With hefty tariffs on the horizon, Chinese EV makers have been working to sell as many vehicles as possible while they still can
With harsh tariffs on Chinese automakers taking effect last month, imposing levies of up to 38 percent on battery electric vehicles, the challenge for these eastern brands was to sell as many vehicles as possible.
And sell they did, with Chinese automakers achieving a record-breaking 11 percent share of the European EV market in June 2024. Vehicles sold before July 5th were exempt from the new tariffs, leading dealers to offer appealing leasing plans and discounts. In June alone, Chinese automakers registered over 23,000 battery electric vehicles across Europe.
The European Commission’s duty calculations were based on an investigation into the impact of Chinese government subsidies for EV manufacturers. It determined that SAIC, the owner of MG, was one of the largest recipients of state financial aid. As a result, the Commission imposed the highest duties on them: a substantial 38.1 percent, plus an additional 10 percent on all imported EVs.
Eager to capitalize on the opportunity, SAIC saw the largest increase in imports. According to data from JATO Dynamics, 13,366 MGs were registered in June. However, Bloomberg reports that 40 percent of MG4s registered that month were self-registrations by dealers.
BYD, which recorded sales of just under 4,000 units across Europe in June, will face an additional 17 percent duty. Sales were likely boosted by its campaign during the UEFA European Football Championship in Germany, despite a recent decline in EV sales across the country due to the abrupt end of incentives.
While Germany has curtailed its EV incentive programs, Italy has opted to expand them. This new initiative has contributed to a doubling of battery electric vehicle sales compared to the previous year.
The coming months will be crucial in determining the extent of the impact of the EU levies on Chinese car manufacturers and whether the growth seen so far can be maintained.
