The plan of Chinese electric car manufacturers to conquer the European market seems to be threatened by the current EU-China relationship. The biggest consequences could be for BYD and ZEEKR.
Last week, European Commission President Ursula von der Leyen launched an investigation into potentially unfair state support for Chinese electric vehicle manufacturers, a move the EU labeled “bare protectionism”.
A few days ago, France was the first to announce that it was canceling subsidies on new electric cars produced in China, in order to protect domestic manufacturers. According to Bloomberg Intelligence, if the other members adopt the same decision, it could threaten the import of electric cars and small commercial vehicles in the amount of almost 7 billion dollars. The French government believes that such a decision will not complicate relations with China, and is therefore considering a new subsidy decree. Citizens with lower incomes will have a subsidy of up to 7,000 euros for the purchase of a new electric car, while for others it will be up to 5,000 euros.
Chinese companies have been present on the European market for many years. Zeekr is owned by the Chinese multinational automotive company Geely, which took over Volvo from Ford in 2010, and their network includes stakes in truck manufacturer Volvo AB to near-total control of the famous sports car manufacturer Lotus. Geely is also finalizing an agreement with Renault on the combined company Horse to develop and produce a new generation of internal combustion engines.
At the beginning of September, BYD announced that it is coming to the European market with the all-electric sedan, BYD Seal. The car was unveiled in April, and now it is finally coming to Europe at the end of the year. It will be available in two versions: Design and Excellence-AWD. Both versions will be equipped with an 82.5 kWh battery, but the Design version is powered by a single electric motor with 313 hp (230 kW) sent to the rear wheels. It also has a range of 570 kilometers. Excellence-AWD is powered by two electric motors with a total power of 530 hp (390 kW). Power is sent to all wheels in the ratio of 217 hp (160 kW) to the front wheels and 313 hp (230 kW) to the rear wheels. It is built on the BYD e-Platform 3.0 for greater efficiency, aerodynamics, power, body rigidity and space utilization. Using a 150 kW DC charger, the battery is charged from 30% to 80% in 26 minutes. It has a range of 520 km.
Source: Bloomberg Intelligence