Chinese EV Companies To Conquer European EV Market

HOOK European automobile companies have had a monopoly over the Chinese market for more than 40 years. Now in 2024, the table has changed. The Dragon is planning to invade and conquer the European EV market. Stick till the end to get a sneak peek over the most valuable report on the past, present and future of European automobile companies. Intro “The window is closing, we hardly have 2 or 3 years.” These are the exact words of Volkswagen’s board member “Thomas Schmall”. But, why did he say so? What has changed in the past few years? What could happen in the next 2 years? Body Chinese EV giants BYD, Cherry and Great Wall Motor have been researching the car-buyer’s persona for years, and now they are fully prepared for the fight. BYD has launched 6 electric models in Europe and is planning to launch 2 more this year in the UK as stated by their marketing manager “Mark Blundell”. GWM has planned to launch a new model every year. Cherry has queued 8 new suvs under their 2 brands - Omodo and Jaecoo. To give context - Tesla has just 2 volume seller models 3 and Y. BYD is selling EV for rock bottom prices between $10K to $30K. If you think this is all, then no my friends, they are a few more steps ahead. While with western vehicles, you have to buy accessories. These companies gave all accessories with the car. They also provide the best software for free, which otherwise costs a lot. This was the same strategy used by Japanese companies. New electric vehicles have improved their safety rating significantly. They are partnering with local distributors to provide better after sale service. They are customizing their strategies for European buyers, like for Chinese customers purchasing price is most important, but for Europeans total ownership cost including maintenance, service and residual values are more important. Why can't Western automakers cut prices? Well, the main issue is the cost of batteries, which are the most expensive part of an electric vehicle. China produces more batteries than the rest of the world combined. On top of that, they benefit from cheap labor and government subsidies. European companies just don't have those advantages. Despite all these advantages, the dragon faces one big challenge: customers don’t know about them. To tackle this, these giants are planning to spend heavily on social media advertising and sponsorships. For instance, BYD has already secured sponsorship for the Euro 2024 Soccer Championship, which averages 100 million viewers. Meanwhile, Chery and GWM are partnering with local dealers who sell established brands. This way, when customers come in for other brands, the dealers can introduce them to these new brands and convince them to make the switch. To address the unfairly low prices of Chinese EVs, the EU is imposing tariffs of up to 38%, starting on July 4, 2024. They stated, "The influx of subsidized Chinese imports at artificially low prices presents a threat of clearly foreseeable and imminent injury to the EU industry." What do you think—is this a fair decision? Let us know in the comments! Outro Well, it's clear that Beijing isn't happy with this decision. China’s commerce ministry has criticized it and urged the EU to reconsider. As of now, China hasn't taken any action but has voiced plenty of objections. If you want to stay updated on this story, make sure to subscribe to our channel! Source - https://economictimes.indiatimes.com/industry/renewables/how-chinas-ev-makers-aim-to-beat-tesla-legacy-automakers-in-europe/articleshow/110553030.cms?from=mdr https://www.wionews.com/autonews/china-weighs-retaliatory-options-against-europe-over-ev-tariffs-732473 https://youtu.be/rkxMdmipYqM?si=9ahx1hUcV5bDltlf