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A new policy analysis reveals that electric vehicles (EVs) manufactured in China are poised to represent more than a quarter of EV sales in Europe this year, marking a significant increase from previous years.
According to the analysis conducted by the European Federation for Transport and Environment (T&E), China-made EVs accounted for approximately 19.5% of battery-powered EVs sold in the EU last year. Nearly a third of EV sales in France and Spain were imported from China.
The share of China-made EVs in Europe is projected to rise to over 25% in 2024, driven by the expansion efforts of Chinese brands like BYD on a global scale.
While Western brands like Tesla dominate the EU EV market, T&E predicts that Chinese brands alone will capture 11% of the region’s market share in 2024, potentially reaching 20% by 2027.
This trend coincides with an ongoing European Commission investigation into subsidies provided to Chinese EV manufacturers, raising concerns about unfair competition. The investigation may include non-Chinese Chinese brands such as Tesla and BMW, which manufacture EVs in China.
Industry experts attribute China’s EV success to early incentives that spurred startups and bolstered battery cell capacity, producing affordable EVs.
T&E suggests that increasing tariffs on China-made EVs to at least 25% could level the playing field with EU equivalents but emphasizes the need for Europe to enhance its battery cell production capabilities to achieve self-sufficiency.
To mitigate policy risks associated with importing China-made EVs, manufacturers like Tesla and BYD are expanding their manufacturing footprint in Europe, with plans for new factories in Germany and Hungary, respectively.
Ultimately, T&E advocates for localizing EV supply chains in Europe to maximize economic and environmental benefits while accelerating the transition to electric mobility.
