Chinese electric cars are arriving by the thousands at the ports of Antwerp and Zeebrugge. The parking lots provided for their storage are close to implosion. In its desire to become a new hub in Europe, Belgium is facing a serious blockage. “Market forecasts were higher than actual demand,” says an economist.
They arrive by tens of thousands. At the ports of Antwerp and Zeebrugge, Chinese electric cars are stored endlessly. To the point that the huge parking lots provided for this purpose are all saturated. A recent article from World quantifies the phenomenon: in 2024, between 600,000 and 1 million vehicles manufactured in China will have Flemish ports as their destination. These stratospheric data make Antwerp the largest automobile terminal in the world. Just that.
Without making any noise, the two cities in the north of the country are rising at the top of logistics for the electrical market. They have become a real hub for the dispatching of vehicles to the four corners of Europe. From Calloo, near Zeebrugge, Polish, Italian or Spanish trucks load Chinese electric cars. Not at a sufficient pace, however, to sell off the impressive stock that has built up in recent years.
Chinese electric cars hoarded: several causes
The French daily pins several causes of this traffic jam. A Chinese industry in overcapacity, the emergence of new manufacturers, the desire to conquer the European market, or even the Covid crisis, which slowed down sales and swelled stocks. So many reasons that explain the ‘Sino-electric’ flood.
The boats, too, have seen their capacity expand. Thus, explains The world, transporters are currently capable of moving up to 7,000 vehicles, instead of 1,000 to 2,000 previously. Belgium even became their main destination, although they used to unload part of their cargo in ports in southern Europe. Lack of labor shouting among the operators in charge of storage and an insufficient number of boats for short navigation (transport to other European ports) are two other ingredients that guarantee a massive accumulation of electric vehicles.
Chinese electric cars: forecasts exceed demand
Every year, these are 3.9 million new cars passing through (arrival/departure) via the port of Zeebrugge. “This crowding is not so extreme, compared to other years, nuance Romain Denayer, spokesperson for EV Belgium, federation for the development of zero-emission mobility in Belgium. But brands are increasingly using port car parks, rather than their own garages, he continues. This process is part of the new automobile model: the car is often purchased online, without going through the garage. The ports then adopt this storage role.”
“The price of lithium, a major component of batteries, has fallen significantly,” explains Rudy Aernoudt, economist (UGent). Because the entire market has been speculating on an explosion in demand for electric cars. However, we observe that this is not the case.”
In Germany or the Netherlands, for example, subsidies for the purchase of an electric car have been reduced, which puts off many potential buyers. “From now on, people are opting more for hybrid. And more for 100% electric. THE market forecasts were higher than actual demand”deduces the economist.
Early adopters and overproduction
The latest estimates were based on the logic of early adopters, that is to say the individuals most ready to use a new technology. “However, in general, it is estimated that THE first time adopters represent around 15% of the market. Now, manufacturers must therefore convince another segment of potential buyers, those who are not the most predisposed to opt directly for electric. Race results: the market is moving much slower than we thought», Analyzes Rudy Aernoudt.
In Belgium, unlike Germany, the market is doing rather well because the tax deduction that applies to electricity amounts to 120%. But available production always exceeds consumption “because we overestimated the real interest of the population,” believes the UGent professor.
China storming the European market
This Chinese overproduction is also part of the war with Tesla and European cars. China wants to ensure that its cars are directly available on the European marketso that the consumer does not have to wait after their order. “Chinese manufacturers want to try to ‘erase’ European brands as much as possible. It matters little to them that stock is amassed in Europe: it is even part of their strategy.”
However, it would be wrong to assert that the car parks near Antwerp only accommodate only Chinese cars. “We see a diversity of manufacturers: Korean, Japanese, or even American, nuance Romain Denayer. The fear linked to the arrival of Chinese electricity must be put into perspective, he believes. Previously, these same doubts were present when Toyota, Suzuki or Hyundai arrived on the thermal market in Europe. Over time, these brands have entered the landscape.
What release?
Faced with current saturation, an unblocking could occur in two ways. Either via a market connection. “It is ‘the invisible hand’which means that prices will decrease to encourage demand“. A “very probable” option, according to Rudy Aernoudt. “Government incentives, via the granting of bonuses for the purchase of an electric vehicle and/or new taxes on thermal vehicles”, are the second option. Romain Denayer adds that this blockage “is not not just a slowdown in the electric sector, but in the automotive sector in general.”
For Rudy Aernoudt, “we are going to become much more realistic about electricity in the future. A company like Toyota also thinks that electric cars will represent a maximum of 30% of the market. The idea that everyone drives electric in 2035 is utopian,” he judges.
For him, the fact that Belgium becoming a new electric hub is part of a clear political desire to develop logistics. “A lot of cars also pass through Ghent (Honda). It’s a good thing, it creates jobs. But the fact that the cars are imported from Asia tarnishes the initial environmental objective of electric vehicles.
To compete with the influx of Chinese electricity, the challenge therefore promises to be arduous for the European automobile market, which has underinvested in its electrification. “It is surmountable, but it will grow in the years to come,” warns Romain Denayer. Because the number of Chinese brands is growing quite impressively. It is now up to Europeans to react adequately.”
