While Chinese automakers continue to grow sales, that may not last long with duties posed to be implemented soon
5 hours ago
- Chinese automakers make hay while the sun shines before EU tariffs come into play.
- SAIC-owned MG has shifted its attention towards its combustion offerings in anticipation of the upcoming 38% levy.
- Volkswagen records strong performance, with the new Golf recording a 30 percent increase YoY.
With the EU poised to implement taxes of up to 38 percent on the import of Chinese vehicles, a new study revealed that two in five of Europe’s best-selling EVs are of Chinese origin. Looking at data for May 2024, the results show that Chinese cars accounted for 19 percent of EV sales in May 2024, a six percent increase from the same month last year.
Overall, European new car registrations dropped by 2.5 percent in May 2024 versus the year before but remain higher than they were following years riddled by post-pandemic production turmoil in 2021 and 2022. A total of 1.09 million units were registered last month.
Read: While The US And EU Raise Trade Barriers, Australia Opens Its Doors To Chinese EVs
Felipe Munoz, Global Analyst at JATO Dynamics, commented: “Since the global pandemic, the European car market has only recovered to 75%-80% of its original size. As a result, many factories across Europe are not operating at full capacity, giving Chinese OEMs a unique opportunity to sell across Europe while avoiding tariffs.”
But the tariffs are coming. MG, owned by SAIC, will be on the receiving end of the most punitive levy of 38.1 percent applied to its EVs when the duties come into effect. The move, which will also effect BYD, and Tesla to name a few, comes following a European Commission investigation into Chinese government subsidies.
However, it is worth noting that MG’s overall business unit managed to outperform Tesla in Europe. The company focusing its attention on ICE options, likely in anticipation of the incoming duties, while MG’s BEV arm saw a reduction in the number of new cars it registered in May, Volvo, BYD, and Smart all made significant increases.
Meanwhile, Volkswagen dominated the best-selling brand and model standings in May, with the T-Cross proving most popular with new car buyers, while the new Volkswagen Gold managed to record a 30 percent increase in numbers since the same time last year.
