European consumers considering purchasing Chinese electric vehicles have been issued a stark warning that they could be left stranded, with numerous brands from China potentially failing to establish a lasting presence on the continent. This caution comes directly from an industry insider with extensive experience in the Chinese automotive sector.
Consolidation Inevitable as Market Reaches Saturation
Martin Jahn, Skoda's board member responsible for sales and marketing, brings unique first-hand knowledge to the discussion, having spent four years leading a Volkswagen joint venture with the Chinese state-owned manufacturer FAW. He has observed the market dynamics closely and believes a significant shakeout is unavoidable.
"Everybody knows there will be a consolidation," Jahn told The Independent. "There are about 150 electric brands in China – that is not sustainable."
Survival of the Fittest: Which Brands Will Endure?
When pressed on whether some Chinese brands currently establishing themselves in the UK and across Europe might disappear, Jahn was unequivocal. "Some of them, yes. The strongest ones will survive – MG will survive. BYD will survive. These two for sure. The rest, can they all keep running in Europe? I'm not sure."
This prediction highlights a coming period of intense competition where only manufacturers with substantial resources, established reputations, and robust business models are likely to withstand the pressures of the European automotive landscape.
Strategic Defence of European Borders
Jahn emphasised that European manufacturers are not underestimating the Chinese challenge. "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," he stated.
However, he believes the primary battleground for Chinese manufacturers will be outside Europe. "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."
Skoda's Response: Acceleration and Simplification
Jahn made these comments during an early drive event in Portugal for Skoda's new all-electric SUV, the Epiq, which forms part of the brand's renewed product offensive. This push includes another electric model, the seven-seat Peaq SUV.
The executive admitted that Skoda has been forced to accelerate its development cycles in response to Chinese competition. "We know we have to become faster," he acknowledged. "On the other hand, the question is, what is financially sustainable?"
He questioned the long-term viability of the Chinese industry's current breakneck pace. "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?"
Differentiation Through Service and Reliability
For Skoda, product differentiation remains crucial. The brand is pursuing a strategy centred on its 'Simply Clever' philosophy, focusing on practical innovation rather than overwhelming complexity.
"The question is, how many new things and better things can you really bring to the customers, and what do customers really want?" Jahn pondered. "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."
He identified key European advantages that Skoda intends to leverage. "We want to bring a good package; a good car with good specs and good service. I think that's our differentiation 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."
New Models on the Horizon
The Skoda Epiq is scheduled for its official reveal in May, with the first customer deliveries anticipated in early 2027. Pricing is expected to begin at approximately £25,000, positioning it as an accessible electric SUV option.
Meanwhile, the range-topping Peaq model is likely to be unveiled in June, also arriving with customers in 2027, but commanding a premium price expected to exceed £40,000. These launches represent Skoda's determined effort to strengthen its position in the rapidly evolving electric vehicle market amidst growing international competition.
