Data from the research company Dataforce cited by Bloomberg showed this sales of Chinese electric cars decreased by 48%, which led to a second consecutive month of decline in the share of Chinese brands in the European market. By Jato Dynamics MG, a British brand that is now part of the Chinese state-owned SAIC Motor, has lost its leadership position in Europe in favor of another Chinese rival BYD.
Sales of Chinese electric cars in Europe / Bloomberg
EU customs duties introduce uncertainty for the Ministry of Economy
Uncertainty surrounding the European Union’s temporary tariffs on Chinese electric vehicle imports may partly explain this 65% decline in MG in AugustFelipe Munoz, senior analyst at Jato, told Bloomberg. He also said that the British carmaker, which is dependent on China’s SAIC, is currently placing more emphasis on the mild-hybrid and plug-in hybrid segments rather than fully battery-powered cars.
Previously, MG was the most successful of all Chinese carmakers in Europeleveraging its long-term brand recognition. However, since July, his parent company SAIC was charged the highest rate of additional duties of any Chinese manufacturer, at 38%..
BYD continues to grow
Meanwhile BYD, which is a relatively new player on the European market, continued its progress in August, rising 19%. growth registrations year-on-year, according to Jato data.
BYD overtakes MG and becomes the leading Chinese brand in Europe. Chinese Electric Vehicle Registration / Bloomberg
Automakers are still considering the potential impact of EU tariffs that apply to all electric vehicles imported from China, including those from non-China plants of BMW, Stellantis and Tesla.
Officially, additional duties are to be collected only from November 2024. Then, member states will vote on maintaining the temporary additional tariffs that are currently in force.
European brands also lose from tariffs
Bloomberg News reported on Friday that The Chinese company Chery Automobile has postponed its goal of starting the production of electric vehicles in the factory it took over in Spain by a year. Assembly in Barcelona is scheduled to start in October 2025.
European carmakers have called on Brussels to reconsider key climate targetsh, including fleet emissions targets for 2025, which could result in financial penalties amounting to billions of euros.
BMW, Mercedes-Benz and Renault are reporting huge sales declines
Sales trends of electric vehicles imported from China have been uneven in the wake of the tariffs. For example, in the UK and Norway – countries that did not follow the EU’s lead – electric vehicle registrations increased in August.
Among Western brands, BMW, Mercedes-Benz and Renault saw declines of 50 percent. or more in August registrations across the region, according to Jato.
However, a popular model The Volvo EX30 helped to more than double sales for the brand’s parent brand, Zhejiang Geely.
Tesla Inc., which imports some cars to Europe from China, recorded a 7% increase. growth.
