Latest news with #ChineseCars
ArabGT
26-05-2025
- Automotive
- ArabGT
Where Do Chinese Cars in Russia Stand Today?
Once seen as the saviors of Russia's auto sector after Western brands pulled out, Chinese cars in Russia are now encountering serious headwinds. What was a booming expansion built on affordability and market opportunity has shifted into a phase of sharp contraction—putting the long-term future of Chinese automakers in Russia at risk. Between January and May 2025, 213 dealerships selling Chinese cars in Russia closed their doors, surpassing the total number of closures for all of 2024. The affected showrooms include those of major brands such as Haval, Chery, Geely, and Changan—the top names in Chinese automotive exports to the country. With this trend accelerating, industry observers warn of a potential reshaping of the Russian car market. Russia Drops in Chinese Export Rankings According to official Chinese customs data, Russia fell to sixth place among global importers of Chinese vehicles as of April 2025. Exports of Chinese cars to Russia dropped by 47.2% in the first four months of the year, totaling just $1.9 billion. From March to April alone, the decline reached 16.2%. This sharp drop follows a two-year surge during which Chinese cars in Russia flourished, filling the void left by departing Western manufacturers. With competitive pricing and a broad selection—from budget-friendly sedans to luxurious SUVs—Chinese brands quickly captured Russian consumer interest. Safety and Quality Issues Undermine Trust However, the rapid rise of Chinese cars in Russia has not come without complications. Changan, in particular, faced public backlash after seat cushion defects were linked to spinal injuries in crash scenarios. Although the company denied official complaints, Russia's National Automobile Federation opened a safety review and issued a recall. This incident has fueled wider concerns over the overall reliability of Chinese cars in Russia. Reports suggest that some models begin to corrode after just two years—a stark contrast to European and American vehicles that often offer structural durability for over a decade. Market Withdrawals and Economic Pressures Some Chinese manufacturers are already retreating. Brands like Skywell and Lifan have exited the Russian market, and projections suggest that over ten others may follow suit by the end of the year. Combined with a weakening ruble, high-interest loans, and falling consumer purchasing power, Chinese cars in Russia are facing their toughest test yet. Nikolai Dmitriev, commercial director at AvtoLogo, explained that Chinese brands overestimated the Russian market's capacity, opening far more showrooms than demand could support. He also cited rising prices for vehicles and spare parts as further barriers to sales. Expert View: A Storm to Weather Despite these challenges, not everyone is convinced that the presence of Chinese cars in Russia is nearing its end. Anatoly Bagin of Avtostat, a well-known automotive research agency, considers the current slump a temporary correction rather than a permanent retreat. He believes that if Chinese automakers can address product quality concerns, improve corrosion resistance, and offer attractive financing, they could regain momentum. Many dealerships are already responding—offering discounts, extended payment plans, and even free insurance packages. While rumors continue about the return of German brands like BMW and Mercedes-Benz, Bagin views this as unlikely due to ongoing European sanctions. For now, Chinese cars in Russia will continue to share the market with domestic models—though with a closer eye on quality, durability, and value.
Forbes
22-05-2025
- Automotive
- Forbes
Shanghai Show Warns Europe Of China Threat, But It Needn't Be Lethal
Xiaomi SU7 (Photo by) Getty Images The Shanghai auto show demonstrated again the lead China is likely to have over European manufacturers in their home market, but not everybody sees the problem as terminal. It's all very well making cars efficiently, but it takes a bit more than low prices to beat the brand attraction of the likes of BMW, Mercedes, Audi and Porsche, even if the power is electricity. That's the hope anyway for those who say it's not all over yet for Europeans. Meanwhile, sales of Chinese EVs in Europe have accelerated this year, in an overall flat market but in areas which so far won't threaten the upmarket German brands. In April, BYD sales more-than-tripled to 12,600 compared with the same month last year, according to Dataforce. Sales at SAIC's MG rose 25%. These sales were mainly in the mass market to medioum segments. BYD also announced the launch of its little Dolphin Surf in Europe with prices starting below €20,000 after tax ($22,700). The Surf is a slightly larger version of the Dolphin Seagull, which starts at around $10,000 in China. BYD has sold almost 1 million Seagulls since its launch in 2023 and promises fat profits in Europe for BYD despite the EU's new tariff barriers. The Surf's price and high-equipment level suggest