Chinese carmakers flood social media with new EV ads
Chinese carmakers flood social media with new EV ads
The latest news from Britain's EV sector
Hello, I’m Tom Riley, and welcome back to The Fast Charge, a British EV newsletter.
Top story in today’s edition… I reveal that Chinese carmakers BYD, GWM ORA, and MG, are turbocharging their social media advertising in a push for UK buyers.
Elsewhere… EV running costs remain a hot topic for drivers, a third of chargers are being run by ‘mini’ networks, and Swindon Council can’t spell.
As ever, if you have any thoughts or feedback, do get in touch via my contact details below or reply to this email.
Chinese EV brands flood social media with new ads
Summary: Based on an analysis of public records, I have found that Chinese EV manufacturers (BYD, GWM ORA, and MG) have collectively launched 70 individual ad campaigns for UK audiences via Facebook and Instagram since the start of 2024 - with 27 of those being activated so far in February.
By comparison… these three brands combined only ran 15 ad campaigns across all of 2023, according to Meta’s advertising library.
To note… within each ad campaign, there are often multiple advert versions using the same ‘creative’ text/imagery. Each of these versions gets promoted to specific tailored audiences.
Low price… GWM ORA has been heavily promoting its 03 (formerly Funky Cat) this year, with a big emphasis in recent ads being put on the car’s affordability. “So many features, so little price” is the tagline of several ads launched in February, including the fact the monthly cost is just £185. Elsewhere, GWM ORA ads have been highlighting its 23 test drive centres in the UK.
Meanwhile… MG’s UK arm, owned by SAIC, seemingly has never run an advertising campaign before February this year. However, since Valentine’s Day, the carmaker has activated 11 individual campaigns. They range from promoting a PCP deal for a new MG4 that would cost only £99 per month with 0% APR, all the way to the max range of its vehicles.
Elsewhere… the relative newcomer, BYD, which launched in the UK in 2023 with big plans to take some of Tesla’s lunch, has launched 23 ad campaigns since 29 January this year. Before this date, the carmaker’s UK arm had only run two campaigns. The focus of their recent ads has been on its £37,000 Atto 3 being awarded ‘electric car of the year 2023’, though campaigns launched last Friday have started to promote its cheaper compact Dolphin model, as well as the Seal saloon.
Why the surge? Many in the automotive sector predicted that 2024 will be the year when China is going to double down on deploying its cheaper EVs to the UK. In Auto Trader’s recent ‘Road to 2035’ report, they said a ‘price war loomed’ as Chinese carmakers put countries, like the UK, in its sights after dominating their domestic market. For example, we can expect the launch of new Chinese carmaker Chery in March.
Reason for concern? Chinese cars are more affordable, yes, but they are ultimately from China – which is morally, err, a bit egoistic. The European Commission is presently investigating the Chinese carmakers bringing EVs into Europe, as they receive huge state subsidies.
In the UK… Only this past week, the chief executive of the UK’s Trade Remedies Authority has said it is ready to follow Brussels in launching an investigation into Chinese carmakers who may be undercutting rivals. According to the TRA, the UK is watching the EC inquiry “really closely”. Read more.
Likely outcome… After its investigation, trade commentators believe the EU will follow the US in placing import tariffs on Chinese cars. However, in the UK it might not be quite as easy for us to do – due to China bankrolling quite a lot of automotive projects over here, such as the battery gigafactory in Sunderland. Also, as above, competition from China can only push down prices for consumers – which is possibly good for the government. In any case, evidently Chinese brands are not waiting around.
Top EV news…
♿ Trouble is brewing amongst disability campaigners who are suggesting access to chargers “is being treated as inconvenient afterthought”. This topic is only going to grow and I will return to it soon. Read more.
🔌 In 2022, I worked out that 29% of all EV chargers – of which there were then 31,507 – were being run by a network with a smaller than 1.6% market share. As of today, it remains a third (31%) of chargers are being run by these ‘micro-networks’ (under 1.6% share). Based on Zap-Map’s data, the top 15 networks operate 69% of all chargers, leaving some 45+ mini networks running the smaller slice. In reality, it’s probably more like there are 100s of mini networks, if you include single site operators sitting under a large brands like ChargePoint or ChargePlace Scotland.
