Fisker the American automaker, has announced its intention to enter the Chinese market by selling and potentially manufacturing its flagship Ocean SUV in the country. Executives from the company recently visited Shanghai to explore collaboration opportunities, resulting in plans to open a delivery center later this year and commence Ocean SUV deliveries in 2024.
The introduction of the Ocean SUV has been a significant milestone for Fisker Inc. as it expands its global electric vehicle (EV) presence. Although US reservation holders are still awaiting their deliveries, European drivers have begun receiving their Ocean SUVs. With two more production models in the pipeline, Fisker aims to establish itself as a renowned name in the EV industry worldwide.
The decision to expand sales to China aligns well with Fisker’s goals, as the country leads the way in all-electric innovation and boasts a consumer base that embraces zero-emissions vehicles more rapidly than other nations.
Fisker Inc. has disclosed some details regarding its expansion plans, emphasizing that its leadership team has already engaged in discussions with stakeholders in Shanghai concerning supply chains, logistics, warehousing, and potential future production opportunities.
For those who attended Fisker’s annual shareholder meeting, this announcement may not come as a complete surprise. During the meeting, Danial Foa, a board member representing China, stated that China accounts for one-third of global vehicle sales, approximately 26 million cars in 2022, of which 6-7 million were electric vehicles, representing a 25% market share. Foa further highlighted that electric vehicles’ share had increased to around 27% in the year-to-date figures for 2023. Foa also noted the growing demand for premium and affordable luxury vehicles, a segment in which Fisker fits perfectly due to its unique history, features, and design.
China has always shown a strong affinity for high-quality international automotive brands, and there has been a rapid shift toward electrification driven by both government policies and changing consumer behavior. Fisker, along with another EV-only international company, is seen as a viable alternative to traditional brands. This positions Fisker favorably as a strong contender in consumers’ purchase decisions, offering a more feature-rich product.
The reference made by Foa to another EV-only brand suggests that Fisker aims to compete in the same league as Tesla. While Fisker has a long way to go before fully penetrating the international market, the company believes that the Ocean SUV possesses the qualities needed to capture the attention of Chinese consumers. Fisker’s plans include establishing a delivery center, the location of which is yet to be announced. The company anticipates that this facility will enable deliveries to commence in the first quarter of next year. Moreover, CEO Henrik Fisker has expressed his belief that producing the Ocean SUV in China is inevitable, with plans to initiate production as early as next year, thereby adding a production capacity of 75,000 vehicles annually.
With the expansion into China, Fisker Inc. aims to tap into a promising growth market for EVs while leveraging its appealing product offerings. The establishment of an office and the forthcoming delivery center demonstrate Fisker’s commitment to its Chinese customer base. As the company continues to make strides in the EV market, it will be interesting to see how Fisker’s Ocean SUV performs in China and if it can rival established players in the industry.