Volkswagen:Competition From China EVs: Difference between revisions

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* 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>.  
* 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). It's good to note that some European made EVs have less than 5-star NCAP rating'''<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>.
==== China EVs Quality Insights ====
* 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>.  
*'''Several Chinese EVs sold in Europe have received a 5-star safety rating from the Euro New Car Assessment Programme (NCAP). It's good to note that some European made EVs have less than 5-star NCAP rating'''<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>.
* According to Mark Wakefield of Alixpartners, while China made EVs still lack behind its European or U.S rivals, they have improved a lot. "These are very advanced vehicles. They are not quite up to the quality standards that the U.S. and European vehicles are, but they've come a long way and the difference is now pretty negligible," he said.
* According to Mark Wakefield of Alixpartners, while China made EVs still lack behind its European or U.S rivals, they have improved a lot. "These are very advanced vehicles. They are not quite up to the quality standards that the U.S. and European vehicles are, but they've come a long way and the difference is now pretty negligible," he said.
* A J.D Power survey of  9,791 Chinese consumers who purchased vehicles between July 2023 and January 2024 found that domestic vehicles had fewer quality problems compared to international brands. Quality problems associated with domestic brands were 201 per 100 vehicles (an increase of 31 from 2023) while that of international brands were 218 per 100 vehicles (an increase of 54 from 2023)<ref>https://www.jdpower.com/business/press-releases/2024-china-new-energy-vehicle-initial-quality-study-nev-iqs</ref>.
* According to the Wall Street Journal, BYD has affected quality issues affecting a large number of customers. However, some quality issues have still been encountered. For instance, BYD vehicles require extensive repairs before the can be sold to customers but this could be due to the company's inexperience in handling long-distance logistics. This has resulted in internal friction within the company over sales targets. For example, last year, a BYD European executive question the targets due to weak demand and quality issues<ref>https://www.wsj.com/business/autos/having-overtaken-tesla-byd-is-running-into-problems-overseas-7d883f02</ref>.


=== Poor Brand Awareness ===
=== Poor Brand Awareness ===