[Source/Observer Network Zhang Jiadong, Editor Gao Shen]

According to rough statistical data released by market research company Dataforce on April 16 (this data covers approximately 93% of sales in the EU, UK, Norway, Iceland, and Switzerland), European car sales increased by 2.8% in March this year. Among them, Chinese brands, electric vehicles, and plug-in hybrid electric vehicles performed strongly, exceeding the market average.

March European Market Car Manufacturer Sales Dataforce

Among them, pure electric brand sales increased by 24% year-over-year, reaching 222,000 units, accounting for 17% of the total sales volume of 1.311 million units. "European Automotive News" stated that although this data is still below the 20%-25% threshold that manufacturers must achieve under the EU's 2025-2027 CO2 emission new regulations, it has significantly improved compared to last year's 14% penetration rate.

The above media reported that Chinese brands played a leading role in the sales of Europe's electric vehicle market.

In March this year, the overall growth of Chinese brands in Europe continued to rise, with an increase of 78%. The MG brand sold 37,000 units in the month, growing by 49%, while BYD and Chery had even larger sales growth.

Chery Jaecoo 7 (Chery Explorer 6 overseas version) Chery Automobile

On the other hand, Tesla, affected by Elon Musk's personal image and statements, saw continuous declines in its March sales. Data shows that its sales in Europe fell by 26% that month, with its pillar model, Model Y, declining by 40%.

Mercedes-Benz, Toyota, Stellantis, and other automakers that have slowed down their electrification efforts also saw declines in their sales that month.

Similar to the data from the first two months of this year, the changes in sales volumes clearly demonstrated the acceleration of Europe's electrification process and the substitution of new energy vehicles for fuel-powered cars. In that month, the sales of plug-in hybrid vehicles also continued to rise, increasing by 20% to reach 106,000 units. The total sales volume of plug-in hybrid electric vehicles in Europe grew by 5.3% in the first quarter.

Compared to electric vehicles, the sales volume of fuel-powered vehicles in Europe decreased by 6.7% in the first quarter.

Nikkei Chinese website recently reported in an article that the additional tariffs imposed by the EU on imported Chinese electric vehicles are producing unexpected results. Chinese enterprises want to establish bases in Europe to avoid tariffs, while European enterprises, due to deteriorating performance, want to reduce production costs. Both sides' intentions coincide, thus expanding cooperation.

According to a survey conducted by German Schmitt Automotive Research, after the EU imposed additional tariffs last October to December, the market share of Chinese car brands in Europe was 3.9%, higher than the 3.5% in July to September. The export of Chinese-made plug-in hybrid electric vehicles that are not subject to additional tariffs also increased.

Moreover, a survey by the European think tank T&E showed that last year, 60% of the electric vehicles exported from Chinese factories to the EU came from Western brands such as Tesla, Renault, and BMW.

This means that the EU's additional tariffs initially impacted its own automotive companies. Last year, most European automakers' financial reports showed that their net profits declined by double digits year-over-year.

Volkswagen, Renault, BMW, Stellantis, and other automakers are actively choosing to cooperate with Chinese enterprises to shorten the development cycle for new models and enhance competitiveness.

Currently, the so-called "anti-subsidy tariff" imposed by the EU on imported Chinese electric vehicles can be as high as 35.3%, and when combined with existing tariffs, Chinese electric vehicle manufacturers face an extremely high tariff of up to 45.3% to enter the European market. However, with the changing trends in international trade, especially Trump's additional tariffs on Europe, and the expanding European electric vehicle market, Europe is reconsidering its policies toward Chinese electric vehicles.

Last week, an EU Commission spokesperson announced that the EU and China have agreed to discuss setting a minimum price for electric vehicles made in China as a replacement for the current tariffs imposed on Chinese electric vehicles.

Industry insiders said that currently, the selling prices of Chinese vehicles in Europe are generally 30%-40% lower than those of local European models. Setting a minimum price will narrow the cost gap for Chinese automakers. This arrangement will benefit both parties; for European automakers, it avoids a "price war" with Chinese automakers in the domestic market; for Chinese automakers, the increased pricing does not fully go to tariffs, thereby improving per-unit profitability.

This article is an exclusive piece from Observer Network and cannot be reprinted without permission.

Original Source: https://www.toutiao.com/article/7494174331166147111/

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