Chinese Cars Star at Munich Auto Show, Underscoring German Economic Woes

September 6, 2023: Chinese Cars Star at Munich Auto Show, Underscoring German Economic Woes.

Chinese firms and players had some of the most extensive perspectives at the event, with high-profile press meetings and vehicle takeoffs, highlighting their plan to splash the European market.

China, the world’s significant EV market, has seen a tidal wave of electric car companies in the previous few years, driven by government subsidies and venture capital funding. But a slowing demand at home due to tepid consumer spending after COVID-19 restrictions were lifted, coupled with an attractive market in Europe, has seen Chinese firms launch cars abroad and expand their footprint.

“Europe is one of the largest mass-market vehicle markets … If the Chinese EV makers want to secure a growth path beyond their local market, it’s very logical to look at Europe,” Daniel Roeska, senior research analyst at Bernstein Research, told.

Roeska added that Europe, with its “stringent de-facto” ban on combustion engine cars in 2035, “is pushing the market faster towards EVs at a time when most EU brands do not have a perfect offering yet, making market share gains easier.”

Many of the European carmakers have been seen lagging in their push into EVs at a time when Chinese players have launched dozens of new vehicles.