This week, the Geneva Motor Show opened, and even if the number of manufacturers present is quite relative, it allowed us to assess the latest trends that will appear in Europe. Among the big names in the industry, BYD and MG stood in front of Renault’s colossal stand, demonstrating the growth of Chinese manufacturers in the European market.

After the Japanese and Koreans, several Chinese automobile giants took the European market by storm a few years ago. Having gained an advantage in the development of electric cars and economic conditions of production, they were able to offer unbeatable prices. This strategy, however, has attracted the attention of European authorities as the Commission launched an investigation into alleged illegal subsidies by Beijing to its producers.

Intrusion? What invasion?

Despite their efforts, Chinese manufacturers have so far only managed to win, than 6% of the European electric vehicle market in 2023This is evidenced by the data of the Association of European Automobile Manufacturers (ACEA). “They are coming, but not as fast as the newspapers say”, – explains Fitch agency analyst Tsygdem Cherit. Competition remains fierce: well-known players such as Tesla, the global sales leader in 2023 with the Model Y. Models such as the MG4 or the BYD Atto 3 SUV are hard to compete with the reputation and brand image of established giants.
However, Chinese manufacturers do not want to rush, realizing the problems associated with potential tariff barriers. “They don’t want to come in too fast and trigger price barriers”, says sociologist Tommaso Pardi in Geneva. The commitment of European motorists to the brand image is an additional challenge for Chinese manufacturers. Some choose to acquire well-known brands, such as Geely from Volvo and SAIC from MG.

First Europe, then the USA?

Despite these obstacles, Chinese manufacturers are not giving up. MG unveiled its IM luxury brand in Geneva, a joint venture with e-commerce giant Alibaba offering powerful electric models aimed squarely at Tesla. For its part, BYD, which will become the world’s leading electric car manufacturer in 2023, unveiled its YangWang luxury brand and an impressive 1,200 horsepower SUV.
For Luca de Meo, head of Renault, cooperation with Chinese manufacturers is crucial for the transition to greener mobility. “The Chinese are ahead of the curve, and if our goal is to decarbonize transport, we must cooperate”he says.

As Chinese manufacturers continue their expansion in Europe, their next stop could be the United States, where they look to establish themselves in a market dominated by pickup trucks. But the Biden administration is watching.

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