The Zhitong Finance App learned that monthly sales in the European car market have accelerated, continuing the continuous upward trend since this year, and against the backdrop of consumers continuing to switch to electric vehicles, a large part of the increase was taken by Chinese car companies.
The European Automobile Manufacturers Association said on Thursday that the number of new car registrations increased by 10% in September to 1.36 million units, the eighth consecutive month of growth. Pure electric models and plug-in hybrid models together accounted for 43% of total sales, compared to 32% in the same period last year; sales of battery passenger cars in France and Germany almost doubled, driving this share to a significant increase.
Since this year, the Middle East conflict has pushed up oil prices and reached new highs, further amplifying the economic advantages of electric vehicles, while incentives from France and Germany are helping to reduce the shortcoming in the high price of electric vehicles. However, this energy shock is also likely to reduce household disposable expenses, damage consumer confidence, or suppress the consumption of large amounts of durable goods.
The positive market conditions have brought a glimmer of breathing space to European car companies such as Volkswagen (VWAGY.US). These car companies are currently under pressure: weakening demand in the Chinese market, trade barriers compounded local cost reduction pressure, and continue to erode profits. But the electrification transition has mixed advantages and disadvantages for them.
The current profit of electric bike bicycles from Volkswagen and competitors such as Stellantis (STLA.US) and BMW is still lower than that of fuel vehicles in the same class, which means that the transformation is accompanied by profit costs. Meanwhile, BYD (01211) and Chery (09973) are increasingly competing in the European market.
According to industry research data, Chinese brands have more than doubled the number of new car registrations in Europe so far this year, and the agency anticipates that the European market's subsequent growth dividends will flow in large quantities to Chinese car companies. Chery's popular model, the Jetu JAECOO 7, is one of the breakthrough products. Many consumers will choose between this Chinese SUV and the Volkswagen Skoda ElroQ.
In September, Tesla (TSLA.US) deliveries increased by 73%, and the recovery trend continued. Among Chinese automakers, Chery led the increase, with sales nearly tripling, and its overall market share in Europe nearly doubled to 3.9%.
As the wave of layoffs in the industry intensifies, traditional European car companies in a difficult situation are receiving more support at the policy level. France and Germany have also reached an agreement to jointly lobby the European Union to further relax the strict carbon emission limits for new fuel vehicles to be implemented starting in 2035. The unified position of the two countries is also expected to promote the implementation of regulatory proposals relating to “Made in Europe” and support the local automobile industry.