Thursday, September 19, 2024

Chinese electric car sales ‘screeching to a halt’ in Europe amid trade war threat

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The figures apply to pre-2004 European Union countries, plus the UK, Iceland, Norway, Switzerland and Liechtenstein.

Matthias Schmidt, founder of Schmidt Automotive, said Chinese brands appeared to have “hit the buffers” because they were struggling to acquire enough specialist ships to transport their cars.

However, a huge car carrier vessel operated by BYD, which had previously been dispatched to Europe, was recently sent to Brazil instead, suggesting that a looming threat of higher import duties in Europe may also be making the Chinese wary.

Brussels is investigating claims that China’s electric vehicle (EV) industry has benefitted from massive state subsidies, with the European Commission poised to announce whether it will impose trade tariffs next week.

In response, Beijing has accused the EU of “protectionism” and threatened to retaliate.

Mr Schmidt said: “Sales of Chinese-branded cars in Western Europe are now starting to slow demonstrably.

“One reason for that is there are simply not enough roll-on, roll-off shipping vessels to distribute these vehicles.

“But these ships are also now being sent elsewhere, suggesting that the European rollout of Chinese cars is either not going according to plan or that they are worried they will experience protectionism on the Continent.

“The European Union has warned that any tariffs imposed could be retrospective, so it might not make much sense to rush loads of cars out there right now.”

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