Chinese producers distributed the lowest electric cars in 18 months to consumers across Europe, with bookings sinking by nearly half in August from a year prior.
According to data from researcher Dataforce, the 48 percent decline caused Chinese brands’ market share to decline for the second consecutive month. The Chinese competitor BYD Co. overtook MG, the British brand that is currently owned by SAIC Motor Corp., as per Jato Dynamics, an organization that monitors the automobile industry.
According to Felipe Munoz, a senior analyst at Jato, MG’s 65% decline in August may have been partially caused by uncertainty about temporary European Union duties on Chinese electric vehicle imports. According to him, the carmaker has been prioritizing plug-in hybrids and mild hybrids over entirely battery-powered vehicles.
Of all the Chinese automakers operating in Europe, MG has achieved the greatest degree of success. Over the last ten years, the company has rebuilt its reputation by turning its focus to electric vehicles. However, since July, its state-owned parent company SAIC has been subject to additional EU charges on its EVs totaling 38%, the highest assessment of all.
According to Jato, BYD Co., a Chinese powerhouse and relative newcomer to the European market, made more progress in August with a 19% increase in registrations year over year.
The EU taxes, which apply to all EVs imported from China, even those manufactured by non-Chinese companies like Tesla, Stellantis, and BMW, are still being considered by automakers. Negotiations between Beijing and Brussels are taking place under intense lobbying, with the additional duties expected to be finalized by November, subject to a vote by member states.
Regarding the importance of Chinese EVs in Europe, Munoz stated, “It is nothing clear. Although there are a lot of plans and announcements, their future and how Europe will respond to the growing competition are even more uncertain.”
China’s Chery Automobile Co. has delayed its plan to begin producing electric vehicles at a facility it has taken over in Spain by a year, until October 2025, according to a report published by Bloomberg News. The business is assessing the amount of work that needs to be done at the Barcelona location.
For automakers, the uncertainty has been exacerbated by a wider decline in EV demand throughout Europe. In the first eight months of the year, registrations decreased 5.5% in the area as a result of buyer incentives being removed from big markets like Germany.
European manufacturers have urged Brussels to reevaluate important climate targets, such as fleet emissions targets for 2025 that might result in fines of billions of euros.
In Europe, BYD Dethrones MG as the Leading Chinese Brand. For the second consecutive month, Chinese EV registrations decline.
Following the tariffs, sales patterns for EVs imported from China have been inconsistent. In August, there was an increase in the registration of electric vehicles (EVs) in the UK and Norway, two nations that have not followed the EU’s lead.
According to Jato, August registrations for Western brands experienced drops of 50% or more for BMW, Mercedes-Benz Group, and Renault throughout the area. However, Zhejiang Geely Holding Group, the parent company of the Swedish mark, saw a more than doubling of sales thanks in part to the well-liked Volvo EX30. Tesla Inc. reported a 7% increase. Tesla Inc. imports some cars to Europe from China.
Volvo is not included in Jato’s or Dataforce’s list of Chinese brands. Although it appears in Dataforce’s market projections, Polestar, the Swedish electric vehicle manufacturer that is partially owned by Geely founder Li Shufu, is not considered by Jato among Chinese companies.
All EU and EFTA nations, as well as the UK, are included in Dataforce’s market figures; however, Hungary and Slovakia are not included for August since those markets had not yet released monthly data when the figures were created.
