1 In 5 EVs Sold In Europe Came From China
Last month, Chinese-made vehicle registrations in Europe reached all-time highs in terms of year-over-year growth. In February alone, sales of models made in China increased by 45%, making up 4% of the market.
Chinese models are even more common in the electric vehicle (EV) market. China supplied one in five of the electric vehicles (EVs) sold in Europe in February, according to the most recent data from Jato Dynamics.
In contrast, during the first two months of this year, the number of EVs registered in Germany increased by a mere 8%.
Felipe Munoz, global analyst at Jato Dynamics, said: “The growth is partly explained by action taken by some Chinese OEMs to accelerate imports ahead of the EU decision on the anti-subsidy investigation. Increased tariffs could slow the growth of China’s OEMs, but as a knock-on effect it could also prompt them to accelerate their deliveries to Europe.”
These are impressive results, but it's worth noting that 40% of all cars registered in China were registered by MG, a fully Chinese-owned and designed brand that is positioned as a UK brand in the West, whereas 44% of all cars registered in China were registered by Western brands like Tesla, Volvo, and Dacia.
This indicates that only 16% of cars registered in Europe were Chinese-made brands, highlighting the ongoing difficulties these manufacturers face in terms of perception and awareness in the region. Chinese brands still have a ways to go before they account for a sizable portion of the European market, Munoz continued. It will take time to raise awareness and change ingrained beliefs, even with the advancements they have made in performance and affordability.
If it is discovered that Chinese EVs have benefited from significant state subsidies, the UK may impose tariffs on them.
According to the European Commission, it has proof that the Chinese government is using "direct transfer of funds" and other methods to subsidize the cost of electric vehicles that are shipped to Europe. In September of last year, it started looking into whether EVs made in China were unfairly receiving subsidies. It is scheduled to end in November, though interim duties may be imposed by the EU in July.
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