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China's EV makers face challenges to conquer Europe

Victoria Waldersee (Reuters) (The Jakarta Post)
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Berlin
Sat, August 19, 2023

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hina's electric vehicle (EV) makers, which have raced past foreign rivals to top sales rankings at home, are arriving in Europe – and facing a new set of challenges.

Stereotypes of Chinese manufacturing, import costs and a less-developed EV market are just some of the issues Chinese brands such as BYD, Nio and SAIC's MG will have to overcome to thrive in Europe.

They have made a promising start.

Of new EVs sold in Europe so far this year, 8 percent were made by Chinese brands, up from 6 percent last year and 4 percent in 2021, according to autos consultancy Inovev.

And more are coming. At least 11 new, mass-market, China-made EVs will launch in Europe by 2025, according to a study by Allianz.

Western automakers are rattled, with Carlos Tavares, the CEO of Peugeot-to-Fiat carmaker Stellantis, warning last month of an "invasion" of cheap Chinese EVs in Europe.

But they are also fighting back with their own raft of EV launches and plans to slash manufacturing costs and prices, so the Chinese newcomers will have to be at the top of their game.

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