1、09 May 2023Allianz ResearchPhoto by Tom Radetzki on Unsplashto the European The Chinese challenge 19Appendix13Mapping the Chinese challenge for the European automotive industry04Electric vehicles:Reshuffling cards in the global automotive game?automotive industry Allianz Research The shift to batter

2、y electric vehicles is a game changer for the European automotive industry.Alternative energy vehicle sales reached a record-breaking 4.4mn units in 2022,representing 47%of all new vehicle registrations in Europe.Battery electric vehicles(BEVs)led the way,with sales booming by+28%,representing 12%of

3、 all new vehicle registrations.With the 2035 phase-out of internal combustion engines(ICE)looming,the automotive sector is on the cusp of a complete shake up,facing a transformation of its supplier base,changing customer needs,competition from new entrants and the reality of a less car-centric socie

4、ty.But the number one risk is China.Having recognized the potential of electric vehicles 15 years ago,China has since invested vast resources in building a competitive electric vehicle ecosystem.As a result,it now leads the global EV landscape,selling over double the number of BEVs in 2022 compared

5、to Europe and the US combined,while also holding a competitive edge in nearly all aspects of the BEV value chain.Because they account for more than 80%of EV sales in their country,Chinese brands have seen their market shares climb from less than 40%in 2020 to close to 50%in 2022,while the countrys a

6、utomotive trade balance went from a-USD31bn deficit to a+USD7bn surplus over the same period.At the same time,already in 2022,three of Europes best selling BEVs were Chinese imports.As BEVs eventually grow to account for all new car sales in Europe,Europe-made cars are likely to be substituted by th