Sales of Chinese electric vehicles in Europe fell by 48%

In August 2024, Chinese automakers sold the fewest electric vehicles in Europe over the past 18 months. The number of registrations last month decreased by 48% compared to the same period last year. This drop led to a decline in the share of Chinese brands for the second month in a row.

This situation is explained by the increased duties that the EU imposed on Chinese electric vehicles in early summer – up to 38%. The British brand MG, which is owned by China’s SAIC Motor, lost its first place in Europe due to a significant drop in sales – by 65%. At the same time, Chinese competitor BYD, a newcomer to the European market, was able to increase sales by 19%, which allowed it to take the top spot.

The European electric vehicle market is experiencing an overall drop in demand. Registrations of new electric cars in the first eight months of 2024 fell by 5.5% after major markets such as Germany canceled incentives for buyers.

Sales trends for electric vehicles imported from China have been uneven since the introduction of the duties. For example, in the UK and Norway – countries that did not follow the EU’s lead – the number of EV registrations increased during August.

Among Western brands such as BMW, Mercedes-Benz Group, and Renault, registrations across the region fell by 50% or more in August. However, the popular Volvo EX30 helped more than double sales for parent company Geely Holding Group. Tesla, which imports some of its cars to Europe from China, saw registrations rise by 7%.

Interestingly, Dataforce and Jato analysts do not include Volvo among Chinese brands. Swedish electric car maker Polestar, partially owned by Geely founder Li Shufu, is not counted by Jato among Chinese brands, although it is included in Dataforce’s market calculations.

Source: bloomberg