Chinese cars at the European market gates

Chinese carmakers are gearing up to enter the European market after testing the US waters some time back.

Though Chinese carmakers have not made much headway in the US due to the strict emission and safety norms, many have managed to make their presence felt in the marketplace and are currently reworking their overseas strategies. The decision to test the European waters is also part of the strategy by Chinese automobile manufacturers to explore new markets.

The European sojourn now looks more promising as the demand economics are changing globally to fuel-efficient and small cars. In the first quarter of 2009 about 3.4 million new cars were sold in Western Europe, 17 percent less than within the same period last year - and the bigger the cars, the bigger the sales drop.