it could be the vehicle that kickstarts the EV mass market revolution in Europe. The biennial Shanghai show, which alternates with Beijing, closed May 2. Debutants included several plug-in hybrids and extended range electric vehicles, suggesting that Chinese manufacturers still see a long-term future for vehicles with more than just electric power. China's lead in autonomous driving wasn't helped by a fatal crash of a Xiaomi SU7 the previous month, which led to the government ordering a slow-down in the development of driverless technology, and an understated profile for its supporters at the show. Improved technology concepts on show included BYD's fast charger, and sodium-powered batteries. Investment researcher Jefferies said China's auto sector is transforming from high growth to consolidation to cut excess production. Consolidation winners will be BYD, Geely, Leapmotor and Li Auto, according to Jefferies. Reuters Breaking Views talked about China's vicious price war and said what it called barely profitable 'state-backed behemoths like Dongfeng Motor, GAC and BAIC motor' are coming under pressure. Professor Stefan Bratzel, director of the Center of Automotive Management, pointed out how China's 'massive overcapacity' will have a big impact on the European market, as it has become the world's largest exporter of sedans and SUVs, with more than 4 million exports annually. 'The Chinese car market is marked by significant overproduction, driven by a proliferation of brands and state-supported industrial expansion. With domestic demand stagnating, exports are becoming a strategic necessity to absorb production volumes and mitigate effects of internal price erosion,' Bratzel said in a LinkedIn publication. BYD Seagull (Photo by VCG/VCG via Getty Images) VCG via Getty Images China has already built an impressive bridgehead in Europe with its lead in electric vehicle manufacturing, batteries and charging technology. But according to Matt Schmidt, founder of Schmidt Automotive Research, Europe still has an ace card to play with its leading manufacturers' brand power which has the ability to induce excitement. Europeans need to mimic 'China time' where its manufacturers have accelerated the time taken from concept to production and slashed costs in the process. 'With Europeans starting to adopt strategies like this to increase speed to market I am confident they still have a good chance of preventing that wave from crashing the domestic European market. In Shanghai, good products lacked real brand equity and character, key for success in Europe,' Schmidt said in an email exchange. Pedro Pacheco, senior research director at Gartner Group, agrees Western manufacturers need to address the speed-to-market issue. 'Chinese players keep progressing but, at the same time, some Western players are trying to address the problem. This advantage is quite significant in at least two ways. On one hand, speed always enables Chinese players to adapt faster and, if necessary, correct mistakes faster. On the other hand, a low-cost level provides great flexibility in terms of price point which can be used either for profitability or to offer competitive prices,' Pacheco said in an email. Last October the EU raised tariffs on Chinese EVs ranging from 17% to 35.3% on top of the existing 10% import duty, potentially reaching a total of 45.3% for some manufacturers deemed to have received most government subsidy. The EU is reportedly seeking discussions with the Chinese on setting minimum prices on its EVs. Ford Fiesta getty Pacheco said the EU is talking to China about alternative arrangements which might force its manufacturers to share technology with European companies in return for more open access to the EU market. Expert forecasts for EV sales in the European market predict a large shortfall from EU mandates. One way to plug this gap would be to encourage manufacturers to quickly design and make cheap EVs with limited utility. Wouldn't this be quickly overwhelmed by China's carmakers? Toyota Aygo getty 'That depends on how you define 'low-cost EV market,' Pacheco said. 'If you mean A segment, (Fiat 500, Toyota Aygo, Ford Ka) the risk would be low as this is a small, shrinking segment. However, B segment (Ford Fiesta, Volkswagen Polo, Seat Ibiza, Renault Clio) would be different, as it's one of the largest segments in Europe. In this case, it's possible Chinese (manufacturers) may eventually start taking volume away from Europeans with a low-price positioning,' Pacheco said. According to Schmidt, potential Chinese market share wouldn't be overwhelming, and probably mirror the Koreans Kia and Hyundai/Genesis. 'Koreans managed to muscle their way into Europe and now command between 7-8% market share and I expect the Chinese to do the same but not get beyond that as Europeans fight back. In the Western Europe new passenger car market, and broke through the 5% barrier in March,' Schmidt said.
Daily Mail
19-05-2025
- Automotive
- Daily Mail
Will Trump block cheap Chinese cars entering Britain over security risks?
