• The multi-dimensional of Chinese car companies going overseas in Europe

• 1) Financial issues

In the process of Chinese car companies going overseas to Europe, financing problems have become a key factor restricting their development. Due to its low local creditworthiness, limited asset size and unstable cash flow, overseas subsidiaries have difficulty obtaining financing from local banks for the procurement of vehicles and spare parts. Relevant surveys show that when some car companies take out loans to overseas subsidiaries, due to low credit ratings, the loan interest rate is 2-3 percentage points higher than that of local mature enterprises, which greatly increases financing costs and financial pressure.

From the perspective of financing channels, although domestic financial institutions have strong funds, there are deficiencies in the layout of overseas branches and the innovation of financial products for the overseas business of car companies. According to statistics, in 2024, domestic financial institutions will account for only 35% of the overseas financing sources of Chinese car companies, local financial institutions will account for 40%, and other channels (such as bond market, equity financing, etc.) will account for 25% (see Figure 2-1). This shows that domestic financial institutions have huge room to improve their overseas financing.

Figure 1 Overseas financing sources of Chinese car companies in 2024 (Data source: Rongzhong Finance)

• 2) cognitive differences

In the past, geopolitical factors have brought a lot of uncertainty to Chinese car companies going overseas to Europe. Problems such as the rise of trade protectionism and differences in policies and regulations have increased the difficulty for Chinese car companies to enter the European market. However, the geopolitical situation has recently changed positively. Communication and cooperation between China and the EU in the economic and trade fields have been strengthened, and some trade barriers are expected to be lowered. For example, the EU and China have agreed to explore setting a minimum price for Chinese-made electric vehicles to replace the current tariffs on Chinese electric vehicles, providing a more stable policy environment for Chinese car companies to develop in the European market.

Positive changes in geopolitical factors have made the path of Chinese car companies to go overseas to Europe clearer. In terms of market access, the improved policy environment has lowered the threshold for Chinese car companies to enter the European market, and companies can focus more on product research and development, market expansion and brand building. In terms of investment cooperation, Chinese car companies have increased opportunities for cooperation with local European enterprises. European automakers such as Volkswagen, Renault, and BMW are actively cooperating with Chinese companies to shorten the development cycle of new vehicles and improve competitiveness. Chinese car companies can quickly integrate into the European market by cooperating with local European enterprises and taking advantage of their advantages in technology research and development, supply chain management, and market channels.

Recently, Wan Xinwei, general manager of Zhejiang Eco Automotive Technical Service Co., Ltd., led an overseas after-sales team to Europe for business inspection and conducted in-depth exchanges with a number of European automotive industry partners on deepening cooperation. The purpose of this inspection is to respond to the company's global development strategy, further expand the European after-sales service market, and focus on promoting international cooperation between new energy vehicle technology and traditional automobile maintenance business.

The delegation visited key German cities such as Stuttgart, Hagen, and Frankfurt, and held talks with many well-known local automobile manufacturers and maintenance service providers. During the talks, the two sides said that they will cooperate in the fields of testing, certification, and after-sales to further expand the scope of after-sales service.

After the network inspection, the German Chinese Salon was held at the After-sales Service Center in Ecos Stuttgart, Zhejiang, where topics such as the difficulties of Chinese automobiles going overseas, how to build a GDPR compliance base, the decision-making process of European automobile companies, temporary tariffs on European automobiles, and the current situation of after-sales maintenance in Germany were held.

Among them, the experts at the meeting also gave their own views on the multi-dimensional issues of going overseas to Europe mentioned above.

Mr. Wu, who is from Düsseldorf and engaged in car sales, said that in response to the problem of auto finance, it is best to establish a similar bank to help car companies do leasing. Domestic car companies' own financial service enterprises, such as GAC's GAC Capital and GAC Huili, should speed up following vehicle factories to go overseas and set up local financial companies to provide auto finance loans and insurance services for local dealers and end consumers. In terms of auto finance loans, diversified loan solutions such as low down payment and long-term term have been launched to lower the threshold for consumers to buy cars. At the same time, personalized vehicle insurance packages are designed to enhance consumers' trust and loyalty to the brand according to the needs of end consumers. In addition, actively innovate financial products. For example, in the development of car leasing finance business, consumers can use vehicles through leasing, and can choose to purchase or replace the model after the lease period expires. This model not only reduces the cost of consumers' early car purchase, but also brings stable cash flow and customer resources to car companies. Volkswagen's car leasing finance business in Europe brings it more than 1 billion euros in revenue every year, accounting for about 8% of the total revenue of the European market.

