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Chinese automakers are seeing a sharp decline in electric vehicle (EV) sales across Europe, with sales figures dropping to their lowest in the past 18 months. According to a Bloomberg report on Monday, August registrations of Chinese-made EVs fell by nearly half compared to the same period last year. The 48% decline marked the second consecutive monthly drop in market share for Chinese brands.
The downturn comes after the European Union imposed tariffs of up to 38% on Chinese electric vehicles earlier this summer. Among the hardest hit was MG, a British brand owned by China's SAIC Motor, which saw a staggering 65% drop in sales, causing it to lose its top spot in Europe. Meanwhile, rival Chinese automaker BYD managed to buck the trend, recording a 19% increase in sales and securing the lead in the European market.
MG has been a significant player in the European market, leveraging its established reputation to transition to electric vehicles over the past decade. However, the EU’s 38% tariff—targeting parent company SAIC—dealt a significant blow to its sales performance.
Beyond the tariffs, a broader slowdown in demand for EVs across Europe has also contributed to the slump in Chinese EV sales. Between January and August 2024, overall EV registrations across the continent fell by 5.5%, as key markets like Germany cut back on consumer incentives for electric vehicle purchases.
The impact of the EU’s tariffs has varied across different regions. In the UK and Norway, where governments have chosen not to follow the EU’s lead, registrations of Chinese-made EVs actually rose in August. Meanwhile, registrations of Western brands such as Renault, Mercedes-Benz, and BMW fell by 50% or more across much of the continent.
Despite the challenges, Geely Holding Group, parent company of Volvo, saw its sales more than double, thanks in large part to the popularity of the Volvo EX30. Tesla, which ships some vehicles from China to Europe, also experienced a 7% increase in registrations.
[Information sourced from Carz Media]
