One in five electric cars sold in Europe are made in China despite potential tariffs
As the EU proposes plans to introduce tariffs to protect local car industries, a study has found one in five new electric cars sold in Europe were Chinese-made.
The automotive market research organisation JATO Dynamics has shared a new study finding that nearly one in five new electric cars sold in Europe were made in China.
Across the continent, 226,665 electric cars were sold during May 2024, with around 43,000 being made in China.
Felipe Munoz, Global Analyst at JATO Dynamics, noted that many European car brands are still recovering from the Covid pandemic, causing China's sales to rise.
He explained: "Since the global pandemic, the European car market has only recovered to 75%-80% of its original size.
"As a result, many factories across Europe are not operating at full capacity, giving Chinese OEMs [original equipment manufacturers] a unique opportunity to sell across Europe while avoiding tariffs."
JATO Dynamics highlighted that, whilst overall electric car sales figures in Europe are falling, Chinese-built EV sales increased by a considerable 25 percent in the 12 months leading to May 2024.
Some of the most popular electric models in Europe came from Chinese-owned companies that are relative newcomers to the European market, including MG and BYD.
However, other models from Western brands, including the Volvo EX30, Polestar 2 and Honda E:NY1, are built in China in a bid to reduce manufacturing costs.
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Felipe stated that a growing number of motorists might have been encouraged to buy a Chinese electric car before the European Union imposed a tariff on them.
He added: "Last month [May 2024], the market share of Chinese-made BEVs jumped from 13.2 percent to 18.5 percent year-on-year.
"It’s striking that two Chinese models secured a place in Europe’s top five best-selling BEVs for May. This increase in registrations likely comes in anticipation of the impending European Commission tariffs.”
Currently, the European Union plans to introduce a tariff on all passenger vehicles being imported from China in order to protect local automotive industries.
This will include the pre-existing flat 10 percent duty on all vehicles coming from the country in addition to a flexible rate of between 17.4 percent and 37.6 percent, depending on how much of the manufacturer is owned by the Chinese Government.
The UK Government has not announced any tariffs that would make Chinese cars more expensive to buy, with some motoring experts suggesting that it would encourage competitive pricing from western brands.
