Key points:
5.4 per cent of all new West European BEV passenger car registrations during the opening half of 2022 were from Chinese OEMs.
Dominated by just two OEMs – Geely's Polestar and SAIC's MG brand accounted for just under nine-in-ten (88%) of all Chinese BEV volumes registered in Western Europe during the opening 6-months of 2022.
Polestar 2 ahead of Tesla's Model 3 during Q2 despite similar Chinese Covid headwinds. Polestar witnessed its Polestar 2 volumes surpass same sector Tesla Model 3 during Q2 despite both models facing similar headwinds. Both were hit with Chinese Q2 production shutdowns, confirmed by the Sino-Swedish company that has its global HQ in Sweden and is listed on the NYSE. Polestar will launch its first, US built,SUV in October, the Polestar 3.
Disappointing start from Chinese premium brands in Norwegian test market as Nio/XPeng struggle to make an impression. Nio's European CEO exclusively told the European Electric Car Study that numbers are on target and should be compared to German premiums. Aside from MG and Polestar the third most notable model in Norway has been FAW's Hongqi E-HS9 model that with just under 1,000 units delivered this year was a top-20 BEV model in Norway during the opening 6-months of the year according to OFV data. BYD with its Tang SUV was just behind with 900 registrations and are set to announce a European roll-out in The Hague, early next week according to Handelsblatt.
While Chinese premium brands may be struggling so far according to Norwegian data, the volume segments could be more of a strategic target for Chinese brands according to the European Electric Car Study. Aiways have confirmed 10,000 European orders while, Great Wall Motors is about to roll-out its Ora brand, using established dealer groups, such as Emil-Frey, for their distribution networks. German premiums continue to take a take a top-down approach regarding their EV roll-out – helping them remain profitable – while they continue to limit their volume-segment offerings leaving more affordable segments open to new market entrants.
Chinese OEMs potentially have two windows of opportunity to enter the European market; with one before the 2025 EU CO2 fleet emissions target cut (-15%) leaving traditional OEMs continuing to push ICEs up until then – and likely unable to procure enough EV components even if the market required – to help finance their BEV transition, while the likely Euro 7 exhaust gas regulations expected in 2027 for new models will spark a switch from high volume traditional OEMs from ICE to BEV almost overnight.
More in-depth reporting in the full study published each month. From July the study features an in-depth look at the Chinese OEMs as their European expansion slowly beings. Are Chinese OEMs really a threat to the established European OEMs and what does the outlook look like?
May also interest you: European Electric Car Market Full Year 2021: Executive Summary – Full Year 2021 European Electric Car Study click here for the story
*Western Europe 18 Markets: EU Member States prior to the 2004 enlargement plus EFTA markets Norway, Switzerland, Iceland, plus UK