💲 Octopus has offered a new vehicle-to-grid tariff which will guarantee free EV charging – as your car charges when it’s cheap, but gives back to the grid when it’s in demand. To note, this only applies to certain EVs that can do V2G. Read more.
Speaking of Octopus, its EV leasing arm has ‘opened up shop’ in Texas 🤠
🔋 The Commons Business and Trade Committee has said the government’s gigafactory support is failing key tests, after last week publishing Whitehall’s response to its inquiry last year into battery production in the UK. Read more.
🗳️ The perils of social media. Yesterday, a tweet poll shared by Osprey got a bigger response than it probably anticipated. The network asked ‘What elements of a public rapid charger are most important to you?’. The options included: Lighting, branding, size, and cable length. But, the tweet received around 200 replies from drivers, the majority of whom said ‘cost’ was missing from the list.
🤑 Speaking of costs, according to Zap-Map, UK public EV charging prices have gone up by 11% year-on-year. Read more.
🆓 Vauxhall has partnered with Tesco to provide new Vauxhall owners with one year’s free charging credit at stores across the country. Read more.
📣 The government has launched a consultation on development rights for EV charging outlets. more.
🚗 According to a new analysis by Transport & Environment, only 17% of EVs sold in Europe are in the more affordable category. Meanwhile, larger and more luxury models outnumber smaller EVs by 3 to 2. Read more.
⚒️ The world’s largest lithium producer, Albemarle, has lowered its 2030 demand forecast by 10% as it says the shift to EVs globally is taking longer than previously thought. Read more (paywall).
📰 Last week, Carwow acquired Autovia, which produces several publications such as Auto Express, Carbuyer, and Driving Electric, for an undisclosed sum. Read more.
🖊️ Cambridgeshire authorities are consulting on views about EV chargers in the region. The combined authority estimates the area will need 10,000 by 2030. Get stuck in here.
💸 EVIOS, the home charger maker run by ex-Chargemaster founder, David Martell, also owner of posh charger Andersen which was bought from administration last year, has raised £4m for its Series A funding round. Read more.
⚡ Pod Point has appointed Melaine Lane to be its new CEO. She previously held senior roles at Shell. She follows interim CEO Andy Palmer. See more.
🔧 Monumo, a UK start-up using AI to reinvent EV motor design, has emerged this week from stealth mode having raised £10.5m in seed funding. Learn more.
📎 Photo from Swindon shared in the UK EV Owners Facebook group last week. Oh dear…
❄️ Contrary to some recent reporting, the AA has refuted claims suggesting EVs encounter significant challenges during cold weather conditions in the UK. Read more.
⛽ ‘Will hydrogen overtake batteries in the race for zero-emission cars’? The Guardian has published its latest in a series of EV mythbusters. The conclusion… as they say in France… Non.
⚔️ I keep coming back to it, but EV insurance is still a hot topic. One British X/Twitter user got a 204% increase in their Tesla insurance from DirectLine. As an explanation, MoneySupermarket suggested Tesla’s are “more likely to be involved in accidents due to their advanced features”. See posts.
🎉 Kerbo Charge was on Dragon’s Den last week and secured investment from sustainability investor, Deborah Meaden. Huge congrats! Learn more.
👍 Finally, I leave you with two positive stories… and both from the MailOnline! Numero uno… Five of the UK’s most picturesque EV chargers. See the list here. Numero dos, used EVs are the fastest-selling fuel type. Read more. Brings a tear to the eye seeing this sort of coverage.
By Tom Riley | Check my Linktree for LinkedIn, TikTok and Twitter
So far the Chinese have price matched local manufacturers, so the arguments about dumping don't hold a lot of water. The Chinese manufacturers will also do exactly what the Japanese did and built local plants to avoid shipping costs and tariffs once volumes are sufficient.
We should also be more open minded, and less judgemental and accept that a different culture will inevitably have positives as well as negatives.