According to research firm Dataforce, Chinese brands such as MG and BYD owned by SAIC Motor accounted for 9.9 percent of EV registrations in the region in July this yearwhile a year ago, cars of these brands accounted for 10.2 percent of registrations of new electric cars, Bloomberg reported.
Overall demand for electric vehicles continued to weaken across the region after Germany, Europe’s largest car market, withdrew government support for electric cars late last year.
Chinese EV brands lose out on European market after tariffs imposed / Bloomberg
Fewer Chinese electricians in Europe
According to Jato Dynamics, SAIC, owner of MG, saw a 38% drop in registrations in Europe in July compared to a year earlier and an even bigger drop (by 60%) compared to June. But the month-on-month drop is easy to explain. In June, just before the tariffs went into effect, SAIC delivered more than 13,000 electric MGs to European dealers, creating a high base of comparison.
In total, Chinese companies registered less than 14,000 electric vehicles in Europe in Julyup from over 23,000 in June this year. Compared to July a year ago, the number of registered new electric cars imported from China decreased by 9.7%. – according to Dataforce.
Chinese automakers were rushing to meet the new tariff deadline, Matthias Schmidt, an independent auto analyst based in Germany, told Bloomberg. As a result, they had fewer electric vehicles to sell in July.
Sales of leading Chinese electric vehicle brands in Europe in July / Bloomberg
The way to deal with customs duties – moving production
According to Jato Dynamics, China’s largest carmaker BYD was the only carmaker to double its presence in Europe in July compared to a year earlier. Compared to the previous month, BYD, like the entire market, saw its sales drop by 5.5%. To avoid the new tariffs, the company is building plants in Hungary and Turkey. Starting production on the Old Continent will allow BYD to bypass the new tariffs.
Bloomberg points out that Polestar, a Swedish electric vehicle maker partly owned by Chinese billionaire Li Shufu, is not counted among Jato’s Chinese brands, although Dataforce includes it in its market calculations. The company has begun production of its Polestar 3 in the US.
Xpeng, Volkswagen’s Chinese partner, told Bloomberg News this month that it was looking for a European production plant.
Subsidies are a key driver of sales
I will notice Bloomberg, Incentives, or the lack thereof, continue to play a dominant role in electric vehicle sales. According to data from the European Automobile Manufacturers Association, sales of electric cars in Germany fell by 37 percent in July. Since the beginning of the year, the market has declined by 20 percent.
Meanwhile in In Belgium and Denmark, where incentives for electric vehicles are still in place, demand for battery-powered cars continued to grow.
Registrations in the UK also rose in July. The new Labour government is considering joining the EU in introducing tariffs, although it has not yet made a final decision.
Electric vehicle sales in selected European countries / Bloomberg
