Chinese-Made Cars Account For Two In Five Best-Selling EVs In Europe

While the EU is set to put tariffs of up to 38 percent on Chinese vehicles to defend its own manufacturers, a study by JATO Dynamics shows that two out of five of Europe's best-selling EVs are from China. In May 2024, Chinese cars accounted for 19 percent of EV sales, up 6 percent from last year.

European new car registrations dropped by 2.5 percent in May 2024 compared to the previous year, totaling 1.09 million units. This is still better than the years following the pandemic disruptions in 2021 and 2022.

Felipe Munoz, a global analyst at JATO Dynamics, noted that the European car market has only recovered to 75%-80% of its pre-pandemic size. As a result, many factories across Europe are not operating at full capacity, giving Chinese OEMs a unique opportunity to sell across Europe while avoiding tariffs.

But the tariffs are coming. and MG, owned by SAIC, will face the highest tariff of 38.1 percent. Other affected companies include BYD and Tesla. The move comes following a European Commission investigation into Chinese government subsidies.

Despite the upcoming tariffs, MG's overall business unit outperformed Tesla in Europe. MG's focus on internal combustion engine (ICE) vehicles is likely in anticipation of these duties, while its battery electric vehicle (BEV) arm saw a decrease in new registrations in May. In contrast, Volvo, BYD, and Smart increased their numbers significantly.

Volkswagen remained the best-selling brand in May, with the T-Roc being the most popular model. The new Volkswagen Golf also saw a 30 percent increase in sales compared to the previous year.

Source: JATO Dynamics