Volkswagen:Competition From China EVs

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Introduction And Background

Chinese Market

• There are over 200 EV makers in China struggling with a huge oversupply. According to China Association of Automobile Manufacturers(CAAM), total passenger car sales in 2024 will be around 26.8 million but already sales forecasts by major automakers have reached 30 million. That means automakers need to speed up sales and even work on exports to avoid cash flow problems.

European Market

• Europe is currently facing a decline in demand and rising competition from Chinese EVs. Volkswagen CFO Arno Antlitz recently estimated that vehicle sales in Europe will decline by 2 million every year compared to the pre-pandemic period.

Projected Market Share of Chinese Automakers

• Alixpartners report projects that the global market share of Chinese automakers will grow to 33% by 2033 from 21% in 2024.
• For Europe, AlixParners project that Chinese automobiles market share will rise to 12% (downgraded from 15% due to tariffs) from the current 6% (or 677,670 based on 2023 sales data published by ACEA).
• Outside China, the market share of Chinese automakers is projected to rise to 13% from the current 3%.

Source: CNBC

Chinese EV Imports In Europe

• Semafor estimates that the value of European EV imports rose by 42% year-over-year in 2023 to $13.5 billion.
• According to estimates by Transport and Environment (T&E) which used data from the European Economic Area (EEA) and Dataforce, around 19.5% or 300,000 of all EV in Europe in 2023 came from China. Tesla, MG (owned by SAIC Motor) and Dacia (owned by Renault) were the main exporters of EVs to Europe in 2023, accounting for 5.5%, 4.9% and 3.9%, respectively. Deliveries by BYD accounted for 0.9% or 14,000 of all EVs imports in 2023. BYD wants to grow its share of EVs to 5% by 2026. That would be around 70,000 units based on 2023 EV sales in Europe in 2023. T&E estimates that the share of EVs by Chinese-owned brands could rise to 14.3% in 2025 from 7.9% in 2023.

China Electric Car Sales in Europe
Year	MG	Polestar	BYD	Other Chinese	Tesla	Dacia	BMW	Other international OEMs	Total Share
2019	0.40%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.40%
2020	0.60%	1.10%	0.00%	0.10%	9.20%	0.30%	0.00%	0.00%	11.30%
2021	1.20%	1.20%	0.00%	0.20%	12.20%	3.10%	1.20%	0.00%	19.10%
2022	2.60%	1.70%	0.20%	0.30%	10.90%	4.30%	1.20%	0.30%	21.50%
2023	4.90%	1.30%	0.90%	0.80%	5.50%	3.90%	1.20%	1.00%	19.50%
2024 Forecast									25.30%
Thereoff Chinese Brand									14.3%
2025 Forecast									25.90%
Thereoff Chinese Brand									11.9%
2026 Forecast									26.30%
Thereoff Chinese Brand									9.2%
2027 Forecast									26.30%
Thereoff Chinese Brand									6.1%

Profitability of Chinese EV Makers

• Out of the six top exclusive EV makers examined, only BYD and Li Auto are currently profitable. According to BYD analysts Jiong Shao and Lian Xiu, most Chinese EV makers are faced with potential liquidity issues due to constant losses.
• An April study by Goldman Sachs established that if BYD were to reduce prices of its vehicles by another 10,300 yuan per vehicle, profitability of China EV segment could turn negative.

• According to AlixPartners, only 19 of the current 137 Chinese EV makers will be profitable by the end of 2030.
• Alixpartners expect further price wars as long as big players such as BYD still have gross margin.

