Overview
- Transport & Environment’s analysis shows the share of Europe-sold battery EVs made in China by western brands fell from about 38 percent to 23 percent by the first quarter of 2026.
- The decline reflects western OEMs such as BMW, Tesla, Volvo, Dacia and Smart shifting more EV production from China into European factories in response to the 2024 company-specific anti-subsidy tariffs.
- Several Chinese groups adapted: BYD and Geely substantially increased EU sales despite duties, SAIC’s imports plunged where higher tariffs applied, and Chinese firms have announced roughly ten planned production sites in Europe.
- Chinese battery shipments to the EU rose roughly sevenfold from 2020 to 2025, creating a supply-chain and competitiveness vulnerability because batteries face much lower tariffs than finished cars.
- The findings sharpen policy choices for Brussels and capitals such as Germany on whether to raise battery import duties, deploy targeted industrial support, or use fleet and subsidy rules to protect local manufacturers and jobs.