EV dominance is not only defined by battery technology but also by ADAS functions, driving dynamics and many other considerations also common to ICE cars.
In Europe, Chinese vehicles are only selling in any meaningful quantities in the low and very low price segments. And that is mainly due to cheaper labor costs in China and very thin margins (something European OEMs are not interested anymore).
When it comes to higher price segments, European OEMs and Tesla dominate clearly due to superior technology offerings. As an example, the BMW iX3 is completely sold out for months even before market release, as it’s the first car so far that has reached 1000km without charging (Debrecen - Munich). That’s not only a battery technology achievement but also aerodynamics and drivetrain efficiency, where BMW leads together with Tesla.
The Chinese market is very competitive itself as well, and is clearly dominated by Chinese OEMs. Classic European OEMs are seen as vehicles for old people, and newer generations are opting for local manufacturers. Infotainment and ADAS are also driving customers towards Chinese OEMS, mainly because of looser regulation which allows Chinese offerings to edge what Europeans and Americans are offering at the moment. To the point that the big three, Mercedes, BMW and Audi had to switch their ADAS stack to a Chinese made one (Momenta) in order to not lose more customers.
Battery technology is quickly becoming commodity and margins are thinning. Same as it happened in other industries: no one knows who is manufacturing their Samsung or iPhone battery. They might know about the CPU but they clearly care about the brand and the software experience. Cars are becoming not different.
In Europe that software experience (including driving dynamics) is and will be dominated by European OEMs, while leaving the cheap offerings for Chinese brands. They might even recover long term in China if they can quickly adapt their software to Chinese needs.
American OEMs will do fine, they either have high quality software offerings like Tesla or Rivian, or they can easily partner with American software companies to provide Americans with their desired experience.
EV dominance is not only defined by battery technology but also by ADAS functions, driving dynamics and many other considerations also common to ICE cars.
In Europe, Chinese vehicles are only selling in any meaningful quantities in the low and very low price segments. And that is mainly due to cheaper labor costs in China and very thin margins (something European OEMs are not interested anymore).
When it comes to higher price segments, European OEMs and Tesla dominate clearly due to superior technology offerings. As an example, the BMW iX3 is completely sold out for months even before market release, as it’s the first car so far that has reached 1000km without charging (Debrecen - Munich). That’s not only a battery technology achievement but also aerodynamics and drivetrain efficiency, where BMW leads together with Tesla.
The Chinese market is very competitive itself as well, and is clearly dominated by Chinese OEMs. Classic European OEMs are seen as vehicles for old people, and newer generations are opting for local manufacturers. Infotainment and ADAS are also driving customers towards Chinese OEMS, mainly because of looser regulation which allows Chinese offerings to edge what Europeans and Americans are offering at the moment. To the point that the big three, Mercedes, BMW and Audi had to switch their ADAS stack to a Chinese made one (Momenta) in order to not lose more customers.
Battery technology is quickly becoming commodity and margins are thinning. Same as it happened in other industries: no one knows who is manufacturing their Samsung or iPhone battery. They might know about the CPU but they clearly care about the brand and the software experience. Cars are becoming not different.
In Europe that software experience (including driving dynamics) is and will be dominated by European OEMs, while leaving the cheap offerings for Chinese brands. They might even recover long term in China if they can quickly adapt their software to Chinese needs.
American OEMs will do fine, they either have high quality software offerings like Tesla or Rivian, or they can easily partner with American software companies to provide Americans with their desired experience.