German Media: After EU Imposes Tariffs on Chinese Electric Vehicles, Automakers Accelerate Relocation of Production Back to Europe

A new study shows that since the European Union imposed tariffs on electric vehicles (EVs) manufactured in China starting in autumn 2024, Western automakers have noticeably accelerated their shift of EV production back to Europe. However, the EU’s original goal of curbing imports from Chinese automakers has not been fully achieved.

According to a research report released by the European Transport & Environment (T&E) federation, the share of "Made in China" pure electric vehicles sold by Western car brands in Europe dropped from 38% to 23% between 2024 and the first quarter of this year.

The study is based on production and sales data from market research firm GlobalData, covering Western brands including BMW, Dacia, Volvo, Smart, and Tesla.

Decline in Tesla's China-made Vehicle Share

Data indicates that the share of China-produced Tesla vehicles in the European EV market fell from 23% to 19%.

Yet, the tariffs have hardly restrained the import of Chinese-manufactured electric vehicles. The report notes that despite new tariffs introduced in 2024, BYD and Geely significantly increased their exports to Europe.

SAIC Motor is an exception. Since 2024, SAIC’s sales in the European market have declined sharply. According to T&E analysis, this is due to the EU imposing tariffs on SAIC’s EVs that are nearly twice as high as those applied to BYD and Geely.

Different Tariff Rates Applied to Different Automakers

Previously, during its anti-subsidy investigation, the EU determined that SAIC Group received state subsidies across various stages of its supply chain at a higher level than other competitors, leading to a higher tariff rate being applied.

EU Auto Exports to China Plummet! First Time Below Imports from China

Nonetheless, T&E points out that Chinese automakers are also accelerating their establishment of production facilities in Europe. Since the EU launched its anti-subsidy investigation in 2023, ten planned manufacturing plants are now known to be relocating to Europe. At the same time, Chinese automakers are adjusting their export strategies by increasing the proportion of plug-in hybrid electric vehicles (PHEVs) exported. The report notes that Chinese brands currently hold 13% of the EU PHEV market, up from just 3% in 2024.

Germany's EV Production Continues to Grow

The findings from T&E align closely with data published by Germany’s Automotive Industry Association (VDA). Data shows that Germany’s domestic production of battery electric vehicles (BEVs) grew by 15% last year, reaching 1.22 million units.

However, VDA data does not clearly specify whether this growth stems from the relocation of production capacity from China.

Source: dpa, DW

Original article: toutiao.com/article/1870611887001611/

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