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Industry

China's NEV makers actively expand presence in European market

October 20, 2022


Abstract : China's automobile enterprises have been stepping up efforts in recent years to expand their presence in Europe where consumers have increasing demand for new energy vehicles (NEVs).

Visitors view cars from Chinese electric automaker NIO during China (Tianjin) Auto Show 2021 in north China's Tianjin, Sept. 29, 2021. (Xinhua/Li Ran)

BEIJING, Oct. 20 (Xinhua) -- China's automobile enterprises have been stepping up efforts in recent years to expand their presence in Europe where consumers have increasing demand for new energy vehicles (NEVs).

To meet local demands, Chinese automakers and their European peers are pressing ahead cooperation in the research and development of power batteries, methanol fuel and automatic driving.

The close cooperation between Chinese and European enterprises in the field of NEVs is conducive to the green and sustainable development of transportation. It is also an important force for advancing global carbon neutrality in the transportation sector.

-- Winning recognition from European consumers

Earlier this month, Chinese electric vehicle (EV) maker NIO launched three models in four European countries including Germany, the Netherlands, Denmark and Sweden. The move marks the company's latest step to further expand its footprint in Europe after it entered the Norwegian market a year ago.

Chinese NEV manufacturer BYD announced on October 4 that it would supply 100,000 NEVs to the German car rental firm Sixt from 2022 to 2028, and it would deliver several thousand of its Atto 3 model to Sixt in Europe in the fourth quarter of 2022.

Around 75,000 new cars from Chinese manufacturers were registered in Europe in the first half of 2022, and the number is expected to reach 150,000 by 2023, according to statistics from Inovev, a consulting firm dedicated to providing analysis on global automobile market.

For example, about 7,000 cars made by Chinese manufacturers were registered and gained license plates in Germany in the first seven months, accounting for 0.5 percent of the country's overall market share, showed data released recently by Allegemeiner Deutsche Automobil Club (ADAC), the largest automobile association in Europe.

In Germany where local brands are absolutely dominant, the sales of vehicles under the MG brand of the leading Chinese auto company SAIC Motor has caught up with or surpassed some established automakers, according to ADAC.

Earlier this year, German motor transport authority KBA listed Chinese manufacturers in its official statistics for the first time.

The recognition Chinese-made NEVs gained in the European market is inseparable from the green development trend of various countries. Latest data showed that NEVs now account for 20 percent of new vehicles sold in Europe, and most of the products sold by Chinese automobile enterprises in Europe are plug-in hybrid electric vehicles, pure electric vehicles and other types of NEVs.

Meanwile, Chinese-made NEVs are cost effective and have stable supply chain, outstanding technologies and high quality. All these factors are helping win the favor of European consumers.

-- Facilitating local green transformation

Chinese car makers bring not only NEVs to the European market, but also supportive marketing and after-sales service networks.

With its presence in 16 European countries, MG has opened 400 sales outlets so far in Europe, up from 65 in 2020. It is expected to have 650 such outlets by the end of 2022.

Having opened its first European store and battery swap station in Oslo, Norway in last September, NIO plans to bring its products and services to Germany and the Netherlands this year.

In February, XPENG, a Chinese EV manufacturer, opened its first self-operated European store in Stockholm, Sweden. After six months of expansion thereafter, XPENG's outlets now are seen in the Netherlands, Denmark and Norway.

As the European NEV market continues expanding with rising demand for power batteries, some Chinese automobile battery suppliers have begun making investment in building plants in Europe.

In June this year, Gotion High-tech, a Chinese manufacturer of lithium-ion power batteries, built a production base in Germany with a planned annual capacity of 18 GWh. The production base established based on Bosch Group's Göttingen Factory acquired by Gotion High-tech has transformed from producing traditional automobile parts into manufacturing of power batteries.

In April, China's leading power battery manufacturer Contemporary Amperex Technology Co., Limited (CATL) invested 1.8 billion euros in a power battery plant in Thuringia, Germany, which is expected to achieve an annual production capacity of 60 GWh in 2026.

According to CATL, the plant will supply batteries to many automakers such as BMW Group, Daimler Company Limited and Volkswagen Group, with more than 2,000 jobs created in Germany.

-- Jointly embracing transformation in transportation sector

In addition to electric vehicles, methanol-fueled vehicles are also seen in Europe as an effective means of transport to accelerate carbon neutrality in the transportation sector.

In May this year, a methanol-fueled car independently developed by Chinese automaker Geely was parked at a eye-catching place in the booth of Circle K, a chain gas station enterprise, at the UNITI expo, which is a leading European trade fair for the retail petroleum and car wash industries held in Stuttgart, Germany.

This is the first time that a methanol-fueled vehicle has participated in the UNITI expo, according to Sjur Haugen, director of product quality and development of Circle K.

In Stuttgart, Germany, the test vehicles of China's automatic driving technology company Momenta are running every day on local streets. The company's data-driven technology enables automated and low-cost solutions to the differences in road scenarios and driving habits between China and Europe, allowing automatic driving algorithms to be adapted to European users.

Cars are being redefined by software and chips as a new type of product. To catch up with future transportation, it is important that enterprises from Germany and other European countries should join hands with Chinese companies, especially in the field of automatic driving, according to Ferdinand Dudenhöffer, director of the German think-tank Center Automotive Research (CAR). (Edited by Su Dan with Xinhua Silk Road, sudan@xinhua.org)

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Keyword: China-Europe NEVs

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