Reuters: Chinese car brands advance into European market

Chinese automakers are confidently making their presence felt in Europe. At the IAA Mobility auto show in Munich, companies such as BYD, Chery, Hongqi, and GAC showcased a “Europe for Europe” strategy—the same approach German brands have been using in China for decades.

According to Reuters, amid fierce price competition in the domestic market, Chinese groups are targeting European consumers, promising local production and research centres.

Sales speak for themselves: data from JATO Dynamics shows that in the first seven months of the year, the market share of Chinese brands in Europe nearly doubled to 4.8%. McKinsey experts predict that over the next ten years, this share could rise to the level of Japanese and Korean manufacturers—14% and 9%, respectively.

Meanwhile, Volkswagen, BMW, and Mercedes are losing ground in China, while Chinese companies are employing the same tactics on European soil. For instance, Xpeng is opening a development centre in Munich, Hongqi highlights that it has been conducting research in Europe for seven years, and BYD plans to launch a factory in Hungary by the end of the year.

By Vugar Khalilov