European Growth for Chinese Electric-Car Manufacturers Hits a Roadblock
FIVE years of rapid European growth for Chinese electric-car manufacturers ground to a halt in 2024, as trade barriers added to the challenge of building up sales in a stagnant market.
Slowing Sales
Brands led by Saic Motor’s MG registered 3.5 per cent fewer electric vehicles (EVs) in the region for all of 2024, according to data from automotive researcher Dataforce, marking their first annual drop since entering the market. In all, carmakers that also include BYD and Xpeng captured about an 8.5 per cent share.
EU Tariffs
December marked the second month of added European Union tariffs imposed after the bloc found that state aid provided an unfair advantage for all Chinese-made EVs.
Impact on Sales
Across Europe, Chinese carmakers held onto 8.2 per cent of the EV market in December – a slight bump up from November but still below the average. The data covers EU countries, the UK and European Free Trade Association members such as Norway.
BYD’s Strategy
BYD has kept up its steady push into the region despite being subject to a 17 per cent add-on to the standard 10 per cent EU import duty. The company has expanded into Greece and partnered with French car-leasing firm Ayvens to bolster its position with corporate customers.
Other Companies’ Strategies
The manufacturer is pushing ahead with plans to build a factory in Hungary to help it sidestep the new tariffs, and is also planning a US$1 billion plant in Turkey, which has a customs-union agreement with the EU that would make BYD cars built there exempt from levies.
Conclusion
Despite the challenges posed by EU tariffs, Chinese electric-car manufacturers remain committed to expanding their presence in the European market. BYD’s strategy of building a factory in Hungary and a plant in Turkey is a testament to its determination to overcome the obstacles.
Frequently Asked Questions
Q: What is the impact of EU tariffs on Chinese electric-car manufacturers?
A: The tariffs have led to a decline in sales for Chinese electric-car manufacturers in the European market.
Q: How has BYD responded to the EU tariffs?
A: BYD has expanded into Greece and partnered with French car-leasing firm Ayvens to bolster its position with corporate customers, and is pushing ahead with plans to build a factory in Hungary and a plant in Turkey.
Q: What is the outlook for Chinese electric-car manufacturers in the European market?
A: Despite the challenges posed by EU tariffs, Chinese electric-car manufacturers remain committed to expanding their presence in the European market. BYD’s strategy of building a factory in Hungary and a plant in Turkey is a testament to its determination to overcome the obstacles.
