EU tariffs affect Chinese EVs imports, shifting market
Date
8/18/2024 5:47:28 AM
(MENAFN) In July, the imposition of new tariffs by the European Union led to a significant slowdown in the import of Chinese-made electric vehicles (EVs) into the EU. Dataforce reports indicate that the number of new electric cars registered from Chinese manufacturers, including BYD and SAIC Motor’s MG, plummeted by 45 percent compared to June. This sharp decline reflects the bloc's efforts to shield domestic automakers from the competitive pressures of low-priced Chinese EVs, which have been benefiting from advanced battery technology and substantial government support in China.
The decrease in registrations could be partly attributed to Chinese automakers rushing to offload inventory before the additional tariffs, effective from July 5, came into play. Matthias Schmidt, an automotive analyst based near Hamburg, noted that there was a significant inventory clearance by Chinese manufacturers in June, which may have contributed to the July drop. The temporary tariffs, which raise import duties to as high as 48 percent, are designed to protect the European automotive sector from Chinese competitors, leading to heightened political tensions. Beijing has threatened retaliation, adding to the complexities of the ongoing trade discussions.
Despite the tariff-induced downturn, the broader impact on Chinese EV brands in Europe remains somewhat muted. Although sales of Chinese-branded EVs fell by 36 percent across the 16 EU countries monitored, this decline does not necessarily signal a retreat from their expansion plans. Western automakers like BMW, Stellantis, and Tesla also face additional tariffs on parts for Chinese-made EVs, which could further influence the market dynamics. Overall, the tariffs have caused notable disruptions, but Chinese brands continue to show resilience in pursuing growth in the EU, the world’s third-largest car market.
MENAFN18082024000045015682ID1108572180
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.