China’s EV Exports Face Challenges as EU Tariffs Take Effect

New EU tariffs on Chinese electric vehicles are slowing export growth and reducing market share, prompting shifts in strategy by Chinese automakers.

The European Union implemented tariffs of up to 45% on Chinese electric vehicles in late October, citing unfair state subsidies.
China's EV exports by value fell 42% year-on-year in November, marking the steepest decline since April 2022, with volumes down 19%.
Chinese automakers like SAIC Motor are pivoting to hybrid and petrol models to counter the impact of tariffs in the European market.
BYD has increased its market presence in Europe, with EV registrations doubling in November, while SAIC's MG brand saw a 58% drop in registrations.
Despite the slowdown in exports to Europe and emerging markets, domestic EV sales in China remain strong, and manufacturers are building supply chains in the EU, Southeast Asia, and Latin America.