July 31, 2024 – Chinese automakers achieved a record-high market share of 11% in the European electric vehicle (EV) market in June, primarily driven by a pre-tariff buying surge as consumers rushed to purchase cars before the implementation of new EU tariffs on Chinese imports.
According to data, including the UK, around 23,000 EVs were registered in Europe in June, representing a 72% increase compared to May.
Dataforce, a data analytics company, highlighted that MG, the British brand under the SAIC Group, experienced the most significant sales growth, with nearly 13,400 units sold, far surpassing its Chinese competitor BYD, which sold close to 4,000 units. However, it’s noteworthy that 40% of MG EVs were registered by dealers rather than consumers, further indicating a sales boom ahead of the tariff implementation.
Compared to BYD, which will be subject to a 17% tariff from July 5th, the SAIC Group faces a higher EU tariff of 38%.
Various European countries have introduced subsidy policies to stimulate EV consumption. For instance, Italy’s €200 million subsidy was claimed within just nine hours.
According to the latest data from the Chinese Customs, the EU and the UK accounted for nearly half of China’s total EV exports in the first half of this year. Specifically, the UK accounted for 12%, the EU for 36%, while the US only contributed 1%. Brazil and Australia were the third most important markets, each accounting for 7% of total sales, followed by Thailand, the UAE, and South Korea with 4% each, and Israel with 3%.
Research from Spain’s BBVA bank revealed that Chinese cars in Europe typically sell at twice the price of their domestic counterparts. For example, BYD’s entry-level model, the Dolphin, is priced at over £30,000 in Europe, almost triple its domestic price in China. In contrast, the Polestar 3 sells for £53,000 in the UK, only 64% higher than its Chinese price.
The largest markets for Chinese EVs in Europe are Germany, the UK, and France, followed by Norway, Belgium, and Italy. In June, a total of 208,872 EVs were sold in Europe, with Germany selling 43,400 units (down 18% month-on-month), the UK increasing by 7.4% to 34,000 units, and France decreasing by 10% to nearly 30,000 units.
According to the European Automobile Manufacturers’ Association (ACEA), Chinese-made pure electric vehicles (excluding plug-in hybrids), including Tesla and EU brands, accounted for 21.7% of total European sales in 2023, up from 2.9% in 2020. Chinese brands specifically held an 8% market share.
