China’s automotive industry has developed remarkably in recent years, moving beyond cheap and poor quality copies to invest heavily in the development of high-performance battery cells and electromobility. At the trade fair in Shanghai, it was clear to see that Chinese manufacturers are making big strides and leaving European manufacturers struggling to keep up. With the market for new cars in China at around 23 million per year, major auto companies like Volkswagen are having to adapt to new demand for electric vehicles.
BYD, Build Your Dreams, is becoming one of Volkswagen’s closest competitors in China, with the number of registrations for their models, like Atto 3, Han, and Tang, rising sharply. Geely, who have owned Volvo since 2010, is reviving the Smart brand, with the introduction of the Zeekr X, Zeekr 001, and Lynk & Co’s 01, 08, and 09 models. Lotus, known for its previous lightweight minimalism, is introducing its Eletre model, an electric SUV weighing in at almost five tons and costing nearly 96,000 euros for the entry-level model.
Other Chinese automakers like Xpeng and HiPhi are also aiming to enter the European market, with HiPhi planning to launch the Y model from Munich and Oslo later this year. While Chinese automakers are offering high-quality and expensive models, MG is aimed at the mass market, offering more affordable electric options. European automakers may find it tough to compete with the price point of Chinese EVs, with the cheapest VW ID.3 costing almost 40,000 euros despite falling short in terms of technology compared to other Chinese models.
European automakers still have their work cut out for them if they are to successfully compete in the ever-expanding Chinese automotive market, with conditions differing significantly from those in Europe. Factors like coordinated chassis, design, and dealer networks may not be enough to overcome the rapidly growing and increasingly sophisticated competition. As Asian automakers have proved in the past, mimicking successful models and maintaining a good price/performance ratio may be the way forward.
