European EV Market Faces Challenges Amid Tariff Increases and Slumping Sales

Chinese EV makers adapt by setting up local production as Europe grapples with declining demand and supply chain issues.

Chinese EV companies like BYD and Nio are establishing assembly plants in Europe to avoid increased EU tariffs on imported vehicles.
EU plans to impose additional tariffs ranging from 9% to 35.3% on Chinese EVs after negotiations failed to reach a deal.
Electric vehicle sales in Europe dropped by nearly 44% in August, driven by a significant decline in Germany following the phase-out of EV subsidies.
European battery manufacturers and startups, such as Northvolt, are scaling back due to weak demand and fragmented supply chain development.
Western automakers face criticism for slow innovation and over-reliance on legacy manufacturing methods, risking their competitiveness against Chinese firms.