Chinese Electric Vehicle Sales Decline in Europe

Chinese electric vehicle (EV) manufacturers are facing significant challenges in the European market due to new tariffs imposed in July, which raised duties on their vehicles to as high as 48%. As a result, the share of Chinese EVs registered in Europe fell from 10.2% to 9.9% in just one month, reflecting a broader decline in EV sales across the continent. The EU has expressed concerns over the competitive pricing of Chinese-made vehicles, which are perceived to be subsidized, prompting these trade measures. Furthermore, the tariffs have led to hardships for dealerships like Jans Auto in Denmark, which has filed for bankruptcy due to decreased sales of Chinese EVs. Although there are talks about potential negotiations to limit the tariff impact, a resolution seems unlikely, given past experiences. Overall, the situation is exacerbated by a broader slump in the demand for electric vehicles across Europe, complicating the transition away from fossil fuel-powered cars.