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Chinese EV makers rely on Europe’s car dealers to gain market share

by Clarence Jones

Chinese electric vehicle (EV) makers are facing challenges in winning over European consumers who are unfamiliar with and hesitant to trust their brands. These companies, including BYD, Xpeng, and Great Wall Motor, are relying on traditional dealership models to establish robust sales and service networks in Europe. However, they face competition from established European car makers like Volkswagen, Renault, and BMW, which have strong reputations for quality and reliability. While Chinese EV makers have seen their market share in Europe rise to 5.6%, the majority of sales have come from MG Motor, a brand associated more with its British roots than its Chinese ownership. The success of Chinese EV makers in Europe will depend on their ability to convince consumers to choose their brands over well-known European options. The dealerships will play a crucial role in this process, acting as the face of the companies and providing customer relations. The ongoing political tensions between the European Union and China over state support for Chinese EV makers could also impact their competitiveness if new EU tariffs are imposed on imports. Chinese EV makers like BYD and Xpeng are expanding their dealer networks in Europe to increase brand recognition and sales. However, the number of car dealers in Germany, for example, has been decreasing due to industry consolidation and increasing online sales. Chinese EV makers have the opportunity to enter the European market as the industry shifts towards EVs, but their success will depend on their ability to capture market share and gain consumer trust. Recreating the success of Tesla, a popular EV brand, will be a significant challenge for these Chinese companies, but it is not impossible.

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