Chinese manufacturers are exporting EVs into Europe at a greater number than ever according to new research
China’s focus on its electric vehicle (EV) industry is soaring to new heights, as the country ramps up its push into Europe. Chinese brands including BYD, XPENG and NIO are joining MG and Polestar in growing the import of their EVs cross-continent.
A July 2023 report published by global technology intelligence firm ABI Research estimates that there will be 1.2 million Chinese-manufactured battery electric vehicles (BEV) imported by the European Union (EU) by 2030.
As of May 2023, BEVs account for 24 per cent of all car sales in China. With Chinese companies holding an estimated 56 per cent of the market share for battery manufacturing, the nation’s influence on the industry will only continue to grow.
Dylan Khoo, Industry Analyst at ABI Research, believes that this focus in comparison to European manufacturers will lead to greater import of Chinese BEVs.
“Local OEMs are still finding their feet with electrification, these Chinese disruptors are more experienced and entirely focused on EVs,” Khoo says.
“They offer European customers BEVs that are competitive in price and quality across various segments. Chinese-owned brands such as MG and Polestar have already been in the market for a while, and their models imported from China are selling well.”
The Chinese push into Europe is also fostering a reversing of the trade flow in car importing and exporting. Since 2018, exports of European cars into China have fallen slightly, while the importing of Chinese cars into the EU has grown by nearly four times. China has become the biggest importer of cars into the EU, with 28 per cent of its BEVs coming from China.
However, Western auto manufacturers are still using China as an exporting base, building cars and parts in overseas factories before importing them back into the EU.
The data says 40 per cent of the cars made in Tesla’s Giga Shanghai factory are then exported, making up 80 per cent of Teslas in Europe. BMW similarly produces its iX3 model exclusively in China, for significantly sales both locally and in Europe.
“Overcapacity, economic slowdown, and the highly competitive automotive market at home are making Chinese OEMs look overseas for sales,” Khoo says.
“In Europe, they see a lucrative market with a great demand for EVs and few protectionist measures. The European automotive supply chain will be disrupted from two directions: these Chinese brands pushing into Europe, and Western OEMs building production capacity in China for export to Europe.”