- Europe overtook Asia to become China’s largest EV export destination in 2021 and has continued to dominate the scene ever since. Nearly 45 percent of Chinese EVs shipped overseas went to Europe in 2023. Compared to other parts of the world, European countries’ stronger policy support for EVs, more sophisticated charging infrastructure and generally higher consumer acceptance have made the region a highly attractive market for Chinese EV manufacturers.
- Within Europe, Belgium, the UK and Spain are the top 3 export destinations for Chinese EVs. Ports in Belgium and Spain are already facing capacity issues as they struggle to handle the large volumes of vehicles from China that are then sold to various countries in Europe.
- European consumers are not only the biggest buyers of Chinese EVs, they also pay higher prices than in other countries and regions. The average export price of EVs shipped to Europe is around 30,000 US dollars (27,000 euros). The export price to Norway amounted to 39,000 US dollars (36,500 euros) and was therefore well above the average price of 24,000 US dollars (22,000 euros) of all EVs exported last year.
- Despite the encouraging export data, Chinese brands face challenges on several fronts in the European market. Brand awareness for Chinese EVs in Europe is much lower than that of the regional champions and Tesla. MG has shaken up the market, but most European consumers perceive it as a British brand, even though it is now developed and produced by SAIC, China’s largest carmaker. As a result, no real Chinese brand has made it to the top sales list in Europe.
- Chinese EV manufacturers are struggling to navigate the growing compliance risks posed by requirements on data protection, carbon footprint and supply chain due diligence, as they brace for an ongoing anti-subsidy investigation and potential tariff hikes thereafter.
Sinolytics is a European research-based consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.