With Tesla’s permission, the great upheaval in the transition to the electric car is now being led by Chinese brands, both in Spain and in the rest of Europe. The forecast is that this year they will account for a quarter of all passenger cars of this type registered in the EU while they are even exploring the possibility of opening a factory on the continent, as Chery has just done in Barcelona. The landing is already underway and has a double meaning: on the one hand, it threatens the hegemony of European manufacturers and, on the other, it encourages the market with lower prices.
Of the Chinese brands that have already arrived in Spain, MG stands out, which has managed to place one of its low-cost combustion models, the ZS, as the best seller. It also has another on the electric podium, behind the Tesla Y and 3. It is joined by other brands such as BYD, SAIC and, more recently, BAIC, which this month has started using the port of Ferrol, to distribute the their cars all over Europe. They also sell petrol cars, but the slogan boils down to two words: electric and cheap.
The strong point of these vehicles is the price, lower than that of European manufacturers, whose strategy after the end of the pandemic and due to the shortage of chips was to concentrate efforts on high-end models, which are the ones that offer better margins. They have neglected the most popular segment of the market, but in return they get record profits, as indicated by the consulting firm EY.
The Omoda brand, belonging to Chery, and MG offer electric cars in Spain with prices close to 20,000 euros, once discounts and subsidies have been applied. It’s the closest we’ve come to combustion vehicles to date, and it gives some hope to a still immature market. If it is added to the savings in fuel – more expensive than electricity – the accounts can start to add up. Another thing is that the consumer needs time and some prior opinion before buying a Chinese electric.
The International Energy Agency (IEA) has some messages in this regard. On the one hand, he predicts that the price of electric and conventional passenger cars will still take seven years to equalize. On the other hand, it recognizes the role of laper in achieving convergence. According to his calculations, China exported 1.2 million cars last year, 80% more than in the previous year, which has allowed it to enter European markets with force.
The irruption of China has been accompanied by complaints from local manufacturers and political preventions. In a recent letter to Europeans on the occasion of the June elections, the CEO of Renault, Luca de Meo, recognizes that China is ahead in electric technology and assures that the European industry is “threatened”. He criticizes Brussels in passing for dedicating itself to regulation, instead of promoting strategic autonomy.
Chinese brands will begin to be seen with different eyes as soon as they start producing in Spain, as has happened with so many foreign groups. With its bet on Barcelona, ??Chery is not only covering itself against the tariffs that a more protectionist Europe may impose, but is also paving the way. Until now only one Chinese manufacturer, BYD, had announced the opening of a factory in the EU, in Hungary. Accompanied by Ebre-EV Motors, Chery plans to assemble 150,000 vehicles by 2029 at the former Nissan facilities in the Free Zone.
Another Chinese company, Envision, has already received aid for its lithium battery factory project in Extremadura, in which it says it will invest 2.5 billion euros and employ around 3,000 people.
