Chinese electric cars to eat 25% of EU market in 2024

The increase in duties on Chinese electric cars will also affect EU producers who have relocated

(sustainabilityenvironment.com)- In 2024, Chinese electric cars will be worth a quarter of the total sales of the sector in the EU. A new analysis by the NGO Transport & Environment states this. The increase in European sales of Chinese brands such as MG and BYD is in fact added to that of Tesla built in the Shanghai factory.

While the dragon is eating ever wider market slices, instead, European automakers suffer the loss of quotas. Although Tesla, BMW and Renault produce electric vehicles in China and import them into Europe, Chinese-branded electric cars alone will account for 11% of the European market in 2024. A figure that is expected to grow by 20% by 2027.

The scenario worries European producers, who fear competition from cheaper Chinese models. Brussels is investigating the subsidies that Beijing gives to its producers, which could favor electric cars produced in the country at the expense of models made in the EU. At this point, the trade battle dusts off a tool so much reviled in the years dominated by the neoliberal logic: the duty. The duties could increase, from the 10% current, until 25%, generating approximately 6 billion euros per year of revenue for the Union.

A double-edged sword

The hope is that it is enough to make European cars competitive with those from China. Or, to force car manufacturers to relocate to the old continent. Also the measure could affect the same European and North American producers who have relocated to China. In the end, he would risk turning into the proverbial hoe on his feet. For Chinese companies, which sell electric cars on the domestic market at lower prices than those exported, it would be easier to absorb the higher duties charged by Brussels by harmonizing prices a little.

Another concern is that the decision may lead not only to a relocation of our brands but a Chinese relocation to Europe. BYD is already building a factory in Hungary to start production of electric cars in 2025. In what seems like a rebus without solutions, the possibility that the European automotive industry will be downsized is increasingly concrete.