A recent study on vehicle registrations in European countries for the month of June reveals a growing presence of Chinese electric cars in the European market.
Chinese brands have captured 11% of the European electric car market, marking record sales despite the challenges posed by the European Union’s new tariffs.
According to Dataforce, the numbers show a significant increase in the registration of Chinese electric vehicles, coinciding with Giorgia Meloni’s visit to Beijing to explore new partnerships, including in the crucial automotive sector.
The relationship between Europe and China is currently facing complexities, with the US-China trade war extending to the old continent, where there’s a strong push to protect local industries and ensure fair competition in global industrial production.
Amidst this backdrop, Italy is actively seeking to strengthen ties with Beijing, a crucial commercial partner that cannot be overlooked.
This initiative comes after the Italian government’s decision to withdraw from China’s major global infrastructure project, the Belt and Road Initiative (BRI).
The data on the registration of Chinese electric cars in Europe serves as a warning for the European automotive sector, with concerns about an influx of Chinese-made vehicles flooding the market.
Chinese brands registered over 23,000 battery electric vehicles across Europe in June, a record-breaking number according to Dataforce.
Leading this surge is the China-based SAIC Motor Corp., which saw a 72% sequential increase in registrations from May, outpacing the overall growth in electric vehicle registrations in Europe for that month.
The SAIC-made MG4 hatchback made a significant impact, with pre-July 5th registrations likely avoiding additional tariffs on imported electric vehicles.
The sustainability of this volume growth will be monitored in the coming months, especially as the additional EU tariffs take effect.
SAIC faces an extra 38% tariff, while BYD will incur a 17% surcharge on top of the current 10% customs duty.
Detailed data highlights SAIC’s substantial contribution to Chinese brand imports in Europe, with the MG4 model accounting for around 40% of registrations.
Meanwhile, BYD Co., the world’s largest electric vehicle manufacturer, leveraged marketing efforts during the Euro Cup Championships in Germany to attract consumers successfully.
June marked the third-highest month for electric vehicle registrations in Europe, totaling 208,872 units across the region, following December 2022 and March 2023, and preceding June 2023.
Giorgia Meloni’s visit to China resulted in the signing of new agreements, including those related to electric cars, underscoring Italy’s commitment to deepen cooperation with China in various sectors.
The recently signed industrial cooperation memorandum aims to advance collaboration in strategic areas such as electric mobility and renewable energies, aligning with China’s technological advancements in these fields.
Italy, as China’s fourth-largest trading partner in the European Union, is steadfast in fostering a strong economic relationship with Beijing.
During the Italy-China trade forum, six new agreements were announced across different industries, with a focus on electric vehicles and renewable energies.
Technical details will be finalized through ministerial discussions to further solidify these partnerships.
“The Memorandum of industrial cooperation we signed is a significant step,” highlighted Meloni during the forum.
“It now encompasses strategic industrial sectors such as electric mobility and renewable energies, where China has been at the forefront of technological innovation.”
Meloni emphasized the importance of bridging the investment gap between Italy and China, with Chinese investments in Italy currently at one-third of Italian investments in China.
Fostering balanced economic ties remains a priority for the Italian government in enhancing relations with China.
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