Figure 5 The scene of the Chinese salon

Mr. Hu, a sensor expert from Munich, said that Chinese cars going overseas to Europe should be in line with the local market cognition. Chinese car companies should adopt a coordinated development strategy between new energy vehicles and fuel vehicles in the European market. In the field of new energy vehicles, we will continue to increase R&D investment to enhance core competitiveness such as battery technology and intelligent driving technology. BYD's new energy models launched in the European market are favored by European consumers with advanced battery technology and cost-effective advantages. In 2024, BYD's sales in the European new energy vehicle market will increase by 200% year-on-year, and its market share will gradually expand.

In terms of fuel vehicles, product optimization and upgrading are carried out according to the needs of the European market. By improving fuel economy and reducing emissions, it meets strict European environmental standards. At the same time, strengthen brand building and marketing to enhance the brand image of Chinese brand fuel vehicles in the hearts of European consumers. Geely Automobile has increased the brand's popularity and reputation in the European market by sponsoring local auto events in Europe and participating in public welfare activities, laying a good market foundation for its sales of fuel vehicles and new energy vehicles.

Some experts at the meeting also pointed out that the hybrid car market in the South American market is still very large, and if European suppliers are used, the South American market can be opened soon. Some European component suppliers have extensive sales networks and customer groups in the South American market. When Chinese car companies purchase their parts, they can negotiate cooperation plans with them to jointly explore the South American market. By equipping European suppliers with brand advantages, we will enhance the recognition of Chinese car companies' products in the hearts of consumers in the South American market and accelerate the pace of entering the South American market. In addition, the experience of European suppliers in product quality control and technological innovation will also help Chinese car companies improve product quality and better adapt to the needs of the South American market. Chinese car companies can establish good cooperative relationships when cooperating with local suppliers in the European market. Through cooperation, Chinese car companies can not only enhance the competitiveness of their products in the European market, but also use the channel resources and brand influence of European suppliers in the South American market to develop the South American market.

Chinese car companies going overseas to Europe is a process full of opportunities and challenges. In terms of finance, by building a comprehensive financial support system, strengthening financial services and innovative financial products, financing problems can be effectively solved and capital operation efficiency can be improved. In the context of the change in Europe's perception of fuel vehicles, Chinese brand cars should seize market opportunities and adopt the strategy of coordinated development of new energy vehicles and fuel vehicles to enhance market competitiveness. With the positive changes in geopolitical factors, the path of Chinese car companies to go overseas to Europe is clearer, and it is feasible to use European suppliers to develop the South American market. In the future, Chinese car companies need to continue to pay attention to market dynamics, changes in policies and regulations, and technological development trends, continuously optimize their strategies, enhance core competitiveness, and achieve sustainable development in the European and global markets.

This time, Wan Xinwei, general manager of Zhejiang Eco Automotive Technical Service Co., Ltd., visited Europe, which will further strengthen the company's global after-sales service layout and promote the development of overseas after-sales business. In the future, Zhejiang Eco will strive to accelerate the cooperation process with local sites and continuously deepen the relationship with overseas partners. The company will strengthen the global development strategy, actively expand overseas markets, accelerate global layout, enhance the ability of overseas business development, provide logistics, charging, and after-sales ecological overseas services for Chinese automobiles going overseas, and use China's efficiency and cost advantages to help Chinese automobile OEMs and supply chains go to the global market, and is committed to becoming the most solid after-sales guarantee for Chinese automobiles going overseas.

 

New technology applications and cutting-edge news at home and abroad

☑ EU Automotive Industry Action Plan and Data Act: Can it help the industry revive?

The European Commission officially issued the Automotive Industry Action Plan in March 2025, aiming to balance industrial transformation and competitiveness. The core of the plan includes four major measures: first, maintain the target of banning the sale of internal combustion engines in 2035, but set a transition period for emission standards from 2025 to 2027 to alleviate the pressure on enterprises to transform; second, the "socialized leasing" policy was launched to lower the threshold for the use of electric vehicles by low- and middle-income groups through subsidies; third, set up a special fund of 1.8 billion euros to strengthen the localization of the battery and raw material supply chain and reduce dependence on Asia; Fourth, establish a cross-border "regulatory sandbox" to accelerate the implementation of autonomous driving technology. The policy framework highlights the EU's strategic balance between carbon emission reduction, social equity and industrial safety, but the implementation effect is subject to the supporting measures of member states, such as the lessons of the sharp drop in electric vehicle sales after Germany's subsidy decline in 2023 still need to be vigilant.

