Chinese-Made Electric Vehicles Set to Dominate 25% of EU Market in 2024: Report

Chinese-made electric vehicles (EVs) are anticipated to hold a substantial share of the European Union market this year, comprising approximately 25% of all EV sales, as reported by the Financial Times referencing analysis from the Transport & Environment (T&E) organisation.

This forecast aligns with the increasing presence of Chinese-Made Electric Vehicles from brands like MG and BYD in the European market, alongside Tesla’s utilisation of its Shanghai factory to supply a portion of its production to Europe.

In 2024, it is projected that one in every four electric cars sold in the EU will originate from China, marking a significant shift in market dynamics.

This trend is underscored by the steady rise in European sales of Chinese-made EVs, with approximately 19.5% of electric cars sold in the bloc last year being of Chinese origin.

T&E’s research suggests that this figure is set to rise to 25.3% by 2024, indicating the expanding market share of Chinese manufacturers across Europe.

The report highlights that while Western manufacturers such as Tesla, BMW, and Renault produce electric vehicles in China for importation into Europe, only Chinese-branded EVs are expected to constitute 11% of the EU electric car market this year, with a projected increase to 20% by 2027.

Brands like BYD have particularly experienced significant growth, progressing from holding a mere 0.4% share of the European EV market in 2019 to capturing 8% of sales last year.

Amidst Brussels’ ongoing investigation into whether local subsidies for Chinese-Made Electric Vehicles have displaced models from European production lines, the competitive landscape within the EU automotive industry is undergoing notable changes.

With Chinese brands gaining traction and market share, traditional European manufacturers face heightened competition, necessitating a reassessment of strategies to maintain relevance and competitiveness in the rapidly evolving electric vehicle market.

Transport & Environment (T&E) emphasises the imperative for EU carmakers to enhance the production of mass-market electric vehicles and invest in the European battery supply chain to effectively compete with Chinese counterparts.

The organisation advocates for regulatory measures to accelerate EV production, including electrification targets for company car fleets by 2030 and achieving a 100% clean car goal by 2035.

Challenges persist, particularly concerning investments in lithium-ion batteries, where Chinese-made cells currently enjoy cost advantages and technological superiority.

T&E calls for industrial measures such as subsidies for clean and circular manufacturing and the establishment of “Made in EU” targets to foster a resilient battery supply chain in Europe.

Julia Poliscanova, senior director for vehicles and e-mobility supply chains at T&E, underscores the urgency of action to ensure the competitiveness and diversity of Europe’s battery supply chain.

Without decisive measures, Europe risks falling behind in this critical sector.

Main Image: By Matti Blume – Own work, CC BY-SA, https://commons.wikimedia.org/w/index.php?curid=137404140