The European Union’s new tariffs have increased the import cost of electric vehicles from China by up to 35%, causing Chinese automakers to see their market share in Europe drop to its lowest level in 8 months in November. The state-owned enterprise SAIC Motor Group has been hit the hardest by the impact. Data released by Chinese customs on Monday shows that in November, China’s electric car exports to the EU decreased by 23% year-on-year, with export value dropping by 36%.
According to Bloomberg, data from automotive research company Dataforce shows that manufacturers like BYD and SAIC Motor Group’s MG accounted for 7.4% of electric vehicle registrations in Europe in November, down from 8.2% in October. This marks the lowest level since March this year.
Based on the EU’s investigation into Chinese electric vehicles, the EU officially imposed an anti-subsidy tax on Chinese electric vehicles starting from October 31. BYD was slapped with a 17% anti-subsidy tax, Geely with 18.8%, and SAIC Motor Group with 35.3%. Combined with the EU’s general tariff of 10% on imported cars, the highest tariff on Chinese electric vehicles in the EU reaches 45.3%.
Although all electric vehicles produced in China are affected by tariffs to varying degrees, the state-owned parent company of MG, SAIC Motor Group, is facing the most significant impact with a current tariff of 45.3%.
MG, once a popular British sports car brand in Europe, has been facing challenges after being acquired by Chinese investors. In recent years, SAIC MG has been one of the best-selling Chinese cars in Europe, but it has recently encountered difficulties. According to data from another research firm, Jato Dynamics, in November, SAIC MG’s registrations in Europe dropped by 58% compared to the same period last year. While MG is facing setbacks, BYD continues to dominate the European market.
Due to challenges posed by EU tariffs, significant declines in shipments to emerging markets, and increased price pressures, China’s global electric vehicle exports in November fell to the lowest level since July 2022.
Customs data released by China on Monday (December 23rd) shows a 19% year-on-year decline in global electric vehicle exports in November, with exports to the EU dropping by 23% year-on-year. Export value decreased by 42%, marking the largest decline since April 2022, with exports to the EU dropping by 36%.
The steep decline in export value compared to export volume is mainly due to price reductions.
Economist Yan Liang from Willamette University in Oregon, as reported by the South China Morning Post, stated that the main reasons for the export decline are the EU’s implementation of tariffs at the end of October, with the EU accounting for roughly a quarter of the total value of Chinese electric vehicle exports. Another reason is weak export demand in emerging markets.
Exports of Chinese electric vehicles to emerging markets declined in November, with exports to ASEAN countries dropping by a quarter and exports to Latin America plunging by 47%.