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Volkswagen:Competition From China EVs: Difference between revisions
Volkswagen:Competition From China EVs (view source)
Revision as of 11:38, 2 September 2024
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* 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>. | * 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, Customer Loyalty and Preference for ICEs === | ||
* 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>. | * 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>. | ||
* Change in vehicle preference will also likely take time. Similarly, there is a general stickiness for vehicles manufacture by European automakers in the region. According to a March 2024 Bloomberg survey, only 18% of European consumers favor EVs. The survey also found that 74% of the respondents would have an issue buying an imported vehicle while 62% said they would prefer buying the same marque. " Brand retention is highest in Germany, with just 10% of those surveyed unlikely to purchase the same car again. This bodes well for German automakers’ domestic market share of close to 60%," Michael Dean, Senior Industry Analyst at Bloomberg Intelligence commented<ref>https://www.bloomberg.com/company/press/just-18-of-european-car-buyers-favour-electric-vehicles-finds-bloomberg-intelligences-latest-auto-buying-intentions-survey/</ref>. | |||
=== Lack of sell networks === | === Lack of sell networks === | ||