A prominent figure from the Chinese auto industry recently expressed concern over EU tariffs that have significantly affected Chinese electric and plug-in hybrid car exports, causing a 20-30% decline in recent months.
The EU introduced temporary tariffs up to 37.6% on China-manufactured electric vehicles (EVs) to offset a potential influx of unfairly subsidized vehicles. This action has dealt a severe blow to Chinese auto manufacturers since Europe is an important market for their EVs.
The current situation may discourage Chinese investments in the European EV sector and possibly create tension in the delicate global trading relations. Despite these setbacks, Chinese automakers are still committed to maintaining a foothold in the European market, vital to their global expansion plans.
Chinese auto industry calls for dialogue and cooperation to resolve the issue, emphasizing the worldwide need to transition to sustainable green motoring. The future of this trade dispute between China and the EU remains uncertain, adding more complexity to the already challenging global automobile market.
The China Passenger Car Association’s secretary-general, Cui Dongshu, confirmed the pressure on exports of new energy vehicles (NEVs), noting a considerable decline in growth rate from 30-40% to just above 10%. Amid this drastic change, strategies to revitalize the sector have been proposed, including more government stimulus packages to boost demand for near-zero-emission vehicles.
Despite the negative trends, the China Passenger Car Association announced a significant 28% annual increase in China’s overall auto exports for June, primarily from strong gasoline car exports, which helped offset the decrease observed in the NEV market.
Chinese EV industry impacted by EU tariffs
The association continues to monitor these market fluctuations, providing insights and data to manufacturers and stakeholders worldwide.
On the other hand, sales of new energy vehicles made up a record-breaking 48.1% of domestic car sales in June, with Chinese EV giants like BYD and Nio reporting increased sales despite a slowdown in the overgrowth rate. Despite the reduced monthly growth rate, the annual cumulative sales of new energy vehicles still showcased a significant increase, suggesting continued momentum in the EV industry.
Looking ahead, Chinese EV companies, navigating domestic competition, international markets, and supply chain challenges, will shape the future growth of China’s EV industry. The trend so far indicates that the growth of the Chinese EV industry remains sturdy despite temporary fluctuations.
However, high inventory levels and economic uncertainty are thought to have contributed to a decreased demand from customers, as reflected by an 8.3% increase in the Vehicle Inventory Alert Index. It’s yet unclear how the industry will adapt to these market conditions. Whether strategies such as discounting will indeed revitalize customer interest and sales remains to be seen.
