Chinese Automakers Dominate European EV Market Despite Tariffs

Chinese automakers flooded the European market with electric vehicles (EVs) in June to avoid new tariffs imposed by the European Union (EU). Despite the tariffs, SAIC’s MG and BYD achieved record sales in Europe, capturing a significant market share and registrations.

Record-Breaking Sales for Chinese Automakers in Europe

In June 2024, Chinese automakers captured a record-breaking 11 percent of the European EV market. This surge in sales was driven by the deadline of July 5th, before which cars could be sold without having to comply with the added duties. To attract customers, dealers offered attractive leasing plans and discounts. Chinese automakers registered over 23,000 battery electric vehicles (BEVs) across Europe in June.

EU Tariffs on Chinese Automakers

The European Commission imposed tariffs on Chinese automakers based on an investigation into the effects of subsidies provided by the Chinese government to EV makers. SAIC, the owner of MG, received significant state financial aid and faced the highest duties of 38.1 percent, in addition to an extra 10 percent on all imported EVs. BYD, which recorded sales of nearly 4,000 units in Europe in June, will be hit by an extra 17 percent duty.

Impact of Tariffs on Chinese Automakers

The next few months will be crucial in determining the impact of EU tariffs on Chinese car makers and whether the growth witnessed so far can be sustained. Germany has recently ended its EV incentives, leading to a downturn in EV sales. However, the Italian government has embraced EV incentives, resulting in a doubling of battery electric sales compared to the previous year.

Overall, Chinese automakers have made significant strides in the European EV market, defying tariffs and capturing a substantial market share. The future of Chinese EVs in Europe will depend on how they navigate the challenges posed by tariffs and sustain their growth in the coming months.