Home ›› 01 Oct 2021 ›› World Biz
China’s electric carmakers are darting into Europe, hoping to catch traditional auto giants cold and seize a slice of a market supercharged by the continent’s drive towards zero emissions.
Nio Inc, among a small group of challengers, launches its ES8 electric SUV in Oslo on Thursday - the first foray outside China for a company that is virtually unheard of in Europe even though it’s valued at about $57 billion.
Other brands unfamiliar to many Europeans that have started selling or plan to sell cars on the continent include Aiways, BYD’s Tang, SAIC’s
MG, Dongfeng’s VOYAH, and Great Wall’s ORA.
Yet Europe, a crowded, competitive car market dominated by famous brands, has proved elusive for Chinese carmakers in the past. They made strategic slips and also contended with a perception that China, long associated with cheap mass-production, could not compete on quality.
Indeed, Nio Chief Executive William Li told Reuters he foresees a long road to success in a mature market where it is “very difficult to be successful”.
Chinese carmakers may need up to a decade to “gain a firm foothold” in Europe, the billionaire entrepreneur said - a forecast echoed by He Xiaopeng, CEO of electric vehicle (EV) maker Xpeng who told Reuters his company needs 10 years “to lay a good foundation” on the continent.
These new players, many of which have only ever made electric vehicles, believe they have a window of opportunity to finally crack the lucrative market.
While electric car sales in the European Union more than doubled last year and jumped 130 per cent in the first half of this year, traditional
manufacturers are still gradually shifting their large vehicle ranges over to electric and have yet to flood the thirsty market with models.
