Chinese EV sales surge to new high in Europe putting tariffs under scrutiny

Chinese electric car sales in Europe have reached a record high, with Chinese brands accounting for 14.2% of battery electric vehicle (BEV) sales in the first five months of the year. This increase is intensifying pressure on European manufacturers and fueling calls for quotas and higher tariffs, despite existing EU duties. The UK is a major market due to lower tariffs, while Italy saw a surge due to specific manufacturer subsidies.

• Chinese electric car sales in western Europe reached a record 14.2% market share in the first five months of the year.
• This rise puts pressure on European manufacturers and prompts calls for tariffs and quotas.
• The UK is the largest European market for Chinese cars due to a lack of extra levies compared to the EU.
• Italy saw a surge due to specific subsidies for cheap models like the Leapmotor T03.
• Matthias Schmidt suggests the pure electric market share may have peaked, with a focus shifting to plug-in hybrid electric vehicles (PHEVs) to avoid current tariffs.
• Volkswagen CEO Oliver Blume noted European PHEVs are uncompetitive against Chinese equivalents.
• Tesla sales rebounded by 60% year-on-year, with the Model Y being the bestselling individual model.
• Chinese manufacturers offer more models in Europe than European brands.