Net Profit in million Euros of Chinese Top EV Makers
Company	2018	2019	Y/Y	2020	Y/Y	2021	Y/Y	2022	Y/Y	Q1 2023	2023	Y/Y	Q1 2024	Y/Y
BYD (exclusively EV maker)	452	271	-39.94%	752	177.16%	551	-26.65%	2,409	336.87%	553	3,981	65.24%	585	5.68%
SAIC	6,147	4,517	-26.52%	3,649	-19.23%	4,718	29.31%	3,107	-34.15%		2,548	-17.99%
Li Auto (exclusively EV maker)	-195	-312	60.46%	-19	-93.91%	-45	134.84%	-276	519.36%	125	1,500	-642.69%	76	-39.49%
Changan	86	-339	-491.75%	416	-222.63%	494	18.83%	1,061	114.80%		1,439	35.64%
GWM	661	576	-12.96%	670		935	39.49%	1,122	20.03%		892	-20.53%
Geely	1,610	1,057	-34.31%	697	-34.11%	605	-13.16%	632	4.52%		627	-0.89%
GAC	1,390	859	-38.20%	756	-11.97%	1,052	39.11%	1,075	2.21%		475	-55.81%
Xpeng (exclusively EV maker)	-178	-473	165.98%	-342	-27.74%	-676	97.94%	-1,243	83.87%	-313	-1,318	6.02%	-175	-44.08%
Nio (exclusively EV maker)	-1,224	-1,446	18.11%	-663	-54.15%	-558	-15.78%	-1,963	251.64%	-635	-2,631	34.02%	-664	4.49%
Zeekr (exclusively EV maker)										-330			-259	-21.64%
Polestar (exclusively EV maker)						-889		-451	-49.26%	-35	-1,062		-253	624.97%

Reasons for the dominance of Chinese automakers in the EV industry

Government support

• The Chinese government has a number of industrial tools in place such as as the "dual credit system". This system makes it easier for consumers to get an EV license than an ICE license. The government also supports the EV industry by providing incentives and subsidies. Center for Strategic and International Studies (CSIS) estimates that the government has incurred a total of $230.9 billion (between 2009 to 2023) to support the EV sector with subsidy per vehicle standing at $4,764 in 2023.
• Majority of the government support have recently been sales tax exemption.
• However, government support has started declining. Subsidy per vehicle stood at $4,764 in 2023 down from $6,656 in 2022 and $13,860 in 2018. Most of the government subsidy goes to sales. Infrastructure and research development subsidies only amounted to $515 per vehicle. According to S&P Global, sales tax exemption in China currently stands at about $4,200 and will be lowered to about $2,100 in 2026-2027.
• It's good to point out that foreign automakers such as Volkswagen and Tesla producing in China also receive government subsidies though at a much lower scale compared to local makers. For instance, according to Kiel purchase subsidies provided to BYD amounted to around 1.6 billion in 2022 while that of Tesla was around 0.4 billion.

Source: Center for Strategic and International Studies (CSIS)

Source: Kiel Institute

Improved quality of cars

• According to Scott Kennedy of CSIS who cited independent auto analysts and Western automakers, the quality of Chinese EVs have improved significantly. He pointed out that the range, reliability and overall design have improved substantially.

Breakthroughs in the development of batteries

• Breakthroughs in the development of batteries have enabled them to significantly reduce costs. Batteries make up 40% of the cost of an EV.
• Chinese companies champion the use of lithium iron phosphate batteries (LFP) which are cheaper and safer compared to the lithium nickel manganese cobalt (NMC) batteries mostly used by their Western counterparts. In the past, the LFP batteries weren't popular because of their lower energy density and poor performance in low temperatures. However, some Chinese companies such as Contemporary Amperex Technology Co. Limited (CATL) spent years researching them and were able to successfully improve them. As at September 2022, LFP batteries made up one-third of worldwide EV batteries. A number of automakers have announced that they will switch to LFP from NMC.
• Chinese battery markers also benefit from the fact that the country is home to some of the most important battery materials such as cobalt, nickel sulfate, graphite and lithium hydroxide. For instance, half of the global capacity for the processing of cobalt, manganese and lithium is controlled by China.
• According to CSIS, Chinese battery makers also receive subsidies from the government. For instance, in 2023 CATL received $809 million while EVE Energy received $209 million in state subsidy.
• According to BBVA Research, battery sales by Chinese automakers accounted for 60% of worldwide sales in 2022. According to Bloomberg, on average, LFP batteries were 32% cheaper than NMC batteries in 2023. Bernstein Research expects the difference to hold through 2028 meaning automakers that use LFP batteries will continue to have an advantage in this area. Similarly, according to International Energy Agency (IEA), LFP batteries are more than 20% cheaper to produce compared to NMC batteries to produce.
• Some companies such as BYD and CATL also deploy a method called cell-to-pack in batteries. This method enables them to reduce the thickness of the battery layer. According to MG, the method enables them to reduce the thickness of their battery layer to 110 mm compared to 140 mm in Volkswagen batteries. This reduces costs as well.
• According to IEA, two-thirds of EV sales in China in 2023 used LFP batteries.

