Chinese brands already represent around the 4.5% of the sales of new passenger cars and industrial vehicles this year in Andorraaccording to the data provided by theAssociation of Vehicle Importers of Andorra (AIVA). The president, Pere Betriuconsiders that implementation is still lower than in neighboring countries, but assumes that they will gain weight in the coming years. “I think it is already present”, he says about a phenomenon that began to become visible in the Principality approximately “a year and a half or two years ago”.
Arrival coincides with one rapid expansion of Chinese manufacturers in Europe. JATO Dynamics in April it placed sales at nearly 113,000 units, twice as much as a year earlier, and in a share close to 10% of the European market. A Andorrabrands like BYD, MG, Ebro, Omoda, Jaecoo or Maxus have already begun to gain a presence, although they are still far from the weight that traditional premium manufacturers like Porsche, BMW, Audi or Mercedes. Betriu points out that this particularity will make Chinese firms grow, but probably without reaching the weight they already have in other European markets.
Commercial implementation
Some of these brands already have a commercial presence in the country. Betriu appointment Ebro and Maxus and explains that several members of theAIVA they already distribute Chinese manufacturers or maintain contacts to incorporate them. In the case of associates, he notes that to be recognized as an official dealer it is not enough to sell the vehicle: you also need to have an official workshop and guarantee after-sales. “How to AIVA we believe that it is an indispensable requirement that, beyond selling the product, you have the guarantee and the structure to be able to provide a good after-sales service“, he defends. The president of the association admits that this is one of the difficulties that brands have encountered when landing in europe. Opening the commercial part is “relatively fast”, but training mechanics, creating a network of workshops and having stocks and spare parts distribution centers takes more time. Some brands, he maintains, “have died of success” because they sold faster than they could deploy this structure. A Andorraassures, theAIVA has no record of incidents of this type among the official dealers who already work with these manufacturers.
“Beyond selling the product, you must have the guarantee to provide a good after-sales service”
A future problem?
Not all voices in the sector share the same optimism. Sources consulted by diary they feel that the real test will come when vehicles accumulate years and breakdowns appearespecially in batteries, electronics, engines or less common parts. “I see the problem in the future, not now”, summarizes one of the sources, who emphasizes the quality of materials, the availability of spare parts and the ability to maintain guarantees when the cars are three, five or more years old. Another source in the sector points out that within the Chinese product there are important differences in quality and price. There are very competitive entry-level models, but also mid-range and high-end vehicles that, he claims, can already compete in equipment and services with European manufacturers. The question is whether the volume of a market like Andorra will allow maintaining an official structure of its own for all the brands that try to enter.
“I don’t think they have arrived to destroy the market, but they will gain strength and relevance”
Betriu he believes that the market will end up selecting which firms consolidate. Remember that a Spain dozens of Chinese brands coexist – up to 33 – and he considers it difficult for all of them to maintain the same space in the long term. “Time and the market itself will put everything in its place”he points out. He also rejects that their irruption should cause a break in the Andorran sector: “I don’t think they have arrived to destroy the market”, he says, despite giving for sure that “they will gain strength and gain relevance”. Its main entry route is linked to electrification. according to Betriu, the bulk of the offer – 80% – that is arriving is electric or plug-in hybrid. He considers that they are technologies that will “find their audience” depending on the use of each driver.
The debate is no longer whether Chinese cars will make it to Andorrabecause they are already there, but what space will they occupy when they stop being a novelty. The price, the equipment and the commitment to electrification have opened the door for them; consolidation will depend on after-sales, spare parts, guarantees and how many brands are able to maintain a profitable structure in a small market.
the keys
- 4.5% OF THE MARKET. Importers say Chinese brands already account for around 4.5% of sales this year.
- MORE PRESENCE IN THE COUNTRY. BYD, Ebro, Omoda or Maxus are gaining ground, despite remaining far from Porsche, BMW or Audi.
- DOUBTS ABOUT THE FUTURE. The sector points to after-sales and spare parts as the big question marks.
