Chinese carmakers aim to build up presence in Europe

Chinese carmakers have quickly gained a significant presence in the European auto market, with a 9% share of sales in March and 14% of electric cars. Their success is attributed to technological advancements, particularly in electric vehicles, where they are far ahead due to strong state support in China. European manufacturers, weakened by a shrinking domestic market and EU plans to make 90% of cars electric by 2035, are now trying to catch up. To sustain their market share, Chinese firms are planning to start producing locally in Europe to avoid customs duties and transport issues. Some, like BYD, are already building plants in Hungary, while others are partnering with European companies to produce models in existing factories. European manufacturers are fighting back by forming joint ventures with Chinese companies to learn from their expertise in electric vehicles.