Sales of Chinese electric cars in Europe fell by 48%

During August 2024, Chinese automakers recorded their lowest sales of electric vehicles in Europe in the past 18 months. The number of registrations last month dropped by 48% compared to the same period last year. This decline resulted in a decrease in the market share of Chinese brands for the second consecutive month.

This situation is attributed to the increased tariffs that the EU implemented in early summer on Chinese electric vehicles—raising them to 38%. The British brand MG, owned by the Chinese company SAIC Motor, lost its top position in Europe due to a significant sales decline of 65%. Meanwhile, the Chinese competitor BYD—a newcomer to the European market—managed to boost its sales by 19%, allowing it to claim the top spot.

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

The sales trends for electric vehicles imported from China have been uneven following the introduction of tariffs. For instance, in the UK and Norway—countries that did not follow the EU's lead—registrations of electric vehicles increased during August.

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

Interestingly, analysts at Dataforce and Jato do not categorize Volvo as a Chinese brand. The Swedish electric vehicle manufacturer Polestar, which is partially owned by Geely founder Li Shufu, is not classified as a Chinese brand by Jato, although it is included as such in Dataforce's market calculations.

Source: bloomberg