EU Tariffs Slow Chinese EV As Registrations Fall 45% From June

New European Union (EU) tariffs on Chinese electric vehicles (EVs) have begun to show their impact, with registrations of Chinese EVs dropping across 16 EU member states.

According to research from Dataforce, Chinese EVs fell 45% in July compared to June across the aforementioned number of EU member states. As a result, the sharp decline in registrations may have been exacerbated by Chinese automakers rushing to clear inventory before the tariffs came into force. 

The impact of the tariffs varies across EU countries. In Germany, Chinese brands’ share of vehicle registrations fell from 13% in June to 8% in July, while in France, it dropped from 8% to 5%. Interestingly, Chinese brands gained ground in the United Kingdom (UK), which is not an EU member and thus not subject to these tariffs.

However, the overall picture is more nuanced. While Chinese companies such as SAIC Motor’s MG saw a 20% year-on-year drop in July sales, BYD bucked the trend by selling three times more EVs in July compared to the same month last year.

Despite the tariffs going up to 37.6% for Chinese EVs, Chinese automakers seem undeterred in their European expansion plans. For instance, BYD has maintained its pricing strategy and even expanded into Poland in early August. Also, the company has been building a new plant in Hungary. 

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

It should be noted that European automakers are not standing idle. Companies including Volkswagen and Stellantis are forming partnerships with Chinese automakers to reduce costs and stay competitive. Meanwhile, Chinese automakers are accelerating plans to assemble EVs within Europe to bypass import tariffs.

As Chinese EVs are taking a hit, the effectiveness of these tariffs in achieving this balance remains to be further seen, especially given the perseverance of companies such as BYD, but the long-term effects will be determined as the Chinese automakers navigate the challenges in the EU market.

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