Europe has taken over 'Made in China' electric cars! | China-made vehicles will comprise a quarter of Europe's EV sales this year Europe has taken over 'Made in China' electric cars!
Published: April 01 , 2024 11:55 AM IST
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BYD Han
Chinese-made electric cars are rapidly gaining popularity in Europe. Last year, about 3 lakh cars were sold in the European Union countries, 19.5 percent of which were Chinese-made cars. The study published by Transport and Environment says that it will rise further. A quarter of electric cars sold in Europe this year will be made in China, Transport and Environment predicts.
Chinese-made cars hitting the European market include the likes of BYD, Tesla and Renault's Dacia. Tesla (28%) imported the most Chinese-made EVs last year. Dacia vehicles made up 20 percent of all imported electric cars in Europe. China's own brands BYD and NIO will each own more than 20 percent of the European electric car market by 2027, T&E predicts.
Generally Chinese made cars are cheaper than European made cars. This also attracts a large number of consumers to Chinese cars. If Chinese cars are gaining popularity in Europe, it also means that European money is flowing into China. This may even affect the operations of electric car manufacturing companies in Europe.
To overcome the challenge of Chinese cars, T&E is proposing to increase the import tax. Currently, there is a 10% import tax on Chinese-made cars in Europe. TNT has proposed to increase this to 25 percent. Countries including the United States are also considering a similar proposal.
It is expected that Chinese cars will also move towards the price of European-made electric cars with the large increase in taxes. According to T&E, the tax increase will also result in an additional revenue of three to six billion euros for the EU budget. Imports of batteries are currently taxed at only 1.3 percent in the EU. China imposes a 10 percent tax on batteries from Europe. The US has imposed a 10.9 percent tariff on Chinese-made batteries.
Chinese electric car companies are anticipating that such situations may occur in the future. Companies BYD and CATL are moving forward with efforts to build factories in China. More jobs and income will flow to European countries under such circumstances. Therefore, efforts by Chinese companies to set up factories in Europe are unlikely to be largely opposed.
Summary:
China-made vehicles will comprise a quarter of Europe's EV sales this year
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