China to account for quarter of EVs sold in Europe this Year: NGO

China to account for quarter of EVs sold in Europe this Year: NGO

Amidst Europe’s burgeoning EV landscape, a surprising trend seems to have emerged as a significant portion of these eco-friendly automobiles is found to originate from the manufacturing hubs of China. Meanwhile, a widely-acclaimed clean transport advocacy group called “Transport & Environment” has predicted that Chinese-made EVs are poised to dominate a quarter of Europe's EV market this year.

In 2023, amidst the backdrop of technological innovation and eco-consciousness, approximately 19.5 per cent of EVs sold in the European Union (EU) hailed from Chinese manufacturing hubs. The trajectory, as outlined by Transport & Environment, points to a significant upward surge, with projections hinting at an astonishing 25 per cent market share for Chinese-made EVs in the EU region this year. Brands like Tesla and Dacia, alongside Chinese manufacturers like BYD, seems to be leading this charge with a promise of a diverse array of electric offerings to consumers.

It is worth-noting here that Tesla emerged as the primary importer of Chinese-made EVs last year, capturing nearly 28 per cent of the market share. Dacia closely followed with a share of 20 per cent. However, the most remarkable trend has been noted in the exponential growth of Chinese automakers' exports to the EU markets. From just around 0.4 per cent market share in the year of 2019, Chinese EVs surged to account for 7.9 per cent of the market last year, indicating a quick acceleration towards dominance.

The aforementioned influx of Chinese EVs in the EU seems to be quite beneficial in terms of affordability for consumers, but raises pertinent concerns regarding capital flight and its implications for innovation and employment in Europe. Transport & Environment has, thus, proposed strategic interventions, including an increase in import tariffs. By elevating the existing 10 per cent import duty to 25 per cent, Transport & Environment argues for a safeguarding of the EU’s clean tech industry, advocating for reinvestment of additional revenue into boosting local supply chains and nurturing innovation.

The ascent of Chinese-made EVs in Europe serves not only as a testament to globalization but also a clarion call for strategic action. European policymakers are engaged in discussions on tariff revisions and regulatory strategies with a shared objective – to cultivate an environment conducive to innovation, economic prosperity, and the realization of sustainable mobility goals to ensure a cleaner and greener future for generations to come.

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