The keys to the “boom” of Chinese car brands

by time news

In 2024, car ⁤models from ‍China ⁣have established themselves among the general public, and their sales⁢ will reach almost 37,000 units. So much so that​ we can talk ⁢about a real ‘Boom’ of Chinese cars‌ in Spain: the number of brands has grown by 3 units as ‌2021 and their market share is already 4%.

Just think ⁣of the price of the best-selling Chinese car in ⁢Spain, the MG⁤ ZS, which costs 17,930 euros, whose rate is up to 26% cheaper than the equivalent⁣ best-selling​ European car, the Peugeot 2008. which costs 24,190 euros- .

But ⁢in addition to the price, Chinese brands cover the entire spectrum of the market, that is, they are able to⁣ cover the most varied needs of all ⁢possible types of motorists, with ‌a varied offer of economical, medium-sized, high-end cars. ⁣high-end models, etc., which cover niches that other manufacturers have been forced to abandon due to various factors, such as the adaptation ⁣of their range‍ to polluting emission regulations or the accelerated electrification they are implementing in their portfolio of vehicles, a factor​ that is having several “coexistence” problems. with its ​business approach and ⁣customary propulsion technologies, i.e.traditional diesel and petrol engines.

On the other hand,⁣ it should be emphasized that Chinese brands are leaders in electromobility, ⁤a type of technology that they have been developing and ​perfecting for ⁢more than ten years. In fact, some Chinese brands, such⁤ as the giant BYD – which in November 2023 had 14 electrified models – is the second battery manufacturer in the world after CATL, ​which therefore represents ‌a competitive ⁢advantage‍ that translates into cars with an ⁤extra edge‍ at ⁤a⁢ reasonable price compared to European brands.

Meanwhile, many of the‌ Chinese cars ‍sold in Europe live up to, and in some cases even⁤ surpass, their European counterparts⁤ in⁢ key factors such as safety and product​ quality level. In fact, all the ⁤vehicles of ‌the Chinese brand which during 2023 and 2024 were subjected to crash tests by the independent body Euro NCAP on our continent obtained the maximum score ⁤of 5 stars, demonstrating ‌that they are equal to or safer than their rivals Westerners.

to the previous factors we must add another ⁣extremely important one, namely the fact that the vast majority of Chinese brands are based on ⁣an increasingly solid and extensive after-sales network,‌ with first-level importers who are⁢ mainly dedicated to the traditional⁤ distribution model (which (let’s not forget,‌ very popular on‌ the market, ​given that⁤ the ⁤user ⁣likes ⁢to physically go to the dealership ⁤to see, touch and drive the model that ​could be ⁣his next car).

In the last three years, the number of manufacturers of ⁣the Asian giant has ⁢tripled in our country,⁢ going from 8 in 2021 to 23 in 2024, according to AutoScout24, Sumauto’s used vehicle specialist, based on Ideauto data.

This ‌increased availability ⁢of Chinese automotive brands is already reflected in the number of recorded sales, reaching almost 37,000 vehicles‌ registered in the period January-October ​2024, representing a market share of 4%.‌ In this case, the ​top 5 Chinese manufacturers with the ‍highest number of registrations are MG (24,602 units), Omoda (5,897), BYD (3,249),‍ Lynk ‌& co (1,132) and⁣ Polestar (506).

Registrations which, generally ⁣speaking, have as their⁣ final origin‍ the ordinary​ user, i.e.the private​ customer, since practically all sales registered by MG, Omoda and BYD⁢ in Spain bear ‌the name and surname of natural persons. To these three manufacturers we⁣ must add the recent and strong success of another Chinese brand, Jaecoo, which ​with⁤ a single vehicle managed to ‍register 313‍ units during its first month of sale (October), overtaking other already established brands and with a greater long tradition⁢ track record in ​our country such as Mitsubishi (267 units), Land Rover (207) or Subaru (163).

All this in a context of greater competitiveness with many more international players, given​ that in 2021 there were 61 manufacturers, compared‍ to 77 in 2024, so motorists have an ever-increasing offer‌ in ‌front of ⁤them not only of models, but of brands . And it will⁤ continue to grow.

In⁤ the short term, actually, the‍ market will continue to receive new participants from ⁣the Asian giant, such as newcomers Leapmotor, XPENG, Jaecco ‍and Dongfeng – which sells 15 electrified vehicles worldwide – to which new ones will​ be added in 2025.⁢ brands like IM, NIO, Zeekr, and Arcfox, among others.

According to Ignacio García Rojí,spokesperson for AutoScout24: «the automotive market in europe is facing an exciting⁢ moment with⁣ the‍ participation of multiple players who,now,cover all possible tastes and⁤ needs that motorists may have.In the case of Chinese​ brands, their wide and varied range of electrified models is ⁤allowing many users to discover a technology that is more enduring and different from the conventional one. Regarding tariffs, we believe that it is not ⁤right to impose restrictive rules, since the market itself must judge.

