Import duties don’t stop Chinese cars

Market share

According to a KPMG study commissioned by BOVAG, the market share of Chinese cars in Europe will double from 4 percent in 2023 to 10 percent in 2030. In the Netherlands it will go even faster: here the percentage may even reach almost 19 percent.  

Building cheaper and smarter

According to the study, the success of Chinese brands in Europe is due to cost advantage, a lot of flexibility and a strategic eye for the European market. Thanks to efficient production processes and access to cheap raw materials, Chinese brands manage to offer electric cars at competitive prices. Yet to ease the pain of import duties somewhat, they are considering moving some production to Europe. Thus, more and more Chinese automakers – such as BYD – are opening a factory within the EU.

Growth Opportunities

Also, according to KPMG, the Chinese know exactly where the growth opportunities lie. Where they first aimed mainly at luxury models, they are now switching to affordable electric cars with an attractive price-quality ratio. Exactly what many European buyers are looking for.

From online ordering to showroom

So Chinese car manufacturers can adapt quickly. Not only when it comes to the product, but also in the way they want to market it. At first they tried to sell their cars mainly online, but now they are increasingly using traditional dealers.  

Still getting used to it

Still, there are some hurdles to overcome. Leasing companies and insurers are not yet fully convinced, mainly because of uncertainty about residual value and repair costs. European dealers also have to get used to the Chinese way of doing business. But according to BOVAG, dealers who do business with Chinese brands can thus compensate for some of the market share loss of European manufacturers.

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