Source: BBVA Research

Cheap labor costs

• The other thing that enables Chinese EV makers to dominate the market is the cheap labor costs in China. For instance, the average minimum wage in U.S is $7.25 per while in Europe it is $30 per hour. In China, the average minimum wage is $3.7 per hour.

Automotive Labor Costs in European Countries

Country	Average hourly rate in euros in 2023
Germany	62.44
Netherlands	59.76
Austria	49.1
Sweden	47.5
France	46.97
Belgium	45.68
U.K	41.43
Italy	33.09
Finland	31.99
Spain	29.45
Czech Republic	23.33
Slovenia	23.07
Slovakia	19.92
Portugal	17.36
Hungary	16.39
Poland	15.08
Romania	11.88

Cheap Energy Costs

• China EV makers also benefit from cheap energy costs in the country. In 2023, energy cost per KWh was €0.07, that is 6.7 times less than in Germany.

Energy Costs Per KWh In Selected Countries In Euros

Country	Energy costs per KWh in euros
Germany	0.47
China	0.07
Hungary	0.10
Poland	0.16
Romania	0.15
$1= €0.905

European Automakers Focused On Producing Large EVs

The other reason for the dominance of Chinese automakers in the EV space is because European Automakers focused on producing large EVs which tend to be expensive due to material costs including battery cost. European automakers believed that by producing large EVs they will make large profits. However, that has not been the case since European consumers are looking for cheaper EVs with affordable prices. According to Transport and Environment (T&E), car makers have only introduce 40 BEVs in the A and B segment compared to 66 BEVs in the D and E segment. “Now we are seeing that many buyers are looking for smaller and more affordable cars, and German manufacturers don’t have an answer for that,” Deutsche Automobil Treuhand (DAT) said. On the other hand, Chinese automakers mainly focused on small vehicles. According to T&E, there are 75 BEV models priced at less than €20,000 and only one in Europe. However, a number of European automakers have announced affordable vehicles which should arrive from 2025 onwards.

Prices and Profits Of EVs Made in China and Europe

Prices

• Models produced in China and in Europe by the same manufacturer have different prices. For example, Chinese-made Volkswagen ID.4 Pure with 170 hp has a starting price of €24,879 in China while the same exact model made in Germany starts at €38,915. The price of China-made Ford Mustang Mach-e starts at €46,979 while that made in U.S starts at €55,117. That is according to H1 2023 estimates by Jato Dynamics.
• BYD's Dolphin compact car starts at 35,990 euros in Germany, more than double its starting price in China while MG 4 starts at 28,590 euros in Germany. That's around 1,000 euros less than the ID.3 model in Germany.
• BYD's Atto 3 starts at $41,000 (36,900 euros) in Germany but is available for less than $20,000 in China. That's the same price in Germany as that of Volkswagen ID.3.
• BYD Seal U Comfort starts at 41,990 euros in Germany while its ID.4 rival starts at 46,335 euros
• UBS pointed out that Tesla Model 3 (starting at around 28,500 euros) made in China is 15% more expensive than its BYD rival (also made in China). It added that BYD's vehicles sold in China are 35% cheaper than those of its competitors made in Europe.

