Chinese Carmakers Sell Fewest EVs In Europe In 18 Months

China's electric vehicle sales in Europe are dropping. In the past 18 months, Chinese automakers have sold the fewest electric vehicles across the continent. Compared to the prior year, Aug registrations decreased by nearly half, according to a Monday Bloomberg report. With a 48 percent decline, Chinese brands saw their market share decline for a second consecutive month.
The situation can be explained by the early summer duties of up to 38% that the EU imposed on Chinese electric vehicles. A substantial decline in sales of 65% caused the British brand MG, owned by China's SAIC Motor, to fall out of first place in Europe. Concurrently, the recently established Chinese rival BYD, managed to achieve a 19% rise in sales, securing the top position.

MG has emerged as a prominent Chinese automotive brand in Europe, capitalizing on its established brand recognition to regain market share and make the shift to electric vehicles over the last ten years. The EU imposed the highest tariff on any car manufacturer, 38%, on its electric vehicles in July 2024, targeting SAIC, the company's parent.
In addition to the imposed EV tariffs, the fall in Chinese EV sales has been exacerbated by a general slowdown in demand for electric vehicles throughout Europe. In the first eight months of 2024, the number of EV registrations fell by 5.5% as major markets like Germany reduced their consumer incentives for EV purchases.
It's important to note that different regions of Europe have experienced different effects from the proposed EU tariffs. Registrations of Chinese-made EVs actually increased in August in markets like the UK and Norway, which have chosen to defy the EU's policy.
August saw a 50% or more decline in registrations across the region for Western brands like Renault, Mercedes-Benz Group, and BMW. Nonetheless, parent company Geely Holding Group's sales more than doubled thanks to the well-liked Volvo EX30. Registrations for Tesla which ships some of its vehicles from China to Europe, increased by 7%.