A recent report from ABI Research found that the European Union will import 1.2 million Chinese-made battery electric vehicles from the East Asian country this year, balancing both threat and opportunity for European automakers.
These vehicles will make up 12 per cent of the bloc’s BEV sales, according to the global technology intelligence firm, according to the global technology intelligence firm. Chinese brands, including familiar ones like BYD, XPENG, and NIO, are launching models across Europe this year, which is seen by many as problematic.
“Local OEMs are still finding their feet with electrification, these Chinese disruptors are more experienced and entirely focused on EVs,” said Dylan Khoo, Industry Analyst at ABI Research, in a statement. “They offer European customers BEVs that are competitive in price and quality across various segments.”
He said that Chinese-owned brands such as MG and Polestar have been in the market for a while, and the models that are imported from China are selling well. The firm also noted that over the last five years EU vehicle exports to China have done down slightly, while EU imports of Chinese vehicles have “quadrupled.” As a result, the trade flow has been reversed.
“Overcapacity, economic slowdown, and the highly competitive automotive market at home are making Chinese OEMs look overseas for sales,” said Khoo in a statement. “In Europe, they see a lucrative market with a great demand for EVs and few protectionist measures.”
He said the automotive supply chain in Europe will be disrupted from two directions — one of them being Chinese brands pushing into Europe, and the other will be Western automakers building production capacity in the East Asian country for export to Europe.
