How China’s EV makers aim to beat Tesla, legacy automakers in Europe

Chinese electric vehicle (EV) makers are aggressively targeting Europe, aiming to rival Tesla and traditional automakers with a wave of new models and strategic investments. BYD, Chery, and Great Wall Motor (GWM) plan to launch around 20 vehicles across Europe in the next five years, according to interviews with 18 industry insiders. BYD has already expanded to 20 European countries, with six electric models available, while Chery will introduce eight SUVs under its Omodo and Jaecoo brands within two years. GWM intends to release one new model annually for the next five years. The Chinese firms are adopting a multi-pronged approach to break into Europe, including sponsoring high-profile events, expanding dealership networks, and improving service and repair operations to address fleet buyers’ concerns about resale values. Despite limited brand recognition—except for MG, a British-owned brand under SAIC—they are gaining traction, with BYD’s European sales tripling to 15,000 vehicles in 2023. Executives emphasize long-term commitment, with Chery’s European managing director, Jochen Tueting, stating the company is focusing on branding, financing, and customer support for both private and corporate buyers. Norway’s EV Association representative, Christina Bu, noted that Chinese automakers have spent years preparing for Europe, adapting existing models and developing new ones tailored to local preferences. Unlike Western rivals, they face less pressure to turn a quick profit due to strong government backing. Bu highlighted that some firms have invested heavily despite low initial sales, positioning themselves for future growth. Tesla’s dominance in Europe is under pressure, as its best-selling models, the Model 3 and Model Y, are due for redesigns and have seen declining sales. Chinese automakers leverage cost advantages from China’s state-backed industry, allowing them to price competitively while investing in local production, such as BYD’s planned manufacturing facilities in Europe. Industry experts predict a surge in deliveries as more models enter the market, targeting a broad range of price segments. The strategy includes building deep roots in Europe’s automotive ecosystem, from financing options to after-sales support, to compete with established players. While MG, another Chinese-owned brand, did not respond to requests for comment, the broader trend signals a shift in the global EV market, with China’s manufacturers poised to challenge Western leaders on their home turf.