Chinese Wheels, European Roads
On March 10th, 2022 , XPENG, a leading smart mobility and technology company, kicks off customer reservations of its third and latest production model on the market, the XPENG P5 smart EV sedan, simultaneously in Denmark, the Netherlands, Norway and Sweden. The move marks a major milestone in its European expansion plans.
XPENG is also opening its first XPENG Experience Store in the Netherlands, its second branded showroom in Europe, following the opening of the Stockholm XPENG Experience Store in Sweden last month.
The XPENG P5 is the Company’s first model to be made available simultaneously in four European markets. The customer reservation process is fully-digitized, and accessible immediately in each of these four markets, both via the XPENG official websites in each country, and the XPENG mobile APP launched earlier this week.
“The XPENG P5’s arrival in four key European markets is a new demonstration of our commitment to Europe,” said Leon He, Vice President of XPENG. “Each new XPENG model achieves a new level of technology sophistication. The P5 brings a host of differentiated features to a new customer base in Europe, a market where we are building ourselves as a long-term player,” said Mr. He.
Concurrently, XPENG is also opening its first experience store in the Westfield Mall of the Netherlands in Leidschendam, conveniently close to major conurbations such as Rotterdam and The Hague.
Two additional stores in the Netherlands will open later this year in collaboration with XPENG's local partner Emil Frey, and the Company plans to open more stores in major cities across the Netherlands over the next few years.
Chinese Wheels, European Roads
Chinese carmakers, and particularly electric ones, are eyeing the European market for increased brand recognition in the emerging new energy vehicle market.
In December, 2020 , Xpeng started delivering its electric cars to customers in Norway. One hundred units of the Xpeng G3 electric SUV are currently being handed over to their new owners in 28 Norwegian cities.
Nio launched a multi-purpose electric sports utility vehicle in Norway last September, and plans to expand into Germany, the Netherlands, and elsewhere this year.
The Chinese manufacturer Aiways also sell its battery-electric SUVs in Switzerland from next year in cooperation with Alcomotive as its exclusive distribution partner. The electric SUV Aiways U5 is available in Switzerland from the beginning of 2022, the electric SUV coupé Aiways U6 will follow suit.
Shanghai-based SAIC Motor has introduced four electric models, including MG ZS EV, EHS, Marvel R, and MG5 Electric, in Europe.
Chinese makers of gas-powered and electric cars are setting up local units in Europe to build credible brands in the continent. For example, Great Wall Motors and Lynk & Co have established European subsidiaries with business covering research and development, sales, as well as management.
The expectations are big. SAIC predicts its sales of MG and Maxus models in Europe will reach 120,000 units this year. Last year, the company's sales of MG models reached 21,000 units, a threefold increase compared to 2020. "We will triple again this year,” Liu Xinyu, deputy general manager of SAIC Europe, said at a media event on Feb. 17.
SAIC will launch its EH32, a pure electric model developed for the global market, in Europe this year.
Other brands are making plans too. Dongfeng Motor Group’s electric brand Voyah recently announced its European entry with its first stop in Norway. Great Wall will soon open brand experience centers in Munich and Berlin.
Tap into oversea demand with NEV edge
China exported nearly 500,000 electric cars in 2021—more than any other country in the world—thanks to increasing sales in Europe and Southeast Asia by emerging cost-competitive automakers.
According to the CPCA, the number of passenger EVs exported in 2021 increased 2.6 times to 499,573 units.
Meanwhile, Germany doubled its exports to about 230,000 units, while the U.S fell 30% to around 110,000 units, and Japan increased 24% to 27,400 units, according to data compiled by the German Association of the Automotive Industry and the Japan External Trade Organization.
China accounts for 60% of global EV production, and is emerging as the world’s factory for EVs having already secured the same position in digital product manufacturing.
Exports to the EU grew in the wake of it announcing a policy to ban the sale of new hybrid and gasoline-powered vehicles in 2035.
China’s EV exports to Europe rose fivefold to 230,000 units, with the region absorbing half of China’s total EV exports. Belgium imported 87,000 units and the UK 50,000 units.
China’s EV export growth has been facilitated by its intense concentration on the sector. For automotive batteries, Chinese makers are manufacturing locally and procuring raw materials for cathodes domestically.
“In China, production costs are about 50% less than in other parts of the world due to more efficient procurement,” an official at a Chinese EV parts manufacturer said.
See also
Thundering exports ：China's top exporters in 2021
China's auto exports surge in 2021 to reach 2 million units
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