Chinese manufacturers exporting a significant number of EVs. This trend is expected to continue as Chinese companies offer competitive EVs in terms of price and quality. The trade flow of car imports and exports is also changing, with China becoming the largest importer of cars into the EU. Both Chinese and Western auto manufacturers are utilizing China as a production base for exports, further impacting the European automotive supply chain.

FutureCar Staff