Chinese Automakers Surge In European EV Market Ahead of New Tariffs With 11% Share

Chinese automakers captured a record 11% market share of the European electric vehicle (EV) market in June. This surge comes as Chinese automakers rushed to beat new European Union (EU) tariffs that took effect in early July.

According to data from market researcher Dataforce, Chinese automakers registered over 23,000 battery-electric vehicles (BEVs) across Europe in June, marking a 72% increase from May. This jump was twice the growth rate of overall European EV registrations for the month. SAIC Motor led the charge with its MG4 hatchback, while BYD also saw notable gains.

Gabriel Juhas, head of product at Dataforce, noted that about 40% of MG4 registrations in June were self-registrations by dealers, indicating “not very healthy growth.” SAIC has been offering generous leasing deals, including a two-for-one MG4 promotion in Germany, where EV sales have been sluggish.

The European EV market also received a boost from new incentives in Italy, where BEV sales doubled compared to the previous year. About €200 million in subsidies were exhausted within nine hours, helping to propel Italy into the top six EV markets in the region.

Chinese EVs Rush Ahead On EU Tariffs

The rush to register vehicles before July 5 was driven by the impending EU tariffs, which impose additional tariff rates on imported Chinese EVs. SAIC now faces a 38% tariff, while BYD is subject to an extra 17% on top of the existing 10% customs duty.

Read More: EU Goes Ahead With Tariffs Up To 37.6% on Chinese EVs

The surge in Chinese EV sales has raised concerns among European policymakers, who are trying to balance the need for affordable EVs to meet sustainability goals with protecting the domestic auto industry. In response, some European carmakers are forming partnerships with Chinese counterparts. A notable example is Stellantis partnering with Leapmotor to sell budget EVs to the European market through Leapmotor International.

As the effects of the new tariffs begin to take hold, the success of the Chinese EVs capable of maintaining their newfound market share in Europe will be determined further as the increase in competition is ramping up.

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