Chinese automaker Aiways has announced its decision to pull out of the Chinese car market, citing intense pricing pressure and competition. The company, which already has a European headquarters in Germany, will now concentrate its sales efforts in Europe, according to a report by Autocar.
Despite exiting the Chinese market, Aiways has no plans to relocate production from China to Europe. The U5 and U6 electric vehicles (EVs) will continue to be manufactured in Asia and imported to Europe, where competition is perceived to be less intense.
The move is seen as a strategic decision linked to Aiways’ upcoming plan to go public later this year. “The center of Aiways global sales operations will switch to Europe, and more specifically Germany, following the listing,” a source from Aiways told Autocar.
Aiways faced financial difficulties last year, leading to the temporary shutdown of U5 and U6 production at its Shangrao factory. However, the company is reportedly preparing to resume production. Additionally, Aiways is said to be developing a new entry-level crossover to lower its price point and potentially increase sales volume.
While Aiways has long-term plans for expansion into the Middle East and right-hand drive builds for the UK, its ambition to enter the U.S. market by the end of the decade faces challenges. The recent decision by the Biden administration to quadruple the duty on imported Chinese EVs to 100 percent has made the U.S. market entry goal more challenging.
