In the age of navigation, Europe initiated an industrial revolution and ruled the world. In the new era, the revolution of automobile electrification may originate in China.

“The orders of mainstream car companies in the European new energy market have been queued to the end of the year. This is a blue ocean for domestic car companies.” said Fu Qiang, co-founder and president of AIWAYS.

On September 23, the second batch of 200 European U5s exported to the European Union by AIWAYS officially rolled off the assembly line and shipped to Europe, starting a large-scale deployment in the European market. AIWAYS U5 was officially launched in Stuttgart in March this year, and industry insiders have interpreted it as showing AIWAYs’ determination to enter overseas markets. In addition, the first batch of 500 customized European U5s was sent to Corsica, France in May this year for local travel leasing services.

Aichi U5 Export Ceremony to the European Union / Picture Source Aichi Auto

Only one day later, Xiaopeng Motors also announced that the first batch of orders obtained in the European market was officially shipped for export. A total of 100 Xiaopeng G3i will be the first to be sold in Norway. According to reports, all new cars in this batch have been booked and are expected to be officially docked and delivered in November.

Xiaopeng Motors Exporting Ceremony to Europe/Photo Credit Xiaopeng

In August of this year, Weilai also announced that it will enter the European market as early as the second half of 2021. Li Bin, the founder and chairman of Weilai, said, “We hope to enter some countries that welcome electric vehicles in the second half of next year.” In this year’s Chengdu Auto Show, Li Bin made it clear in an interview that the overseas direction is “Europe and the United States.”

The new car-making forces have all turned their attention to the European market, so are European countries really like Li Bin said, “countries that welcome electric vehicles more”?

Buck the trend

Europe has become an important global market for new energy vehicles.

According to data released by ev-volumes, in the first half of this year, despite the impact of the epidemic on the global auto market, the cumulative sales of new energy vehicles in Europe reached 414,000, a year-on-year increase of 57%, and the overall European auto market fell 37% year-on-year; while China New energy vehicle sales were 385,000 units, down 42% year-on-year, and China’s auto market as a whole fell by 20%.

Cartographer / Yiou Automotive Analyst Jia Guochen

Europe can buck the trend, thanks to its “high-intensity” new energy vehicle incentive policy. According to data from Guosheng Securities Research Institute, as of February 2020, 24 of the 28 EU countries have introduced incentive policies for new energy vehicles. Among them, 12 countries have adopted a dual incentive policy of subsidies and tax incentives, while other countries have given tax relief. Major countries subsidize 5000-6000 Euros, which is stronger than China.

In addition, starting in June and July this year, six European countries have introduced additional green recovery incentives to promote sales of new energy vehicles. And Peugeot Citroen (PSA) Group CEO Carlos Tavares once lamented in a conference call, “When the market removes subsidies, the demand for electric vehicles will collapse.”

Yiou Automobile believes that China’s new energy vehicle market has passed a period of “running forward” growth and has gradually entered a period of smooth transition. The European market has entered a period of rapid growth under policy incentives. Therefore, the corresponding audience needs are being rapidly stimulated. However, new energy vehicles want to gain a foothold in the European market, and there is a long way to go.

The strong momentum shown by the European market has also made various new energy car companies eager to try.

“Master” is like a cloud

At the Frankfurt Auto Show in September 2019, Matthias, President of CATL Europe, said, “The three themes of this year’s IAA Auto Show are electrification, electrification, and electrification. The entire industry is talking about everything from internal combustion engine vehicles to electric vehicles. As for the transformation of automobiles, CATL has reached in-depth partnerships with many European car companies.”

In May 2019, Daimler launched the “Ambition 2039″ plan (Ambition 2039), requiring plug-in hybrid vehicles or pure electric vehicles to account for more than 50% of its total sales by 2030. In the 20 years from 2019-2039, a product camp that achieves “carbon neutrality” will be built. Daimler executives said: “As a company founded by engineers, we believe that new technologies can also help us build a better future, that is, sustainable and environmentally friendly travel.”

In March of this year, Volkswagen released the first global mass-produced pure electric vehicle ID.4. It is reported that Volkswagen will launch 8 new energy vehicles including Volkswagen ID.3, Porsche Taycan, Golf EV, etc. globally this year.

In addition to local European car companies pushing for electrification transformation, Tesla CEO Elon Musk also announced in the German capital Berlin in November last year that Tesla’s Berlin Super Factory will be located in Berlin-Brandenburg. Region, and at the beginning of the year set a “small goal” for the first European super factory: an annual output of 500,000 vehicles. It is reported that the Berlin plant will produce Model 3 and Model Y, and subsequent production of more models will be launched in the future.

Cartographer / Yiou Automotive Analyst Jia Guochen

At present, the sales of Tesla Model 3 have a clear lead in the global new energy vehicle field, nearly 100,000 more than the second-ranked Renault Zoe (Renault Zoe). In the future, with the completion and commissioning of the Berlin Super Factory, Tesla’s sales growth in the European market is bound to “accelerate.”

Where are the advantages of Chinese car companies? The electrification transformation generally predates the local European car companies.

When Europeans are still addicted to biodiesel, most Chinese car companies represented by Geely have already launched new energy models, while BYD, BAIC New Energy, Chery and other companies have invested in new energy earlier, and are in China New Energy Of different market segments occupy a place. Most of the new car-making forces headed by Weilai, Xiaopeng, and Weimar were established in 2014-2015, and they have also achieved new vehicle delivery.

Cartographer / Yiou Automotive Analyst Jia Guochen

But in terms of auto exports, Chinese auto companies are relatively backward. In 2019, the export volume of TOP10 Chinese auto companies was 867,000, accounting for 84.6% of total exports. The auto export market was firmly held by several leading auto companies; China’s auto exports accounted for 4% of total production, and 2018 In 2015, Germany, South Korea, and Japan accounted for 78%, 61% and 48%, respectively. China still has a huge gap.

Li Bin once commented on Chinese car companies going overseas, “Many Chinese car companies have done a good job going overseas in recent years, but they have not yet entered Europe and the United States, but are still in some non-mainstream markets and regions.”

Yiou Automobile believes that in Europe where “masters” go overseas, Chinese car companies have certain first-mover advantages in the maturity of the new energy industry chain. However, although the European market “welcomes electric vehicles”, the environment is fiercely competitive and not “friendly.” Chinese car companies want to gain a certain share in the European market, with strong product strength, precise model positioning, and appropriate sales strategies. Nothing.

“Globalization” is an important issue that all Chinese car companies must face. As new car manufacturers, Ai Chi, Xiaopeng, and NIO are also actively exploring the “road to sea”. But if new brands want to gain the recognition of European consumers, new forces also need to work harder.

Facing the diversified needs of European consumers, if Chinese car companies can grasp the “new energy window period” of local European car companies and take the lead in creating “hard core” products, forming a differentiated advantage, the future market performance can still be expected.

——News source China Battery Network