Chinese automakers entering the European electric vehicle market continue to face challenges. In October this year, both the delivery volume and market share of Chinese electric vehicles in Europe saw a decline. In contrast, European manufacturers such as Volkswagen and Volvo performed well.
According to data from research institute Dataforce, manufacturers like SAIC Group’s MG and BYD accounted for 8.2% of the electric vehicle registration volume in Europe during this period, a slight decrease from the 8.5% market share in September. This marks the fourth consecutive month that their market share has been below the same period last year.
After years of rapid growth, Chinese electric vehicles’ progress in overseas markets has stalled since July. At that time, the European Union imposed temporary tariffs as high as 45% on electric vehicles manufactured in China. Following months of negotiations with Beijing and adjustments to pending rules, the additional tariffs came into effect on October 30.
According to Bloomberg, Dataforce analyst Julian Litzinger remarked, “It seems that Chinese original equipment manufacturers (OEMs) didn’t move that much in October, just like they did in June before the originally scheduled tariff start date.”
Meanwhile, the European Automobile Manufacturers Association (ACEA) reported that the sales of pure electric vehicles (also known as battery electric vehicles) in Europe increased by 6.9% in October compared to the same period last year, marking the second consecutive month of growth. However, the sales of pure electric vehicles in Europe declined by 1.7% in the first 10 months of this year, mainly due to a significant 26.6% drop in the registration volume of pure electric vehicles in Germany.
Litzinger commented, “Let’s see how things shape up in November, it will be very interesting.”
The EU and Beijing continue their discussions, but progress has been limited. Bloomberg reported earlier this week that an agreement to replace tariffs with price commitments remains elusive.
On October 29, the European Commission announced that as one of the three Chinese car manufacturers subject to EU sampling surveys, BYD would be charged a 17% countervailing duty, Geely would face an 18.8% countervailing duty, and SAIC Group would be subject to a 35.3% countervailing duty.
According to Jato Dynamics, an organization tracking the automotive market, SAIC’s MG has been overtaken by BYD for two consecutive months. In October, MG’s delivery volume dropped by 56%. Jato stated that in the first 10 months of this year, MG’s registration volume was nearly double that of BYD.
The EU’s additional tariffs apply to all electric vehicles produced in China, including imported electric vehicles from Western brands such as Volkswagen and BMW. This year, the European automotive industry has faced numerous challenges, including the influx of low-priced Chinese electric vehicles, a slowdown in electric vehicle growth, and a reduction in subsidies that stimulate demand in major European countries like Germany where production costs are high.
Volkswagen has been negotiating extensively with German unions on cost-cutting issues, yet the company saw a 12.6% year-on-year increase in car registrations in Europe in October.
Volvo was the car manufacturer with the largest sales increase in Europe in October, with a significant 22.5% rise compared to the same period last year.
In a sign of the increasing impact of trade tensions on the global automotive industry, Chinese automaker Chery postponed its plans to start producing electric vehicles at its refurbished factory in Barcelona.
US President-elect Donald Trump pledged to impose more tariffs. This trend may continue after he assumes office.
In Europe, Chinese manufacturers have taken steps to mitigate the impact of trade tensions on the local automotive industry by establishing local factories, partnerships, and supply networks.
The competition in the Chinese electric vehicle market is intensifying, with the price war for the new year already underway, drawing attention from the market. According to a report from “First Financial”, BYD and SAIC Maxus have requested a 10% price reduction from suppliers.
“Business Insider” reported that GM CEO Mary Barra stated on October 29 that electric vehicle manufacturers in China are facing fierce competition, with too many companies selling electric vehicles in China, leading to an unsustainable price war.