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Chinese electric car manufacturers will conquer the world

Chinese authorities have only begun to reduce restrictions on full foreign ownership of domestic auto manufacture in recent years, but in the meantime, more than a decade ago, Beijing began spending billions of dollars developing its own electric cars.

This has helped local players gain an advantage in producing electric cars, which they now want to sell abroad. Analysts at Goldman Sachs predict that within four years, due to new government policies, electric cars will make up the majority of total car sales in Europe and the United States, compared to China, which remains the largest market.

Manufacturer of electric cars, also listed on the U.S. Stock Exchange, Nio said it will enter the European market in the second half of this year, and the company’s co-founder and president said on Monday that the company will make an official announcement within a month. Although he didn’t mention a specific country, he said Nio still wanted to enter the US market after Europe.

The expansion began last year, as China exported 63,500 purely electric cars to Europe last year in the first 11 months of the year. According to the China Chamber of Commerce. Although most of the cars were exported to Saudi Arabia and Egypt, the report showed very strong growth in exports to the UK, Belgium and Germany.

Another Chinese electric car manufacturer, Xpeng also considered the European market, Last December, it delivered 100 units of its G3 model in Norway. For now, Xpeng will still test how consumers will react to the P7 sedan in the region before expanding further into Western or Eastern Europe.

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Starting another electric car, it is Aoys It reported that more than 1,000 cars were exported to Israel and Europe in the first three months of this year.

Meanwhile, the truth is that Chinese electric vehicle sales make up only a small portion of the European market. In 2019, China accounted for less than 2 percent of the European import market, and the total value was 865 million euros, a 79 percent jump from the previous year. According to ACEA data. Putting this in context, European automakers produced nearly 6 million cars in China in 2018, accounting for nearly a quarter of the total production.

Chinese manufacturers need to expand abroad because the situation in the Chinese domestic market is getting increasingly severe. The Nio boss said tech companies like Apple or Huawei in the market are increasing competition in the auto market.

In the Chinese market, Tesla is currently the market leader and continues to manage production. The company’s Model 3 vehicle was the best-selling electric vehicle in China last year, according to CPCA data. With the exception of two electric minivans, the organization said the second best-selling car was the Aion S, while one of the Nio cars only ranked ninth and Xpeng did not reach the top ten with any of its cars. Vehicles.

(CNBC)

Cover photo: Qilai Shen / Bloomberg via Getty Images