Profits

• According to an analysis by the A2MAC1, BYD's Dolphin commanded a $7,400 (6,690 euros) profit premium in Europe compared to China.

• According to price analysis by the Rhodium Group, BYD makes a profit of around 14,300 euros per each SEAL U model (D-segment vehicle) sold in Europe, compared to 1,300 euros made in China. The analysis takes into account manufacturer suggested retail prices (MSRPs), shipping, tariffs, distribution and VAT costs.

• According to Alixpartners, Chinese automakers have cost advantages, localized production strategies and highly-tech enabled vehicles. For instance, they have a 35% "made-in China" cost advantage and can produce their vehicles in half the time taken by legacy automakers (40 months vs 20 months).
• An analysis by UBS established that it costs less for Chinese EVs to export to Europe than manufacture locally. The analysis also established that it would cost BYD $10,500 (€ 9,500) less to produce its SEAL in China than a Volkswagen ID.3 in Europe. Still, they concluded that that BYD will still be able to achieve a 25% cost advantage by producing in Europe thanks to its vertically integrated supply chain. UBS pointed out that BYD makes 75% of its auto parts internally.
• HSBC estimates that Chinese EV makers have a 30% cost advantage.
• According to Luca de Meo, CEO of Renault Group, the cost of producing a C-segment EV in Europe is around 6,000 to 7,000 euros (25%) cheaper than in Europe. He added that wage costs are 40% higher in Europe while energy costs are two times lower in China. Given batteries of D-segment vehicles is around 30GWh more than that of C-segment vehicles, European D-segment vehicles could cost around 8,000 to 9,000 (9,000-10,000 excluding scale effects) more to produce compared to similar models produced in China.

• According to a March 2024 study by Boston Consulting Group (BCG), OEMs currently make a lose of $6,000 for every EV sold for $50,000 (after tax credits) in Unites States. The firm examined a number of OEMS including those producing in Europe such as Volkswagen.
• Ralf Brandstätter, CEO of Volkswagen China said in March that the company is working a new EV architecture in China which would reduce costs by 40% enabling it to be profitable at current price levels.
• In 2019, Volkswagen said that each of it's ID.3 model will make a lose of 3,000 euros, a situation that could continue until 2025.
• In 2021, a Bernstein analyst, Arndt Ellinghorst estimated that battery prices would have to decline to $60 per kilowatt from $140 per kilowatt-hour for the likes of Skoda and Sixt to make EVs profitably.
• Volkswagen said that its ID.2 model (B-segment vehicle) scheduled to arrive in 2026 will cost less than 25,000 euros and will have a profit margin of 6% (1,500). According to the company, the EV will use unified cells which will cut battery cost by 50% in entry-level segment and 30% and in volume segment.
• An analysis by Boston Consulting Group (BCG) established that B-segment EVs produced by European OEMs and sold at 36,000 euros make a profit of 4,000 euros. The Group established that material costs makes up up to 80% of the total delivery cost with battery costs making up 35%. BCG further estimates that offshoring production could reduce costs by 75% while nearshoring could save on production costs by 45% due to reduction of labor and energy costs. A study by T&E (based on another Alixpartners study) established that the cost of battery and other content is 63% of the total price of a B-segment Ev. T&E believes that under the right conditions, it would be possible for a European OEM to produce BEVs priced at 25,000 euros. This is in-line with BCG estimate since the price of batteries have been declining since 2019.
• According to UBS, BYD Seal enjoys a 15% cost-advantage over Chinese-made Tesla model 3 base sedan.

Source: BCG

Source: T&E

Which Chinese companies have announced plans to start production in Europe?

