In 2024, car models from China have established themselves among the general public and their sales will reach close to 37,000 units. So much so that we can talk about a real ‘Boom’ of Chinese cars in Spain: the number of brands has grown by 3 since 2021 and their market share is already 4%.
In addition to the increasingly wide range of models, the more affordable price stands as one of the main conditions that is convincing an increasing number of drivers in our country.
In fact, the price of the best-selling Chinese car in Spain – the MG ZS, which costs 17,930 euros – serves as an example, whose rate is up to 26% cheaper than the best-selling equivalent European car – the Peugeot 2008, which costs 24,190 euros. euros-.
But in addition to the price, Chinese brands cover the entire spectrum of the market, that is, they are capable of covering the most varied needs of all possible types of drivers, with a varied offering of affordable cars, medium-sized cars, high-end models. , etc., covering niches that other manufacturers have been forced to abandon due to various types of factors, such as the adaptation of their range to polluting emissions standards or the accelerated electrification that they are carrying out in their vehicle portfolio, a factor that is having various ‘coexistence’ problems with its business approach and traditional propulsion technologies, that is, traditional diesel and gasoline engines.
On the other hand, it must be emphasized that Chinese brands are leaders in electromobility, a type of technology that they have been developing and perfecting for more than ten years. In fact, some of the Chinese brands, such as the giant BYD – in November 2023 it had 14 electrified models – is the second largest battery manufacturer in the world after CATL, which therefore represents a competitive advantage that translates into cars. with a more reasonable price than European brands.
Meanwhile, many of the Chinese cars sold in Europe live up to, and in some cases even surpass, their European counterparts in key factors such as safety and level of product quality. In fact, all Chinese brand vehicles that underwent crash tests by the independent Euro NCAP body throughout 2023 and 2024 on our continent obtained the maximum score of 5 stars, demonstrating that they are equally or safer than its Western rivals.
To the previous factors, we must add another extremely important one, which is the fact that the vast majority of Chinese brands are based in an increasingly solid and extended after-sales network, with top-level importers who are mainly committed to the distribution model. traditional (something, let’s not forget, that is very popular in the market, since the user likes to physically go to the dealership to see, touch and drive the model that could be their next car).
Growth since 2021
In the last three years, the number of manufacturers from the Asian giant has multiplied by three in our country, going from 8 in 2021 to 23 in 2024, according to AutoScout24, Sumauto’s second-hand vehicle specialist, based on data by Ideauto.
This greater availability of Chinese car brands is already being reflected in the number of sales recorded, reaching almost 37,000 vehicles registered in the period from January to October 2024, which represents a market share of 4%. Here, the Top 5 Chinese manufacturers with the most registered registrations are MG (24,602 units), Omoda (5,897), BYD (3,249), Lynk & Co (1,132) and Polestar (506).
Registrations that, for the most part, have as their final origin the ordinary user, that is, the private customer, since practically all of the sales registered by MG, Omoda and BYD in Spain have the name and surname of natural persons. To these three manufacturers, we must add the recent and strong emergence of another Chinese brand, Jaecoo, which with a single vehicle has managed to register 313 units during its first month on sale (October), surpassing other brands already established and with a longest track record in our country such as Mitsubishi (267 units), Land Rover (207) or Subaru (163).
All this in a context with greater competitiveness with many more international players, since in 2021 there were up to 61 manufacturers, compared to 77 in 2024, so drivers have before them an increasingly greater offer not only of models, but of brands. And it will continue to grow.
In fact, in the short term the market will continue to receive new participants from the Asian giant, such as the newcomers Leapmotor, XPENG, Jaecco and Dongfeng – which sells a whopping 15 electrified vehicles worldwide – which will be joined by new ones in 2025. brands such as IM, NIO, Zeekr and Arcfox, among others.
Uncertain future in the face of new tariffs
According to Ignacio García Rojí, spokesperson for AutoScout24: «the automobile market in Europe is facing an exciting moment with the participation of multiple actors who, now, are covering all the possible tastes and needs that drivers may have. In the case of Chinese brands, their wide and varied range of electrified models is allowing many users to discover a more sustainable technology that is different from conventional technology. Regarding tariffs, we consider that it is not good to impose restrictive regulations, since it must be the market itself that passes judgment.
With an increasingly broader offer and with models of all types, which is resulting in its growth in the European market, given the concern of European manufacturers, Brussels has moved to impose protectionist measures, in this case, the imposition of tariffs on Chinese car brands. A movement, without a doubt, that is causing great controversy in the industry and whose objective, as declared from high places, is to counteract the “illegal” incentives of the Government of China to its producers of electric vehicles, which give them an unfair advantage. against its European competitors.
Thus, a tariff of 35.3% will be applied to the manufacturer SAIC (which includes MG and Maxus, among other brands), 18.8% to Geely and 17% to BYD, for a maximum of five years. This measure will also affect Western companies that produce in China, such as Tesla, to which a 7.8% tariff will be applied.
Given the imposition of these tariffs, many Chinese manufacturers have already announced their plans to establish one or more factories in a European country, such as MG, BYD, Dongfeng Motor or Chery, among others. Thus, by having a factory, many of these companies would stop paying these tariffs.
#keys #boom #Chinese #car #brands
