Chinese electric vehicles are expanding their foothold in Austria, even as oil prices retreat from their record highs.
At a recent auto show in Vienna, Austrians were keen to take a closer look at China's competitively priced electric vehicles, expressing curiosity about how each brand will position itself in the market.
"European companies have the disadvantage that they have to stick to their brand and their image, whereas Chinese companies can really explore and try things," said an attendee at the auto show.
Alongside BYD, which recorded Austria's largest sales increase among all automakers last year, a growing number of Chinese brands are establishing sales networks across the country.
"The Chinese products in Austria have more success than in some other countries. Austrian people are more open and therefore the Chinese brands have already now a very good market share in this short time," said Gunther Kerle, head of the Association of Austrian Car Importers.
As their market share continues to grow, Chinese brands are opening production facilities across Europe. XPENG, GAC, and Sinotruk have recently started manufacturing in Austria.
By producing models such as the XPENG P7 in Austria, Chinese manufacturers can avoid tariffs introduced by the European Union two years ago. Local industry is also benefiting after years of declining orders from German automakers.
"With this partnership in Austria there's also a business case not only for us as XPENG, but also for our partners and all the suppliers in the automotive sector here in Austria," said Georg Staudinger, XPENG's Country Manager in Austria.
The model is being replicated across the continent. BYD is beginning production at its new plant in Hungary, while China's Leapmotor is establishing new manufacturing bases in Spain.
"We will quickly increase our industrial presence in Europe. We recently announced Leapmotor B10 will be produced in Zaragoza and also we will acquire the ownership of the Madrid plant for future product localization in the Leapmotor line-up," said Danilo Annese, vice president of commercial operations for Leapmotor Europe.
Chinese electric vehicles gain ground in Austria
