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Uzone.id – Electric vehicle (EV) companies are rapidly increasing their presence in Europe with brands like Chery, BYD and Great Wall Motor (GWM) steadily growing their market share. These companies plan to introduce 20 models in the next five years aiming to challenge the dominance of European EV manufacturers and traditional car companies as well as competitors like Tesla from other parts of the world.
The affordability of EVs is a factor driving their popularity in Europe. While the average price of a battery vehicle in 2023 was €45,999, according to the European Commission, Chinese EVs offer a more budget-friendly option. For example a BYD Dolphin is priced at €29,964 making it significantly cheaper than its counterparts. This pricing advantage puts car manufacturers in a position to attract European consumers looking for eco-friendly vehicles at a more accessible cost.
Chinese EV makers have invested time and effort into studying and understanding the market to develop a strong expansion plan. Through research they have gained insights into consumer preferences, market gaps and challenges. This strategic approach has enabled them to choose suppliers, distributors and key partners who have experience in the automotive sector.
Despite their strategic efforts, Chinese EV makers face a significant challenge in terms of brand awareness. Many potential European buyers are not familiar with Chinese car brands. To overcome this, companies have increased their spending on marketing and sales initiatives to boost brand recognition. Sponsoring high-profile events, such as sporting events, has been one of the strategies employed to enhance visibility and credibility in the market.
In addition to marketing efforts, Chinese car manufacturers have identified and addressed other critical pain points for EV buyers, such as repair and maintenance services. They have taken swift and decisive steps to provide more robust solutions in these areas. Reliable repair and maintenance services are particularly important for fleet buyers and help improve the resale value of the vehicles. These services are also a major consideration for first-time EV buyers, who may still be on the fence about the benefits of EVs. By offering solid servicing and maintenance solutions, Chinese EV makers gain a competitive edge in the market.
Furthermore, Chinese EV manufacturers have tightened their safety and regulatory standards to meet European expectations. This move not only ensures compliance with local regulations but also enhances the overall appeal and trustworthiness of their vehicles.
The high demands of the Chinese home market have also been beneficial for manufacturers entering the European market. Chinese customers have high expectations for product quality, styling, and technology. Mark Wakefield, global co-leader of the Automotive and Industrial practice at AlixPartners, highlights this, saying, “Chinese customers are generally more styling-focused and more technology focused. And I don’t just mean like connecting your iPhone to the center screen. I’m talking about things like assisted driving. So all of these things that help you keep the lane and help you drive semi-autonomous. The takeaway rate on those features is much higher in China than it is in the US, for example.”
This high level of demand in China has pushed manufacturers to develop advanced technologies and stylish designs, which they can leverage when entering the European market. Features like assisted driving and semi-autonomous capabilities, which have a higher adoption rate in China, are also appealing to European consumers looking for advanced technological solutions in their vehicles.
In summary, the combination of affordability, strategic market research, high-quality features, and improved repair and maintenance services positions Chinese EV manufacturers well to attract European buyers. As they continue to launch new models and expand their presence, Chinese EV makers are set to significantly impact the European market, challenging the dominance of traditional European car makers and other established foreign EV manufacturers.
