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China’s carmakers are rewriting Europe’s auto hierarchy as Japanese rivals lose ground

But the rapid gains could slow if the EU widens tariffs on plug-in hybrid electric vehicles, analysts said

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Visitors view a BYD electric vehicle at Expo Georgia in Tbilisi, Georgia, on June 13. Photo: Xinhua
Themis Qi
Chinese carmakers are taking market share away from Japanese rivals in western Europe, pushing the latter’s share to its lowest level in four decades. But uncertainties over European tariff policies could weigh on exports from the world’s second-largest economy, analysts said.
Since the end of last year, Chinese electric vehicle (EV) manufacturers – from giant BYD to start-up Leapmotor – have stepped up efforts to boost overseas sales amid weakening domestic demand and Beijing’s campaign against excessive competition, with Europe one of their strategic targets.

Data from the Bremen-based consultancy Schmidt Automotive Research showed those efforts had paid off, with their market share in 18 countries in western Europe surging to 10 per cent in April from only 4.9 per cent a year ago.

The rising popularity of Chinese cars had also squeezed the market share of Japanese marques to 10.3 per cent in April from 11.4 per cent a year earlier, well below the up to 14.3 per cent commanded by the likes of Toyota and Nissan in 2007.

As Chinese carmakers such as MG-owner SAIC Motor planned to roll out more hybrid EV models, the share of Japanese manufacturers in western Europe was on track to sink below 10 per cent – a level not seen since the start of the 1980s, the consultancy said.

The slow transition by Japanese carmakers to battery electric vehicles (BEVs), hampered by limited scale because of the domestic market’s lack of demand, had cost them market share, said Matthias Schmidt, a European autos analyst at the German consultancy.

“The Japanese need to bring genuinely strong BEVs to market to compete,” Schmidt said. “The danger is that European consumers may no longer see the nuances between Chinese and Japanese cars.”

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