Factory Keeps Running... Chinese Electric Cars Pile Up at European Ports

UK Financial Times "European Port Parking Lot"

Reports have emerged that inventories of Chinese electric vehicles are piling up, turning major European ports into 'parking lots.'

According to Yonhap News on the 9th, the British daily Financial Times (FT) reported on the 9th (local time) that major European ports are becoming 'parking lots' due to a slowdown in car sales and cargo transport congestion, with Chinese electric vehicle inventories cited as one of the causes of this situation. FT also reported that some Chinese companies are reserving space at port vehicle terminals despite having no upcoming delivery schedules.

At the press preview of the 100th Brussels Motor Show held in Brussels, Belgium, last January, people are examining a BYD electric car.
[Photo by Xinhua/Yonhap News]

Previously, Chinese companies launched electric vehicles priced below 100,000 yuan (18.55 million KRW) one after another. In February, Shanghai GM Wuling, a joint venture between China's Shanghai Automotive Industry Corporation (SAIC), the American General Motors (GM), and Wuling Motors, announced a price reduction for its plug-in hybrid electric sedan from 105,800 yuan to 99,800 yuan.

The background for the price drop is attributed to the electric vehicle growth slowing faster than expected and intensified internal competition, leading the Chinese electric vehicle industry to engage in a full-scale price reduction competition.

In fact, China's electric vehicle sales, which had been growing over 100% annually, only grew by 37.5% last year, and this year it is expected to fall below 20%.

BLG Logistics, the operator of the vehicle terminal at the German Bremerhaven port, which handles a large volume of automobile cargo, also recently reported that the waiting time for vehicles at the port has increased. Citing a senior automotive industry official, it reported that the main cause of the bottleneck is that Chinese companies have not sold cars in the European market as quickly as expected.

Some Chinese electric vehicles are known to remain at ports for up to 18 months. An automotive logistics expert said, "A significant number of vehicles are waiting at European ports until they are sold to distributors or even final consumers."

"Guerrilla-style vehicle exports must change"

A ship carrying BYD vehicles is preparing to depart from Shenzhen, China, in January, heading to the Netherlands and Germany.
[Photo by Xinhua/Yonhap News]

In this regard, the China Association of Automobile Manufacturers stated, "Inland transportation within the European market is difficult," and added, "We need to change the guerrilla-style vehicle exports that could put us at a disadvantage."

In fact, Chinese automakers such as BYD (比亞迪), Chery (奇瑞), and Shanghai Automotive are planning to expand electric vehicle sales in Europe while continuing to operate factories in China.

BYD, which became the world's number one electric vehicle company by selling 520,000 pure electric vehicles in the fourth quarter of last year, surpassing the American Tesla (480,000 units), is leading the electric vehicle 'price war' with overwhelming price competitiveness and flooding the market with volume.