Chinese electric cars open up ambitions to compete with Korean cars

The fact that more Chinese electric car models are rated 5-star Euro NCAP shows that entering the European market seems to be becoming a trend.

The entry of Chinese auto brands into the European market has attracted the attention of Korean media.

Korean media reported that Chinese automakers are turning their attention to the European market. They believe this shift will increase competition in the new energy vehicle market. At the same time, it will have a big impact on Korean car brands that are already well-known in Europe.

Chinese electric cars open up ambitions to compete with Korean cars in Europe - 1

Great Wall Motor said it will sell 10 electric car models in Europe by 2025, including the Ora Cat line (Photo: Shutterstock).

Liu Zhixiong, a researcher at Korea Investment Securities, said that Chinese automakers' overseas expansion strategy is mainly focused on Europe. Additionally, the global leap of independent Chinese brands will negatively impact the value of Korean auto companies.

Taking the example of Hyundai Motor, he said that the Group's position in the European market has increased significantly in the past 3 years. However, in the effort to expand market share in the next 3 years, competition with Chinese brands will be unavoidable.

Currently, sales of Korean brands in the European market focus mainly on Hyundai and Kia. According to data from the European Automobile Manufacturers Association, Hyundai and Kia sold a total of 822,000 vehicles in this region in the first three quarters of this year, an increase of 6.6% over the same period last year.

The cumulative market share of the two Korean brands above is 9.9%, ranking third in Europe, after Volkswagen Group and Stellantis. Of which, Hyundai Motor sold 396,000 cars, an increase of 3.2% and Kia 426,000 cars, an increase of 9.8% over the same period last year.

Chinese electric cars open up ambitions to compete with Korean cars in Europe - 2

According to the China Association of Automobile Manufacturers (CAAM), the country's automobile exports in the first half of 2022 exceeded 1.3 million units. As of August, China's automobile exports surpassed Germany's, ranking second in the world (Photo: Geekpark).

In contrast, most Chinese independent brands have opened many stores in Europe but their businesses are still in their infancy and sales are not yet comparable to Korean brands.