NGO Predicts that One Quarter of Electric Vehicles Sold in Europe this Year will be Manufactured in China

A Quarter Of EVs Sold In Europe This Year Will Be Made In China, NGO Predicts

In Europe, there is a growing presence of Electric vehicles manufactured in China, despite initial perceptions. According to a report by Transport and Environment, a leading clean transport campaign group in Europe, 19.5% of the approximately 300,000 EVs sold in the European Union last year were made in China. This trend is expected to continue, with Chinese-made EVs projected to make up 25% of the EU market share this year.

Popular Chinese EV models in Europe come from companies like BYD, Tesla, and Dacia (a subsidiary of Renault). The influx of Chinese-made EVs into the EU market has significantly increased, with Chinese automakers’ market share growing from 0.4% in 2019 to 7.9% in 2020.

The report anticipates that Chinese brands like BYD, MG, NIO, and others could capture up to 20% of the EV market by 2027. While Chinese-made EVs are generally more affordable than European counterparts, the report highlights the downside of capital leaving Europe and funding the further development of EVs in China.

To address this issue, Transport and Environment suggests increasing import tariffs on Chinese-made EVs to encourage Chinese companies to establish factories in Europe, creating job opportunities locally. They propose raising the current 10% import duty to 25%, a move that could yield 3-6 billion Euros in additional revenue for the EU budget.

Furthermore, the report suggests raising import tariffs on battery cells, which currently stand at 1.3% in the EU, significantly lower than the rates in China and the United States. By raising tariffs, the EU could incentivize Chinese companies to invest in local manufacturing, fostering innovation and job growth within the EU.

Some Chinese companies, such as BYD and CATL, are already considering establishing factories in Europe to avoid increased tariffs. The report emphasizes the importance of not shielding traditional automakers from competition but rather encouraging the localization of EV supply chains in Europe to drive innovation and affordability in the EU-made EV market.