Tag Archives: China

News

EVs more popular than ICE cars in China

In 2020, the Chinese government set a goal for electric vehicles to account for half of new car sales by 2035, but at this rate, China will reach that goal a decade early. According to the latest data, sales of electric cars in China will reach 12 million units in 2024, surpassing cars with combustion engines for the first time ever.

The latest information says that in 2024, sales of cars with combustion engines could fall to less than 11 million units, which is 10 percent less than in 2023. That’s no surprise, considering China has big plans for EVs. Plug-in hybrids are expected to be a hit this year with 4.39 million units sold, rising to 6.05 million vehicles over the next eight years.

Predictions are that once the transition point is reached, electric vehicles will continue to grow and could exceed 18 million units by 2034. By then, sales of cars with combustion engines could drop to just 2.93 million.

What could worry the manufacturers of cars with combustion engines in China is that these vehicles will have very little space in the domestic market. In 2024, the market share of foreign cars fell to 37 percent compared to 64 percent in 2020. This shows that Chinese buyers are increasingly choosing domestic vehicles in the largest new car market on the planet, resulting in a reduction in a significant source of revenue for many manufacturers.

China, as the world’s EV leader, is slowly killing its competition. EV production is turning into a game of survival, and the winners are likely to be the manufacturers that can deliver quality vehicles at affordable prices. This will also mean the shutdown of some of the all-electric brands that have been present on the market for years.

One of the first victims in the cruel automotive world is the American brand Fisker. In 2023, Fisker had big plans, production of 40,000 electric vehicles, but only 10,000 left the production lines. The Ocean SUV has received mixed reviews, with Consumer Reports claiming that the promise has not been fulfilled, while regulators have addressed issues with brakes and doors that won’t open. Further complicating the situation for Fisker was the fact that the Ocean lost its place on the list of tax-deductible electric vehicles unless leased because it was manufactured outside of North America. Now, they are bankrupt.

Source: Reuters

News

EU decided: Additional tariffs of 35% on EVs imported from China

New EU tariffs of 35% on all imported electric vehicles made in China come into force in November. This is a definitive decision of the EU that was made after the vote of 27 member states.

Two years ago, 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. In order to protect European car manufacturers, it was decided that EVs from China will be subject to an additional customs duty of 38.1%. However, the EU gave the companies a chance to cooperate in the investigation, so it was decided that those who accept cooperation will have temporary lower tariffs (20.8% instead of 21%), while those who refuse cooperation will have tariffs of 37.6 percent.

In the meantime, the European Commission completed an investigation that concluded that Chinese manufacturers receive large subsidies from the Chinese government, which destroys European manufacturers. Chinese authorities rejected the results of the investigation and threatened to impose tariffs on cars and food from the European Union.

Also, the European Union specified that any alternative to these tariffs, such as the minimum price, must comply with strict requirements, which are aligned with the rules imposed by the World Trade Organization (WTO).

It should be noted that some European manufacturers, such as BMW, Mercedes-Benz and Volkswagen, were against additional tariffs on EVs from China. Some members even asked for tariffs of 45%. However, the European Commission has announced that it will start a new round of negotiations with China in order to solve the problem for a long time.

Source: Reuters

News

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