A Little Late, but Not Too Late – A Deep Dive into Aiways

This edition was supposed to land in your inbox yesterday, but I held off—because I wanted to include an interview that adds real depth to the discussion. Now that it’s here, I think it was worth the wait.

We take a closer look at Aiways, a company that entered the European market with big ambitions but has faced significant hurdles along the way. What went wrong, and is there still a way forward? Our deep dive explores the brand’s journey, the challenges it encountered, and what the future might hold.

Beyond Aiways, we also examine broader shifts in the EV industry, from market dynamics to emerging players looking to reshape the competitive landscape.

Enjoy the read!

Aiways Reshapes Its Global Strategy, Focusing on Europe and Future Mobility

In a recent conversation with Alexander Klose, Executive Vice President of Overseas Operations at Aiways, the Chinese electric vehicle (EV) startup’s evolving market strategy and future ambitions came into focus. Aiways, originally founded in 2017 with a strong domestic presence in China, is now shifting its focus towards expanding its footprint in Europe, a move driven by both market dynamics and financial sustainability.

Shifting Priorities: Europe Takes Center Stage

Chinas EV market has become increasingly competitive, with falling prices and razor-thin profit margins. According to Klose, manufacturers are struggling to maintain profitability while investing in continuous vehicle improvements. “Most manufacturers are now looking outside of China to secure more stable revenues, and we are no different. We see Europe as one of the most attractive markets despite its challenges,” he explained.

While the United States was considered, the additional costs and requirements for homologation led Aiways to prioritize Europe. This decision reflects a broader trend of Chinese automakers targeting Europe, though Klose acknowledges that the region’s fragmented nature presents unique regulatory and market-specific hurdles.

Aiways currently offers two models in Europe: the U5 SUV and the sportier U6 coupe SUV. While these will remain in the lineup, Klose revealed that they will undergo updates, including enhancements in battery technology. More significantly, Aiways plans to expand its product portfolio with smaller vehicles and vans, targeting both urban mobility and commercial applications.

“We see strong potential in the L6 and L7 light vehicle categories, which offer a compelling combination of affordability and efficiency,” Klose noted. The company aims to develop compact EVs priced around €10,000, making electric mobility more accessible. While such vehicles would have limited top speeds (around 90 km/h), Klose believes they would suffice for most everyday trips.

The Road to a U.S. Listing and Financial Stability

A pivotal step for Aiways' future is its planned public listing in the United States, achieved through a merger with a publicly traded company. This move is expected to secure fresh capital to support product expansion and restructuring efforts. However, Klose refrained from commenting on the company’s valuation, noting that regulatory approvals and market factors will determine the final numbers.

Addressing skepticism about Aiways’ growth potential, he acknowledged the challenges faced by previous EV startups but emphasized that Aiways has learned valuable lessons. “Many have underestimated the engineering challenge of producing an EV that balances affordability and range. We believe we have the right approach to get it right,” he said.

With increasing scrutiny and potential tariffs on Chinese EVs in Europe and the U.S., Aiways is exploring local production options. Klose cited Audi’s recent openness to contract manufacturing for Chinese brands as a potential model and confirmed that Aiways is considering third-party production facilities in Europe. However, a European manufacturing shift would depend on trade regulations, local sourcing capabilities, and cost competitiveness.

“The biggest challenge in Europe remains battery production. While I had hoped we could source batteries locally, the reality is that European manufacturing lags behind China both in cost efficiency and technology,” Klose explained. He emphasized that even beyond labor costs, China’s vertically integrated production model provides a competitive edge.

A Long-Term Vision for the European Market

Looking ahead, Klose envisions Aiways becoming a major player in the European EV market, establishing itself as a “virtual OEM” that focuses on integrating top-tier components rather than building every element in-house. He believes that software, batteries, and electric motors will be the key differentiators in future mobility.

“We aim to optimize the entire vehicle ecosystem, incorporating advancements from the best suppliers, rather than being locked into in-house development. This will give us flexibility and ensure we remain competitive,” he stated.

Klose also highlighted how Chinese consumer preferences are evolving, aligning more closely with European mobility trends. He observed cultural shifts such as the rise of camping and cycling in China, which were previously uncommon but are now shaping vehicle use cases similar to those in Europe.

Final Outlook: Aiming for Market Leadership

When asked where he sees Aiways in five years, Klose gave an ambitious outlook: “If the EV market follows the trajectory of the smartphone industry, Chinese brands could capture up to 40% market share in Europe. We want to be the leading Chinese EV brand in the region.” However, he acknowledged that European automakers will likely fight to retain their dominance.

With a renewed European focus, an expanded model range, and a strategic financial roadmap, Aiways is positioning itself as a challenger in the evolving global EV market. The coming years will determine whether its scalable and cost-efficient approach can carve out a lasting presence in one of the world’s most competitive automotive landscapes.

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Sebastian & team | China EV Pulse

📸 _{Image Credits (in order of appearance): Aiways Automobile Europe GmbH}