Are Chinese cars ‘invading’ the West? These numbers are the obvious answer

There have been many articles about the potential of Chinese cars in the West. Competitive prices and improved quality are the top “weapons” to help them gradually gain market share outside of China. Many argue that this is a threat to traditional car manufacturers in Europe and the US. But is this wave of Chinese cars really that powerful?

Before answering this question, one point to clarify is the concept of a “Chinese car”. The Asian giant has just become the world’s largest auto exporter in the first quarter of 2023, surpassing Japan. However, the majority of these export vehicles are produced by manufacturers based in the West.

Tesla, BMW, Volvo, Smart, Polesta, Dacia, Buick, Chevrolet, Lincoln and Lotus are among the brands that manufacture cars in China and export to markets like Europe and the US. Even if these are cars made in China, it is impossible to call them “Chinese cars”.

In fact, the group of pure Chinese brands is still a long way from becoming a “big player” in Europe, not to mention being completely absent in the US. According to the latest data from JATO, Chinese brands accounted for just 2% of all new passenger cars registered in Europe, as of April 2023.

This market share equates to 85,900 vehicles registered between January and April. As a percentage, the growth is impressive at 102% compared to the same period in 2022. But despite the increased supply, prices are similar. Compared to the competition, European consumers are still quite cautious towards these new brands.

There is an interesting point in the group of Chinese cars sold in Europe is the very large proportion of MG. This brand accounts for more than two-thirds of cars sold in Europe, or 59,200 units. MG has quickly moved up the ranks, especially in the electric vehicle segment as competing products like the new generation MG4. This model entered the top 10 best-selling electric cars in Europe in April.

However, MG quickly developed not only on attractive cars, but also on “playing cards” through a recognized British brand. All current models of MG are made in China but positioned as an automotive brand from the UK. This may be part of the reason it has found a better foothold in the European market than other Chinese brands.

The remaining question will be how long it will take for Chinese brands to deal with the reputation problems they face abroad. Pricing can be a good way to attract customers, but that alone is not enough to change the negative perception of Chinese cars among many consumers around the world.