EU tariffs drive Western EV production towards Europe, study says

Western automakers have shifted more electric vehicle production back to Europe since the European Union introduced tariffs on Chinese-made EVs, according to a study by European transport group T&E

The share of China-made battery electric vehicles sold in Europe by Western brands fell to 23% of total EV sales in the first quarter of this year from 38% in 2024, according to the study, which cited production and sales figures from GlobalData. The analysis covered BMW, Dacia, Volvo, Smart and Tesla

Tesla’s share of China-made vehicles in Europe’s overall EV market fell to 19% from 23% over the same period

The study found that imports from Chinese automakers, particularly BYD and Geely, continued to grow despite the tariffs introduced in 2024, largely because of excess production capacity in China

SAIC was an exception, with European sales declining sharply since 2024. According to the study, SAIC faces tariffs that are almost twice as high as those imposed on BYD and Geely after the European Union concluded that the company benefited more extensively from state subsidies throughout its supply chain

The report also found that Chinese manufacturers have accelerated plans to produce vehicles in Europe. Since the EU launched its subsidy investigation in 2023, plans for 10 production facilities on the continent have been announced

Chinese automakers have also increasingly focused on exporting plug-in hybrid vehicles from China. Their share of the EU plug-in hybrid market has risen to 13% from 3% in 2024, according to the study

Source: finance.yahoo.com