Chinese EV Sales Drop in EU Following New Tariffs

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.

中国的比亚迪已超越特斯拉,成为全球最畅销的电动汽车制造商。去年最后一个季度,由沃伦-巴菲特(Warren Buffett)支持的比亚迪售出了 526,409 辆纯电动汽车,超过了特斯拉的 484,507 辆。

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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Haye Kesteloo
Haye Kesteloo

Haye Kesteloo 是以下网站的创始人和主编 EVXL.co他在该网站报道所有与电动汽车相关的新闻,涉及的品牌包括特斯拉、福特、通用、宝马、日产等。他在无人机新闻网站 DroneXL.co.您可以通过以下方式联系 Haye:haye @ evxl.co 或 @hayekesteloo.

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