After testing many Chinese cars, these are the lessons that European brands should copy
More and more Chinese cars and brands are present in Europe. Although they are still far from becoming the majority, they may one day be. This is what they should learn from their European rivals.
The Chinese have become partially famous for their 'replicas'. It is no secret or criticism to say that a few years ago, the few car manufacturers in China were dedicated to copying European models with not very good results. Today, there are still a few here and there, but the trend is clearly changing. More and more brands and models are arriving in Europe from China. Their strategies are becoming bolder, but achieving success in the Old Continent is not a simple or quick matter.
Less than 10 years ago, it was rare to see a Chinese car on our roads. A few, the boldest, ventured to try their luck in what is considered the most demanding market in the world, but also the most open. Europeans created this industry and have dominated it for over a century despite the incessant attacks from Japan, Korea, or the United States. Against each and every one of them, we have emerged victorious, although no one can deny that traditional European brands have sinned from conservatism.
We live in the 21st century, and the market is changing much faster than some would like. The arrival of Tesla in the early 2010s changed the rules of the game. Elon Musk and the Chinese government saw the electric car as a potential weapon to change the statu quo that has dominated the automotive industry since the first vehicle was patented in 1886. Now, barely a generation later, it is Europe that is struggling to stay afloat against the relentless advance of China, its brands, and its cars.
As I have already said, more and more brands are daring to come to Europe regardless of the tariffs set by Brussels or the image they may project to European drivers. It is a maximum pressure strategy. With more force than brains, although, once again, things are changing. Over the last five years, we have seen how Chinese brands have changed their way of thinking. They have had to adapt to the European mentality and to the way Europeans understand mobility.
The most repeated strategy: discretion
XPeng, NIO, Zeekr, and even BYD. The vast majority of Chinese brands present in Europe have landed with more embarrassment than fear. Their products are comparable to European ones. More and more of you are asking us about electric cars, and we always have the same answer to give you. The first Chinese cars that arrived in the Old Continent did so with too much discretion. Only a few connoisseurs knew them, even brands that now sponsor major European events, like BYD.
They are, possibly, the best example of adaptation. Without wanting to draw too much attention, their first attempt was with low-quality products that, thank God, have already been forgotten. It wasn't until 2021 that the brand got serious and decided it was time to go all out, and even then, it had a too hesitant start. Soon, those from Shenzhen discovered that much more was needed to win the hearts of European drivers. The situation benefited them.
It is curious that some of those imposing Chinese brands are known European companies. Lynk & Co or Zeekr are cousins of Volvo (Geely Group). These, despite having the luck of a solid base, have not managed to attract attention. They remain unknown, even though they have been available in some continental markets for quite some time. Other options used by Chinese brands consist of seeking commercial partners to increase their presence without spending too much. Exporters play a fundamental role in these cases.
These are tertiary companies that handle the sale and distribution of cars across Europe. NIO, XPeng, and many others have opted for this more conservative route. The economic risk is much lower since it does not require a large investment in points of sale and support networks. All that work is handled by exporters like Astara or the Caetano Group. However, this solution also limits expansion since each step takes much more time.
MG is the best-selling Chinese brand in Europe, why?
If we review the registration data from Europe in 2024, we will see that the most popular Chinese brand by far was MG (Morris Garage). The old English company is now under the control of the SAIC Group and is quite a particular case. MG sells more cars in Europe than in China. SAIC has managed to leverage its European heritage. During the early stages, they did not want to be associated with China, which they now do. SAIC relied on MG's heritage to boost its sales and presence in the Old Continent.
Another great advantage of MG was arriving first. It has always been said that the one who strikes first strikes twice. Far from betting everything on electricity, MG opted to bring combustion engine cars to our continent. It doesn't matter if these engines are worse, pollute more than European ones, what matters is that it helps them significantly reduce the selling price. So much so that in Spain, it is not uncommon to see units like the MG ZS or the MG HS among the best sellers. Their prices are several thousand euros lower than those of equivalent European models.
With general rates skyrocketing, this represents a huge competitive advantage. MG has cemented its success in combustion, although they are gradually offering alternative, increasingly advanced mechanics, at attractive prices. This is the case with the new MG ZS Hybrid+, the MG HS Plug-In Hybrid, or the appealing MG4. It's hard not to be dazzled by their figures. In fact, personally, I consider that the hybrid ZS is the best Chinese car you can currently buy in Spain.
Despite the success, MG is not free from problems. MG's big mistake was betting on sales without paying attention to after-sales service. For a long time, years, customers have complained about excessive delays when going to an official workshop. Repairing a bumper could take more than two months due to the lack of spare parts that had to cross half the world before being installed. That problem seems to have been resolved after the creation of a large parts distribution center in Europe. Today, the timelines are shorter, although many drivers have had very bad experiences. All brands have learned the hard lesson from MG.
The example of BYD: money is a great help
Chinese brands have to spend a lot of money to generate that image of solidity that European brands have enjoyed for years. It took those from Shenzhen a little over a year to realize that their good cars and attractive prices were not enough to make themselves known in Europe. It was then that they opened their eyes and, above all, their wallets. In the last two years, BYD's advertising spending in Europe has skyrocketed. They have gone from discretion to ostentation.
BYD was the main sponsor of the last European Football Championship. One of the most popular sporting events in the Old Continent and one of the highest-grossing. An estimated 2.4 billion euros. Projecting that image of strength has allowed BYD to improve its image among European drivers. Despite this, money does not guarantee success. The Chinese have had to modify their strategy on the fly. The electric car is still not ready to penetrate deeply into the Old Continent.
The good thing about Chinese brands is that they adapt very well and very quickly to market demands. What, you don't want my electric cars? Don't worry because I have much more range. Right now, the BYD Seal U DM-i is the most popular BYD in Europe. Its success has encouraged the export of more plug-in hybrid units like the BYD Seal 6 DM-i that was presented at the last Munich Motor Show. BYD has many resources available at its disposal, not just money, but also range and brands. Following the main brand, the introduction of sub-brands like Denza and YangWang has been confirmed. Both will start operating in 2026.
What lessons should Chinese brands learn in Europe?
After compiling the three most used strategies by Chinese manufacturers in Europe, it should be clear that there is no single path that guarantees success. The Chinese will have to use a resource that is not to their liking: patience. Speed is a bad advisor when it comes to creating a brand image in the Old Continent. It requires the fusion of several strategies to, over time, have a solid customer base that ensures continuity in the market. Some companies have fled Europe with their tails between their legs.
For a Chinese brand to succeed in Europe, it needs to learn the hard lessons from its rivals. It took the Japanese 30 years to cement their success in Europe, the Koreans two decades, but here they are. The Chinese could beat those records if they review the archives and adapt to them. They need time, above all, in addition to large amounts of money like BYD. The mechanical variety of MG and the quality of the products from NIO or XPeng.
Along with all this, it is necessary to expand their presence in the main cities of the continent. More money means more dealerships, better user experience, and fewer problems with after-sales services. I am not telling you anything that Chinese brands do not know. In fact, the government of Xi Jinping has been negotiating with Europe for months to agree on a trade market that satisfies both parties. The latest rumors, before the summer, pointed to an imminent signing, but it seems that relations have cooled. Only time will tell.