Cheap Chinese cars might not take over British roads if Donald Trump has anything to do with it. The US President is reportedly set to push for a ban on Chinese-made cars in the UK over security concerns as part of the ongoing trade negotiations between the two countries. A well-placed White House source told the The i that a demand of this nature from the Trump administration could 'potentially come up in follow-up discussions' focused on the new UK-US trade deal. In January, the Biden Administration barred vehicle software and hardware from China over 'grave national security risks', effectively outlawing Chinese-made cars from the US. Currently, the UK has no ban proposed on private Chinese cars or tech, with a government spokesman telling This is Money 'Chinese EVs have not been a topic in these negotiations'. However, the recent trade deal - which lowered US import tariffs on British-made products - included strict security requirements surrounding UK supply chains. And if these are adhered to, the influx of budget Chinese cars into the UK could be stalled. The source said Trump is yet to make a public position on the ban of Chinese cars in the UK but that 'it is fair to say it's something that could potentially come up in follow-up discussions based on the agreement text'. They pointed to Section Four of the agreement text which refers to 'strengthening alignment and collaboration on economic security'. The trade deal expands that 'both countries intend to strengthen cooperation on economic security, including by coordinating to address non-market policies of third countries' and that they 'intend to cooperate' on the 'effective use of investment security measures' and 'export controls'. A government spokesman added: 'We will continue to relentlessly pursue the UK's national interest, this is not about undermining our relationships with other countries.' Parliament was recently warned by the former head of MI6 that 'Chinese cars are computers on wheels' and that China could 'switch off Britain's traffic lights and immobilise London' because its companies control crucial technology in the UK. During the Coalition on Secure Technology, Sir Richard Dearlove, the former head of MI6, and veteran diplomat Charles Parton issued the stark warning. It follows the Ministry of Defence reportedly banning electric vehicles with Chinese components from sensitive military sites across the UK in April due to cybersecurity fears. A leaked security notice revealed that the MoD has banning any sensitive conversations from happening inside the vehicles as it is concerned that inbuilt microphones might be recording and transmitting conversations. But a Department for Business and Trade spokesman said: 'In line with our long-term, consistent approach, trade and investment with China remain important to the UK. 'We are continuing to engage pragmatically in areas that are rooted in UK and global interests and co-operate where we can, compete where we need to, and challenge where we must.' The US moved to ban Chinese-made software and hardware in January, with the effective end of Chinese car sales in the US coming into effect from 2027 How many Chinese cars are already in the UK? If the Government does follow US's lead it could send the price of Chinese cars in the UK soaring, just as the market is poised for an influx of affordable motors made by Chinese car manufacturers. Chinese cars are new to the UK market, but are making waves for the tech, luxury and safety they offer at a price that undercuts many European manufacturers. This is Money recently reported that registration figures for 2024 show a 14 per cent surge in sales of models from the four major Chinese makers now available in the UK: BYD, MG, Omoda and Ora. These made up 5 per cent of all new cars bought in Britain last year, representing almost 100,000 motors entering the road, with most of these being electric vehicles. By the time the UK's ban on the sale of new petrol and diesel cars comes into force in 2030, Chinese manufacturers are predicted to account for a quarter of the UK's EV market representing 400,000 cars on our roads, according to Auto Trader's Road to 2030 Report. Thirteen out of the 66 EV car brands on sale in the UK are from Chinese manufacturers, including BYD, Geely, MG, Ora, Polestar, Volvo and XPENG. BYD currently holds the same 1.8 per cent sales share as Elon Musk's Tesla, which has been operating here for 12 years, despite BYD only being available in the UK for two years. And in March 28,883 Chinese EVs were sold - making up 7.5 per cent per cent of the EV market. The ban on Chinese cars – where does America stand? Days before President Donald Trump entered the White House for his second term, the outgoing Biden administration finalized new rules for prohibiting Chinese and Russian-made tech in connected cars, including cars made in those countries. Issued by the US Department of Commerce, a complete ban on 'connected Chinese and Russian cars from model year 2027, even if those vehicles are produced in the US' will be introduced in two years. There's also a ban on the sale or import of any connected vehicle software or hardware systems originating from China or Russia from 2027 and 2030 for the respective technologies. At the time Commerce Secretary Gina Raimondo told Reuters: 'It's really important because we don't want two million Chinese cars on the road and then realise... we have a threat.' A number of models from US and German-owned manufacturers are currently built in China and sold in the US, as well as models