How can Asian electric vehicles win over Europe?

The automotive sector is seeing numerous new entrants from Asia as EV gains market share in the US, Europe, and China. This week at the Paris Motor Show, notable Chinese automakers including BYD, Great Wall Motors, and VinFast from Vietnam are showcasing their newest electric vehicle models.

Due to COVID, the biannual French auto show was postponed in 2020. It made a comeback this year after being absent for four years.

With football legend David Beckham as the special guest at the occasion, VinFast made its Paris debut in 2018. A spokeswoman for the automaker was quoted by Tech Node Global as saying, “We want to capitalize in his popularity.”

Since its founding in 2017, VinFast has aggressively and expensively expanded.

By the end of next year, VinFast intends to add 25 outlets in Germany, 20 in France, and 5 in the Netherlands, according to Jean-Christophe Mercier, vice president of aftersales and customer experience at the company. The company is also expanding quickly in the US. According to Mercier, these shops will offer consumers appropriate services and technical assistance for the whole life of the vehicle.

In an interview at the event, he claimed that VinFast has promised delivery to clients since it will begin doing so to those who have made reservations at the start of next year.

The battery will always be taken care of by VinFast with battery leasing even after the car is resold, according to Mercier, who emphasized the importance of the automaker’s customer services. This is true as long as the battery is within 10 years of the automobile’s life.

For instance, current battery leasing arrangements call for monthly payments of EUR120 for the battery for the duration of the car’s ownership on a EUR45,000 (US$44,400) vehicle.

quality of the goods

Along with the potential benefits for customers, VinFast and Chinese automaker Great Wall Motor (GWM) are also quite confident in the caliber and appeal of their products, which could appeal to European automobile purchasers.

I think clients all across the world want the same thing,’ Meng Xiang-jun, head of the Europe market at GWM, said. The quality of our cars will be adequate for Europeans if Chinese automakers can account for 50% of the EV market share in China.

GWM automobiles, according to Meng, have a 400- to 500-kilometer range.

Electric vehicles, which GWM and VinFast both predict will rule the road in the future, were quickly adopted in China, giving those companies an advantage in capturing market share quickly.

VinFast said that they gain a great deal from the resources and infrastructure of parent company Vingroup. They can therefore create the automobile app internally. However, VinFast also makes use of the knowledge and assets of its strategic partners.

Recently, the business established a number of alliances with Renesas and Infineon, two semiconductor manufacturers.

The relationships, according to Mercier, will give them an advantage in terms of competence, talents, and contacts as well as the ability to collaborate and “make connection with the intelligence.”

VinFast is a young business with startup ideals, but thanks to Vingroup’s assistance, it doesn’t run like one, according to Mercier.

The interview host added that European auto buyers had previously had similar reservations about the reliability and cost of Korean and Japanese vehicles, but market sales had shown them to be unfounded.

Meng claimed that compared to 20 years ago, when consumers believed Chinese products were just inexpensive and of inferior quality, today’s Chinese-made goods are of higher quality.

Chinese automakers will have a decent chance in Europe because of the caliber of their offerings, Meng asserted.

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