China e-cars in a bind? German customers don’t want that
For many years, the car world was clearly divided: German brands build quality cars that have their price. In China, on the other hand, the focus is on low costs, if in doubt at the expense of quality. But with the first e-cars from China coming onto the market in this country, this template no longer fits.
E-cars from China: German prices could cause problems
Gone are the days when Made in China was associated with cheap goods and inferior quality. More and more Chinese brands are now bringing their electric cars onto the German market. Technically, the China Stromer need not hide behind vehicles from German manufacturers. But the old reputation seems to be a stumbling block for the brands from the Far East to become.
Because brands like Nio and BYD or Ora and Wey, both belonging to the Chinese group Great Wall Motor, offer their new models in Germany not at dumping prices on. On the contrary, customers pay at a comparable level to VW, Mercedes, BMW and Co. – or even more.
“This orientation is in complete contrast to what potential customers actually expect from Chinese brands”explains Soleiman Mansouri, automotive industry expert at Berylls Strategy Advisors (source: Frankfurter Rundschau). The old reputation of cheaply produced, often defective mass-produced goods could therefore stand in the way of Chinese car manufacturers breaking through in Germany.
The majority of the electric cars from Chinese brands that have been available in Germany so far show the problem: BYD customers pay upwards of 72,000 euros for the Han electric sedan. An approximately comparable Mercedes EQE, on the other hand, starts at over 66,000 euros.
Electric cars from China are currently not a bargain for German customers:
Even in the compact segment, Chinese brands are hardly any budget alternatives: the Atto 3, also from BYD, is priced just like the Funky Cat from Ora on par with VW’s ID.3 electric model. Only the MG 4 Electric is currently available as a noticeably cheaper China alternative. But he, in turn, has to deal with security problems.
Will China e-cars become cheaper?
So there are two ways for Chinese manufacturers: It means either persevering and giving German customers time to familiarize themselves with Chinese e-cars and their prices. Or BYD, Nio, GWM, MG and Co. will start reconsider their pricing. However, that remains to be seen.
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