Brazil's Joshua Van Raalte on how established automakers can survive the coming flood cheap Chinese EVs.
Established automakers desperately need a new story if they are to beat back competition from China. All the older auto brands - European, Japanese & Korean - are facing strong competition from the new breed of Chinese EV makers looking to flood European markets. Yes, Chinese EVs are cheaper – but the established players can be doing much more to leverage their decades of manufacturing know-how, proven records on quality and customer satisfaction, and of course the countless billions invested in their brands. After all, this market was never out-performed solely on price (yet!) Leveraging legacy and innovation Brands like Volvo, Honda and Mini need to reinforce their decades of trust-building and automotive expertise. They are more expensive than the likes of BYD, but they need to justify this in the minds of consumers by showcasing their superior EV engineering, reliability, safety, and cutting-edge technology. The emotional connection The established car marques need to tap into their rich histories through compelling storytelling campaigns that connect their past with an electrified future. While Renault has done this successfully with the introduction of retro EV models such as the Renault 5 and the cult Renault 4, more can be done to leverage the emotional values of these brands. After-Sales Service At the end of the day, every new car owner wants reliability. European, Japanese and Korean cars are reliable – and have decades of both successful tests and extensive dealer networks to help support owners if something does go wrong. Lexus, Toyota, Mini and Audi are among the most reliable cars according to What Car?, and for many that will be worth the extra money above new brands with unproven after-sales service track records. Supporting European jobs and economy European brands (and the ones made here) should also communicate their contribution to local economies and job markets. By choosing European EVs, consumers are supporting job creation and economic growth across the continent – to everyone’s benefit. This includes not only manufacturing jobs but also roles in research and development, software engineering, and the expansion of charging infrastructure. So – there is a big job to do. And the time is now for car brands to clearly articulate their value proposition to prove that their trusted brands are indeed worth the premium.