Chinese EV expansion in European market expands

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 charge in importing their EVs into Europe.

A report published by ABI Research predicts that by 2030, the European Union (EU) will import 1.2 million Chinese-manufactured battery electric vehicles (BEVs). This highlights China's increasing focus and influence on the EV industry.

In China, BEVs already account for 24% of all car sales as of May 2023. With Chinese companies dominating 56% of the battery manufacturing market share, their impact on the industry is expected to continue growing.

Dylan Khoo, an Industry Analyst at ABI Research, believes that European manufacturers' slower adoption of electrification will result in a greater import of Chinese BEVs. Chinese brands like MG and Polestar, which have already established themselves in the European market, offer competitive EVs across various price ranges and segments.

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

However, Western auto manufacturers still utilize China as an exporting base. Companies like Tesla and BMW produce their EV models in China for both local and European sales. Tesla's Giga Shanghai factory exports 40% of its cars, which make up 80% of Teslas in Europe. Similarly, BMW exclusively produces its iX3 model in China.

According to Khoo, Chinese OEMs are looking overseas for sales due to overcapacity, economic slowdown, and intense competition in the domestic market. Europe presents a lucrative market with high demand for EVs and fewer protectionist measures. This disruption in the European automotive supply chain comes from both Chinese brands entering the market and Western OEMs building production capacity in China for export to Europe.

The Chinese push into Europe's EV market is reshaping the industry and creating new opportunities for both Chinese and Western manufacturers. As the EV market continues to evolve, it will be interesting to see how these dynamics play out and how European consumers respond to the influx of Chinese EVs.

FutureCar Staff