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