European electric vehicle market is under pressure: Chinese automakers accelerate their layout and impact local brands

European electric vehicle market is under pressure: Chinese automakers accelerate their layout and impact local brands

In recent years, the global electric vehicle market has flourished, and Europe, as an important automobile consumer market, has always been a must-fight place for major auto companies. However, with the rise of Chinese electric vehicle brands, European local automakers are facing unprecedented competitive pressure. Data from the past 10 days show that Chinese automakers' share in the European market continues to rise, while sales growth of European local brands is relatively weak.

1. Current status of the European electric vehicle market

According to the latest statistics, the sales of the European electric vehicle market in the third quarter of 2023 increased by 15% year-on-year, but the growth rate slowed down significantly. At the same time, the proportion of Chinese brands in the European market has doubled from 4% in 2022 to 8% in 2023. The following are comparative data on electric vehicle sales in major European countries:

As can be seen from the table, Norway, as the country with the highest electric vehicle penetration rate, has accounted for 12% of the market share of Chinese brands, far exceeding other European countries. Traditional automobile powerhouses such as Germany and France have not been spared, and the penetration rate of Chinese brands is steadily increasing.

2. European layout of Chinese automakers

Chinese automakers have accelerated their entry into the European market in recent years, attracting a large number of consumers through high cost performance and advanced technologies. The following are the sales performance of some Chinese brands in Europe:

As the leading brand of electric vehicles in China, BYD's sales in the European market increased by as much as 150% year-on-year, especially outstanding performance. Although MG is a Chinese brand, its sales have exceeded 35,000 units with its European heritage and localization strategy, making it one of the most popular Chinese electric vehicle brands in the European market.

3. Coping strategies for local European brands

Faced with the strong attack of Chinese brands, local European automakers are actively adjusting their strategies. Traditional giants such as Volkswagen, BMW, and Mercedes-Benz have increased their investment in electric vehicle research and development and have planned to launch more affordable models to cope with the competition. The following is a comparison of electric vehicle sales of major European car companies:

Judging from the data, the sales growth of European local brands generally slowed down, and even showed negative growth. Although Volkswagen still accounts for 25% of the market share, its growth rate is only 5%, far lower than the growth rate of Chinese brands. BMW and Mercedes-Benz were not satisfactory, with growth rates both below 5%.

4. Future Outlook

As Chinese automakers continue to make efforts in the European market, the pressure faced by European local brands will further increase. Analysts pointed out that the advantages of Chinese brands in battery technology, intelligent configuration and price will be difficult to surpass in the short term. If European car companies want to remain competitive, they must accelerate the pace of technological innovation and reduce production costs.

In addition, the EU is considering imposing tariffs on Chinese electric vehicles in the near future to protect local industries. If this policy is implemented, it may hinder the expansion of Chinese brands in Europe. However, Chinese automakers have begun to build factories in Europe to avoid trade barriers. For example, BYD plans to set up a production base in Hungary, and NIO will also set up a factory in Germany.

Overall, the competitive landscape of the European electric vehicle market is undergoing profound changes. The rise of Chinese brands provides consumers with more choices, and it also forces European automakers to accelerate their transformation. In the next few years, the battle between China and Europe will become increasingly fierce, and the ultimate winner may be global electric vehicle consumers.