“Factories in China Keep Running, But Sales in Europe are Slow”
The Financial Times reported that major ports in Europe are becoming ‘parking lots’ due to slowdowns in car sales and freight transport congestion.
Citing major ports in Europe and the automotive industry, the newspaper identified the accumulation of unsold Chinese electric cars as one of the main causes.
Even though there are no future delivery schedules, there are Chinese companies that reserve space at port vehicle terminals.
While the Port of Zeebrugge in Belgium, Europe’s largest vehicle import port, did not mention the country of origin, it stated, “Automotive companies are increasingly using port parking lots as warehouses,” adding, “Vehicles are being collected from port terminals rather than storing inventory at dealer companies.”
Next, BLG Logistics, the operating company of the vehicle terminal at the Bremerhaven Port in Germany, also reported that vehicles have been waiting longer at ports recently.
Several high-ranking officials in the automotive industry pointed out that Chinese companies not selling cars in the European market as quickly as expected is the main cause of the bottleneck.
Some Chinese electric cars stay at ports for up to 18 months, and there are ports that require proof of future delivery schedules from importers.
A significant number of vehicles are waiting at European ports until they are sold to distributors or even final consumers, according to a car logistics expert.
The China Association of Automobile Manufacturers stated, “Transportation within the European market is difficult,” and added, “We need to change guerrilla exports that can put us at a disadvantage.”
Chinese car companies such as BYD, Chery, and SAIC are planning to expand electric car sales in Europe and continue operating factories in China.
During January and February of this year, Belgium, the UK, Germany, and the Netherlands were the countries where the most electric cars, hydrogen cars, and hybrid cars from China were exported.
During his visit to Paris on the 7th, Wang Wentao, a Chinese Vice Minister of Commerce, dismissed criticism of overproduction of Chinese electric cars as “baseless” during meetings with Chinese car companies.
However, many Chinese companies are considered latecomers in Europe and face challenges in transportation due to weak distribution networks, industry officials said.
One source said, “A shortage of freight cars is a very common problem,” adding, “Many (cars) have been reserved by (American electric car company) Tesla.”
BYD, Chery, SAIC, and others did not respond to questions related to this, FT added.
