MILAN, Sep 5 (Class Editori) — European car manufacturers, especially from France and Germany, plan to combat China’s electric vehicle market invasion in Europe with a two-part approach. Firstly, they intend to enhance their technology and distribution agreements with Chinese car manufacturers. Secondly, they aim to invest primarily in battery production in Europe, which remains the weak point of the Western industry.
The news of the collaboration between SAIC Motor of China and Audi of Germany is part of the first approach. They plan to introduce three fresh electric vehicle (EV) models exclusively in the Chinese market by 2025. According to Yicai Global citing the President of Audi’s Chinese division, as per the agreement, Audi will assist SAIC in upgrading the E1 EV platform and integrating their technologies into it. The updated platform will be used as the foundation for manufacturing three models targeting primarily the Chinese market.
In addition, there is a project underway to develop a new EV platform which will be used for building a vehicle that is planned to be released in 2027. The formal co-development agreement is expected to be finalized by the end of this year or in early 2024.
At the same time, IM Motors, a joint venture between SAIC, Alibaba and Zhangjiang Hi-Tech Park, has recently signed a Memorandum of Understanding (MoU) with Audi to collaborate on the development of electric cars.
The strategy for the Chinese market focuses on meeting the demand of the world’s largest auto market and involves not only the Audi brand but the entire Group from Wolfsburg, along with various other initiatives.
Volkswagen established the automotive software company CARIAD, collaborated with Chinese EV startup Xpeng, a partner in the SAIC joint venture, finally worked with Horizon Robotics, a specialist in autonomous driving. “China is a crucial market for us, and we are committed to significant investments,” CEO of Volkswagen Oliver Blume stated. The company has put into effect “substantial cost-cutting measures” and foresees substantial potential in expanding EV production through a 50% reduction in battery production expenses.
Among Volkswagen Group companies, Porsche is developing high-performance components for its future range of EVs to compete and differentiate itself from advancing Chinese rivals in the European markets. “For Porsche, we seek to improve cells with higher energy density,” Michael Steiner, Head of the German brand’s R&D activities, said. “Our subsidiary, Cellforce Group, is developing and will manufacture high-performance cells that surpass mass-produced cells and batteries currently available for purchase”.
As for the second approach, meaning to combat the rise of Chinese manufacturers in Europe, Renault plans to unleash the competitive potential of Ampere, its new wholly EV division. CEO Luca de Meo, at the IAA Mobility in Munich, emphasized that the company is increasing investments in innovative technologies, battery plants, and gigafactories. Ampere will allow Renault to compete in a “different league” from its traditional markets.
“One commitment for Ampere is to reduce the costs by 40% from generation to generation. Achieving this goal means investing significantly in technology, development, and production techniques,” the manager explained to CNBC. “We believe we have the necessary traits and confidence, but it will take time to catch up to the Chinese Groups who began working on it a generation before the Europeans. We are prepared to engage in this challenge”.
(Source:Class Editori)
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