Summary
– European automakers previously dominated China sales; now facing competition from Chinese electric vehicles
– BYD, Chery, and GWM launching multiple models in Europe over the next five years
– Chinese automakers focusing on branding, marketing, dealership networks, and service to enter European market
– Chinese automakers leveling pricing and offering added features to match western rivals in Europe
– Focus on long-term success in Europe with high resale values, efficient distribution of spare parts, and support for fleet consumers
Article
European automakers have dominated the Chinese market for decades, but now face competition from Chinese electric vehicle manufacturers such as BYD, Chery, and Great Wall Motor, who are preparing an array of product launches and heavy investments in sales and marketing in Europe. Chinese automakers have been studying the European market for years in preparation, with plans to manufacture cars in Europe and break into the market using various tactics like sponsoring events, building dealership networks, and ensuring strong service and resale values to attract fleet buyers. While Chinese brands are still relatively unknown to European consumers, sales are growing rapidly, with BYD seeing a tripling of Europe sales to 15,000 vehicles in 2023, and plans to launch more models across a range of price segments.
BYD, GWM, and Chery are looking to establish a strong presence in the European market by focusing on all aspects of the automotive ecosystem, including branding, financing tools, repairs, and resale values for both private and corporate customers. Chinese automakers have spent years planning their European strategy, adapting EV models for export and developing new models designed specifically for European buyers. Backed by the Chinese government, these automakers have significant cost advantages over foreign competitors and aim to maximize profits by charging higher prices for vehicles in Europe, despite slightly undercutting Western automakers. To increase their appeal to European customers, Chinese companies are improving safety ratings, repair and service operations, and distribution networks, while also focusing on long-term investments by understanding total cost of ownership and building relationships with fleet consumers.
Chinese automakers are tackling the challenge of brand awareness among European consumers by leveraging social media, high-profile sponsorships, and partnerships with established dealer networks. BYD has rapidly rolled out standalone dealerships in the UK and plans to have 100 locations within the next year, in an effort to increase visibility and reach customers efficiently. Awareness of Chinese cars is on the rise in Europe, with research showing that 50% of respondents in Germany would consider a Chinese-made car. Chinese automakers like BYD are investing heavily in brand-building activities like sponsoring the Euro 2024 soccer championship to increase familiarity and visibility. However, despite these efforts, Chinese automakers still face the challenge of reaching European consumers who may not be aware of their existence, requiring persistent marketing strategies to establish themselves in the competitive European market.
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