For Chinese electric vehicles, the importance of the European market is self-evident.
In terms of policy, although there is still a certain rebound today, the European Union and the United Kingdom, which has left the European Union, have formulated a policy of banning the sale of fuel vehicles in 2035. In other countries, there are no such radical policies.
In addition, Europe's relatively high purchasing power and the relatively high environmental protection concept of the majority of the people, combined with the relatively small land and urban area, also make it easier to promote electric vehicles in Europe. Therefore, in recent years, traditional car companies such as SAIC, BYD, Geely and Great Wall, as well as new forces such as NIO and Xpeng, have been vigorously expanding their business in Europe.
We summarize the sales rankings of the three largest European economies – Germany, France and the United Kingdom – in the first quarter of this year, and look at what kind of electric vehicles are most popular among consumers in the three most important markets in Europe.
Germany
In the first quarter of Germany's electric vehicle sales rankings, the Model Y produced in Berlin led the way, almost as many as the second to fourth models combined. Volkswagen's group advantage is relatively obvious, and five of the top 10 electric vehicle models are from the Volkswagen series.
Germany abruptly and abruptly eliminated subsidies for electric vehicles in mid-December last year, without warning. Against the backdrop of a slowdown in the overall economy, the German government cannot afford the increasingly heavy subsidy funds, leaving ordinary consumers with little income growth to afford more electric vehicle spending.
This has led to an interesting trend in the German electric vehicle market: sales of electric vehicles such as MG4, Volkswagen ID.3, Nissan Leaf, Peugeot 2008 and so on have declined by 50% year-on-year, while Mercedes-Benz and BMW's electric vehicle models have not fallen sharply, but have risen to a certain extent. Like the Mercedes EQE up 87%, the BMW i4 (up 52%), the Mercedes EQA (up 15%), the BMW iX3 (up 7%), the BMW iX1 (up 1%).
Let's take a look at the performance of Chinese car companies. In the German electric vehicle sales list, only the MG4 model of SAIC MG is on the list. BYD, Great Wall and NIO models did not make the list. For Chinese car companies, if they want to open the door to the European market, they not only need to make breakthroughs in product power and cost performance, but also build their own brand appeal in the local area, which is not an easy task.
However, there is one phenomenon worth paying attention to, such as Volvo EX30, Tesla's MODEL 3 and Renault Dacia Spring, although they all carry foreign brands, but they are all produced in China. In particular, the Volvo EX30 and Renault Dacia Spring both have the same rebranded models in China, which not only use Chinese factories, but also provide product engineering design and new energy parts supply chain from China.
In addition, Germany is the most conservative of the many countries in the European Union regarding a total ban on the sale of gasoline vehicles. Volkswagen, Mercedes-Benz and BMW do not have as much of an advantage in the field of electric vehicles as they do in the field of gasoline vehicles. From a revenue point of view, higher material costs make the revenue from selling electric vehicles not as high as that of gasoline vehicles.
As a result, Mercedes-Benz has also postponed its EV strategy, while Volkswagen has cut some of its ID.3 production capacity due to the lack of demand for EVs in Europe. In the next step, it is worth paying attention to what kind of challenges German auto companies will pose to Europe's ban on the sale of fuel vehicles.
France
As countries with the same developed automobile industry, France and Germany show a stark contrast. In the first quarter of France's sales rankings, the advantages of French car companies are very obvious. Stellantis and Renault from Peugeot Citroen occupy six of the top 10 spots. Both Tesla models were also shortlisted.
It is worth mentioning that from March 15 this year, electric vehicles produced outside Europe will no longer be subsidized by the French government. France's inclusion of carbon emissions from the production of cars makes it impossible for electric vehicles produced in China that rely on thermal power to meet the standards.
IN THE NEXT STEP, SALES OF RENAULT'S DACIA SPRING, VOLVO'S EX30 AND SAIC MG4 MAY DECLINE FURTHER. It remains to be seen whether French local electric vehicles will replace the share of these imported cars, or whether Volkswagen's entry-level electric vehicles will occupy the relevant market.
At the same time, France has not only eliminated subsidies for electric vehicles produced in China, but it is also a propagandist for the European Union to impose high tariffs on China's electric vehicles. The main reason for this is that France's own electric vehicle products are not very competitive.
On the other hand, the models of Peugeot Citroën, Fiat and Chrysler, which are integrated into the Stellantis group, have been marginalized in the Chinese market and have little interest in China, in stark contrast to the large and lucrative Mercedes-Benz, BMW and Volkswagen groups that still have large and lucrative industries in China today.
United Kingdom
Unlike France and Germany, the UK has adopted a published sales share to reflect the situation of each brand. We can see that Tesla is also far ahead in the UK market. They are followed by BMW and Mercedes.
In contrast to Germany, which cut subsidies for electric vehicles at the end of last year, the United Kingdom introduced a new regulation at the beginning of this year, requiring each brand to account for 22% of electric vehicle sales from this year. This has led some car brands to delay the delivery of electric vehicles that should have been delivered at the end of last year to the first quarter of this year, which directly contributed to the growth of electric vehicle sales in the UK in the first quarter of this year.
Compared with MG's lone struggle in Germany and France, BYD has also squeezed into the sales list in the British market. In addition, Chery also intends to build a factory in the United Kingdom. If this plant can be put into production, then Chery will inevitably gain a larger share of the British electric vehicle market with higher cost performance.
However, SAIC MG has been able to rank high in the UK sales list for a long time, more because MG, a brand itself from the UK, has a higher reputation in the UK. Therefore, in order to capture a larger market share in Europe, it will be the first step for European consumers to know our brand.
Like Germany, the UK is not doing well at the moment. In this case, the only way to boost the sales of electric vehicles is to rely on policy.
Unlike Germany and France, the decline of the British auto industry has left the UK without a strong car brand. Even like Jaguar Land Rover, because of its relative niche and high price, it still ranks low in the British domestic market.
The UK is a potential opportunity for Chinese EV companies, and as long as local production is achieved, the UK government may not rebound as much as France.
From the sales rankings of electric vehicles in the UK, France and Germany, it can be seen that Chinese electric vehicles have not performed well in the three largest European markets, at least. With the exception of MG4 and BYD, other Chinese brands are still a long way from gaining a foothold in Europe.
Not to mention that once the EU's anti-price subsidy investigation into Chinese electric vehicles determines that domestic car companies have violated relevant rules and imposes higher tariffs, the future of Chinese electric vehicles in Europe will be more difficult.
At that time, I am afraid that only local production in Europe could solve all the problems. However, the higher local production costs in Europe and the constraints of the new energy vehicle industry chain make it not easy to produce in Europe. However, on the whole, in the face of the increasingly involuted domestic auto market, achieving a global layout is something that every ambitious Chinese car company must do.