How tariffs have slowed China's electric car sales

European tariffs on Chinese electric cars came into force in July and their effects are already being felt, with higher prices and lower sales. According to Automotive News, which in turn cites data from Dataforce, in the 16 European Union countries that have already reported their sales figures for July, Chinese manufacturers such as BYD and MG have lost 45% of their registrations compared to June. 

This drop may also be explained by the sprint in deliveries made by dealers over the last month, precisely to avoid incurring the duties in force on 5 July.

The situation

According to the report, the fall of Chinese brands follows that of electric cars in general, at -36%, and also concerns Western brands such as BMW, Stellantis and Tesla, which produce certain models in China and are therefore subject to customs duties.

July's drop could be repeated, albeit to a lesser extent, in August too, but does not seem to be curbing the growth ambitions of Chinese manufacturers in Europe. From 2019 to date, MG, BYD and other brands have enjoyed steady growth, with an 8.5% share in July, or +0.9% compared with the same month last year. BYD, for example, sold three times more vehicles in July than in 2023, while MG suffered a 20% drop.

BYD Dolphin

MG4

As for BYD, its strategy for Europe has led it to sponsor the European football championships, while it is preparing to open a factory in Hungary to overcome customs duties.

The question of customs duties 

Introduced on 5 July, the customs duties on Chinese electric cars were imposed by the European Union following an anti-dumping investigation by the European Commission, which accused the Chinese government of unduly supporting its manufacturers , through public subsidies, by helping them to keep prices particularly low.

---

---

This surtax will become permanent from November 2024, unless an agreement between Brussels and Beijing is reached (at least for the time being). 

China's response has been swift. In addition to hitting various types of European products, and not just in the automotive sector, it has turned to the World Trade Organisation to lodge a complaint against Europe. At the same time, manufacturers and various associations have called on the EU to retrace its steps.

Read also:

European industry says 'no' to duties on Chinese electric cars

BMW boss warns EU against abandoning internal combustion engine cars

Chinese electric cars account for 11 per cent of the European market

What the rising tariffs on Chinese electric cars are hiding

We want your opinion!

What would you like to see on Motor1.com?

Take our 3 minute survey.

- The Motor1.com Team