Chinese EVs account for 11% of the European market

UK (Commonwealth) _ As consumers scurried to avoid EU taxes on imported electric vehicles that went into effect this month, Chinese automakers captured a record 11% of the European EV market in June.

About 23,000 battery-electric cars were registered in June, up 72% from the previous month as buyers scurried to beat the EU’s price rise, according to the numbers, which include the UK.

The largest increase in imports was attributed to the Chinese state-owned SAIC, parent company of the British brand MG, according to Dataforce data analysis; nevertheless, dealers, not drivers, reported 40% of the imports, another indication of a pre-tariff sales frenzy.

In June, the electric manufacturer sold little less than 13,400 vehicles, while rival BYD, which sells cars under the Seal and Dolphin brands, sold slightly less than 4,000.

In contrast to BYD vehicles, which have been subject to a 17% tax since July 5 as part of the EU’s attempt to level the playing field with its own automakers, notably BMW, Audi, and Stellantis’s Fiat and Renault, SAIC is subject to the highest EU tariff of 38%.

Sales of electric vehicles increased dramatically in Italy, where incentives worth over €200 million (£168 million) for new EVs were exhausted nine hours after they were introduced, according to Dataforce.

It coincides with new customs statistics from Beijing revealing that over half of China’s shipments of electric vehicles were to the EU and the UK  by value for the first half of the year.

The UK grabbed 12%, the EU took 36%, and the US took just 1%, according to data analyzed by the Chinese trade expert website Soapbox. The US earlier this year imposed 100% tariffs on imports. With 7% of total sales apiece, Brazil and Australia were the third and fourth most significant markets, behind Israel’s 3% and Thailand, the United Arab Emirates, and South Korea’s 4%.

According to research conducted by the Spanish bank BBVA, a Chinese car’s pricing in Europe is often double that of its price in the home market. At little over £30,000, BYD’s entry-level Dolphin automobile is over three times more expensive than its £10,900 Chinese retail price. In comparison, the Polestar 3 is just 64% more expensive on its list price in China when it is sold in the UK for £53,000.

Germany, the UK, and France are the three largest European markets for Chinese EVs, followed by Norway, Belgium, and Italy. Just over 43,400 of the 208,872 EVs sold in Europe in June were in Germany, an 18% decrease from the previous month. Sales rose 7.4% to 34,000 in the UK and decreased 10% to little under 30,000 in France.

The European Automobile Manufacturers’ Association (ACEA), a trade association for the automotive industry, revealed earlier this year a sharp increase in Chinese sales of electric battery cars in Europe—a subcategory that excludes plug-ins and hybrid vehicles.

Chinese-made electric battery vehicles, such as those manufactured by Tesla and EU brands, constituted 21.7% of total sales in 2023, up from 2.9% in 2020. According to ACEA statistics, 8% of that market share was held by Chinese brands.

Anders Berner, an enthusiastic admirer for electric cars, excitedly opened the door of a BYD Seal earlier this year and took the sedan on a test drive outside Copenhagen, the capital of Denmark. The progress Chinese EV manufacturers like BYD Auto had made in a short period of time had already impressed Berner.

Berner, a mechanical engineer by profession, told the media that many Chinese electric vehicles (EVs) are high-quality vehicles since they are well-made and assembled.  And Chinese businesses are at the forefront of EV battery technology. Berner is one of the people who thinks Chinese EVs have what it takes to take the lead in the world auto industry.

Chinese EVs are more reasonably priced than those made by Western companies. The European Commission claims that Chinese electric vehicles usually sell for twenty percent less in the EU than cars built in the EU.

Approximately 40% of the EV batteries used worldwide are supplied by Chinese battery manufacturer CATL, which also supplies Chinese EV manufacturers, Tesla, Volkswagen,  BMW and the first battery with a 1,000+ kilometer driving range on a single charge was presented in late April.

Chinese EVs are becoming more and more well-known outside. In the fourth quarter of last year, Shenzhen-based BYD outsold Tesla with 484,507 EVs sold worldwide, making it the largest electric car manufacturer in the world.