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Chinese manufacturers are beginning to gain ground on traditional ones thanks to electric cars

Due to the relay between internal combustion technology and battery-powered electric cars, the automobile industry is immersed in a change of course that generates as many opportunities as challenges. A situation that Chinese manufacturers are taking advantage to start leading their own market, in which until now traditional European and American firms, such as those of the Volkswagen Group or General Motors, were the leaders.

This is a situation that has been taking place since the early 1990s, when foreigners such as the Volkswagen Group and General Motors began to take command of the Chinese market, prolonging their commercial tax until today, since attending to all types of technology the scenario continues to occur. On the other hand, if sales of electric cars are analyzed, the trend is quite different.

This is certified with, for example, Volkswagen, whose range of electric cars ID. It is hardly having an impact on the Chinese market, or at least it is not having the reception that the brand intends, and it is far from showing signs of evolution and the ability to improvise in commercial terms. While last year they did not reach the goal of 100,000 units, the 200,000 that they have as a goal this year are beginning to become complicated given that until April they have barely sold 35,000 electric cars in China.

Volkswagen ID.6 Crozz and ID.6 X.
Volkswagen ID.6 Crozz and ID.6 X, two specific Volkswagen models for China.

The situation is also reflected in the global sales figures for electric cars. Until March of this year, Tesla has clearly dominated with the Model 3 and Model Y in the first two positions in the world sales table, while only one European electric car appears in the top 20, the Volkswagen ID.4. The German model and the Americans are accompanied by the Ioniq 5 and the KIA EV6 as the only six electrics on the list that are not Chinese.

Looking only at the Chinese market, it becomes clear that the majority of buyers who opt for an electric car in this country will only opt for a foreign brand; Tesla. If you have to choose another electric car, it will be a domestically produced model from a manufacturer such as SAIC, GAC, BYD or Chery, who have achieved a market share of 25.3%, 10.2%, 4.7% and 4%, respectively, during the first four months of the year.

In this sense, the facts that the evolution of the Chinese market leaves behind are clear; only 3.7% of electric car sales in China correspond to those of models of the Volkswagen Group, while Tesla more than doubles this figure with reaching 9.6%.

NIO ET5 electric.
NIO ET5 electric.

The situation of Chinese electric car manufacturers in Europe

In EuropeHowever, and for now, the situation is very different. With sales of electric cars yet to definitely explode, Tesla is the brand that clearly dominates the top 10 European sales of electric cars, but the rest of the positions show a variety of manufacturers, with Koreans and Europeans leading the top positions, and No Chinese at the moment.

Later on, it is to be expected that the presence of Chinese models will increase as soon as brands such as NIO or Xpeng, among others, formalize a commercial network and thereby gain exposure to the public. However, and assuming that this type of manufacturer is going to gain a presence in Europe, the magnitude of its scope remains to be seen, since the European market is a market loyal to traditional manufacturersso it remains to be seen if he is as open with manufacturers from China as he has done, for example, with Tesla.

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