Chinese EV makers face 8-month low market share in Europe amid new tariffs

Chinese automakers captured their smallest share of Europe's electric-vehicle market in eight months, following the imposition of new tariffs which increased import costs by up to 35%. According to Bloomberg, companies like BYD Co. and SAIC Motor Corp.'s MG only held a 7.4% share of EU EV registrations in November, indicating a drop from October's 8.2%.

The pressure on Chinese carmakers echoes broader trends in the global automotive industry. Despite the challenges in the European market, China maintains a significant presence in the global passenger car trade. According to the IndexBox platform, China exported passenger cars worth $77.7 billion in 2023, with major export markets including Russia ($11.7 billion), Belgium ($5.9 billion), and the United Kingdom ($5.7 billion).

While MG struggles with a substantial 45% tariff and a 58% drop in European registrations, BYD continues its upward trajectory, with registrations more than doubling to 4,796 vehicles in November. However, the punitive EU tariffs aim to neutralize what are perceived as unfair advantages due to state subsidies for Chinese manufacturers.

Chinese automakers face declining registration numbers not only in Germany and France- where numbers more than halved compared to the previous year- but their presence in the UK grew by 17%, unaffected by EU tariffs. These dynamics underscore the ongoing challenges and adjustments as automakers navigate the complex transition to electric vehicles globally.