With an increasingly wider offer and models of all types, which translates into growth in the European market, given the concern of⁢ European ​producers, ‍Brussels has ​moved to impose protectionist​ measures, in this case the imposition of duties on Chinese car brands. A movement, ⁢without a doubt, which is causing great controversy ‌in the sector and whose objective, declared by the highest echelons, is ‍to ⁣counteract the “illegal” incentives of⁤ the Chinese government to its electric vehicle producers, which⁢ give them⁤ an unfair advantage over to its European competitors.

Therefore, a tariff of 35.3% will be applied to manufacturer SAIC (which includes, among others, MG and Maxus), 18.8% to Geely and 17% to BYD, for a maximum of five years. This measure ⁣will also affect ⁤Western companies that produce in China, such as Tesla, which will be subject​ to a 7.8% tariff.

Considering the imposition of these tariffs, many Chinese manufacturers have already ⁤announced their plans to establish one or​ more factories in a european country, such ‍as MG, BYD, Dongfeng Motor‌ or Chery, among others. Therefore,by having ⁤a factory,many of these companies would stop‍ paying⁢ these tariffs.

How do Chinese cars compare too conventional European brands ‍in terms of safety ‌and technology?

Interview: The Rise of Chinese Cars in spain

Time.news ‌Editor: ⁢ Welcome,‍ and⁤ thanks for joining us ⁢today! The rise of Chinese car manufacturers in Spain is quite⁣ the‍ story. ⁣could you ⁣start by ​giving us an overview of the current landscape?

Expert: absolutely,and thank you for having me! It’s⁢ quite fascinating. By 2024, we’re seeing a significant boom in ⁢the popularity of Chinese cars in Spain. Sales have surged, with expectations‌ to hit almost 37,000⁣ units⁢ this year. This⁣ growth has resulted in the number ‍of Chinese brands expanding from 8 in ⁣2021 to an ‌notable 23 in 2024, capturing a market share of⁤ 4%.

Editor: That’s quite an increase! What do you ​think is driving this “Chinese car boom”?

Expert: A‌ combination of factors. first and foremost, pricing. Take the MG ZS, for example, it‌ starts at ‍17,930 euros, ​which​ is about 26% less⁣ expensive than ‌its european⁤ counterpart, the Peugeot 2008. Consumers are increasingly looking for value, and⁣ Chinese brands ‌are tapping into that demand beautifully. Thay also have an extensive lineup—everything from budget-pleasant models to⁣ high-end vehicles—catering ‌to a broad spectrum of consumers.

Editor: Speaking of options, how are Chinese manufacturers able to⁢ cover ​such diverse needs effectively?

Expert: They’ve‍ strategically navigated‍ areas where European manufacturers are struggling, especially with the push ⁣towards compliance with stringent emissions regulations and the ‌rapid transition to electric ‌vehicles. Chinese brands,⁣ on the other hand, ‌have long been leaders in electromobility. Such as,‌ BYD, a huge‍ player in the space,‌ offers ⁣14 electrified‌ models ​as of November 2023 and is⁢ the second-largest​ battery manufacturer​ globally.

Editor: ‍That’s impressive! What about safety and quality? there’s often skepticism regarding vehicles from new manufacturers.

Expert: A⁤ valid concern, ​but the data speaks for itself. In⁣ recent assessments⁤ by Euro⁣ NCAP, all Chinese models tested received the maximum five-star rating, which is indicative of​ a very high level ⁢of safety—comparable, ‌if not superior, to many European brands.This has significantly helped ‌in building trust among consumers.

Editor: Trust is​ indeed crucial. How are these brands managing thier after-sales service?

Expert: ‌ They’re establishing ⁣a strong after-sales‌ network, which is critical in the ‍car market.Most Chinese brands are partnering with reputable importers⁣ and ⁤focusing on traditional distribution models, which resonate well with Spanish consumers. There’s a‌ preference for‌ physically ​visiting a ⁣dealership to experience the vehicle firsthand before purchasing, and these brands‍ are meeting that ‌need ‍effectively.

Editor: With such rapid growth and progress, ⁤do ‌you think‍ these ⁢brands pose a long-term threat to traditional European⁣ manufacturers?

Expert: It’s definitely a possibility. As Chinese brands continue to innovate—especially in the realm of electric vehicles and sustainable practices—they could indeed‌ disrupt the market further. European‍ manufacturers ‌will need to adapt swiftly to‌ remain competitive.‌

Editor: It ​sounds⁢ like we’re at⁤ an exciting juncture in ⁣the automotive industry. What‍ do you think the future holds for chinese cars in europe?

Expert: I think we’ll see continued growth, ‌innovation, and competition. If chinese manufacturers keep up with their current trajectory—offering competitive pricing, ​advanced technology, and high safety standards—they might very well become dominant players in the​ European ⁣automotive landscape.

Editor: Thank you ⁢for sharing your insights!‌ It’s⁣ an exciting time to be part‍ of the automotive industry, and we ⁤appreciate⁢ your ⁣expertise on this topic.

Expert: Thank you for⁣ having me! It’s a pleasure to discuss these developments.

You may also like

Leave a Comment