Number of new Chinese electric cars in EU decreased - Bloomberg finds reason
Photo: Number of new Chinese electric vehicles in EU drops (Getty Images)
Chinese electric vehicles are losing ground in the European Union. This occurred shortly after the introduction of higher tariffs, according to Bloomberg.
The tariffs, implemented by the European Union in June of this year, have slowed the influx of Chinese electric vehicles. The number of new electric vehicles registered by Chinese automakers in the EU last month fell by 45% compared to June.
The agency also noted that the number of new cars may have been inflated by automakers who rushed to deliver electric vehicles to dealers before the additional duties took effect.
"We saw a huge push from Chinese manufacturers” to empty stockpiles in June, said Matthias Schmidt, an independent auto analyst based near Hamburg. That likely caused an inventory burn," said independent automotive analyst Matthias Schmidt.
It should be noted that the temporary tariffs, which raise import duties to 48%, are intended to protect the EU's crucial industry from Chinese competitors who benefit from structural advantages in key areas such as battery manufacturing technology, supported by government subsidies.
From July of this year, the tariff rate for Chinese electric vehicles in the EU increased, affecting automakers such as:
- BYD Co.
- Geely Automotive Holdings Ltd.
- SAIC Motor Corp Ltd.
This is related to the fact that Chinese electric vehicle manufacturers have made significant inroads into Europe amidst a domestic price war and years of dominance in this field.
In response to these restrictions, China has discussed imposing up to 25% tariffs on imported cars from EU and US automakers.
Additionally, China announced export controls on certain aviation equipment and technologies.
