At the moment, there is a lot of talk about the potential of Chinese cars in the West, particularly because of their competitive prices and their undeniable move to higher markets to bring them up to European standards. Many argue that this is a real threat to traditional European manufacturers, but has this massive Chinese wave really swept through Europe?

Before answering this question, it is important to agree on the definition of a “Chinese car”. China has quickly become a major auto exporting country thanks to its huge manufacturing capacity, relatively low wages and the fact that local manufacturers have learned a lot from the West over the past 20 years. Today, the Chinese automobile industry can easily become the world’s largest exporter, overtaking Japan.

Nonetheless, a large share of exported cars is produced by Western manufacturers. Tesla, BMW, Volvo, Smart, Polestar, Dacia, Buick, Chevrolet, Lincoln and Lotus are among the brands that manufacture cars in China and export them to European and US markets. Although these are cars made in China, we don’t necessarily think of them as Chinese cars.

On the other hand, there are cars from local manufacturers. They are mainly intended for China, a market whose sales fluctuate between 25 and 28 million units per year. Those that can be considered “real” Chinese cars are designed in China and come from Chinese brands. Among these brands are Changan, BYD, MG, Chery, Haval, NIO, Xpeng, JAC, Hongqi, Dongfeng, Wuling and many others.

Niche brands in Europe?

Today, “purely” Chinese brands are far from being the main players in European markets, despite what one might think. In the US, for example, there are almost no Chinese brands on the market. Progress is being made in Europe but it is not the “invasion” that several players in the auto industry feared.

According to the latest data from JATO Dynamics, By April 2023, Chinese brands will account for only 2% of the total number of new car registrations in Europe.

This equates to approximately 85,900 units registered between January and April 2023. However, we cannot hide the very rapid, even impressive progress, because this volume increased by 102% compared to the corresponding period in 2022where Chinese cars accounted for 1.2% of total registrations on the Old Continent.

Despite competitive prices and (almost) undeniable quality, European customers are still reluctant to buy a Chinese car from a Chinese manufacturer. These brands still need time to change this label that sticks to their skin.

Exception MG

The numbers above become even more nuanced when broken down. For what ? Since two-thirds of Chinese cars sold in Europe come from one manufacturer, in this case MG 59,200 units. The MG4 also entered Europe’s top ten best-selling electric cars in April.

MG based its rapid development not only on attractive cars, but also on playing the Western card through a brand that is still recognized as British. Today, MG designs and manufactures all of its cars in China, but continues to play both ways without abandoning the heritage of the original brand. Proof of this is that MG has just unveiled a roadster that’s definitely electric, but one that echoes the manufacturer’s past.

This is probably one of the reasons why MG has managed to establish itself better in the European market than others, not forgetting that the Sino-British brand is also one of the few that still uses the distribution model. a very extensive network of dealerships, where most newcomers prefer to bet 100% digital, like Tesla, with several “flagship” stores, but no real network.