China is experiencing an ongoing price war on electric vehicles. Aiways (bankrupt) is considering only one option: Europe

• Aiways is struggling to survive and its plan is to exit the competitive Chinese market.

• In recent months, about 15 brands have declared bankruptcy or are planning to do so.

Two years ago, Aiways entered the Spanish market with the Aiways U5. An electric car that was not aimed at the lower end of the market with its starting price of 40,000 euros before receiving assistance and which had some things to polish.

Overall it was a car that fit most scenarios and was positioned as a attractive option for those who are looking for an SUV for daily movement around the city and punctually combining it with more or less nearby exits. At the very least, this has helped remove some of the preconceptions about what we can expect from electric vehicles from China.

Soon after, Aiways introduced its U6. The brand’s second electric car was an SUV coupe, much sportier, with more risque shapes and, in my opinion, much more visually appealing. IN Motopassionsaid good words to the model upon first contact.

But a lot has changed in the market since then. It seems like an eternity has passed. Meanwhile, China has begun flooding Europe with new models, so much so that the European Union is considering raising tariffs on these models, and in the US they have raised them to 100%.

In the local market, Chinese manufacturers have undertaken very tough trade war which puts many of its producers at risk. One of them, Aiways, made an interesting decision.

Europe as a lifeline

Aiways has been experiencing a difficult economic situation for a year now. In May 2023, the possibility of bankruptcy of the company was already considered, and the situation has not improved significantly. In accordance with Reuters, the company is looking for investors to continue its journey. And this was confirmed to us in Astara, the distributor of the Chinese company in Spain.

The Chinese market has become a crusher for manufacturers. At the last Beijing Auto Show alone, 117 new models were unveiled, 41 prototypes were unveiled and 278 “new energy” models, as plug-in and electric hybrids are called in China, were on display.

IN New York Times They explained that “dozens of manufacturers” They will launch 71 new all-electric vehicles on the market. IN InsideEVKevin Williams was very surprised by the number, quality and variety of options available in Beijing.

Although it is indeed difficult to create a car brand, the electric car has become something of a new gold rush. In a market that is more focused on the feeling inside the car than the car itself, as explained in Wall Street Magazine, more and more companies are going on adventures. It is expected that in 2024, up to 50 manufacturers will offer fully electric cars on the Chinese market. If we open our hands to those who have internal combustion engines, the amount will grow to 200 different companies.

IN South Morning, China Post Let me explain that in recent months there have already been up to 15 companies that have completed in bankruptcy or they are in a very difficult situation. Firms that promised to sell a total of 10 million units in one year. One of them is Iveys.

Now the company has announced that it is leaving the Chinese market to focus solely on the European market. From the brand, they hope that our continent will become a lifeline for the company, born in 2017, promoted by Tencent and CATL, among other companies. In his own words, collected Reuters“In China you can only reap losses.”

This movement is interesting because it shows that Chinese companies, despite the prejudice that they are an important part European buyers, continues to believe in Europe as a big market in which to expand and become stronger. In informal conversations, employees of local companies confirmed to us that they trust Spain as a great gateway to Europe, since we are more open to receiving their products.

However, the challenges for Aiways are getting tougher. For now, the company has stopped its production in China and with such a fragile economic situation, they find it difficult to face possible tariffs that may be imposed on the export of vehicles in stock that they have already produced or that they may be producing. if they find a business partner.

Another option would be to cooperate with a local company or acquire the company’s facilities for production on European territory, as Chery will do with the old Nissan plant in Barcelona, ​​where it will complete the formation of the Omoda 5.

Image | Iveys

In Hatak | We drove 2,500 kilometers in an electric car and realized something: diesel is still king.