Continous growth expected for Chinese electric cars in Europe despite import tariffs

The rise of Chinese electric cars in Europe is far from over. Car sector association BOVAG reported, based on a study by consultancy agency KPMG, that the market value of Chinese electric cars will be 10 percent by 2030. This is a significant increase compared to 2023, when it was just four percent of the total European car market.

Chinese brands like BYD and Lynk & Co are expected to have very little trouble with the European import tariffs that were announced last year. “Chinese manufacturers can limit the impact thanks to the cost advantage they have already built up. They also, albeit through joint ventures, have plans to move a number of their assembly lines to Europe,” BOVAG wrote.

The expectation is that just under 19 percent of the electric cars sold in the Netherlands by 2030 will be owned by a Chinese brand. Three years ago, the expectation was this would amount to eight percent of the total sold cars.

Chinese brands are increasingly focusing on the affordable electric cars sector, and BOVAG has said that this is a sector in which significant growth is expected. These manufacturers are often able to offer a better price-quality ratio than manufacturers from other countries.

“With a broad product portfolio and access to a large number of people and resources, they can rapidly meet the current demand. While the first Chinese companies in this sector focused on the premium segment three years ago, more and more Chinese brands are now focusing on a competitive price-quality ratio,” BOVAG said.

The association said that the Chinese companies are also making better use of their distribution. While their focus initially was on direct sales, they now make use of a more traditional dealer network.

Several bottlenecks came forth from the study. “Insecurity about residual value and repairability is resulting in some reluctance from lease companies and insurers. And the dealer networks need to get used to the differences in business culture.”

Despite this, BOVAG thinks that "dealers who join can compensate for the declining market share of European brands.”