from brands owned by Chinese conglomerates like Polestar and Volvo. The US therefore, and any home turf manufacturers such as Ford, have just two years to remove its connected supply chain from China. This includes connected tech that's become standard in new cars such as Bluetooth, Wifi and cellular components. Last October Polestar, the Swedish automaker owned by China's Geely, warned that without changes the Commerce rule would 'effectively prohibit' it from selling vehicles in the United States. However, while the forthcoming rules close the door on Chinese brands producing cars in the US or skirting around the 100 per cent tariffs levied on Chinese EVs, Trump has muddied the water by saying he wants both Japanese and Chinese automakers to build cars in the US. Marking the first 100 days in office of his second term, Trump told supporters at Macomb Community College on 27 April he wants foreign automakers to invest in US production again. His welcoming of Chinese car makers echoes other comments he made the year before on the campaign trail. Trump told a crowd in Dayton, Ohio in March 2024: 'I'll tell [Chinese automakers] if they want to build a plant in Michigan, in Ohio, in South Carolina, they can, using American workers, they can.' As of February, the Trump Administration hadn't made its security stance entirely clear, and his April speech would suggest a more lenient approach than his predecessor. However if the White House is looking to pressure the UK into rejecting Chinese cars due to security worries it would suggest that the US Government will push ahead with the incoming bans on its own turf. As well as Sir Richard Dearlove and veteran diplomat Charles Parton briefing MPs on Chinese tech security issues, other leading figures have warned about the threat to the UK from Chinese tech. Former Conservative Party lead Sir Iain Duncan Smith told The i: 'The US under the previous Biden administration took a very important decision to ban electric vehicles from Chinese manufacturers from 2027. This decision is critical as it is about national security concerns. 'The Trump administration is now leaning on its allies, particularly the UK, to follow suit and do the same.' The Member of Parliament and prominent China critic informed LBC in 2023 that he was 'reliably told' that cars used by the government had to be stripped and a tracking device was found inside that was 'tracking where the Prime Minister was going.' Luke de Pulford, executive director of campaign group the Inter-Parliamentary Alliance on China, said: 'This would be a victory for common sense. 'The EU, US, Canada have all imposed bans on Chinese EVs to protect their industries and defend against security threats. It is good to see us acting in concert with our closest allies.' However, China criticised the US-UK trade deal, with its Foreign Minister telling the Financial Times: 'Cooperation between states should not be conducted against or to the detriment of the interests of third parties.'
Auto Express
13-05-2025
- Automotive
- Auto Express
Do they mean us? UK media judged ‘most skeptical' about Chinese car brands
UK and Saudi media outlets are together blamed for a chunky 30 per cent of the 'worldwide scepticism' aimed at Chinese car brands in media reports. That's according to a new survey by 'reputation and media intelligence' firm Carma. We're not sure if we're proud or embarrassed to be a part of that record here at Auto Express, but hopefully it speaks to a generally more incisive standard of automotive reporting in the UK than you might find elsewhere. Or maybe we're just grumpier. Advertisement - Article continues below Carma's report focuses mostly on the positivity surrounding Chinese car brands, however, and it points to stats suggesting that 80 per cent of drivers who own a Chinese vehicle believe their cars feature cutting-edge technology. UK media coverage does back that up, we're told, with Carma calculating that 66 per cent of UK coverage as a whole presents positive messaging about Chinese brand innovation. According to the report, BYD has emerged as the Chinese brand dominating the media conversation. It suggests the brand received more than double the coverage of Chinese rivals including Geely and Xpeng when it came to totting up stories reflecting a sense of positive innovation. On the same measure, it trounced established European brands BMW and VW by an even bigger margin. Carma puts this down to BYD's 'rapid product expansion, innovation in battery and EV technologies as well as a growing global footprint in Europe, Latin America and Southeast Asia'. That said, according to Carma, all Chinese brands are benefitting from the positive vibes BYD is creating. 'Our analysis revealed that Chinese automotive brands have gained confidence around the globe and that positive sentiment on 'the rise of Chinese brands' is a result of BYD's success, rather than strong industry-wide performance,' says Jennifer Sanchis, senior insights consultant at Carma. 'In fact, BYD leads in terms of share of voice compared to several other Chinese and established brands and generated 41 per cent of all positive coverage of Chinese brands.' The survey was based on 12,000 media articles published online from January 2024 to January 2025, with analysis carried out by an AI tool. Carma hasn't recorded which country's journalists are most skeptical about the rise of artificial intelligence. Tell us which new car you're interested in and get the very best offers from our network of over 5,500 UK dealers to compare. Let's go…
