7 Feb 2024 | 3 min read
Many emerging OEMs, despite high production numbers, are working on consolidating their position in the market to secure a strategic position.
The challenge for many newborn brands is to build a strong brand loyalty and market presence. One of the strategies in place to enter the European market is to enter the rental business or build a new mobility solution.
Emerging OEMs recognize the value of collaboration and synergies in the highly competitive European automotive market.
Some of them are investing in building their own mobility business infrastructure from scratch, others are moving towards forming partnerships with established car rental platforms or innovative mobility services in order to fully integrate in the current market scenario.
Lynk & Co is a relatively new automotive brand, launched by Geely Auto. Lynk & Co is known for its innovative business model centered around subscription services. Instead of traditional car ownership, customers can subscribe to a monthly plan that includes the vehicle rental, insurance, maintenance, and other services.
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| CEO of Lynk & Co Alain Visser stated that Lynk & Co aims for a business model that would make it “the Netflix of the automotive industry.” |
Lynk & Co generated the innovative model with the belief that young people are willing to spend money on getting around, but increasingly do not want to own their own cars. So, through the subscription model, Lynk & Co is offering a service that could just as easily be provided by a company like Google.
The company wants to be sure to place among the best carmakers in the market, and its straightforward entrance as an innovative mobility solution is definitely a turning point for that.
BYD has quickly positioned itself as one of the most popular and innovative emerging carmakers. Expansion into the European market has come to fruition with a plan to expand the brand in Europe throughout 2023, recording 13,000 vehicles sold in November only. The carmaker has big plans for the coming years, wanting to significantly boost sales in Europe to account for up to 10% of all EV sales there by 2030, equal to around 800,000 vehicles a year.
BYD’s expansion strategy in Europe got a further boost following the latest partnerships with two rental giants: SIXT to supply 100,000 electric vehicles between 2023 and 2028 and Arval to include and offer BYD cars within their portfolio of vehicle makes and models.
On the one hand, the partnership with SIXT is seen as a strategic step for the rental giant, which aims to electrify between 70 percent and 90 percent of its fleet by 2030. On the other hand, the recent deal with Arval is considered key to achieving their fleet electrification strategy and helping increase the number of EVs for privates.
For BYD, these pivotal partnerships enshrine another essential milestone in the consolidation of the brand in the European automotive market and a strategic positioning worldwide
The European automotive market is experiencing a notable influx of emerging OEMs, each strategically navigating challenges to secure a lasting presence.
A new emerging tactic among these newcomers involves either entering the rental business, capitalizing on established networks and wider audience reach through collaborations with established rental platforms or building up new mobility solutions for the modern consumer.
The examples of Lynk & Co’s subscription-based model and BYD’s partnership with SIXT and Arval exemplify two innovative approaches to not only gain market visibility but also address evolving mobility needs.
As these new OEMs forge strategic alliances and launch new models, their entrance into the European market marks a dynamic shift in the automotive landscape, marking a pivotal change in today’s industry.
Digital Content and PR Specialist at 2hire
I love running and daydreaming losing count of the distance I’m covering, cooking (and especially eating) and Drake is my spirit guide.