Best month so far
Chinese automakers experienced their best month ever in Europe in September, mainly due to growing demand for cheaper electric cars and hybrids.
According to research firm Dataforce, Chinese manufacturers such as BYD, SAIC Motor (MG) and Chery achieved a record share of 7.4 percent of all car sales in Europe last month. This allowed them to take over South Korean automakers like Kia for the first time. After months of steady growth, Chinese car brands made a remarkable growth spurt in September. This is partly because BYD, the world’s largest electric vehicle manufacturer, further expanded its European dealer network. The supply of hybrids, which combine an electric motor with a combustion engine, from BYD also grew.
According to a Dataforce researcher, this is a precursor of what is yet to come. “We see Chinese brands gradually gaining more market share in Europe.” Chinese manufacturers have a cost advantage through cheaper battery technology, mainly because they control raw materials such as lithium and cobalt. Costs are also lower due to mass production. At the same time, European brands, which have already lost market share in China, are now facing sharper competition in their home market. This is because the Chinese are increasing their exports to absorb overcapacity in their own country.
The latest generations of Chinese fully electric cars and plug-in hybrids offer long electric ranges, fast charging and lots of standard equipment for less money than European competitors. The Netherlands now has more than ten Chinese brands, including BYD, Lynk & Co, Nio, Zeekr, Omoda, Jaecoo and Hongqi.