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The Flow of Chinese Electric Cars to Europe Slows Due to Low Prices

August 18, 2024

The influx of Chinese-made electric cars into the European Union slowed last July as the bloc moved to protect local car manufacturers from Chinese competition due to low prices.

The number of new electric cars registered by Chinese car manufacturers like BYD and MG, a subsidiary of SAIC Motor, in the European Union dropped by 45% in July compared to June, according to research conducted by Data Force, which gathered data from 16-member states that provided July figures so far.

Matthias Schmidt, an independent automotive analyst based near Hamburg, said: “We saw a strong push from Chinese manufacturers to clear stock in June, likely leading to inventory depletion.”

Temporary tariffs that raised import duties by up to 48% aim to protect a vital European industry from Chinese competitors who have structural advantages in key areas such as battery technology, which has benefited from government subsidies.

Chinese brands were not far off the track, with electric car sales declining by 36% in the 16 countries monitored by Data Force.

BMW, Stellantis, and Tesla also import parts for electric cars from China, making them subject to additional EU tariffs.

Schmidt added: “The June surge was less pronounced for Western companies, which managed their inventory more cautiously.”