2023-10-22 08:51:50
THE Chinese car brands have registered a historic increase in sales in the State and have gone from being practically non-existent to top the enrollment ranking. With a portfolio mainly ofelectrichave also made inroads in the market gasmainly for the price differencewhich can reach up to 5.000 euros. The best-selling vehicle two months in a row has been the model ZS d’MG, powered by gasoline. Sales portals have recorded increases of more than 250% in searches for this second-hand model. The sales representatives of the stores that have arrived in Barcelona, however, emphasize that it is not only the price that pleases, but the services. “Customers are amazed by the quality and design of the cars,” they say.
One of the main factors that lead European drivers to settle on Chinese vehicles is their price, which can be around 4,000 or 5,000 euros lower than a European brand car that costs around 30,000 euros, plus discounts current commercial and Moves plans; or up to 20% cheaper than a similar vehicle marketed in Europe.
Cheaper, however, does not mean that the quality is lower, according to the coches.net expert Jaume Gustems. “We are surprised by the quality of the finishes and the level of equipment they can offer,” he says. At the same time, he admits that there are some “gaps” such as the fact that the vehicle software is still only in English in some cases or a design that does not quite fit in with European standards.
“The Chinese product of 10 years ago has nothing to do with what they are making today, and other Asian countries as well. They are offering a quality product“, agreed the president of the Catalan dealership association Fecavem, who added, however, that Europe is the pioneer in the manufacture of vehicles. “Over the years we will see if the Chinese product is up to ours”, he said .
A competitive package
“It’s a very competitive pack – they are well equipped, well prepared i well finishedalthough there is a perception that Chinese products do not have the same quality as European ones, they have a lot of experience in cars, especially in electric ones,” he said Ignacio Cailàmanager of BYD in Catalonia, Valencian Country, Aragon and the Balearic Islands.
Precisely, this is one of the brands that has recently landed in the Catalan capital, specifically, in May with a new dealership coinciding with the Motor Show, where its models could be seen for the first time. Since then, they claim that the reception “has been very good” with 150 orders.
Apart from this brand, which offers vehicles of higher performance and comparable to the Teslahas also hit the state hard MG, which has positioned a 20,000 euro petrol model at the top of the sales rankings for two months. Never before had a vehicle from a Chinese brand led this ranking prepared by the employers’ association Anfac.
In one year, sales have increased by 500% for this manufacturer, which has the name of a historic British brand created in 1924 that was bought by China’s SAIC in 2007. The brand continues to keep the name added by ‘British Motors’.
In addition, this trend also carries over to the second-hand market. So, the portal cars.net registered in August an increase of 252% in the search for the ZS model of the MG brand second hand, whether it is a vehicle with 0 KM, management or with little use.
On the other hand, Lynk&Co Motor is landing in Europe and its models could already be seen at the Munich Motor Show.
Other brands are studying landing on the European continent as of now Chery which is negotiating with Nissan’s replacement, the D-hub, an agreement to manufacture 50,000 vehicles a year at the old car plant.
Economies of scale
The price difference between vehicles produced in China and Europe is explained by the size of a market like the Chinese one that “allows economies of scale to be activated” and by the vertical integration of brands that reduce the cost of manufacturing.
While in Europe, the transformation of the automotive sector is progressing more slowly, in China sales are skyrocketing and it is the world’s first market for this type of vehicle. Moreover, they are leaders in manufacturing batteries and, some brands, control the entire production line, which allows them to activate economies of scale and sell more cheaply.
In this sense, Cailà highlights that BYD manufactures 75% of the vehicle components. This fact has been a competitive advantage in a sector that has suffered particularly from the lack of supply that prevented us from being able to deliver cars quickly after being purchased.
However, the manager of BYD has emphasized that the brand has not taken advantage of this specific moment of supply crisis to land in Europe but rather they have “followed a process of approvals and study to enter the market” which “coincided with the weather”. “I don’t think anything was intentional,” he adds.
Another fact that has helped Chinese brands to enter the European market is that the types of vehicles they sell fill the void of a low cost utility car which the European brands have left aside recently by choosing to manufacture less but with more commercial margins and more expensive.
European Commission sanctions
Faced with a possible penalty or the imposition of tariffs if it is proven that Chinese manufacturers receive state aid, Gustems believes that it could affect “a little” although “the law of the market is the law of the market”. In this sense, he believes that although there could be unfair competition if this extreme is confirmed, in the end it rewards the quality and price of the vehicles so that they expand their market share.
“If they go with a good product and at a good price, they will be introduced as the Koreans were introduced at the time with products of lower quality than the Chinese now in Europe”, points out the coches.net expert, who remembers that now Korean brands are sales leaders in Europe.
In turn, Fecavem did not want to comment on how the possible EU sanctions could affect Chinese brands. “We cannot comment because we do not know the origin of the aid to manufacturers in China”, he said, before clarifying that in Europe the public resources that are given “are justified”. In general, however, Roura regretted the “unfair” criticism of the aid received by the automotive sector, since “since cars are manufactured, distributed and put into circulation, they are constantly paying taxes”. “It’s fair, the balance is that they are positive for everyone,” he said
Uncertainty with the regulations
The shift towardselectromobilitat it is moving much more slowly in the European Union, where the industry has lobbied EU institutions to widen the scope for selling cars powered by fossil fuels. The latest data indicate that the registrations of electricians in China are already approaching 40% of the total, far from the 11.5% of the state quota.
The customer continues to approach dealerships with uncertainty, although they are already starting to see knowledgeable people who are shopping for a second electric car or who have been very informed. “The reality is that today the electric car is 100% functional and it can be used in any circumstance,” explains Cailà, who sells models of one 400 kilometers of autonomy. The manager of the dealership adds that “there are a lot of people who have anxiety about the electric car because they have never used it and you don’t know if it will be used for long trips” but that “expectations are good”.
More help
Precisely, in order to promote the purchase of electrified vehicles, dealers see it as “super important” to continue with aid lines such as the Moves plan “so that people make the transition to electric mobility”, added the BYD representative. The grants can reach up to 10,000 euros, including the bonuses to the personal income tax.
The president of Fecavem has reiterated that, aside from prices, the lack of a sufficient network of charging points is harming sales in the State. “Spain is at the tail end of Europe in sales of electric vehicles,” he added.
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