The motto “Vorsprung durch Technik” has faded. For decades, the motto of the German car manufacturer Audi stood as an example for the quality and creativity of the German car industry.
But it is becoming increasingly clear that the established – and especially the German car manufacturers – are falling behind internationally. The future of electromobility has long been defined by others: the Chinese car companies and the rising star Tesla.
Years ago, the Chinese leadership realized that when it came to fossil engines, the lead of European, Japanese and US car manufacturers over domestic industry was too great.
Battery as the heart
But when it came to electromobility, which was on the rise at the time, the cards were reshuffled again. China seized this opportunity and, thanks to its industrial policy, is now at the forefront of technology. This can be seen in the batteries, the heart of an electric car. Chinese and Asian providers dominate the market today; in terms of quantities and technology.
Accordingly, western car manufacturers are – for lack of alternatives – dependent and, to a certain extent, “have to” buy from these suppliers. For too long, the established car companies have neglected to set up their own supply chains or simply misjudged the signs of the times: An example is Mercedes’ decision in 2015 to sell its only battery cell factory.
lost race
By that time, Tesla and Chinese car companies like BYD had long understood that batteries are a central part of electromobility and not just any random component. They therefore keep the battery production in their own hands or in their own production halls.
In the meantime, European manufacturers are also working flat out to set up their own battery factories. But that takes time. Measured by the number of units, Tesla and especially BYD are meanwhile increasing their already large lead over the established car companies.
More compact – lighter – cheaper
And in China in particular, the world‘s largest car market, the Europeans’ former lead is gone for another reason. The German car companies have no suitable models: In China, smaller, comparatively cheap electric cars are in demand.
Exactly these vehicles are missing in the range of VW, Mercedes and BMW. Their electric cars are large, heavy and expensive – and therefore only meet the needs of Chinese customers to a limited extent. Here, too, BYD and Co. are ahead of the foreign competition.
This range of models is also one reason why German vehicles are selling comparatively poorly, even in Europe. French and Italian car companies are ahead with their more compact electric cars. And if all of that wasn’t enough, Tesla recently launched a price war. Much to the dismay of the German automaker.