LONDON (AP) 鈥� When Laima Springe-Janssen was looking to replace her French-made gasoline-powered SUV with an electric car, she considered models from Volvo and Nissan.
The Volvo extras she wanted would have busted her budget, while the Nissan lacked the 鈥渨ow factor.鈥� The Copenhagen, Denmark, resident ended up buying a compact SUV from China鈥檚 BYD.
鈥淚 really, really love the car,鈥� Springe-Janssen said. For the equivalent of about $50,000, the Atto 3 SUV came with 鈥渁ll these goodies鈥� like a 360-degree dash cam, two years of free charging and an extra set of winter tires.
Her husband likes it so much he鈥檚 considering buying another BYD to replace their other car, from Volkswagen鈥檚 Skoda brand.
鈥淚鈥檓 sorry, Europe. Go home,鈥� she said. 鈥淐hina has a better offer.鈥�
Her enthusiasm underscores how Chinese automakers are winning over drivers as they make major inroads into Europe鈥檚 electric vehicle market, challenging long-established homegrown brands in an industry that鈥檚 key to the continent鈥檚 green energy transition.
The competitive threat has spurred the European Union to into Beijing鈥檚 support for its EV industry. That adds to between the West and China, which is one of Europe鈥檚 biggest trading partners and the world鈥檚 biggest auto market.
China鈥檚 EV onslaught, along with massive U.S. that has drawn investment away from Europe, shows how the 27-nation bloc is caught in the middle of the global race for green technology.
Chinese EV makers are drawn to Europe because auto import tariffs are just 10% versus , independent auto analyst Matthias Schmidt said. Europe also has the world鈥檚 second-biggest EV battery market after China.
Nevermind the geopolitics. Climate-conscious car buyers in Europe who are grappling with an increased cost of living rave about how Chinese EVs are affordable yet packed with features and stylish design. Concerns about the threat to local carmakers and jobs just aren鈥檛 a factor for them.
British retiree John Kirkwood replaced his Volkswagen Passat three years ago with an MG5 station wagon because the 30,000-pound ($36,000) price tag 鈥渨iped the floor鈥� with its nearest rival 鈥� a Kia that cost thousands more.
鈥淚t鈥檚 nice. It鈥檚 quiet, it鈥檚 refined鈥� and very quick, Kirkwood said, adding that he had few qualms about British brand MG鈥檚 Chinese ownership.
MG 鈥� owned by SAIC Motor, China鈥檚 biggest automaker 鈥� is the largest Chinese EV player in Europe. BYD, backed by , is growing fast. There鈥檚 also Geely, which owns Sweden鈥檚 Volvo and a stable of EV brands including Polestar, Lynk & Co. and British sportscar maker Lotus.
Behind them are a slew of startups, like NIO and Xpeng.
Their combined sales are a sliver of the 9.2 million vehicles sold in Europe every year, but they have been gobbling up a piece of the smaller EV market at an astonishing pace.
Chinese automakers account for only about 3% of Western Europe鈥檚 overall car market but 8.4% of the EV market, up from 6.2% last year and almost nothing in 2019, according to Schmidt鈥檚 data.
The surge is stoking fears about Europe鈥檚 automotive industry, an economic powerhouse centered in France and Germany that employs millions of workers, staying competitive as it transitions from fossil fuels to electricity.
European Commission President Ursula von der Leyen says 鈥済lobal markets are now flooded with cheaper Chinese electric cars,鈥� with prices 鈥渒ept artificially low by huge state subsidies.鈥�
The commission, the EU鈥檚 executive arm, formally opened its investigation this month, saying it would take up to 13 months and could result in import duties.
Beijing voiced 鈥渟trong dissatisfaction鈥� and vowed to 鈥渇irmly safeguard鈥� Chinese companies鈥� rights. The Chinese Commerce Ministry said the EU probe is based on 鈥渟ubjective assumptions,鈥� lacks enough evidence and goes against World Trade Organization rules.
Complicating matters, global automakers build vehicles in China and have exported 164,300 this year to Europe, including BMW鈥檚 iX3 SUV made in northeastern Shenyang and Tesla鈥檚 Model 3 and Y produced in Shanghai, according to Schmidt鈥檚 data. That means one in every five EVs sold in Europe is a Chinese import.
A commission spokesman said the investigation is looking at China鈥檚 EV exports 鈥渞egardless of the brand.鈥�
Stellantis, which owns French auto brands Peugeot and Citroen as well as Italy鈥檚 Alfa Romeo and Fiat, is vowing to fight back against China鈥檚 EVs. In a recent earnings call, CEO Carlos Tavares said the world鈥檚 No. 3 automaker is responding to a 鈥淐hinese invasion in a European market鈥� with a new Citroen e-C3 cheap compact.
Stellantis faces added pressure from a union strike in the U.S. over EV battery plant jobs.
Executives at Shanghai-based Aiways, a startup headed by Volvo鈥檚 former China sales chief, rejected accusations that Beijing provides a helping hand.
鈥淲e鈥檙e not selling inside China, we鈥檙e not being subsidized in China,鈥� said Alexander Klose, vice president of overseas operations. 鈥淵es, we obviously have some subsidies for putting a plant somewhere, which is, I think, what everybody has in Europe.鈥�
Aiways is focusing on Europe and Israel instead of China, where the that 鈥渨e don鈥檛 think it makes sense to compete right now,鈥� Klose said.
The EU should be working on getting to a green future 鈥渞ather than keeping competition out,鈥� he said.
One reason Chinese companies can offer high-quality cars at affordable prices stems from the rules to enter the Chinese market. Global automakers had to team up with local companies, providing them crucial automaking knowhow.
鈥淭hey were kind of like the sous chefs to the Western companies,鈥� said Schmidt, the auto analyst. 鈥淭he situation now is those sous chefs are opening up their own restaurants and, in some cases, better than their masters鈥� restaurants.鈥�
Also helping level the playing field is battery-powered motors being less complex to build than internal combustion engines and requiring fewer workers. That鈥檚 a problem for European brands with big workforces that will need years to revamp operations, Schmidt said.
Chinese EV makers, meanwhile, are trying to stand out in a crowded field.
SUV maker Great Wall Motors鈥� EV sub-brand Ora is targeting women, with cars it says are designed for their body sizes and daily needs.
The Ora Funky Cat, with throwback round headlights, an exclamation mark on its hood badge, and a 32,000-pound ($38,600) price tag, appealed to British scriptwriter Justin Nicholls, who bought one for his wife.
鈥淭he looks are awesome, and the tech great. It鈥檚 so easy to drive, yet feels like a lot larger car and feels premium,鈥� he said.
It also appealed to Nicholls because it鈥檚 different from the Volkswagens, Peugeots and BMWs common on British roads: 鈥淚 think it is a lot more quirky than European cars.鈥�
Kelvin Chan, The Associated Press