• On December 2023, BYD announced that it will build its first European passenger car factory in Szeged, Hungary. The company pointed out that the Szeged plant will be built in phases and will utilize integrated vertical supply chains, most advanced technology and highly automated production process.
• On May 2024, BYD's European director Michael Shu announced that the company is considering building a second plant in Europe in 2025. Michael Shu pointed out that BYD's Seagull model which starts in China at less than $10,000 will cost less than $20,000 in Europe. He added that they want to become a leading EV manufacturer in Europe by 2030. The Seagull is expected to deliver 190 miles (305 km) of range and have premium features such as a 10.1-inch infotainment screen, cruise control and fast wireless charging.
• On August 2024, Xpeng CEO He Xiaopeng said in a Bloomberg interview that they are searching for a site for local production in Europe. He pointed out that they are looking to establish a site in an area with “relatively low labor risks.” Xpeng delivered 50,000 EVs in the first-half of 2024
• On July 2024, Zeekr (owned by Geely) CEO Andy An said in a Bloomberg interview that they will proceed with localization work in Europe. However, he said production will be done in one of the plants owned by Geely or its partner.
• On April 2024, Chery acquired a former Nissan plant in Barcelona, its first plant in Europe. Through a joint venture established with a Barcelona company, Ebro EV-Motors, Chery aims to produce 150,000 EVs in 2029. Chery exported 937,148 million units in 2023.
• On April 2024, Dongfeng Motor announced that it is weighing opening a plant in Italy with annual production capacity of 100,000 vehicles. However, Dongfeng Motor will focus mostly on hybrids.
• Through a joint venture established with Stellantis, Leapmotor plants to produce at least six EVs at Stellantis's plant in Poland.
• On July 2023, MG Motors announced that it was looking for a location to build a plant in Europe. “We need to check energy costs, labor costs … everything to find out which country is best. We need a very detailed calculation,” said William Wang, European head of MG Motor. “I expect it to be more expensive to build local, but when you sell 200,000 cars per year, it’s time,” he pointed out.

How will BYD's Europe Plant Operate?

• BYD Europe CEO Michael Shu confirmed to Automotive News Europe in March 2024 that production at the Szeged, Hungary will start before 2026 and will have an annual production capacity of 150,000 that could double to 300,000.
• The Szeged plant is set to receive subsidies from the Hungarian government. Hungary's Foreign Minister Peter Szijjarto said the amount of the subsidy will be announced once the EU Commission approves the plant. "This is set to be one of the biggest investments in Hungarian economic history," he said.
• The Szeged plant has already commenced production and according to Szijjarto , it's worth billions of euros. On Jan 2024, BYD signed a preliminary agreement for the purchase of around 300 hectares of land.
• BYD plans to complete the construction of the Szeged plant within 3 years. It also plans to start production in late 2025.
• By setting up a plant in Hungary, BYD will also benefit from cheap labor. It will also reduce shipping costs. Typically, it costs between $2,000 and $4,000 to ship a car from China to the Netherlands.

What are the challenges facing Chinese EV expansion in Europe?

Quality Perception

• The perception that Chinese products are of poor quality is perhaps the biggest challenge facing Chinese EV makers.

China EVs Quality Insights

• Several Chinese EVs sold in Europe have received a 5-star safety rating from the Euro New Car Assessment Programme (NCAP). It's good to note that some European made EVs have less than 5-star NCAP rating. "All Chinese EV makers want to achieve Euro NCAP five-star ratings in order to be more competitive in the European market," said Brian Gu, Xpeng president.
• According to Janka Oertell, Director of Asia Programme at the European Council on Foreign relations, the quality of Chinese EVs presented at the German Auto Fair in September 2023 was respectable even for German snobs.
• According to Mark Wakefield of Alixpartners, while China made EVs still lack behind its European or U.S rivals, they have improved a lot. "These are very advanced vehicles. They are not quite up to the quality standards that the U.S. and European vehicles are, but they've come a long way and the difference is now pretty negligible," he said.
• A J.D Power survey of 9,791 Chinese consumers who purchased vehicles between July 2023 and January 2024 found that domestic vehicles had fewer quality problems compared to international brands. Quality problems associated with domestic brands were 201 per 100 vehicles (an increase of 31 from 2023) while that of international brands were 218 per 100 vehicles (an increase of 54 from 2023).
• According to the Wall Street Journal, BYD has affected quality issues affecting a large number of customers. However, some quality issues have still been encountered. For instance, BYD vehicles require extensive repairs before the can be sold to customers but this could be due to the company's inexperience in handling long-distance logistics. This has resulted in internal friction within the company over sales targets. For example, last year, a BYD European executive question the targets due to weak demand and quality issues.
• The other issue facing Chinese EVs is concerns over data security. A recent survey by the Center of Automotive Management (CAM) established that most respondents are concerned over their data while using Chinese EVs. MG, BYD and Nio scored the least (17% to 19%) when respondents were asked to rate their trust level on these EVs. "German manufacturers have the advantage of trust here," said CAM expert Stefan Bratzel. According to the report, one in three drivers in Europe now consider data security as an important criterion when choosing an EV.

