EV demand surges in Austria as Chinese brands expand presence

Surveys in Austria suggest demand for electric vehicles has nearly doubled as rising fuel prices push more consumers toward alternative transport. At the same time, Chinese automakers are rapidly gaining market share and expanding their manufacturing footprint across Europe.

"The seat is comfortable. I like it," says a visitor to an electric auto show at Vienna's city hall while testing a Leapmotor model from China.

Another passer-by tells CGTN that "European companies have the disadvantage that they have to stick to their brand and their image, whereas Chinese companies can really explore and try things."

Alongside BYD, which recorded Austria's largest sales increase among all automakers last year, a growing number of Chinese brands are establishing sales networks across the country.

"The Chinese products in Austria have more success than in some other countries," says Günther Kerle, head of the Association of Austrian Car Importers. "Austrian people are more open and therefore the Chinese brands already have a very good market share in this short time."

As their market share continues to grow, Chinese brands are opening more and more production facilities across Europe. XPENG, GAC, and Sinotruk have recently started manufacturing in Austria.

By producing models such as the XPENG P7 in Austria, Chinese manufacturers can avoid tariffs introduced by the European Union two years ago.

Local industry is also benefiting after years of declining orders from German automakers.

"With this partnership in Austria there's also a business case not only for us as XPENG, but also for our partners and all the suppliers in the automotive sector here in Austria," said Georg Staudinger, Country Manager Austria at XPENG.

Meanwhile, BYD is beginning production at its new plant in Hungary, while China's Leapmotor is establishing new manufacturing bases in Spain.

"We will quickly increase our industrial presence in Europe," said Danilo Annese, Vice President of Leapmotor's Commercial Operations in Europe. "We recently announced Leapmotor B10 will be produced in Zaragoza and also we will acquire the ownership of the Madrid plant for future product localisation in the Leapmotor line-up."

Supporters say these investments help protect industrial jobs and modernize Europe's manufacturing base. Critics, however, warn that Europe could become increasingly dependent on Chinese supply chains at a time when it is seeking to reduce strategic vulnerabilities.

Ultimately, it will be customers who have the final say.