A country that makes electric cars 10,000 euros cheaper than Europe. They cost less than petrol

Chinese automakers can build Electric vehicles (EV) is 10,000 euros cheaper than European companies, putting pressure on European manufacturers in their domestic market, Patrick Koller, president of auto parts supplier Forvia, said on Thursday, Reuters .

As European consumers look for cheaper electric vehicles, Kohler said at CES, the main annual trade show for technology and consumer electronics in Las Vegas, that Chinese companies produce “good vehicles” and that Europe cannot stop imports.

Read more

Koller explained in an interview with Reuters that the issue is “much more dangerous” for Europe than for the United States because high tariffs have limited the market share of Chinese carmakers. to us.

While the average price of an electric car in Europe has increased from 48,942 euros to 55,821 euros since 2015, and in the US from 53,038 euros to 63,864 euros, in China it has fallen to 31,829 euros and petrol prices have fallen below 66,81. vehicles, according to a study by Jado Dynamics.

Chinese electric cars have received 5 NCAP stars in Europe

Koller pointed out that China’s electric vehicle manufacturers produce more cheaply than their European competitors because they have lower research and development (R&D) costs, lower capital costs and lower labor costs.

Forvia is the seventh-largest global auto parts maker, created when French auto parts supplier Faurecia took over 82% of German group Hella, and supplies Chinese firms including low-cost electric segment leader BYD. Vehicles.

Europe China has been relatively open to auto imports, and Asian state manufacturers and global manufacturers such as Tesla Inc are ramping up their deliveries.

Chinese electric vehicle makers are starting to win over drivers and big companies in Europe with the European New Car Assessment Program (NCAP) and more affordable cars with many high-tech features.

In recent months, several Chinese EV manufacturers have received five Euro NCAP stars – indicating that the vehicles are equipped with active and passive safety features that go beyond legal requirements. Expect new EV launches from China.

“All Chinese electric vehicle manufacturers want to achieve the five-star Euro NCAP to be more competitive in the European market,” explained Brian Gu, president of Xpeng, which manufactures EVs in China. He added that in the past three years the company has set up stores and services in Denmark, the Netherlands, Norway and Sweden before officially launching the P7 electric sedan and G9 SUV in four countries in 2023.

A German company has announced that it will buy 100,000 electric cars from China

Chinese automakers recognize that electric vehicles are an incredibly important part of the sales process, says Matthew Avery, director of Thatchom Research, a British car research center funded by insurance companies and a member of the Euro NCAP board.

The five-star Euro NCAP ratings are seen as key to allaying fears in Europe about the quality of Chinese-made cars after test failures in 2006 and 2007 created the impression that cars from the Asian country were unsafe.

More importantly, five-star Euro NCAP ratings have paved the way for Chinese car companies to enter the fleets of major European firms. Fleet sales account for about half of all car sales in key markets including Germany, France and the UK, and many corporate buyers value safety.

“Fleet sales are very important and many companies require a five-star rating to purchase cars,” Avery said.

More and more companies want to buy electric vehicles quickly to meet their environmental goals. But Europe’s fleets still don’t have enough EVs, with disruptions in supply chains resulting in waiting times for some models of more than 12 months.

High demand for electric vehicles and disruptions in supply chains have allowed EV makers in Europe to raise prices and focus more on retail customers than on customers such as car rental companies.

This has created opportunities for Chinese electric vehicle manufacturers, who are already ahead of most foreign competitors in China, the largest global market for electric cars.

In October, German car rental company Sixt announced it would buy around 100,000 EVs from BYD, starting with the Chinese company’s Atto 3 SUV, which received five Euro NCAP stars in the same month.

Chinese group Great Wall Motors in September received five Euro NCAP stars for the WEY brand Coffee 01 hybrid SUV and the ORA Funky Cat electric sedan.

China to sell 150,000 electric cars in Europe by 2022

And European electric vehicle manufacturers are aiming to achieve five stars for their electric and hybrid cars, from BMW’s iX to Volkswagen’s ID.4 and ID.5. In October, Mercedes received a top rating for the EQE sedan.

Chinese electric vehicle maker Ives has invested in additional safety measures for the U6 electric model for fleets in Europe when it launches in 2023, said Alexander Klose, head of operations outside China. He added: “There will be a natural demand for vehicles like ours, which are fully equipped and come at very competitive prices.” Aiways hopes to sell 30,000 EVs in Europe by 2023, up from an estimated 5,000 this year.

French automotive consultancy Inovev reported that around 155,000 Chinese-made cars were sold in Europe in the nine months to 2022, or 1.4% of the market. Chinese companies plan to sell 150,000 cars in 2022, almost double the 80,000 cars sold in 2021. Almost half of all Chinese cars sold are EVs, so their market share in Europe reaches 5.8%, Inovev data shows.

Inovev’s vice president, Jamel Taganza, says all Chinese vehicles sold in Europe will be electric in the coming years, and more models will be released at lower prices.

Inovev estimates that by 2030, electric vehicles will account for 40% of new car sales in Europe, with Chinese brands accounting for 12.5% ​​to 20% of the total electric vehicle market, with sales ranging from 725,000 to 1.16 million units.

BYD is launching three models in several European countries and will expand to other markets next year to bring new models, all with excellent safety ratings, said Michael Xu, director of BYD’s European subsidiary.

Great Wall Motor’s ORA Funky Cat will be launched in the UK, Germany, Ireland and Sweden this year.