A flood of Chinese electric cars coming ashore in Norway -- one of the biggest markets for battery-powered vehicles in Europe -- is a sign of the “ferocious competition” awaiting the region’s automakers.
That warning by Renault Group Chairman Jean-Dominique Senard comes as European automakers roll out more electric cars in the midst of a deep slump brought on by the coronavirus.
Tighter emissions rules across the European Union have prodded automakers to lean into the transition to electric powertrains or face big fines this year. To further spur electric vehicle sales, the governments of France and Germany have included extra incentives for the purchase of electric vehicles in economic stimulus packages.
As a result, the Chinese models are arriving in a market that’s becoming increasingly crowded with new EVs, including Renault’s updated Zoe subcompact and Volkswagen Group’s coming ID3.
“We are going to face ferocious competition from within and outside Europe,” Senard told French lawmakers Thursday at a parliamentary hearing. “We have to turn around quickly to be able to counter these new entrants” selling inexpensive but reliable cars, he said.
Norway is the fourth-biggest market for all-electric cars in Europe, thanks to generous incentives implemented before its larger neighbors. As an early mover, it’s been used by automakers including Tesla as a commercial testing ground.
In the first quarter, electric-car sales in the country slid 12 percent due to the virus slowdown. Yet with 16,347 vehicles sold, it still took fourth place behind much more populous Germany, France and the UK, according to figures published by the European Automobile Manufacturers Association, ACEA.