The assault of the Chinese car in Europe starts from Shanghai
Il Shanghai salon, the most important automotive appointment in 2023, has opened with a certainty. There Chinese is laying the foundations to become absolute master of the green car market. And it’s not just about offering models technologically not inferior to those of European houses, but gaining market share through the lithium price check (i.e. the raw material in battery production) and the cutting transport costs.
Just on the eve of the Show it became known that in the face of a substantial decline in lithium prices, the main Chinese manufacturers they would have decided to set a floor price in an attempt to counter this downward trend. To participate in this agreement, according to the Reuters, there are ten companies including the behemoths Tianqi Lithium and Ganfeng Lithium, which respectively control the 46% and the 24% approximately of world production.
In essence, a cartel that will almost completely control the raw material used to produce car batteries. And therefore to make good and bad weather on the market. A representative of Ganfeng Lithium was keen to state that “it’s just rumors” while the Tianqi Lithium she refused to comment.
In reality, knowing the close link between a regime that aims for growth after the difficult years of Covid and an industry closely linked to the regime itself, it is not difficult to foresee a management of lithium prices entirely aimed at weakening foreign car manufacturers favoring Chinese electric vehicle manufacturers.
A fleet of ships to invade Europe
Also because for China the export road is becoming obligatory. Since Beijing has in fact cut the purchase incentivessales of electric and plug-in hybrid cars have fallen sharply: just think that in the first months of 2023 (data from the China association of automobile manufacturers) there was a drop of even 50% of sales on the domestic market.
Precisely to increase the offensive towards foreign markets, and offer high-tech vehicles at bargain prices, some Chinese houses have started to create their own fleet of ships dedicated to export. She did Saia first, demonstrating the benefits of owning vessels with the results yours is achieving Mg brand around the world (sales doubled). They are doing it too Chery e Byd. All with the approval of the central authorities.
The result is significant: if the domestic green car market has dropped by 50%during the same period car exports from China instead grew by 54%. So much so that the Asian giant has surpassed the Germania becoming the second country in the world for car exports after Japan.
An all-electric salon
If until last year the Chinese automotive industry aimed almost exclusively to satisfy the huge domestic market with some bridgeheads abroad, the Shanghai Motor Show (which will close on April 27) instead brings the photograph of a car made in China that increasingly looks to the foreign market, especially the European one.
The Colossus Chery presents a range whose debut in Europe will take place within the year starting from our country. Bydwhich in Shanghai is directly challenging Mercedes, as well as preparing the first car factory in Europe is ready to invade Italy with a series of electric models.
But there are many Dragon brands, still unknown on our roads, offering a whole new generation of battery-powered sport utility vehicles for Europe, which will be joined by city cars capable of maintaining list prices one third lower than the price lists. It’s not european houses? In Shanghai they bet everything on super luxury segment for a Chinese market that still loves classic sedans. A little bit to challenge the Dragon in your own home and stem its invasion.