Chinese EVs enter Europe: Chery announces two plants, joins BYD in leading growth trend

The European automotive market is witnessing the rapid development of Chinese electric vehicle (EV) brands that offer competitive prices and compelling alternatives. But now, the rules of the game are about to change. Major Chinese automaker Chery has announced plans to build two plants in Europe: one for right-hand drive markets such as the UK, and possibly Australia and New Zealand; and the other for left-hand drive markets across the continent. Chery’s bold move follows BYD’s recent announcement of a European plant in Hungary, and signals a growing commitment by Chinese electric car brands to establish a foothold in the European market.

Why Europe?

There are several factors why Chinese EV brands are interested in Europe:

Booming EV market: The European EV market is growing rapidly, driven by government incentives and environmental concerns.
Competitive Advantage: Chinese EVs are often less expensive due to factors such as low labour costs and government subsidies.
Localisation Advantage: Establishing a manufacturing base in Europe reduces transport costs and allows for a faster response to market demand.
Chery’s ambitions in Europe:

Chery’s two planned plants are expected to be operational by the end of this decade, producing mainly the Omuda and Exlantix brands. This will strengthen Chery’s position in the European market and make its electric vehicles more competitive by reducing transport costs and lead times.

Beyond Chery: a growing trend:

Chery is not alone in its European ambitions. BYD’s plant in Hungary, as well as other potential entrants, highlights a growing trend of Chinese EV brands investing in production in Europe. This trend could reshape the European automotive landscape and could lead to the following outcomes:

Increased competition: More Chinese EV brands will compete for market share, potentially driving down prices and providing consumers with more choice.
Production shifts: Traditional European carmakers may come under increased pressure to adapt and innovate in order to remain competitive.
Job creation: New plants could create jobs in Europe, particularly in the construction and automotive sectors.
Future of electric vehicles in Europe:

The entry of Chinese EV brands into Europe is a significant development, signalling a new era of competition and innovation. While its long-term impact remains to be seen, the growth of the European EV market in the coming years is clearly exciting.