The European Union’s new tariffs on Chinese-made electric vehicles (EVs) have caused a significant slowdown in their influx, according to recent data from Dataforce. The move, aimed at protecting EU automakers from low-cost competition, has resulted in a 45% decrease in new EV registrations from Chinese manufacturers like BYD and SAIC Motor’s MG in July compared to June, reports AJOT.
Tariff Impact and Market Dynamics
The provisional tariffs, which took effect on July 5, have raised import duties to as high as 48%. This measure is designed to shield the EU’s automotive industry from Chinese rivals that have benefited from state subsidies and structural advantages in key areas such as battery technology.
“We saw a huge push from Chinese manufacturers” to empty stockpiles in June, said Matthias Schmidt, an independent auto analyst. “That likely caused an inventory burn.”
Despite the overall drop, Chinese brands maintained an 8.5% share of the EU’s electric car market in July, up from 7.4% a year earlier. This suggests that Chinese manufacturers are not backing down from their European expansion plans.

Individual Manufacturer Performance
BYD, China’s top-selling car brand, showed resilience by selling three times more EVs in July compared to the previous year. However, other Chinese brands experienced declines:
- MG (SAIC Motor) saw a 20% drop in July year-over-year
- Polestar sales declined by 42%
EU’s Stance and Future Outlook
The EU implemented these tariffs following an investigation that found Beijing’s subsidies for its EV industry were causing economic harm to EU carmakers. The levies are set to become permanent in November unless a deal is reached between Brussels and Beijing.
European manufacturers, including Volkswagen and Stellantis, are forming partnerships with Chinese counterparts to lower costs and remain competitive. Meanwhile, Chinese automakers are accelerating plans to assemble EVs within Europe to circumvent the tariffs.
EVXL’s Take
The recent tariff implementation by the EU marks a significant shift in the global EV landscape. While it may temporarily slow the influx of Chinese EVs, it’s unlikely to halt their long-term expansion plans. As we’ve seen in our Tesla coverage, competition drives innovation in the EV sector. This move could potentially spur European manufacturers to accelerate their EV development and production strategies, ultimately benefiting consumers with a wider range of options and potentially driving down costs in the long run.
Photo courtesy of BYD and Polestar.
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