A total of 116 companies from the People’s Republic are presenting their models—among them electric cars priced around €20,000.
One of the highlights comes from BYD, the world’s largest electric car manufacturer: a striking yellow compact car with a karaoke function called the “Dolphin Surf.” The model recently received five stars in the European safety test EuroNCAP. Vice President Stella Li expressed particular pride in Munich, emphasizing that the award should help the Dolphin gain wider acceptance.
Price is another selling point: in Germany, the base model costs about €22,000, while in China customers pay the equivalent of only about €10,000.
Price war in China
Why so cheap in China? “There has been a fierce price war for some time now,” explained automotive expert Stefan Bratzel from Bergisch Gladbach in an interview with BR24. That is why BYD’s profit fell in the first half of the year, even though the company, headquartered in Shenzhen near Hong Kong, sold 500,000 more vehicles than in the same period last year—making it one of the top ten carmakers worldwide.
In Germany, however, Chinese vehicles remain a niche product: their market share in the first half of the year was just under two percent.
€20,000 versus €60,000
Will that change? Bratzel sees advantages for the Chinese, who moved toward the mass market for EVs early on. “On average, we see prices of about €20,000 across all manufacturers. In Germany, we’re between €55,000 and €60,000. That’s a massive gap.” For Chinese companies, this is a clear competitive advantage driven by high production volumes.
Chinese manufacturers push into the EU market
So why is the Dolphin so much more expensive in Europe? Since October 2024, the EU has imposed high tariffs on EVs made in China. For BYD, they amount to 17 percent. “We don’t like this policy, of course,” said Vice President Li in an interview with BR24. “But we will simply go where the market is. I’m glad that from the end of this year we’ll start producing EVs and plug-in hybrids at our new factory in Hungary.” Vehicles built there will not be subject to the tariffs.
Other Chinese manufacturers are pursuing similar strategies as they increasingly target Europe. XPeng, for instance, drew attention at IAA 2023 shortly after Volkswagen announced a cooperation with the Guangzhou-based company. VW hopes XPeng can provide digitally advanced models. Both companies are now also planning joint development of plug-in hybrids. In Munich, XPeng even presented concepts that combine cars with mini-aircraft.
XPeng expands in Europe
XPeng also intends to produce in Europe in the long term to avoid tariffs. This week, the company opened a research and development center in Munich. Dealers and service networks are currently being established, founder He Xiaopeng told BR24. At the IAA, the 47-year-old appeared as a key figure. Ten years after founding XPeng, Forbes estimates his fortune at around $3 billion.
In Munich, He appeared friendly and confident. EU tariffs, he said, were no obstacle as long as they did not arbitrarily target specific manufacturers. He does not believe Germany will become dependent on China for EVs: “Technologies evolve like waves in the ocean. Companies look for their place in those waves. Germany, as one of Europe’s most technologically advanced countries, has no reason to worry. We can still learn a lot from each other.”
Information: BR24
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