Chinese EV expansion in Europe accelerates

author: FutureCar Staff    

The Chinese electric vehicle (EV) industry is expanding its presence in Europe, with Chinese manufacturers exporting more EVs than ever before, according to new research. Brands such as BYD, XPENG, NIO, MG, and Polestar are increasing their import of EVs into Europe.

A report published by ABI Research in July 2023 predicts that the European Union (EU) will import 1.2 million Chinese-manufactured battery electric vehicles (BEVs) by 2030. 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 Chinese BEVs will have a greater import advantage compared to European manufacturers. Chinese-owned brands like MG and Polestar have already established a presence in the European market and are selling well.

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

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

According to Khoo, Chinese OEMs are looking overseas for sales due to overcapacity, economic slowdown, and a highly competitive automotive market at home. In Europe, they see a lucrative market with a high demand for EVs and few protectionist measures. This influx of Chinese brands into Europe, along with Western OEMs building production capacity in China for export to Europe, will disrupt the European automotive supply chain.

In conclusion, the Chinese electric vehicle industry's expansion into Europe is driven by the competitiveness and experience of Chinese manufacturers, as well as the growing demand for EVs in Europe. This trend is reshaping the trade flow of car imports and exports and causing disruptions in the European automotive supply chain.

FutureCar Staff