European car buyers investing in Chinese cars have been warned that they may be left high and dry, with some Chinese car makers not likely to last in Europe.
Skoda’s member of the board responsible for sales and marketing, Martin Jahn, has first-hand experience of working for Chinese car makers, having led a Volkswagen joint venture with Chinese state-owned FAW (First Automotive Works) in China for four years. He told The Independent: “Everybody knows there will be a consolidation. There are about 150 electric brands in China – that is not sustainable.”
However, Jahn also sounded a warning for European buyers, revealing that he thought some of the Chinese brands we’re already seeing in the UK and elsewhere across Europe may not be around for too long.
Asked if he genuinely thought that some of the brands who are establishing themselves in Europe will disappear, Jahn said: “Some of them, yes. The strongest ones will survive – MG will survive. BYD will survive. These two for sure. The rest, can they all can keep running in Europe? I'm not sure.
“We never underestimated [the] Chinese. I take them seriously – I spent four years in China. I've seen what's coming now – I saw it seven years ago. The Chinese are a bigger problem for us in the non-European markets, in North Africa, in the Middle East. In Europe, we will defend our borders.”
Jahn was speaking about Chinese car makers in Portugal at an early drive event for the Skoda Epiq, the brand’s new, small, all-electric SUV.
The Epiq is part of a new product push from Skoda, which includes a seven-seat all-electric SUV called Peaq. And Jahn admitted that Skoda’s development times have sped up, with an eye on what the Chinese car makers are doing.
“We know we have to become faster,” said Jahn. “On the other hand, the question is, what is financially sustainable? I think there will be a consolidation of the Chinese car industry. And the question is, how long can you keep so many brands and launching new cars at this pace – the question is whether you can depreciate all the investments. So how long is this sustainable?”
Jahn also revealed that product differentiation is key, with Skoda pursuing its own path based around its ‘Simply Clever’ brand value. “The question is, how many new things and better things can you really bring to the customers, and what do customers really want?
“We have mentioned simplification. We noticed that sometimes the cars and the features are too much. What do you really use in the car? How many buttons can you really use? So, we are looking more at simplification. We want to bring a good package; a good car with good specs and good service.
“I think that's our differentiations to the Chinese, the good service network and reliability and good residual values. Those are the benefits that we have compared to the Chinese. We will stick to that for a while and see what happens.”
The Skoda Epiq is set to be revealed in May with first cars reaching customers in early 2027 – pricing is expected to start at around £25,000. The range-topping Peaq is expected to be unveiled in June, with cars again coming in 2027 and prices north of £40,000.
