Taking advantage of the booming electric car market, Chinese luxury car brands are entering Europe.
Europe has become a veritable Eldorado for electric cars, both for reasons of image and purchasing power. Unknown Chinese brands are foraying into the European market with a high-end approach to this niche. This is the case of Nio, founded in 2014, which aims to rival Tesla. The brand offers a seductive innovation: a battery exchange system that’s faster than conventional recharging. And its popularity is exploding.
At the end of September, Nio claimed to have held exploratory talks with Mercedes-Benz. Under the terms of these talks, the German automaker would invest in the Chinese electric vehicle start-up, in return for a technology transfer. Nio founder and CEO William Li discussed this potential collaboration with Mercedes CEO Ola Kaellenius earlier this year.
Nio is not alone in setting its sights on the Old Continent. The young Hiphi brand, created in 2019, is already ready to deliver its vehicles to France. The carmaker is banking on extravagance to sell models costing in excess of €100,000.
Different approaches
Not all Chinese automakers choose to slash prices to conquer the European market. BYD and Great Wall (with the Wey and Ora brands) intentionally opt for competitive pricing, while maintaining a high level of quality.
“We focus on product quality and customer experience,” emphasized Xianghua Qiao, Managing Director of Great Wall Motors Europe, at the Paris Motor Show a year ago. The aim of this long-term strategy is to avoid devaluing the product and the brand image through low prices.
For its part, BYD has conquered market share in Southeast Asia by establishing distribution partnerships with major local conglomerates. This has enabled it to extend its reach, test consumer preferences and navigate the region’s complex government regulations.
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Featured photo : ©Nio
