Chinese automakers such as Nio, Lynk & Co, and BYD are gaining higher market shares in the electric vehicle industry. As a result, Europe is expected to shift from being an auto exporter to an auto importer in the coming years. A recent study by PricewaterhouseCoopers (PwC) reveals that Europe will import more cars than it exports by 2025, primarily due to the strong competition from Chinese automakers. These companies are increasingly gaining market shares in the electric vehicle industry, which is causing a shift in the global automotive market.
In 2021, European automakers exported 35,000 electric vehicles from China to Europe, and this number is expected to increase to 66,000 in 2022. PwC predicts that by 2025, 800,000 electric vehicles from China will be sold in Europe, including 330,000 cars manufactured by European automakers in Chinese factories. This shift in the automotive market will result in Europe importing more cars than it exports, with an import surplus of more than 221,000 vehicles (combustion and electric) by 2025.
According to Jörn Neuhausen, Head of Electromobility at PwC Strategy& Germany, the European automotive industry is facing increasing pressure not only from Chinese companies but also from other problems such as disrupted supply chains and rising energy prices. Due to supply problems, European automakers are focusing on high-end electric vehicles, which are more expensive. In contrast, Chinese automakers have affordable electric models with current technology in their portfolio, which are becoming increasingly popular in Europe. Although these models currently have a minor role in Europe, they could capture about five percent of the European electric vehicle market share by 2030.
In conclusion, the shift in the global automotive market is causing Europe to become an auto importer rather than an exporter. Chinese automakers are gaining market shares in the electric vehicle industry, which is causing a shift in the global automotive market. European automakers are facing increasing pressure from disrupted supply chains, rising energy prices, and the competition from Chinese automakers. As a result, Chinese automakers are becoming increasingly popular in Europe, and their affordable electric models could capture a significant market share in the future.