Figure 6 The article comes from the ATTC-EU official account

As the institutional cornerstone of industrial digital transformation, the EU Data Law focuses on the release of data value and compliance challenges of the Internet of Vehicles. Regulations require the mandatory opening of vehicle data interfaces from 2026, giving users and third-party service providers free access, and promoting the development of new formats such as MaaS travel platforms and intelligent maintenance. However, this regulation has a significant conflict with the GDPR - sensitive data such as location information and driving behavior need to be authorized separately and can be withdrawn at any time, affecting the continuous use of data. At the same time, the definition of "economically necessary" data sharing clauses is vague, raising concerns about the leakage of trade secrets by German companies. What is even more severe is the surge in compliance costs, and small and medium-sized supply chain enterprises are facing the burden of technological upgrades. Although the data law has established an institutional framework for innovation ecology, it has formed a new governance tension between data sovereignty and privacy protection.

Under the synergy of dual policies, the EU is building an industrial transformation system driven by green and digital two-wheel drive. However, the effectiveness of the policy still faces three tests: the synergy between the subsidy reduction mechanism and infrastructure construction, the balance between data opening boundaries and commercial interests, and the sharing mechanism of compliance costs for small and medium-sized enterprises. These challenges are directly related to Europe's ability to reshape its global competitiveness during the 2035 transition window, especially to prevent the compliance burden caused by policy overlay to weaken the vitality of the industry. At present, the EU automobile industry contributes 7% of GDP and 13 million jobs, and the success or failure of its transformation will profoundly affect the European economic pattern.

 

☑ The "Ethical Guidelines for the R&D of Driving Automation Technology" was released

On July 23, the official website of the Ministry of Science and Technology announced the "Ethical Guidelines for the R&D of Driving Automation Technology". The Guidelines clarify that the research and development of driving automation technology should design a sound risk monitoring and emergency response mechanism, establish and improve the privacy protection mechanism of the whole life cycle of data, and clarify the corresponding ethical requirements for different types of driving automation technology, delineating the technical and ethical boundaries for the autonomous driving industry.

 

☑ China's UAE port opened a new channel for automobile logistics

According to CCTV news reports, on July 3, the automobile ro-ro ship "Zahel" under the Abu Dhabi Port Group of the United Arab Emirates started its maiden voyage after loading nearly 4,000 Chinese-made cars at Ningbo Zhoushan Port. The ship will pass through the Middle East, Mediterranean and African regions, eventually arriving at the port of Damietta in Egypt. This is also the first automobile export Ro-Ro route through the region.

 

☑ China took the lead in formulating international standards for autonomous driving test scenarios and officially released

On July 7, the website of the Ministry of Industry and Information Technology reported that recently, the international standard ISO 34505:2025 "Road Vehicle Autonomous Driving System Test Scenario Scenario Evaluation and Test Case Generation" led by our country was officially released. The newly released international standard "Road Vehicle Autonomous Driving System Test Scenario Scenario Scenario Evaluation and Test Case Generation" mainly stipulates the evaluation process and test method of autonomous driving system test scenarios, clarifies the determination requirements of evaluation indicators such as test scene exposure rate, complexity, and danger, and defines the general method and necessary characteristics of test case generation.

 

☑ ATTC's overseas after-sales team investigated the 2025 Munich International Robot Exhibition to build a solid foundation for the business development of the robot sector

From June 24 to 27, 2025, the global after-sales team of Zhejiang Eco Automotive Technology Service Co., Ltd. participated in the Munich International Robotics and Automation Technology Expo (Automatica) to systematically study and judge the cutting-edge trends in the field of global intelligent automation. This exhibition brings together 900 leading companies from around the world, with an exhibition area of 76,000 square meters, focusing on three major technology integration directions: artificial intelligence deeply empowers robot decision-making systems, and realizes accurate response to complex environments through deep learning algorithms; the industrial Internet and digital factories are deeply integrated to build a real-time monitoring and optimization system for the whole process; Multi-scenario applications are accelerating, industrial robots accurately simulate high-precision processes such as automobile manufacturing, and service robots break through the bottleneck of human-computer interaction technology. These trends provide strategic guidance for Zhejiang Eco to build an intelligent test environment and formulate scenario-based technical standards.

Figure 7 Munich International Robotics and Automation Technology Fair

Based on the insights of the exhibition, Zhejiang Eco clarified the path to upgrade robot testing capabilities: at the hardware level, relying on the existing auto parts detection system, strengthen environmental simulation capabilities such as extreme temperature and humidity, electromagnetic interference, etc., to ensure the stability of robot performance under all working conditions; At the technical level, an AI-driven test data analysis model is established to optimize the performance evaluation system through big data mining. In response to the differentiated needs of application scenarios, industrial robots focus on verifying load accuracy and multi-device collaboration capabilities, while service robots focus on human-computer interaction response and task execution accuracy. The strategy will give full play to the company's 20 years of automotive testing technology accumulation and the advantages of its service network covering the whole of Europe, and provide full-chain technical support for China's robot industry to go overseas. By integrating logistics, charging, and after-sales ecological resources, Zhejiang Eco is committed to becoming a core quality partner in the internationalization process of global robot enterprises.