News Analysis: Chinese EVs show "great" expansion potential in Croatia but face big challenges, say experts

ZAGREB, Feb. 5 (Xinhua) -- There is great potential for Chinese electric vehicle (EV) makers to expand in Croatia and the European Union (EU) but they still face big challenges ahead, Croatian experts said in recent interviews with Xinhua.

Over the past 10 years, China has achieved incredible success and its electric vehicles have excellent quality, appealing design and competitive prices, Hrvoje Paver, an independent adviser at the Trade Department of the Croatian Chamber of Economy told Xinhua.

Croatian consumers had a big interest in Chinese electric vehicles as they are looking for reliable electric vehicles that they can afford, Paver said, adding that they see Chinese electric vehicles as a good choice.

Echoing Paver, Hrvoje Prpic, president of the Croatian EV Drivers Association, said the quality of Chinese EVs has improved "significantly" in the past few years. Several major European car manufacturers are ordering Chinese batteries for their EVs, Prpic added.

Mihael Akerman, a Croatian automotive industry expert, also said "Chinese electric vehicles are welcome in Croatia because they are better in terms of price and quality than those of many well-known car companies."

CHALLENGES AHEAD

Despite the considerable advantages and progress, Chinese EV manufacturers still face such big challenges as high tariffs imposed by the EU as ways to protect its own car industry.

On Chinese companies' bid to build factories in Europe to maintain competitiveness in the EU market, Prpic said "This will take a long time and the EU will do everything to slow down the construction of Chinese factories in Europe and delay the arrival of Chinese manufacturers in the EU as much as possible."

But he stressed the EU market is huge and Chinese manufacturers must make long-term plans if they want to succeed in Europe.

Moreover, Chinese manufacturers need to build a service network throughout Europe, because customers will be reluctant to buy an electric vehicle that does not have a service at a distance of 50-100 kilometers from their home, he added.

Paver concurred with Prpic, noting that the primary obstacle for Chinese manufacturers in Europe is the import duties and the Chinese manufacturers need to build a service network in Europe.

"When customers buy a car, they always ask where they can repair it and where they can find spare parts. So, Chinese companies must build a network of car services in Europe," he said.

Despite the increasing hurdles imposed on Chinese imports, Akerman insisted that Croatian consumers will not care about where the EVs come from as long as they are affordable and of good quality. "That is why cheaper Chinese electric vehicles could be a hit in Croatia," he said.

Paver also expressed the belief that Chinese EV manufacturers will be able to overcome the obstacles and challenges and expand business in Europe. "I think that very soon we will see more and more Chinese electric cars in Croatia and Europe. There is great potential for their expansion," he added.