Recently, CNMO noted that according to the South Korean newspaper "Chosun Ilbo," the rapid rise of China's electric vehicle and battery industry in the European market has drawn attention, and its increasingly strong influence may pose a potential threat to the position of Korean companies in the region.
The article points out that Europe's dependence on Chinese electric cars and battery products continues to rise. If Chinese manufacturers' market share continues to expand, Korean companies may face challenges to their competitive position in the European market.
According to data from SNE Research, a South Korean power battery research institution, Chinese battery companies have experienced a significant increase in their market share in Europe, rising from about 10% before 2020 to over 40% last year.
Meanwhile, the market share of South Korean domestic battery companies during the same period has declined from around 70% to approximately 57%.
Further data from the European Transport and Environment Association reveals the strong performance of Chinese electric vehicles in the European market. Since accounting for only 0.4% of the market share in 2019, Chinese-manufactured electric vehicles in Europe surged to 19.5% last year and are expected to continue growing to 25.3% this year.
Additionally, a survey found that 33% of electric cars sold in the Spanish and French markets last year were manufactured in China.
The report emphasizes that if Chinese electric vehicle sales continue to rise in Europe or if the application of lithium iron phosphate (LFP) batteries expands further, the influence of Chinese companies in the European battery market will undoubtedly be strengthened and consolidated, intensifying competition with South Korean companies. Given the current trend, it may become challenging for South Korean companies to maintain their position in the European market.
