Chinese Automakers Adapt to EU Tariffs, Gain Share of European Car Market

Strategic Insights -

Despite EU-imposed tariffs on Chinese electric vehicles, manufacturers such as BYD, Geely, and Chery have doubled their share of the European car market, according to registration data compiled by JATO Dynamics. The Chinese companies have responded to the tariffs by pivoting to hybrids and gasoline-powered cars, importing less-expensive models, and focusing on countries like Italy and Spain where German and French carmakers are less entrenched. This adaptability and manufacturing prowess have helped Chinese brands attract buyers in Europe, particularly in countries with limited charging infrastructure for electric vehicles.

Key Takeaways:

  • Chinese automakers BYD, Geely, Chery, and SAIC have doubled their share of the European car market in April 2023, with 53,000 vehicles sold, up from 2.4% a year earlier, according to JATO Dynamics.
  • The Chinese companies have adapted to EU tariffs by producing hybrids and gasoline-powered cars, which are exempt from tariffs, and importing less-expensive models.
  • BYD electric vehicles outsold Tesla cars in April in Europe, with 7,231 vehicles registered, compared to 7,165 from Tesla, according to JATO Dynamics.
  • The average cost of a Chinese electric vehicle in Europe is $60,000, significantly lower than comparable models from German and French manufacturers.
  • Chinese car brands accounted for 4.9% of the EU new-car market in April, with the majority of sales coming from Italy, Spain, and Britain, according to Schmidt Automotive Research.
  • BYD is expected to ramp up its European sales after beginning production in Hungary and Turkey in 2024, with vehicles not subject to EU tariffs.

Statistics:

  • 53,000 vehicles sold by Chinese carmakers in the European car market in April, up from 2.4% a year earlier, according to JATO Dynamics.
  • 4.9% of the EU new-car market accounted for by Chinese car brands in April, according to JATO Dynamics.
  • 59% increase in electric vehicle sales by BYD and other Chinese automakers in April compared to the previous year, according to JATO Dynamics.
  • $60,000 average cost of a Chinese electric vehicle in Europe, significantly lower than comparable models from German and French manufacturers.
  • 17% tariff applied to BYD electric vehicles, 35% for SAIC, and 8% for Tesla cars made in Shanghai, according to Schmidt Automotive Research.

Sources:

  • JATO Dynamics
  • Schmidt Automotive Research
  • The New York Times (no publication date)