A recent paper by Transport and Environment NGO predicts that a quarter of all electric vehicles (EVs) sold in Europe this year will be made in China. This marks a significant increase from last year, where 19.5% of EVs in the EU market were Chinese-made.

The analysis reveals that automakers such as Tesla, Dacia (Renault), BYD, and other Chinese companies are leading this surge. Last year, Tesla made up 28% of these imports into Europe, while Dacia accounted for 20%. Chinese automakers have seen remarkable growth in the EU market, expanding from just 0.4% in 2019 to 7.9% by 2021. Projections suggest that Chinese homegrown brands could command as much as 20% of the EU EV market by 2027.

To counteract the rising dependency on Chinese-made EVs, the paper proposes higher import tariffs. It argues that such measures would support the local economy and job creation by promoting local manufacturing over imports. Currently, the import duty on electric vehicles stands at 10%. The NGO suggests increasing this rate to 25%, which could generate an additional revenue between 3-6 billion Euros. This money could then be reinvested into scaling local clean tech supply chains.

Furthermore, the disparity in battery cell import duties is addressed; Europe currently imposes a mere 1.3% import duty on these cells compared to China and the United States' significantly higher rates for foreign cells.

In response to potential tariff increases, Chinese companies such as BYD and CATL are considering or planning to build manufacturing facilities within the EU. This move is aimed at circumventing tariffs while also contributing to local job creation, thus addressing some concerns regarding economic impacts and dependencies.

Source: Transport and Environment

Евгений Ушаков
Evgenii Ushakov
14 years driving