As of: February 27, 2024 5:01 p.m
The Chinese car manufacturer BYD wants to export electric cars to Germany and Europe on a large scale. What does this offensive mean for northern Germany?
On a windy Monday morning at the end of February, the first of the impressive BYD car transporters arrives in Bremerhaven. The Chinese car manufacturer’s electric cars are driven out of the 200 meter long ship in piecework. The bright colors of the vehicles are reflected in large puddles on the asphalt. It is the first arrival of the “BYD Explorer No. 1” – one of a total of eight ships that the Chinese company has chartered for transport from China to Europe. Around 3,000 electric cars are on board for this maiden voyage; there would have been space for more than twice as many.
AUDIO: Economy: Import of Chinese e-cars starts (5 min)
Logistics company in Bremerhaven hopes for further cooperation with BYD
The ship’s arrival will be honored with a photo opportunity at the car terminal of the Bremer Lagerhaus Gesellschaft (BLG-Logistics). A good day for BLG board member Matthias Magnor: “Of course we think it’s great, Bremerhaven is one of the largest transshipment and hub points for the automotive industry. We process 1.7 million cars here every year – the arrival of the “BYD Explorer No. 1″ underlines the relevance of Bremerhaven for the automotive industry.” He hopes that the Chinese company will continue to use Bremerhaven for its European offensive in the future.
BYD cars: world market leader but relatively unknown in Germany
BYD (the Latinized form of the company name BǐYàDí) – still relatively unknown in this country – is a Chinese conglomerate from Shenzhen that grew up primarily with the production of batteries and accumulators. But BYD has also established itself on the global market as a manufacturer of electric and hybrid vehicles; in the fourth quarter of 2023, the Chinese car manufacturer delivered more electric cars than Tesla. However, massive price reductions also contributed to this.
In Germany, BYD only recorded around 4,000 new registrations last year, but the group has set itself ambitious goals: it wants to achieve a share of 10 to 15 percent in the pure electric car segment in the medium term. In keeping with the marketing slogan: Build Your Dreams.
Small-scale agreements delay the start of the German offensive
The cars that have just arrived in Bremerhaven could now end up in one of the showrooms of the Senger car dealership group, one of a total of seven dealers responsible for selling and servicing BYD in Germany. The partnership was sealed in October 2022: Senger wants to open two BYD branches in the north in Oldenburg and Lübeck by the summer, as managing director Andreas Knipp explains. There are already car dealerships from other providers in Schwerin, Hamburg and Sittensen in Lower Saxony.
Andreas Knipp is responsible for the BYD brand at the Senger car dealership group. He opened the first BYD store in Germany in Cologne.
The fact that we are a little behind our own ambitious schedule is mainly due to coordination issues with our partners in China, says Knipp: “Starting with vehicle registration and certain vehicle registration documents that are required, everything is different than in China.” It took a year to “unravel the small-scale processes,” but according to Knipp, the gears now mesh faster and better.
Senger expects BYD to have significant market share
Andreas Knipp observes that in many places there is still work to be done to convince customers – especially because the brand is relatively unknown in this country. That should change – for example through sponsoring the men’s European Football Championship in Germany. In doing so, the Chinese company is doing local retailers a big favor, Knipp smiles. Car dealers like Senger buy the vehicles on their own account and place a correspondingly large stake in BYD: “I strongly assume that BYD will take a significant market share in the German and European markets,” said the managing director.
Interest in Chinese electric cars is growing
At the Nagel car dealership in Hanover, for example, interest in Chinese cars such as the MG brand is growing. The originally British brand was sold to China in 2005. Sales manager Yannic Neubert believes that the “Made in Germany” argument no longer plays a role for customers: “The market has been completely mixed up. Many customers don’t care whether it is a German or Chinese manufacturer. The main thing is that the price is right.” .
The two work colleagues Nico Lorenz and Nico Eickhoff from Nienburg have also just chosen a new MG as their company car. The price of 42,000 euros with full equipment and a seven-year guarantee on the battery convinced the two of them: A car has to have four tires and get them from A to B. You have to feel comfortable in it, that’s important, according to the two colleagues.
Volkswagen reacts calmly to the Chinese offensive
When asked by NDR Info, Volkswagen responded calmly to the BYD offensive. It is said that the Chinese providers are taken seriously and are following the growing competition from China with great interest. In January 2024, the company will still be the clear market leader in China and, unlike local providers, will not buy market share through large price discounts. Because for the Volkswagen Group, economic efficiency is the top priority.
Nevertheless, they want to prepare for the future and, in particular, further accelerate the electric offensive in China; they want to offer 30 fully electric vehicles in China by 2030.
China expert Keim: Not a threat but a serious competitor
China expert Beatrix Keim classifies BYD as a serious competitor.
Chinese manufacturers are still a long way from a “car tsunami from China,” which Jörg Wuttke, former president of the European Chamber of Commerce in China, announced. This is the analysis by Beatrix Keim, China expert at the Duisburg Center Automotive Research (CAR). BYD is falling short of its own expectations – and also those of the experts. Nevertheless, one should not underestimate the car manufacturer: “I would say it is not a threat, but an additional competitor that has to be taken very, very seriously.” Since BYD is not a pure automobile manufacturer and produces batteries and chips itself, the conglomerate has great financial strength. At the same time, he has a completely different lead in the development of new technology, says Keim.
BYD: Cultural differences underestimated
The expert believes that BYD may also have underestimated the cultural differences, not only in terms of employees and authorities but also in terms of regulations. At the same time, work is done very differently in China: While projects there are often pushed forward at “China Speed” and therefore often have to be rejected, in Germany the focus is on the reliability of decisions.
In addition, communication with potential customers must be completely rethought: “In China, advertising is done with a very colorful visual language – German car manufacturers have had to learn this very expensively in the past, that you cannot simply transfer the concepts from the country of origin.”
“Without German expertise, development would not have been possible”
The great success of BYD in China certainly surprised her; she would have preferred other brands, says the expert. At the same time, there is a lot of nationalism in China: “Buy Chinese” is crucial for many purchasing decisions – and the switch to electric cars is deliberately being promoted by the Chinese government.
Despite everything, BYD is not a purely Chinese phenomenon; without the German supplier industry and German employees at the Chinese companies, this development would not have been possible, according to Keim’s analysis. Chief designer at BYD, for example, is the German Wolfgang Egger, who was previously responsible for the VW subsidiaries Audi and Lamborghini.
Further information
German manufacturers often produce significantly more expensive products. This is why Chinese electric cars are popular. Used ones have so far been difficult to come by. more
High electricity prices and falling subsidies have a major impact on electric car drivers and those who want to become one. more
The ship belonging to the car manufacturer BYD docked in Bremerhaven, marking the first time in a German port. more
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NDR Info | 02/27/2024 | 07:42 am