Facing EU tariff challenges, Chinese new energy vehicle companies are committed to technological innovation and market penetration strategies.

In March 2024, the European Union implemented a customs registration system for electric vehicles imported from China as part of an anti-subsidy investigation into alleged “unfair subsidies” that Chinese electric vehicles may receive. In July, the European Commission announced provisional anti-subsidy duties ranging from 17.4% to 37.6% on pure electric passenger cars originating in China.

Rho Motion Update: Global electric vehicle sales in the passenger car and light vehicle markets are expected to approach 7 million units in the first half of 2024, a 20% increase compared to the same period in 2023. Battery electric vehicles (BEVs) account for 65% of global sales, with plug-in hybrid electric vehicles (PHEVs) accounting for the remaining 35%.

Despite these trade barriers and the numerous difficulties posed by the EU’s economic slowdown, Chinese new energy vehicle enterprises continue to value the European market. They recognise technological innovation, supply chain advantages and intelligent manufacturing as the competitive strengths of Chinese electric vehicles, and hope to foster cooperation and synergy between China and Europe in the new energy vehicle sector by deepening their engagement in the European market.

Chinese companies’ persistence in pursuing the European market is grounded not only in its commercial potential but also in Europe’s advanced policies and demand for environmental protection and new energy vehicles.

However, this endeavour is not without its challenges. EU tariff measures could increase the cost of Chinese electric vehicles, undermining their competitiveness in the European market. In response, Chinese companies may need to adopt diversified strategies, including negotiating with the EU, adjusting pricing strategies, investing in local manufacturing facilities within Europe to circumvent high tariffs, and exploring markets in other regions.

Concurrently, divisions exist within the EU regarding the imposition of tariffs on Chinese electric vehicles. Some member states, such as Germany and Sweden, abstained from voting, while Italy and Spain expressed support. This divergence creates room for further negotiations between China and the EU, allowing China to explore possibilities for tariff reductions while preparing to counter potential trade protectionist measures.

In summary, although Chinese new energy vehicle enterprises face certain challenges in the European market, they still have opportunities to maintain and expand their operations in Europe through multiple strategies. Concurrently, the Chinese government and enterprises are actively seeking solutions to protect their interests and advance Sino-European cooperation in the new energy vehicle sector.