(Bloomberg) — Chinese automakers missed out on a European rebound in EV demand last month, as more-established manufacturers like Volkswagen AG captured the biggest part of a jump in sales.
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Just 6.9% of electric vehicles registered in the region in February were made by Chinese companies, based on data from automotive researcher Dataforce. That’s well below January’s 7.8% and the lowest since February 2023.
Carmakers led by BYD Co. and SAIC Motor Corp.’s MG have been working to build the region into an export stronghold, but hit a wall when the European Union imposed tariffs on Chinese-made EVs last year. The trade barrier has caused a leveling-off of Chinese market share after years of rapid growth.
While individual brands including BYD and Xpeng grew strongly in Europe last month, the Chinese industry’s overall result in the region represents a step backward. The EV market jumped 26% in February, according to data this week from the European Automobile Manufacturers’ Association.
The EU duties are part of a global upswing in protectionism. US President Donald Trump this week moved to slap a 25% tariff on imported cars and key parts, threatening Canada and the EU with further measures. The US had already imposed steep tariffs on Chinese EVs.
China, for its part, hit EU brandy with an anti-dumping tax and launched probes into dairy and pork products. It has also imposed added tariffs on some US agricultural imports.
European Demand
In Europe, electric-car demand has been stimulated this year by manufacturer incentives aimed at meeting regulatory EV sales targets, as well as the introduction of new models, particularly VW’s ID.7, Renault SA’s R5 and Kia Corp.’s EV3, said Julian Litzinger, an analyst with Dataforce.
Chinese carmakers, he said, have been held back by the new duties, which can reach as high as 45% including existing import fees.
Consumer backlash against Tesla Inc. represented another lost opportunity for Chinese brands. Tesla’s European sales have plummeted in response to Chief Executive Officer Elon Musk’s unwelcome intrusion into German politics.
That provided an opening for others to take up some sales left up for grabs, but for the most part, Chinese manufacturers failed to capitalize.
“The conventional brands have soaked up the volume from Tesla,” Litzinger said. “We see a clear effect from the tariffs” on Chinese automakers.