Poor Brand Awareness, Customer Loyalty and Preference for ICEs

• Brand awareness has been another challenge for Chinese EV makers wanting to expand in Europe. A 2022 survey by YouGov established that only 14% of the 1,429 German consumers had heard of BYD while 95% knew Tesla. This means that they have had to increase spending on sales and marketing. For instance, in July 2024, BYD signed a deal to incorporate 100,000 of its EVs in Uber platform. It was also one of the biggest sponsors of the Euro 2024.
• Change in vehicle preference will also likely take time. Similarly, there is a general stickiness for vehicles manufacture by European automakers in the region. According to a March 2024 Bloomberg survey, only 18% of European consumers favor EVs. The survey also found that 74% of the respondents would have an issue buying an imported vehicle while 62% said they would prefer buying the same marque. " Brand retention is highest in Germany, with just 10% of those surveyed unlikely to purchase the same car again. This bodes well for German automakers’ domestic market share of close to 60%," Michael Dean, Senior Industry Analyst at Bloomberg Intelligence commented.

Lack of sell networks

• According to reports, several Chinese EVs are stuck in European ports due to lack of sell networks and trucks to transport them to dealerships. According to someone familiar with the matter, most trucks have been reserved for the likes of Trucks. The Financial Times reported in April 2024 that some Chinese EVs were staying in the ports for more than 18 months. In March 2024, BYD Europe CEO Michael Shu confirmed to Automotive News Europe that sales channels in Europe are complex. "We need to increase our sales, which will take time because we have to properly understand how to leverage the different sale channels. There are channels for private buyers, fleets, leasing companies and rental car firms to take into consideration. It is a very complex fusion," he said.
• As such, the likes of BYD have to open up dealerships if they are to avoid such a situation where their cars pile up at the ports. Already, BYD is making progress. On August 2024, it took over its distributor in Germany, Heden Electric Mobility. The distributor has been importing vehicles and spare parts for BYD for over two years. BYD will also take over two flagship shops in Stuttgart and Frankfurt.

EU Tariffs

• The other challenge facing Chinese EV players in Europe is the decision by the EU Commission to impose additional tariffs on them citing that they have unfair advantage over homegrown players due to subsidies provided by the Chinese government. The current preliminary additional tariff on BYD imports is 17%. Geely and SAIC currently attract additional tariffs of 19.3% and 36.3%, respectively. Other companies that cooperated with the commission such as Nio will get a 21.3% tariff while those that did not will get 36.3% . However, these additional tariffs are too low to deter these Chinese EV makers from expanding to Europe. According to the already mentioned analysis by the Rhodium Group, if the EU Commission were to imposed additional 30% tariff on Chinese EV imports, BYD's SEUL U would still be sold at a profit of 4,700 neuros (14,300 euros before the additional tariffs). As it can be seen by the screenshot below, only a few Chinese EV models would lose the incentive to sell in Europe

Reviews of Chinese EVs

BYD Dolphin Compact

Test Drive

A test drive by the Automotive News Europe concluded that;

