Despite EU investigations and jawboning from within the industry, it looks as though Europe has faced the inevitable: it needs to “face up” to the fact that Chinese EVs have arrived, and probably aren’t going anywhere, anytime soon.
Chinese President Xi Jinping arrived in Paris on Sunday to ease trade tensions with a wary Europe. Accompanied by a business delegation focused on the electric vehicle industry, including Envision Group, SAIC Motor, and Xpeng Motors, the visit served as both a shopping trip and a networking opportunity, Nikkei reported.
“We want to welcome more Chinese investors to France,” President Emmanuel Macron said during the visit.
As we have been writing about extensively for the last 6 months, the shift to electrification has changed the global auto industry’s dynamics, which were once dominated by European brands. China now leads in EV production, compelling European automakers to address the growing Chinese competition.
According to Nikkei, with the EU set to ban combustion engines by 2035, China plans to expand exports and production, maintaining a significant lead in affordable EVs.
As consumers shift to EVs, European manufacturers fear losing market share. Chinese brands, which made up only 7.9% of the EU’s electric vehicle sales in 2023, up from 0.4% in 2019, are projected to reach a 20% market share by 2027, according to Transport & Environment.
Felipe Munoz, senior analyst at JATO Dynamics, told Nikkei: “When we’re talking about these mass market segments, it’s mainly about price … and when you look at [Chinese brands’] price positioning compared to European rivals, there is always an advantage.”
