Mathilde Carlier
Research Expert covering transportation and logistics
Chinese battery-electric vehicles in the European Union - Statistics & facts
Chinese electric vehicle makers have their sights set on Europe. Many brands from the Asian country have been opening brick-and-mortar retail stores in large European cities since at least 2022, amid their growing hold on the global EV market. In 2023, six of the 10 global best-selling EV brands were from China, and BYD overtook Tesla as the market leader for the first time.
However, the integration of Chinese brands within the European market has recently faced a major roadblock. At the end of October 2024, the European Commission published the results of its inquiry into Chinese BEVs and State subsidies, as well as the definitive duty rates applied to Chinese BEV imports for a period of five years. This decision will greatly affect the market.
Tesla was the brand with the largest share of Chinese-made cars sold in the EU in 2023, when 5.5 percent of the EU’s BEV market were Tesla vehicles manufactured in China. However, European brands such as Dacia, Polestar, and BMW have also been importing some of their vehicles from China. These Chinese-made cars from European brands will also be hit by the tariffs, which could put them at a disadvantage compared to Chinese carmakers.
Until the European Commission's investigation into China’s BEV subsidies, the market entry strategy put in place by Chinese brands was met with some success: One in ten BEVs sold in the United Kingdom and Sweden in 2023 came from a Chinese make. The investigation, which started in October 2023, put the State subsidies given to Chinese BEV companies into the light, highlighting the support this gave the Asian brands to export their vehicles without risking their profits.
How the new duty rates on BEV imports from China into the EU will impact the market remains to be seen, but the tariffs present particular challenges for international brands manufacturing their electric vehicles in China and add additional pressures for Chinese makes which may have to lose profit to absorb these duty rates.
However, the integration of Chinese brands within the European market has recently faced a major roadblock. At the end of October 2024, the European Commission published the results of its inquiry into Chinese BEVs and State subsidies, as well as the definitive duty rates applied to Chinese BEV imports for a period of five years. This decision will greatly affect the market.
European brands sell Chinese-made imports
The share of Chinese-made cars sold in the European Union has soared between 2020 and 2023, including cars manufactured in China by non-Chinese automakers. Over the past years, China has asserted its position as the main supplying country for materials necessary for the EV production chain, and six of the 10 leading EV battery manufacturers by production capacity are from China. This control over the supply chain, paired with the fact the country required foreign automakers to enter joint ventures with domestic companies in exchange for market access, made China an attractive option for international companies looking to produce electric vehicles. Tesla’s Shanghai Gigafactory, for instance, was Tesla’s manufacturing plant with the largest capacity as of the third quarter of 2024.Tesla was the brand with the largest share of Chinese-made cars sold in the EU in 2023, when 5.5 percent of the EU’s BEV market were Tesla vehicles manufactured in China. However, European brands such as Dacia, Polestar, and BMW have also been importing some of their vehicles from China. These Chinese-made cars from European brands will also be hit by the tariffs, which could put them at a disadvantage compared to Chinese carmakers.
Chinese brands race to Europe
In 2023, nearly eight percent of the European Union’s BEV market consisted of Chinese brands. Chinese brands’ difficulty in accessing the United States market is among the reasons motivating Chinese carmakers to enter Europe. In the U.S., the second-largest BEV market, the Biden administration increased the tariff rate on EVs from 25 percent to 100 percent in 2024, effectively preventing Chinese automakers from entering the market.Until the European Commission's investigation into China’s BEV subsidies, the market entry strategy put in place by Chinese brands was met with some success: One in ten BEVs sold in the United Kingdom and Sweden in 2023 came from a Chinese make. The investigation, which started in October 2023, put the State subsidies given to Chinese BEV companies into the light, highlighting the support this gave the Asian brands to export their vehicles without risking their profits.
How the new duty rates on BEV imports from China into the EU will impact the market remains to be seen, but the tariffs present particular challenges for international brands manufacturing their electric vehicles in China and add additional pressures for Chinese makes which may have to lose profit to absorb these duty rates.
