The invasion of Chinese electric cars will come from the sea
The new low-cost Chinese EV cars are about to land in Europe. There will be millions and they will come from China by sea
We have repeatedly said that Europe is about to be invaded by Chinese electric cars. A week ago, at the CES in Las Vegas, the number 1 of Stellantis, Carlos Tavares recalled that with Chinese electric cars the Old Continent will very soon undertake "a terrible fight" for the survival of its brands. Cheaper than Western ones, Chinese EV cars could prove to be successful for two reasons: first of all, China has been investing in the new technology for more time and has foresightedly acquired the main reserves of rare earths, so as to control costs, this makes it paradoxically more ready than Europe to face the ban on endothermics decided by Brussels; secondly, with inflation rising and social inequality increasing, eroding the segment of the population that falls into the middle class, more and more users are likely to turn to cheap products. And Western electric cars, as we know, will cost a lot…
CHINA IN EUROPEAN PORTS
In short, we are about to witness the grand arrival of Chinese EV cars. A landing that will take place, in fact, by sea. Because all those cars will have to be shipped and transported to our ports. China has also thought about this. This explains why the Chinese presence in strategic European maritime infrastructures has gradually increased.
Last but not least, the entry of the Chinese giant Cosco with a 25% stake in the container terminal of the port of Hamburg. Let's not forget that Cosco is already the majority shareholder in the ports of Zeebrugge in Belgium, Piraeus in Greece and Valencia in Spain and that it owns minority shares in those of Rotterdam, Antwerp, Bilbao and Vado Ligure. Cosco together with China Merchants Group has stakes in 16 terminals and 13 different ports of the Old Continent.
Currently, only 15% of the goods entering and leaving Europe pass through the Mediterranean ports, the rest comes from the Northern European port system which earns us at least 25% of European duties. This explains why the countries of the North have so far opposed every proposal floated within the Community to curb Chinese boldness.
FROM CHINA TO EUROPE BY SEA
To all this we add that the big Chinese car manufacturers are hoarding ships for the transport of cars, the Ro Ro. BYD has ordered at least six massive car carriers, vessels capable of carrying thousands of cars at a time. And it appears that BYD is also making moves to not only ship its own products, but also offer global shipping services to other automakers.
According to a recent update to the Tianyancha platform, China's database of companies, BYD Auto Industry, a subsidiary of the larger BYD Group, has expanded a paragraph on the scope of its business activities. The section now lists activities not usually associated with an automobile manufacturer: ocean freight operations, forwarding, international shipping agency services, and port cargo handling.
In July, SAIC Motor partnered with Chinese shipping giant Cosco and port operator Shanghai International Port Group to create Guangzhou Yuanhai Car Carrier Transportation, described as a "vehicle supply chain" company.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/linvasione-delle-auto-elettriche-cinesi-arrivera-dal-mare/ on Mon, 16 Jan 2023 06:16:34 +0000.