China’s EV Sales Are Setting Records Despite Europe’s Attempts To Halt Them

Sales of Chinese-made electric cars in Europe from January to May hit a record high despite high tariffs, adding to the pressure on Europe’s auto industry.

Chinese manufacturers sold 171,800 fully electric cars in Western Europe in the first five months, reaching a market share of 14.2 percent, the Guardian reports. The market share of Chinese manufacturers increased by almost five percentage points compared to the same period last year.

Chinese manufacturers managed to increase sales despite European tariffs of as much as 35.3 percent for certain manufacturers, which are added to the standard import duty of 10 percent, the British newspaper adds.

The British government did not follow the European Union and did not impose additional tariffs, so the UK accounted for about a quarter of sales of Chinese electric cars in the 18 largest Western European markets.

Italy accounted for about a fifth of total sales, but that result was partly due to specific government subsidies.

The Chinese manufacturer “Leapmotor” marketed a large number of cheap electric T03 models in Italy, the price of which at one point, thanks to government incentives, fell to only around 5,000 euros.

At the same time, the penetration of Chinese manufacturers shows that tariffs alone did not stop them from conquering the European market. They increased the price of Chinese vehicles but did not eliminate their competitive advantage in technology, price and breadth of offer.

The European Commission previously introduced additional duties due to the assessment that Chinese manufacturers benefit from state subsidies that allow them to sell vehicles at more competitive prices, the British newspaper reminds.

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