China’s Growing Influence in the Global Car Market
China has solidified its position as the largest car market in the world, with over 30 million cars registered last year, three times the number in Europe. What may come as a surprise is that China is home to 61 domestic car manufacturers, split among 18 different powerhouses. These include well-known brands like Geely, BYD, Changan, and SAIC. Strong sales in the domestic market have propelled these Chinese companies to expand globally, resulting in a significant increase in car exports. In just three years, car exports from China quintupled to 4.9 million, making it the largest exporter of vehicles in the world.
Another remarkable development is the rise of Chinese car brands known for their quality. The MG 4, priced at £25,000, was the UK’s second-best-selling electric car last year, behind the Tesla Model Y. Other Chinese car firms like BYD and Geely-owned Zeekr are also making waves in the UK, with Xpeng, Nio, and Omoda soon to join the market. Great Wall Motor (GWM), the fifth-largest player in China’s car market, is also expanding its presence in Europe, with a particular focus on the UK. GWM already has a strong presence in other European markets, especially Germany, where it sells popular models like the Wey 05 and Haval SUV. GWM’s Tula manufacturing and engine plant in Russia has also been instrumental in producing cars for the European market.
However, GWM’s expansion plans may face challenges due to tough market conditions and potential punitive taxes on imported Chinese cars that are being considered by EU legislators. Despite this, GWM remains confident that its sales in Europe and the UK will not be affected. The company’s UK operations are handled by distributor IML.
To ensure success in the European market, GWM is focusing on adapting its cars to European preferences. This includes improving charging speeds, making in-car software and technology more user-friendly, and tailoring designs to appeal to European customers. GWM has opened new design studios in Munich and Turin to gain a better understanding of the European market and secure talent from European designers.
GWM’s expansion plan includes targeting the “aspiring middle class” in mainland Europe, including countries like Spain, Italy, Portugal, Belgium, Luxembourg, the Netherlands, Austria, Switzerland, Denmark, and Bulgaria. The company has completed a renaming overhaul, positioning its Europe-bound products under the GWM name to create a stronger consumer brand in the competitive European marketplace.
Overall, China’s growing influence in the global car market is undeniable. With its large domestic market, increasing car exports, and focus on quality and adaptation to international markets, Chinese car brands are poised to make a significant impact on the global automotive industry.