Chinese EV in Europe

European tariffs on Chinese EV's have risen by 54% which is made up of a customs tariff on Chinese EVs at 44% and a standard tax at 10%. Even with this, Chinese sales have grown by 13% this year.

Chinese EV manufacturers plan to start assembling vehicles within Europe and Chinese EV import has risen from 400k in 2024 to 700k this year. Following this trend, estimates are at a million to 1.3 million imported from China.

China is making EV's 50% cheaper than Germany, meaning even with import tax, they are still competitive with sales remaining strong. BYD is even making a assembly factory in Spain.

Chinese factories are not even working at full capacity so even more pressure on Europe can be expected.

Another development being worked on in China is the eventual implementation of humanoid robots in factories and assembly lines including car manufacturers.

Magna Styr in Graz, Austria remains an attractive contractual assembly opportunity for Chinese EVs to be assemble and will be one of major European partners for Chinese car companies.

BYD have increased their sales this year by approximately 300% but this will drop, with the next biggest manufacturer, Xpeng, also increasing sales by 250%.

China's advantages in the industry is the government investment and sponsorship through subsidies that has helped manufacturers greatly. Their current productivity is much higher compared to European manufacturers.

To develop and deliver new vehicle models takes two years in China while in Europe it takes nearly five years. Extrapolating this comparison, it becomes very possible that some European car companies will not exist in a three years' time.

In the last two years specifically, German manufactures have already laid off 130k workers. Main German car manufacturers such as Volkswagen, Mercedes, and Audi are on the edge of collapsing as they haven't been able to adapt to EV production quickly enough. BMW is in a slightly better position as they have been adapting for longer.