European manufacturers concerned as Chinese EVs steal spotlight at Munich Auto Show
Chinese electric vehicle (EV) manufacturers are stealing the spotlight and making a resounding impact at the ongoing Munich International Motor Show (IAA Mobility Show), leaving their European counterparts severely concerned. The expertise being displayed by Chinese manufacturers at the Munich International Motor Show appears well ahead of what European manufacturers have to offer in the realm of EVs. Even some German reporters who have attended at the automobile show have pointed to the widening rift between the European and Chinese EVs in terms of what they have to offer.
Chinese manufacturers’ prowess in the realm of EVs seems to be presenting a considerable challenge for their European counterparts as they are struggling to create more affordable emissions-free vehicles to bridge the widening gap with China.
Luca de Meo, Chief executive officer of Renault, admitted the dire need to bridge the gap between European and Chinese manufacturers’ expertise in the realm of EVs. He stressed the urgency of narrowing down the cost differential with Chinese competitors. He expressed hope that a decrease in manufacturing costs and EV prices could go a long way to make European EVs more competitive. Meo’s views surfaced as Renault is gearing up to launch its R5 EV sometime in early next year. The RS EV will reportedly be 25 to 30 per cent cheaper than its fully-electric Scenic and Megane models.
Chinese vehicle manufacturers like BYD, Xpeng and NIO are actively increasing their focus on Europe’s fast-growing EV market, which has witnessed an impressive 55 per cent surge in sales during the past few quarters. In the first seven months of this year, the European EV market constituted around 13 per cent of total car sales in the region.
This increasing Chinese presence is noticeably evident at the ongoing Munich Auto Show, with a remarkable 41 per cent of exhibitors hailing from Asia, especially from China. A number of prominent Chinese EV makers like BYD and Xpeng, along with the leading battery producer CATL, underscoring the global competitiveness of Chinese EV industry.
Automotive consultancy Inovev recently highlighted Chinese EV brands’ growing influence in Europe. According to the consultancy’s latest report, Chinese brands have made significant headway into Europe’s EV market, with 8 per cent of new EVs sold in the region this year being manufactured by Chinese companies. The seems to be small but it represents a substantial increase from 4 per cent in 2021.