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Chinese EV makers’ market share declines for fourth month in Europe amid tariff pressure

by admin November 29, 2024
November 29, 2024
Chinese EV makers’ market share declines for fourth month in Europe amid tariff pressure

Chinese electric vehicle (EV) manufacturers are facing mounting challenges in Europe with their market share in the region continuing to decline in October for the fourth consecutive month.

According to researcher Dataforce, Chinese brands like SAIC Motor Corp.’s MG and BYD Co. accounted for just 8.2% of European EV registrations last month, down from 8.5% in September.

The drop coincides with the European Union’s implementation of new tariffs on Chinese-made EVs, which began provisionally in July and were finalized on October 30.

These duties, which raise import fees to as high as 45%, have slowed the once-rapid expansion of Chinese brands in this critical overseas market.

Julian Litzinger, an analyst at Dataforce, remarked that Chinese manufacturers seemed to avoid significant shipment volumes in October.

“It will be very interesting to see what happens in November,” he said in a report by Bloomberg, suggesting that manufacturers may adjust their strategies in response to the tariffs.

BYD emerges as a key player despite challenges

Among Chinese brands, BYD has continued to expand its presence in Europe despite these headwinds.

According to Jato Dynamics, BYD outsold MG for the second time in three months, with sales more than doubling year-over-year to 4,630 vehicles in October.

This growth comes as the company ramps up its European operations, including a major sponsorship deal and strategic hires from competitors like Stellantis NV.

Executive Vice President Stella Li has also been instrumental in BYD’s European push, spending significant time in the region to oversee expansion efforts.

However, despite BYD’s progress, MG remains ahead in overall sales for the year, with 63,895 vehicles registered through October—nearly twice BYD’s total.

Yet MG’s October sales tell a different story, with deliveries plummeting 56% to 3,846 vehicles.

Tariffs and trade tensions reshape the automotive industry

The introduction of new EU tariffs has not only affected Chinese EV manufacturers but also disrupted the broader automotive industry.

These duties apply to all Chinese-made EVs, including those imported by Western brands like Volkswagen and BMW.

The increased costs have led to delays in projects, such as Chery Automobile Co.’s plans to begin EV production at a refurbished factory in Barcelona.

With trade tensions growing, the global automotive industry faces heightened uncertainty.

This trend could accelerate with US President-elect Donald Trump’s expected push for additional tariffs.

To mitigate these challenges, some Chinese manufacturers are investing in local factories and supply networks in Europe, a move designed to ease concerns about their impact on domestic industries.

However, the long-term effectiveness of this strategy remains to be seen.

European EV market struggles amid declining subsidies

The challenges faced by Chinese manufacturers are part of a broader slowdown in the European EV market.

Major countries like Germany have reduced subsidies that once fuelled demand, contributing to a 1.7% year-to-date decline in battery-electric vehicle registrations.

While October saw a modest 6.9% growth in registrations, the overall market remains subdued.

This slowdown has had ripple effects across the industry.

Volkswagen is reportedly considering factory shutdowns in Germany, while Stellantis has scaled back production of Fiat 500 EVs in Italy, citing weak European sales.

Chinese dominance in EV technology persists

Despite their struggles in Europe, Chinese manufacturers continue to lead in EV technology.

This dominance was underscored by the recent bankruptcy of Swedish battery maker Northvolt AB, once hailed as a potential rival to Chinese battery producers.

Northvolt’s largest shareholder, Volkswagen AG, had viewed the company as a way to counterbalance China’s influence in the battery market.

Meanwhile, the Chinese government has encouraged domestic manufacturers to retain critical EV technologies within the country.

This policy aims to solidify China’s competitive advantage as it navigates growing global trade tensions.

The post Chinese EV makers’ market share declines for fourth month in Europe amid tariff pressure appeared first on Invezz

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