On May 28, South Korean media "Everyday Economy" published an article stating that as the sales of Chinese pure electric vehicles in Europe slowed down, Chinese auto manufacturers significantly increased their exports of hybrid and internal combustion engine vehicles to Europe, setting a historical record for sales.
According to data from market research company Dataforce, more than 150,000 Chinese-branded cars were newly registered in Europe in the first quarter this year, setting a new high. In March, it accounted for 5.2% of European car sales, exceeding 5% for the first time. However, pure electric vehicles only accounted for 30% of total sales. This is the lowest level since 2020.
Chinese auto companies have been implementing an export strategy centered on pure electric vehicles according to European carbon reduction policies and electric vehicle industry leading strategies. However, with the EU increasing tariffs on Chinese pure electric vehicles further in the second half of last year, the situation has changed.
With the stagnation of pure electric vehicle sales growth, Chinese enterprises are seeking breakthroughs by expanding the sales of internal combustion engines and hybrid vehicles. BYD began mass-selling plug-in hybrid vehicles in the EU and UK markets this year. The MG brand under SAIC Motor sold approximately 47,000 hybrid, plug-in hybrid, and internal combustion engine vehicles in the EU in the first quarter this year, doubling year-over-year. On the other hand, pure electric vehicle sales fell by nearly half during the same period.
In particular, the 45% import tariff imposed on SAIC Group has damaged the price competitiveness of its pure electric vehicles, which is one of the backgrounds for its expansion strategy of internal combustion engine vehicles. Dataforce analyzed that European consumers are shifting from pure electric vehicles to hybrid vehicles, which is also a major reason for the change.
Dataforce stated, "Chinese companies are accelerating the introduction of other types of fuels. In addition to tariffs, comprehensive factors such as the slowdown in the growth of pure electric vehicle demand and the expansion of hybrid vehicle demand are playing a role."
BYD said that the demand for hybrid vehicles in Europe is increasing this year. BYD is promoting its local production strategy in Europe, which will not be constrained by tariffs in the future. Electric vehicle production plants are currently being built in Hungary and Turkey, and a third factory in the EU is being considered. However, contrary to some expectations, BYD did not adopt a strategy of rapidly expanding market share with price competitiveness as a weapon.
Original article: https://www.toutiao.com/article/1833367419267088/
Disclaimer: The article represents the views of the author alone.