Research institution: Chinese-made electric vehicles are expected to reach a market share of 25% in Europe this year

According to the analysis of Transport & Environment, electric vehicles manufactured in China will account for 25% of the European market share in 2024.

On March 27, a paper report shared by the Transport & Environment Federation (T&E) stated that in 2023, Chinese-manufactured electric vehicles accounted for approximately 19.5% (nearly 290,000 vehicles) of electric vehicles sold in the EU, and this number is expected to increase to 25.4% this year.

T&E research shows that most electric vehicles sold in EU countries come from Western brands such as Tesla, and China plays a crucial role in the multinational automotive production chain. The market share of Chinese brands in the EU electric vehicle market is expected to continue to rise in the future.

The report by T&E indicates that the market share of Chinese domestic brands in the EU electric vehicle market has increased from 0.4% in 2019 to 7.9% in 2023, with expectations to reach 11% this year and rise to 20% in 2027.

As Chinese cars accelerate their entry into the European market, the European Commission decided last year to launch an anti-subsidy investigation on electric vehicles imported from China, which may lead to higher tariffs in the future.

The report points out that imposing tariffs will not only make it difficult for European consumers to afford electric vehicles but also hinder the advancement of electrification levels for European car manufacturers due to protectionist measures.

The report suggests that increasing the production of affordable electric vehicle models and investing in the local battery supply chain are the only ways for European car manufacturers to compete with Chinese brands. Julia Poliscanova, Senior Director of the Automotive Supply Chain at the Transport & Environment Federation, believes that European car companies need to take concrete actions to build a stable and reliable battery supply chain.

The report states that Chinese-made batteries are at least 20% cheaper than European ones, and Chinese battery manufacturers are leading in technology and supply chain. The report recommends that Europe take more measures to incentivize the development of the electric vehicle industry, such as subsidizing clean production and resource recycling, and promoting the goal of locally produced batteries to boost local battery production.

Following the European Commission's announcement of an "anti-subsidy investigation" on Chinese electric vehicles in 2023, the European Commission officially issued a document in the Official Journal of the European Union on March 6, instructing customs to register imports of new battery electric vehicles (BEVs) from China starting from the 7th for a period of 9 months.

Data shows that since the EU launched the "anti-subsidy investigation" on Chinese electric vehicles in October 2023, the import volume of Chinese electric vehicles has not decreased but instead increased by 14% year-on-year. Analysts generally believe that the EU's measures such as the "anti-subsidy" investigation and import registration of Chinese electric vehicles are related to the competition for market share in the European market by Chinese electric vehicles in recent years Recently, Bernstein, an American consulting firm, released a latest report stating that in the long run, if Europe increases import tariffs on Chinese electric vehicles, it will accelerate the localization production process of Chinese companies in Europe.

At the end of January this year, BYD officially signed a land pre-purchase agreement for the BYD Hungary passenger car factory with the local government of Székesfehérvár, Hungary. This marks a new substantial breakthrough in BYD's localization process in the European passenger car market, making BYD the first Chinese automotive company to plan to build a passenger car factory in the EU region. According to the plan, the factory will be completed and put into operation within 3 years, mainly producing new energy passenger cars for sale in Europe.

In July last year, Yu De, Assistant President of SAIC Group, General Manager of International Business Department, and General Manager of SAIC International, revealed during a media communication meeting that SAIC Group has decided to build a factory in Europe and has started site selection.

It is reported that car companies including SAIC Group, Geely Auto, BYD, Nio, XPeng, Voyah, and others have actively laid out in the European market.

Qin Lihong, Co-founder and President of Nio, stated that the relevant measures of the European Union will have a certain impact on the development curve of Chinese car companies' electric vehicle business in the EU market in the short term, but the overall direction of Chinese car companies entering the EU market will not change because of this