Tag Archives: China

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Fall in demand for Chinese EVs in Europe

For years, cheap EVs from China have been flooding the European market, destroying the competition, so the European Union has introduced additional tariffs on vehicles imported from this country, which are paying off. According to the latest data, demand for Chinese EVs has been declining for the past year and a half, and in August it fell by 50%.

For the second month in a row, the market share of Chinese manufacturers has been declining, and the data show that SAIC Motor is no longer the leader in Europe. This was also influenced by MG’s poor sales results (-65% in August), as the brand focused more on hybrid and plug-in hybrid cars. The new leader is BYD, which is one of the few that recorded sales growth (+10%).

According to some analysts, the biggest reason for the drop in sales is the additional tariffs that the European Union wants to impose on Chinese EVs. However, it should also be taken into account that the European market is currently facing a steady decline in the number of electric vehicles sold. Since the beginning of 2024, demand for EVs has fallen by 5.5 percent.

Car manufacturers will face stricter EU regulations on CO2 emissions in the coming year, as the current average emission limit for new vehicles should be reduced from 116 g/km to 94 g/km next year. European car manufacturers have once again called on Brussels to reconsider its climate goals.

Source: Reuters

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The EU is changing tariffs on EVs made in China

At the beginning of June, the EU announced additional tariffs of up to 38.1% on electric cars imported from China, but according to information from some media, that decision could be changed.

Currently, imported cars made in China have a 10 percent tariff. However, as of July 4, this rate will rise to as much as 38 percent in some cases. For example, BYD will pay 17.4 percent, Geely 20 percent, and SAIC, which with the help of former British brand MG is by far the biggest seller in Europe, will pay 38.1 percent. Other brands that were cooperative will pay a 21 percent duty, and those that refused will pay 38.1 percent.

In 2023, the European Commission launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. “These can also be vehicles from other manufacturers if they have used subsidies in China,” said Executive Vice President of the European Commission for an Economy Valdis Dombrovskis.

According to Bloomberg, manufacturers that cooperated during the investigation will have lower tariffs (20.8% instead of 21%). However, those who refused to cooperate will have tariffs of 37.6 percent instead of the original 38.1 percent. It should also be noted that these tariffs are temporary and that the EU will make a new decision on permanent tariffs by the end of the year.

Source: Bloomberg

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Italy fined DR Automobiles with 6 million euros

In October 2023, the Italian government launched an investigation against DR Automobiles for misleading customers about the origin of its cars. Eight months later, the Italian government decided to fine the company with 6 million euros, although the company claims that the accusation is unfounded.

DR Automobiles have established a simple system of processing Chinese cars with refined Italian design and partly buying selected European technology. The result is affordable SUV models, and the slogan “Una storia Italiana” itself is part of finely packaged marketing combined with patriotism, trying to hide the origin of the vehicle. The regulator stated that the vehicles, which are sold under the brands DR and EVO, are promoted as Italian products, but are mostly of Chinese origin. Only a small part of assembly and finishing works is done in Italy. “This practice coincides with the period in which the company recorded a significant increase in sales of DR and EVO vehicles on the Italian market,” the statement said.

This decision comes at a time of increased tensions between the EU and China, all because of the privileged position of electric vehicles produced in China due to subsidies. The EU launched an investigation that showed that the Chinese government subsidized cars exported to Europe in various ways, and in response the EU is considering the introduction of additional tariffs (38%).

The EU is not the only one that has introduced additional tariffs on Chinese vehicles. Turkey did the same with additional tariffs of 40% on Chinese cars, and the United States did it before them. The United States raised the tariff rate on imported cars from China from 25% to 100%. Of course, such decisions were condemned by the Chinese authorities, who announced countermeasures to protect their interests.

Source: Reuters