Chinese Automakers

GAC Group is aggressively expanding into the European EV market, showcased by the Aion V at the IAA Mobility show. The company aims for a 17-fold sales increase within two years, projecting 50,000 units by 2027. GAC showcased its Aion V and UT all-electric models and intends to introduce a plug-in hybrid. Despite EU tariffs, GAC plans to establish local manufacturing in Europe to enhance market responsiveness and reduce tariff impact, reflecting their long-term commitment to the region. Chinese EV brands are rapidly increasing market share in Europe.

Tesla’s European sales plummeted 40% in July, marking the seventh consecutive month of decline despite overall BEV market growth. Chinese competitor BYD surged with a 225% increase. Intensifying competition, potentially coupled with brand impact from Elon Musk’s public persona and ties to the Trump administration, are contributing factors. Tesla’s global performance faces scrutiny, with concerns about its aging vehicle lineup. BYD’s aggressive European expansion, capturing over 5% market share, intensifies the pressure on Tesla and legacy automakers.

In June, 17 Chinese automakers pledged to cap supplier payments at 60 days. Two months later, some companies, including FAW, Dongfeng, and GAC, are actively working towards this goal, with three already achieving it. Companies are adjusting financial strategies and streamlining processes. This commitment aligns with upcoming regulations mandating 60-day payment terms for SMEs, aiming to improve the business environment and alleviate payment arrears. CCID highlights specific initiatives by FAW, GAC, and SERES.