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According to Jato Dynamics, registrations of Chinese-made cars in the region rose 43% from January to February compared to the same period last year.
by chris chilton
5 hours ago
- The rise in Chinese-made models is definitely impressive, as the European car market rose 10% in February.
- The rise can be partially explained by some Chinese manufacturers increasing imports ahead of the EU’s decision on EV subsidies.
- Companies like Tesla, MG, and Volvo are perceived by consumers as Western companies, even though they manufacture EVs in China.
How long will it be before mainstream Western automakers are wiped out by opposing numbers from China? 15 years? Ten? The latest European sales figures reveal that in February, one in five new EVs was made in China, and at least until you dig a little deeper, that’s not likely to happen anytime soon. It’s easy to imagine doing that.
This 1 in 5 statistic is shocking enough, but comparing this year’s numbers to last year reveals some even more alarming numbers. The number of registrations of Chinese-made cars in Europe increased by 45% in February this year compared to February 2023, and to prove that it was not sudden, the increase from January to February There was only a slight decrease of 43%.
Read more: Europe seems more likely to impose tariffs on Chinese EVs
Indeed, the overall European car market rose in February, but only by 10%. So this clearly does not mean that all ships rose due to rising tides. While the share of Chinese-made cars has increased by 45%, cars from Germany and Spain, the second and third most popular producers of new cars, each captured just 6% more of the pie than in February last year. There wasn’t.
Jato Dynamics points out that cars made in China are outperforming cars made in Italy, South Korea, Morocco and Romania (all major players in the Euro car industry), while closing the gap between Turkish and British cars. are doing.
“Part of this growth is due to actions taken by some Chinese manufacturers to accelerate imports ahead of the EU’s decision on anti-subsidy investigations,” said Felipe Muñoz, global analyst at Jato Dynamics. It will be explained.” “While higher tariffs could slow growth for Chinese OEMs, the knock-on effect could be to accelerate deliveries to Europe.”
So what’s the caveat I alluded to at the beginning? It’s that 44 percent of Chinese car sales are registered by Western brands such as Tesla, Volvo and Dacia, and a further 40 percent are related to MG sales. This means that MG, like Volvo, is still recognized even though it is Chinese-owned. As a European company, we have gained support from many buyers. Discounting these from the equation, his 16 percent share of cars manufactured in China becomes a true Chinese brand.
While growth is sure to come, Muñoz says there is still some room for Western automakers.
“Chinese brands still have a long way to go before they become a significant part of the European market,” the analyst said. “While progress is being made in terms of performance and affordability, it will take time to increase awareness and change long-held perceptions.”
Source: Jato Dynamics
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