China has been the leader in the production of electric cars for years, and now it has become an overcrowded market with a large number of manufacturers who are finding it increasingly difficult to survive. One of them is Aiways, which in the battle of giants like BYD, Tesla or VW, decided to leave the domestic market.
Aiways Automobiles was founded in 2017, and from the very beginning, the goal was to develop a range of SUVs with electric drive. Now the company has announced that it has no plans to stay in the Chinese market due to the intense price pressure and competition that exists in this market, and that the center of global sales operations is moving to Europe (Germany).
After financial problems that forced the company to suspend car production at the Shangrao plant, Aiways still managed to find a way out and continue operations. They are currently working on a new crossover that, according to the company’s plans, should attract a larger number of customers with a low price and ensure better days for the manufacturer. According to Autocar, for now Aiways does not intend to transfer production to European soil, so the U5 and U6 models will continue to be produced in China.
At the end of 2022, Volkswagen lost the title of the best-selling car brand in China, and the throne was taken over by the domestic electric vehicle manufacturer BYD. In order to remain competitive, VW decided to invest 2.5 billion euros in the expansion of the production and innovation center in the Chinese city of Hefei, which will enable 30 percent faster placement of technology and increase the production of their electric vehicles in China.
The German company has announced a series of new models in the electrification of its Chinese portfolio to regain lost share in the world’s largest car market. In 2023, VW invested 700 million dollars in the Chinese car manufacturer XPENG, becoming the owner of nearly 5% of the company, with which it agreed a partnership on the production of two models of this German brand. Both models will hit the market in 2026.
Since the beginning of the year, VW has premiered several new models such as their first all-electric station wagon VW ID.7 Tourer, ID.3 GTX Performance, ID.7 GTX Tourer, Golf R, and ID.Buzz GTX van. Also, the manufacturer discontinued the production of some models such as VW Arteon and T-Roc Cabriolet. The return of some models such as the VW Scirocco, which was discontinued in 2017, was also announced.
In February 2024, chief technology officer Kai Grunitz announced that the German manufacturer is developing a new small electric model, the ID.1, which will be positioned below the electric model ID.2. It is a new and affordable electric car that will cost under 20,000 euros and will arrive in 2027 as a replacement for the outgoing VW e-UP!.
The VW ID.1 is due to hit the market in three years, and is part of VW’s long-term plan that includes the introduction of 10 new all-electric vehicles for customers on a tighter budget. The manufacturer has not yet made a final decision whether the car will be developed on the Small MEB platform used by the current ID models or will partner with Renault using their AmpR Small architecture. The German media state that the second option is more certain and that discussions are underway between Volkswagen and Renault about cooperation on this joint project, with the aim of creating prerequisites for the mass production of a 20,000 euro electric vehicle. However, everything will depend on the costs of production and profit.
In the last few years, Volkswagen has presented several smaller models, among them the ID.Life, a “people’s car” concept available for every pocket, with a price of 20,000 euros. It is an urban car that retains simplicity and minimalist appearance, which is visible at first glance. No expensive materials. Recycled materials, wood, rice husk and rubber were used in the construction of the vehicle.
“In creating the ID. LIFE, we have consistently focused on the needs of younger customers. We believe that, even more so than today, the car of the future will be about lifestyle and personal expression. The customer of tomorrow won’t simply want to get from A to B; they will be much more interested in the experiences that a car can offer. The ID. LIFE is our answer to this,” said Ralf Brandstätter, CEO of the Volkswagen brand.
At the end of January, Renault premiered the electric version of the model that was the best-selling model in France in the 80s, the Renault 5 E-Tech Electric. Interest in this car is high, as Renault has so far received 50,000 requests. Takođe, Škoda has introduced the prototype of its new subcompact electric SUV, Škoda Epiq. It comes with more passenger space and luggage space, but also with a range of more than 400 km.
The price of electric cars is on the rise and the invasion of Chinese cars, which are slowly conquering the old continent, is increasing. This puts European manufacturers in a difficult position from which they are trying to find a way out. Are cheap small electric cars the answer!?
