Chinese EV makers are planning to ‘flood’ Europe

Having studied the European market for several years, Chinese electric vehicle (EV) makers managed to grab a certain portion of the highly active export market last year. Withstanding the fierce rivalry with price advantage, Chinese brands now plan to ‘flood’ the continent with several models upcoming in the coming years.

Around 20% of all EVs sold in Europe in 2023 were China-made, and this ratio is expected to reach 25% in 2024, which is no surprise. According to the European Commission, an all-electric vehicle was priced at around €45,999 in 2023, staying highly expensive in contrast to its Chinese counterparts. BYD Dolphin, for instance, starts from €28,990. 

Now, pioneering Chinese brands, including BYD, Chery, and Great Wall Motor (GWM), plan to release around 20 cars over the next five years, according to Reuters. Analysing consumer behaviour in the European market, Chinese brands have ramped up marketing efforts, expanded dealership networks, and improved after-sales services to satisfy fleets. 

BYD sold 15,644 EVs in Europe in 2023, having launched six models and delivering them to 20 countries across the continent—two new models to be added to the three launched last year in the UK. 

GWM aims to launch a new model each year for the next five years, while Chery plans to release eight SUV models over the next two years. According to Reuters, all three brands want to ‘plant deep roots’ in the European market.

Chinese brands have been successful in their price range. For instance, at the beginning of 2023, BYD Atto 3 was selling at €38,000, while Han and Tang EV were around €72,000. Now, the bottom line of this range will stretch to €9,188 with the upcoming BYD Seagull in 2025. 

Chinese dominance in the EV supply chain, from minerals to batteries, gives the EV brands a massive advantage in maximising profits in Europe. BYD Seal U is priced at €20,500 ($21,950) in China, while it is sold at €42,000 ($45,000) in Europe. BYD profits 11 times more in Europe than China, and according to a recent study, Europe needs to increase tariffs up to 50% to have a chance to challenge Chinese EVs. 

With better service and repair operations and increased resale value thanks to battery tech and connectivity features, Chinese EV makers appear to have no fear of the expected higher tariffs and are keen to outpace any rival, including Tesla. 

The main photos show the BYD Atto Road. Courtesy of BYD.