China is losing the EV market in the European Union
During this period electric vehicle registrationch among others from MG and BYD Whether SAIC Moto decreased from 8.5 percent in September to 8.2 percent the following month, Dataforce reported. This is the fourth month in a row in which market share of Chinese EVs was lower than in the same period of the previous year.
The stagnation is becoming more and more visible
After several years of rapid growth on the valuable EU market, sales stagnated clearly in July. That’s when European Union determined temporary tariffs on Chinese electric vehicleswhich raised import fees up to 45 percent After months of talks with Beijing and adjustments to regulations additional duties they finally entered into force on October 30.
“It does not appear that Chinese OEMs will increase their sales volumes” from October, as they did in June before the tariff’s original launch date, said Julian Litzinger, an analyst at Dataforce. “I look forward to seeing what happens in November.”
Chinese electric vehicle manufacturers are losing the market in Europe / Bloomberg
Talks between the EU and China ongoing but there is little progress and agreement on the issue replacing tariffs with price commitments remains in the realm of wishful thinking for now, as Bloomberg News reported earlier this week. In the meantime BYD continues to expand its presence in Europe.
BYD dominates the EU
According to Jato Dynamics, which also tracks the automotive market, for the second time in the last three months BYD overtook MG. A company that was the best-selling Chinese brand in the region for many years. BYD sales more than doubled in October from a year earlier to 4,630 vehicles, the consultancy said.
This was achieved thanks to the ambitious actions taken by BYD. These included, but were not limited to sponsorship at the most important sporting events in the summer. Executive Vice President Stella Li is spending more and more time in Europe, where the company is poaching managers from European rivalssuch as Stellantis NV.
Collapse of car sales from MG
In MG, whose parent company SAIC is state-owned, deliveries dropped by 56%. in October to 3,846 vehicles. For the first 10 months of this year, the former British sports car brand remains in first place, with number of registrations totaling 63,895 vehicles, almost twice as much as BYD, Jato said.
BYD overtakes MG for the second time in three months. Registrations of electric vehicles of Chinese brands in Europe / Bloomberg
Customs duties and lack of subsidies are freezing the sale of electric cars
Trade tensions are becoming an increasingly important factor in the global automotive industry: for example, the Chinese car manufacturer Chery Automobile he postponed his plans start of electric vehicle production at the renovated plant in Barcelona. This trend is likely to continue after the newly elected US president takes office Donald Trumpwho promised to introduce higher tariffs.
Throughout Europe EV market has struggled with lower demand this year as large countries such as Germany have reduced the subsidies that previously fueled it. All EVs manufactured in China are subject to additional EU tariffsincluding those supplied by Western brands such as VW and BMW.
As reported by the European Automobile Manufacturers Association earlier this month, the number of electric car registrations increased by 6.9% in October, but fell by 1.7% year-on-year. Because governments limit support in purchasing electric vehiclesthe outlook for the local automotive industry remains very uncertain. Volkswagen is considering the once unthinkable closure of factories in Germanywhile Stellantis limits production Fiat 500 EV in Italy, citing declining sales in Europe.
The Chinese are holding strong
Still, Chinese dominance in electric vehicles November emphasized Northvolt bankruptcy. A Swedish battery manufacturer whose largest shareholder is Volkswagenwas once considered a potential counterweight to China’s supremacy in the battery market. In addition, President Xi Jinping’s government has encouraged Chinese car manufacturers to ensure that the production of key technologies remains in the country.
