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Volkswagen:Competition From China EVs: Difference between revisions
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* By setting up a plant in Hungary, BYD will also benefit from cheap labor. In 2024, the average minimum hourly rate for skilled labor in Hungary was 3.96 euros<ref>https://www.timecamp.com/average-salary/hungary/</ref>. A worker at the Foxconn plant in Komárom said he was making 5.44 euros an hour<ref>https://restofworld.org/2023/chinese-ev-manufacturers-hungary/</ref>. In 2023, an ordinary operator at BYD<nowiki>''</nowiki>s Changsha factory was making 2.51 euros per hour<ref>https://en.jiemian.com/article/9375763.html</ref>. It will also reduce shipping costs. Typically, it costs between $2,000 and $4,000 to ship a car from China to the Netherlands<ref>https://www.basenton.com/how-much-does-it-cost-to-ship-a-car-from-china-to-the-netherlands/</ref>. | * By setting up a plant in Hungary, BYD will also benefit from cheap labor. In 2024, the average minimum hourly rate for skilled labor in Hungary was 3.96 euros<ref>https://www.timecamp.com/average-salary/hungary/</ref>. A worker at the Foxconn plant in Komárom said he was making 5.44 euros an hour<ref>https://restofworld.org/2023/chinese-ev-manufacturers-hungary/</ref>. In 2023, an ordinary operator at BYD<nowiki>''</nowiki>s Changsha factory was making 2.51 euros per hour<ref>https://en.jiemian.com/article/9375763.html</ref>. It will also reduce shipping costs. Typically, it costs between $2,000 and $4,000 to ship a car from China to the Netherlands<ref>https://www.basenton.com/how-much-does-it-cost-to-ship-a-car-from-china-to-the-netherlands/</ref>. | ||
== | == What are the challenges facing Chinese EV expansion in Europe? == | ||
=== Quality Perception === | |||
* The perception that Chinese products are of poor quality is perhaps the biggest challenge facing Chinese EV makers<ref>https://www.gfk.com/insights/turning-the-wheel</ref>. | |||
* '''However, the Chinese EV makers have made great advancement in safety features. Several Chinese EVs sold in Europe have received a 5-star safety rating from the Euro New Car Assessment Programme (NCAP)'''<ref>https://www.euroncap.com/en/ratings-rewards/latest-safety-ratings/#?selectedMake=0&selectedMakeName=Select%20a%20make&selectedModel=0&selectedStar=&includeFullSafetyPackage=true&includeStandardSafetyPackage=true&selectedModelName=All&selectedProtocols=51097,49446,45155&selectedClasses=1202,1199,1201,1196,1205,1203,1198,1179,40250,1197,1204,1180,34736,44997&allClasses=true&allProtocols=false&allDriverAssistanceTechnologies=false&selectedDriverAssistanceTechnologies=&thirdRowFitment=false</ref>. "All Chinese EV makers want to achieve Euro NCAP five-star ratings in order to be more competitive in the European market," said Brian Gu, Xpeng president<ref>https://europe.autonews.com/automakers/chinese-automakers-target-more-europe-sales-5-star-evs</ref>. | |||
* According to Janka Oertell, Director of Asia Programme at the European Council on Foreign relations, the quality of Chinese EVs presented at the German Auto Fair in September 2023 was respectable even for German snobs<ref>https://ecfr.eu/article/security-recall-the-risk-of-chinese-electric-vehicles-in-europe/</ref>. | |||
=== Poor Brand Awareness === | |||
* Brand awareness has been another challenge for Chinese EV makers wanting to expand in Europe. A 2022 survey by YouGov established that only 14% of the 1,429 German consumers had heard of BYD while 95% knew Tesla<ref>https://www.reuters.com/business/autos-transportation/chinas-ev-makers-face-cost-consumer-challenges-conquer-europe-2023-08-18/</ref>. This means that they have had to increase spending on sales and marketing. For instance, in July 2024, BYD signed a deal to incorporate 100,000 of its EVs in Uber platform. It was also one of the biggest sponsors of the Euro 2024<ref>https://www.business-standard.com/world-news/byd-eyes-50-overseas-sales-after-it-posts-strong-first-half-results-124082801021_1.html</ref>.<br /> | |||
== References == | == References == | ||