Home Automobile Why can it be difficult for Chinese manufacturers to gain a foothold in Europe? News from Auto Plus in your smartphone News from Auto Plus in your mailbox

Why can it be difficult for Chinese manufacturers to gain a foothold in Europe? News from Auto Plus in your smartphone News from Auto Plus in your mailbox

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Why can it be difficult for Chinese manufacturers to gain a foothold in Europe?  News from Auto Plus in your smartphone News from Auto Plus in your mailbox

Building a manufacturer’s brand image can take years, even decades. Before being recognized as a premium manufacturer in Europe, Audi spent several years in the shadow of BMW and Mercedes. It was in the 90s and early 2000s that the manufacturer truly began to be considered a premium brand.

It is somewhat the same scenario for the DS, which will soon celebrate its tenth anniversary, and which is not yet officially recognized in the eyes of buyers as a truly high-end manufacturer, despite a significant marketing effort.

Twice as much work for Chinese brands?

For Chinese manufacturers, the step should be even higher. Despite European customers’ skepticism about “Made in China”, import costs and all sorts of other obstacles, Chinese brands still have a long way to go. Experts consulted by the Reuters agency are convinced of this, although, they note, “promising start”.

According to the consulting company Inovev, about 8% of electric cars sold in Europe in 2023 were Chinese, compared to 6% in 2022 and 4% in 2021. At least eleven new all-electric Chinese models will be launched on the Old Continent by 2025, according to a study by Allianz. But the numbers will not tell everything, because there will certainly be obstacles.

First of all, it will be necessary to convince motorists who are most loyal to traditional European brands. Surveys show that most potential buyers of electric cars do not know about Chinese brands. The most informed even prefer to comply “100% European”.

Life can also be difficult for those who are successful. Chen Shihua, deputy director general of the China Association of Manufacturers, has some doubts: “It is not easy for our car manufacturers to reach the international level. We must also be aware of the risks that this may entail. Now manufacturers can quickly become overwhelmed if they don’t have a clear strategy for each market they are targeting.”.

Chinese electric cars will not be so cheap in Europe

The trump card can be the price of Chinese cars. As shown by Jato Dynamics, the average price of a Chinese electric car in Europe is 32,000 euroswhich is significantly less than the €56,000 average for European brands.

However, Chinese manufacturers face several challenges, including logistics, customs duties and other taxes, it won’t make Chinese cars as cheap as you think. Not as much as in China, anyway.

So the real race between Europe and China will be based on price and customer service, which can make certain models much more attractive than others. It is still necessary for European customers to be tempted by the idea of ​​buying cars from manufacturers they do not necessarily know.

Read also:
• Trucks of the future: electric or hydrogen?
• Tesla: the first copy of the Semi was delivered
• Renault Trucks will release new electric trucks

Author: Yann Lethuyer
Source: Auto Plus

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