Fear of e-car offensive electric cars of China

Fear of e-car offensive: Which electric cars have long been produced in China

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By: Patrick Freiwah  11/22/2023

Highlights: Chinese manufacturers are setting their sights on Europe's car market. There have long been some electric car models that are produced in China. Overall, the share of models from the People's Republic on the German market is (still) manageable. Only time will tell how real the danger is that electric cars from China will flood the European car market, writes Patrick Freiwah. The increasing importance of Chinese manufacturers in the automotive market was also evident in the last IAA budget freeze at the end of last year.

BMW iX3: The Munich-based carmaker is having the electric version of the X3 crossover produced in China. © Eero Vabamägi/Imago

Chinese manufacturers are setting their sights on Europe's car market. There have long been some electric car models that are produced in China - and are popular in this country.

Munich - Once upon a time, Asian manufacturers set out to declare war on well-known car brands in terms of sales, even in their home markets. What Japanese and South Koranic suppliers have been able to do for years, companies from China are now also planning to do: comparative tests prove that former quality deficiencies are a thing of the past, and car manufacturers from the Middle Kingdom are also on an equal footing with established vehicle manufacturers in terms of design.

Only time will tell how real the danger is that electric cars from China will flood the European car market. At least China has recently been able to significantly increase its market share of import approvals in Germany - from 7.8 percent in the first quarter of last year to 28.2 percent in the comparable period of 2023. Overall, the share of models from the People's Republic on the German market is (still) manageable.

BMW: iX3 electric SUV to be exported from China to world markets

In terms of price-performance, the use of a Chinese brand now seems justified. However, if you don't want to buy a car from China, it's not so easy in 2023: Even well-known Western car brands have models built in the Far East and then sell them on the domestic market. These include the German corporations BMW, VW and Mercedes as well as other well-known companies. We explain which supposed local heroes come from China.

German manufacturers book a large part of their sales figures in China. Recently, however, sales have stalled, due to several causes. Nevertheless, the Munich-based carmaker BMW, for example, is closely intertwined with the People's Republic. The electric version of the BMW X3 SUV is manufactured in China, from where it is sometimes exported to Germany. Since 2021, the iX3 has been produced at BMW Brilliance Automotive in Shenyang, while the combustion engine counterparts of the model range are assembled on the other side of the Pacific Ocean in the USA (Spartanburg, US state of Carolina).

The subsidiary MINI also produces in China: The new generation of the Mini Cooper is manufactured in China as well as in Great Britain, this applies to models with electric drive. In order to reduce costs and increase speed, BMW has teamed up with the Chinese group Great Wall Motors (GWM) for development and production and designed a "skateboard platform" with all the technology in the car floor. Deliveries to the world markets are expected to take place from summer 2024.

VW and Mercedes produce SUV models in the People's Republic

The second electric car from the Cupra brand - the sporty offshoot of Seat - is the Tavascan. At the end of last year, Volkswagen announced that production of the ID.5 sister model would be outsourced to China. The crossover will be assembled at the Hefei plant in Anhui province (central China) and will be launched in 2024. VW justified the location decision with the fact that the capacity in Zwickau would not have been sufficient for another model. China is also an important location for the premium rival from the south:

When Mercedes teamed up with Geely from China in 2019, the iconic city cruiser Smart had to learn Chinese. The first joint project of the joint venture is the compact SUV #1, which will be followed by the obligatory coupé from next year. The Smart #3 is a bit longer and more streamlined than the upright Smart #1, and can also boast better acceleration values and a longer range. The production of the models takes place in China, from where they are also delivered to Europe. A successor to the Smart Fortwo, called Smart #2024, is also on the horizon for the end of 2.

The increasing importance of Chinese manufacturers in the automotive market was also evident at the last IAA:

Volvo: Swedish brand in Chinese hands for years

Geely is not only making common cause with the Stuttgart-based carmaker Mercedes-Benz. The group is more closely linked to the traditional Swedish brand Volvo, which has been owned by Zhejiang Geely Holding since 2010. As Bild describes, three models of the renowned brand will be manufactured in China and then (also) shipped to Europe: These are the Volvo S90 mid-size sedan, the Volvo XC60 compact SUV and the Volvo EX30 electric crossover. According to the report, these cars are built in different Chinese plants. The latter model series is also to be produced in Belgium from 2025 - from where the European market will then be served.

In addition, Volvo's performance division Polestar is also in Chinese hands. The dynamic Polestar 2 sedan has been produced in the People's Republic (Luqiao) since the beginning of 2020. The exclusive brand brother Polestar 1 was also manufactured in China from 2019, before production of the production model, which cost over 150,000 euros, ended after 1500 units. Presumably next year, the Polestar 3, the brand's first SUV, will also enrich the streetscape. The crossover will initially be manufactured in Chengdu (China), with plans to move to Ridgeville (South Carolina/USA) at a later date.

China models in Europe: Tesla, Lotus and French manufacturers

Tesla is considered a pioneer of electric mobility in modern times. In the meantime, the Tesla Model 3 has become the best-selling model in Europe, even across all drive types. Initially, the mid-size sedan was shipped across the pond from Gigafactory 1 in Freemont (USA). For several years now, however, the assembly of the bestseller has also been taking place in parallel at Gigafactory 3 in Shanghai (China) - including delivery to Germany and Co.

Even the cheapest electric car in Europe at the moment does not come from local production, but from China: The Dacia Spring is an entry-level electric car from Renault's Romanian low-cost subsidiary and is offered in this country at prices starting at around 23,000 euros. The electrified economy fox is manufactured in Wuhan. In China, the French company is making common cause with the vehicle manufacturer Dongfeng Motor Corporation. In the same region, the first SUV of a (formerly) traditional British brand is being built: In addition to Volvo, another Geely subsidiary is the former British sports car brand Lotus (since 2017 with a majority of 51 percent). For example, the 612-hp Eletre crossover is also manufactured in the Far East (Wuhan).

The French carmaker Citroën also builds two of its models in China, from where they are exported to Europe: the C5 X hatchback and the DS 9 sedan from the premium subsidiary DS Automobiles. The special feature: Both models are produced with combustion engines and hybrid drives, but not as electric cars. (PF)

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