For some time, China has been one of the world’s largest vehicle importers – mainly from Europe, where modern automobiles were invented. The fast rise of new energy vehicles (NEVs) in the nation, however, offers an opportunity for Chinese carmakers to sell vehicles to Europe and other overseas markets. Over 310,000 electric cars and plug-in hybrids were exported from China last year, according to the China Association of Automobile Manufacturers (CAAM), more than triple the figure for 2020 – helping the nation’s auto exports reach 2 million. Statistics from the General Administration of Customs (GAC) show that of the 10 top destinations, which combined accounted for more than 78% of last year’s NEV shipments, five were in Europe: Belgium, the United Kingdom, Germany, France and Slovenia. Xu Haidong, Deputy Chief Engineer at CAAM, said he expects China’s NEV exports to rise further this year. He said more countries are pushing to achieve carbon-reduction goals, and NEVs are gradually being accepted for daily commuting. However, leading global carmakers have been slower than those in China to go electric.
Toyota, the world’s largest vehicle maker, only launched its campaign to go electric in December, proposing to launch its first such vehicles this year. The company’s CEO Akio Toyoda said it is still pursuing a multi-pronged carbon-reduction strategy that also includes hybrid cars and hydrogen-powered vehicles. Volkswagen, the second-biggest carmaker globally and the largest in Europe, was among the first to move toward electric vehicles, announcing a strategy soon after it was involved in a diesel vehicles emissions scandal in the United States in 2015. Yet its ID.3 crossover, the first model on its dedicated electric car platform, did not launch in Europe until late 2020, and even later in other major markets, including China.
In contrast, most major carmakers in China started to offer electric vehicles several years earlier, partly thanks to incentives that started to be offered in 2009, a practice European countries adopted in 2020 and which the U.S. Congress passed late last year. Great Wall Motors’ Ora electric brand was unveiled in 2018, while Aion – GAC’s EV unit – was established the previous year. BYD, backed by Warren Buffet, was already the world’s largest NEV maker in 2016.
Chinese carmakers had a first-mover advantage when countries started to go green. Norway for example decided to end sales of petrol cars by 2025, exempting EVs from taxes and providing charging infrastructure. Last year, 65% of the country’s new car sales were electric, and the proportion is expected to reach 80% this year, according to the Norwegian Electric Vehicle Association. SAIC Motor, China’s largest carmaker by sales, launched its electric SUV MG ES in Norway in September 2019. Nine months later, a shipment of 328 electric vans from SAIC’s subsidiary Maxus left China for Norway.
In August, BYD launched its Tang electric SUV in Norway with local distributor RSA. The 1,000st such vehicle was sold in the Norwegian market in December. Frank Dunvold, CEO of RSA, said: “We have seen fantastic demand for BYD’s Tang in just a few months since its launch, and this pace will escalate this year. “The people of Norway are very environmentally conscious, and the pure-electric, zero-emissions Tang SUV is the perfect fit. It is stylish, comfortable and offers great driving performance, while also being practical.” Thanks to its rising acceptance of EVs, Norway is also a popular gateway for Chinese startups in Europe. Nio, which is based in Shanghai, opened its first overseas showroom in the center of Oslo last year, aiming to sell its ES8 sport utility vehicles (SUVs) and ET7 sedans as part of plans to expand globally. This year, the carmaker, which is listed in New York, plans to sell vehicles in Germany, the Netherlands, Sweden and Denmark. According to the company, by 2025 it will have established a presence in more than 25 countries and regions worldwide.
Last year, SAIC delivered more than 50,000 NEVs to Europe, accounting for over 70% of its sales to the continent. This year, the company is planning to launch an EV designed for Europe, the first of its kind in the carmaker’s portfolio. Liu Xinyu, Vice President of SAIC France, said the model is the result of efforts by SAIC’s teams in China and the UK to take full account of European customers’ demands. He said Europe is seeing a year-on-year rise of about 20% in NEV sales, adding that this is why the carmaker is launching such a model, which will offer owners of gasoline cars a good alternative if they want to go electric. “Major German carmakers are planning to launch these vehicles as well, but they will not be available until 2025, while ours will reach the market this year,” he said. Yu De, Managing Director of SAIC’s International Business Department, said such a model and several others scheduled to be available in Europe this year will increase the company’s deliveries to that market to some 120,000 vehicles. In addition, SAIC is strengthening its sales and service network in Europe, where the number of the company’s outlets is due to reach 1,200 this year. “We are opening a new dealership every three days or so,” Yu said. SAIC aims to sell at least 240,000 NEVs annually in Europe by 2025 as part of its goal to deliver 1.5 million vehicles to overseas markets that year, the China Daily reports.
