Chinese cars are affordable, while Western manufacturers can't offer enough electric vehicles, Fitch Solutions said.
(Image credit: CnEVPost)
By 2025, one in six electric vehicles (EVs) sold in Europe will come from Chinese carmakers, an analyst said.
Over the next three years, Chinese EV makers could take 18 percent of the European market, up from the current 3 percent, Phoebe O'Hara, an analyst at Fitch Solutions, was quoted as saying in a webinar by the South China Morning Post in a November 4 report.
Chinese cars are affordable, while Western manufacturers can't offer enough EVs, O'Hara said.
"The extensive offerings and supplies of Chinese EVs mean that they can fill the gap in that market," she added.
Chinese EV makers have increasingly focused on overseas markets, with Great Wall Motor announcing last year that it would begin selling the Ola EV in Europe and offer at least 10 models by 2025, the report noted.
BYD introduced three all-electric models to the European market in September, and NIO began operations at its first overseas battery swap station plant in Hungary in September.
There are other reasons for the strong performance of Chinese electric vehicle brands besides affordable prices.
"These brands have entered into the metals and mining sector over the last decade, which allowed them to insulate themselves from the volatility that we've seen in the metals market," said O'Hara.
"We believe that Chinese electric vehicle manufacturers will thrive extensively in Europe over the next decade," she said.
Separately, China Securities Journal reported today that exports of new energy vehicles (NEVs) have been growing rapidly over the past two years, with the rise of Chinese NEV brands and a major push into the European market.
Nearly 10 local car companies have exported NEVs to Europe, and Chinese NEVs have accounted for 10 percent of total NEV sales in Europe, the report said, citing Chen Shihua, China Association of Automobile Manufacturers (CAAM) deputy secretary-general.
In China, NEVs include pure electric vehicles, plug-in hybrids and fuel cell vehicles.
The European electric vehicle market has low tariffs and good charging infrastructure said a research report by CITIC Securities cited by China Securities Journal.
European consumers are more environmentally conscious and have a higher acceptance of NEVs, CITIC Securities said.