• Driving the model at a leisurely pace was enjoyable.
• The range recorded was within the 427 km indicated by the manufacturer.
• The model trails its rivals when it comes to recharge speed. Automotive News Europe didn't manage to get to 60 kw per hour, implying that it takes more than 40 minutes to charge from 10% to 80%.
• Its regenerative braking mode is weak, hence "one pedal" driving is not easy.
• Its interior is practical with many storage spacious. It comes with 345-liter trunk space.
• As with its competitors, its interior lack physical buttons.
• Its infotainment screen centrally rotates and has short update times though not easy to get used to it like that of its rivals.
• Visibility in full light is an issue.
• Charging user experience is not that great since sometimes the charging point is not fully synchronized with the provider's app.

Assessment: When compared to ID.3, the Dolphin is quite competitive. Most consumers who dared to give their comments here are in favor of the Dolphin. Criticisms against the ID.3 revolve around software issues, interior quality and price. Consumers are impressed with all of the Dolphin's features other than the fact that it undercuts ID.3 when it comes to recharging. Some of the advantages of the Dolphin over ID.3 include: more practicality, cheaper, better infotainment performance, more standard features (eg panoramic roof which exists in ID.3 as a premium) and more quality interior. However, it should be noted that Volkswagen launched a new ID.3 that it claims has larger screen, more power and improved software.

BYD Atto 3

It's BYD's best-seller in Europe with 11,000 units sold through the first 11 months of 2023. A test on the model by Automotive News Europe established the following;

• Its doors have a wide-opening angle, a feature lacked by most current models.
• Its visibility is good as long as 15.6-inch screen is kept at a landscape position.
• Parking resolution resembles that of a 4k movie-pleasant.
• A software issue was noticed on the model -affecting the FM radio stations. BYD Italy acknowledged that there was an issue affecting digital audio broadcasting (DAB) radio.
• Driving range (340 km) felt short of that indicated by the manufacturer (420km).

A test by Auto Express established the following;

• BYD Atto 3 does the EV stuff really well, better than rivals from established brands.
• Infotainment screen is fast.
• It requires too many screen buttons to get things like heated seats.
• It's big enough for three passengers.
• Light-coloured dashboard proved resistant to stains.
• Finding a showroom to test the model is difficult since they aren't many.
• BYD is very quick to respond to customer feedback through vehicle facelifts.

A review by Carbuyer indicates that;

• The exterior is European-like.
• The infotainment screen is responsive enough. It doesn't have any of the glitches that have plagued the ID.3 or the ID.4. It's not intuitive enough though. Also, there's a lot going on inside which is kind of broing.
• Unlike most of its rivals, it's infotainment screen is 15.6-inches.
• Quality seems good.
• It's quite and relaxing to drive. It feels like it's built in Europe and not China. However, the likes of ID.3 and ID.4 are sharper to drive.
• Test drive attained 240 miles just 20% shy away from the manufacturer's claim.
• It's not competitive when it comes to charging. It takes 29 minutes to charge from 10% to 80%.
• It has enough headroom and legroom. It also has panoramic roof.

Assessment: The BYD Atto 3 ticks a number of boxes when it comes to choosing an EV. The main complaint is on its range and charging. It's main selling-point will likely be its tech features and practicality.

MG4

An analysis of MG4 by Autovista Group established the following;

• The design of the vehicle is impressive, well beyond its pricing.
• Its interior is comfortable.
• The 10.25-inch infotainment screen is not as refined as that of its rivals, sometimes it requires more pressure to make it responsive. However, the interior has plenty of good technology.
• Its dashboard looks futuristic.
• It's spacious and practical enough.
• Interior materials aren't as premium as those of its rivals but are not noticeable.
• Driving is comfortable (even under braking and acceleration) though there is a slight roll in corners.
• It has a range of 450 km which is competitive enough.
  

Source: Autovista Group

Assessment: It looks like the MG4 is competitive enough at its pricing point. The only major downsides are the infotainment screen that's not as refined as that of its rivals and the fact that its interior finishes are not as premium as that of its competitors.