Chinese cars electrify world's roads

A report from consultancy KPMG forecast that Chinese carmakers are expected to capture around 15% of Europe's EV market by 2025, as established players such as BYD and emerging companies such as NIO and Li Auto gain popularity among European consumers.

This would mark a big step forward as Chinese marques accounted for less than 10% of the 1.1 m BEVs sold in Europe in 2022, KPMG said.

Europe is the world's second-biggest and fastest-growing EV market after China, and is expected to see surging demand for EVs following the European Union's announcement that it will ban the sale of new fossil-fuel cars from 2035 to combat climate change.

Europe accounted for about half of the 1 million new energy vehicles that China exported last year, according to the KPMG report. NEVs include BEVs, plug-in hybrids and fuel-cell vehicles.

With its affluence, environmental consciousness and relatively friendly attitude toward China, Europe is a priority destination for Chinese electric car manufacturers seeking a global footprint, experts and company executives said.

Within Europe, Belgium imports the largest number of Chinese-made NEVs. Most Chinese car companies choose to transport their vehicles to other European countries through Belgium, the KPMG report said.

Although Norway imports fewer NEVs from China, it has friendly policies, high market inclusiveness, complete charging facilities, and convenient port conditions, making it a bridgehead for Chinese car companies to go to Europe, KPMG said.

As Chinese EV makers expand their footprint by opening more stores and plants overseas, as well as providing more services and products tailored to international consumers, they are expected to improve their brand recognition and increase their market share, Kang said.

Ding Yuqian, head of China Autos Research at HSBC, said China has the world's most competitive EV battery supply chain. The single most expensive element of an EV is its battery. Carmakers based in China have access to high-quality batteries produced at a relative cost advantage, with manufacturers continuing to improve the technology.

Cui Dongshu, secretary-general of the China Passenger Car Association, Cui estimated China's full-year vehicle exports, including both NEVs and fossil-fuel vehicles, may reach 5 m units, up from 3.11 m units in 2022.

China's exports of NEVs totaled 636,000 vehicles from January to July, up 150% year-on-year, according to CAAM data.