In November, exports of electric vehicles from China to Europe more than doubled, setting a new monthly record. Interestingly, the majority of these exports were not from Chinese automakers but from European companies that have production facilities in China.
This comes as European automakers, including Volkswagen and BMW, are looking to manufacture parts and vehicles in China due to limited capacity in their home countries. According to data from China’s customs authority, car manufacturers in China – both domestic and foreign – exported $3.2 billion worth of EVs in November, a 165% increase from the previous year.
This marks the highest monthly total on record. Exports of electric passenger vehicles made up over 50% of total car shipments from China for two consecutive months, with November seeing a record high of $6 billion in exports. This demonstrates the competitiveness of China-made EVs and the growing demand for them in Europe. The main destinations for these vehicles were Belgium and England, which together accounted for almost 70% of the shipments.
In November 2022, Tesla exported more than 37,000 electric vehicles from China, a significant increase from the 60 exported in March and none in April, when production was halted due to the COVID-19 lockdown in Shanghai. SAIC Motor, the Chinese owner of British brand MG Motor, has steadily increased European sales this year.
The company released the MG4 Electric hatchback in September, adding to their existing EV models including the MG5 Electric wagon, MG ZS EV SUV, and MG Marvel R flagship SUV. MG Motor has also expanded its distribution network to sell EVs in Europe through imports.
European carmakers that manufacture EVs in China and export them to Europe include BMW Group (BMW iX3), Renault Group (Dacia Spring), Polestar (Polestar 2), and MG Motor (MG4, MG5, MZ ZS EV, and MG Marvel R).
Polestar and MG Motor are European brands owned by Chinese automakers, with the former owned by Geely (through Volvo Cars and PSD Investment) and the latter owned by SAIC Motor. According to a study by PwC, by 2025, up to 800,000 Chinese-built cars could be sold in Europe, with the majority being all-electric. Of these potential 800,000 Chinese-made vehicles, around 330,000 are expected to come from Western automakers such as Tesla, BMW, and Renault Group, all of which currently export EVs to Europe from China, including the Tesla Model 3, BMW iX3, and Dacia Spring.
Discussion about this post