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Uzone.id — The emergence of many car brands from China on the European market is like a storm that has shaken the dominance of automotive giants in these countries. The arrival of Chinese brands is like bringing a breath of fresh air because they can offer competitive prices, cutting-edge technology, and attractive designs.
So what effect will the invasion of Chinese car brands have on changing the automotive industry in Europe?
One of the main players in the invasion of Chinese car brands in Europe is SAIC Motor. One of their brands, MG, has shown great growth in Europe.
MG itself is an automotive brand that was born in England, but its trade name was bought by SAIC Motor, and ultimately the cars sold were produced from factories in China. With its history in the UK, Alan Zhu as managing director of SAIC Motor UK also wants MG to dominate the car market in the UK.
“We want to become a mainstream car brand in the UK and we believe MG can achieve this by offering customers attractive and high-value products,” said Alan Zhu.
The success of Chinese brands in Europe is through implementing an aggressive pricing strategy. The main key to success is that it is an attractive choice for consumers in Europe. Especially in an uncertain economic situation, this strategy has succeeded in trapping consumers into buying cars made in China.
“Chinese brands come at prices that are 10-15 percent cheaper than equivalent European competitors,” claimed Matt Priest, LMC Automotive analyst.
However, a low price does not mean that the car offered does not have good quality. Even though Chinese cars are superior in terms of technology, many products are equipped with advanced features such as large touchscreen infotainment systems, semi-autonomous driving features, and even internet connectivity.
Automotive expert Dr. Stefan Bratzel from Bergisch Gladbach University stated, “Chinese car manufacturers have invested heavily in R&D, and they now offer technology that is on par or even better than European competitors.”
In terms of design, cars made in China don’t play around with their design to become one of the main attractions. Chinese brands dare to experiment with different designs, thus becoming a fresher choice for consumers who are bored with the traditional designs of European manufacturers.
“Chinese cars have bolder and futuristic designs, which appeal to younger and trendier consumers,” said Philippe Brizi an analyst at Jato Dynamics.
Even though Chinese cars offer many advantages over European brands, European consumers still have concerns. One of them is regarding quality, considering that there is still a stigma that says Chinese cars are less reliable than cars made in Europe.
“There is a perception that Chinese cars are less durable and have low resale value,” mentioned Jonathon McKenzie, Managing Director of Cox Automotive UK.
Another concern is the business practices of Chinese car companies new to Europe. Some parties even accuse the Chinese government of providing large subsidies to their car manufacturers, giving them an unfair advantage in the global market. This was stated directly by Oliver Zipse CEO of BMW.
“Competition is good, but it has to be fair. We don’t want to see market distortions caused by government subsidies,” said Zipse.
However, despite the challenges presented by car brands from China, the impact of their invasion on the automotive industry in Europe certainly cannot be underestimated.
This impact will certainly have consequences for the European automotive industry, requiring them to adapt quickly to stay on a competitive path. One way to remain competitive is to increase efficiency, innovate more quickly, and offer products that are more attractive to consumers.
The invasion of Chinese brands can be viewed positively as opening up new opportunities for consumers in Europe. With the presence of Chinese brands, consumers also have more car choices at a wider variety of prices. Of course, this encourages innovation for European brands to improve overall product quality.
Each manufacturer itself actually determines the future of the European automotive industry. How the players can adapt to meet consumer needs which are also increasingly developing over time.
There are at least several Chinese car brands that are currently successful in Europe. The most successful currently is MG from SAIC Motor, its growth will double in 2023 compared to the previous year, the MG ZS EV and compact electric SUV are among the best-selling MG electric cars in the UK.
Lynk & Co from Geely is also a Chinese brand that is successful in selling its products in Europe. This premium brand started selling products in 2019 and has gained great popularity thanks to its advanced design and technology. Lynk & Co 01 and hybrid SUVs are products that have been accepted and won awards.
Haval from Great Wall Motor is also a new competitor that cannot be underestimated. Haval is known for its rugged and affordable SUVs, especially the H6 which is the best-selling SUV in Russia and is gaining some popularity in Eastern Europe.
Don’t forget BYD, which has invaded the electric car market in the world and is currently starting to enter the European market with models that are no less interesting. BYD in Europe is known for its innovative batteries and long-range.
