China’s auto shipments to EU surge, but could be near their peak: European analysts
The rapid ascent of Chinese car brands in Europe could be nearing a turning point as both the EU and Germany consider protectionist measures
One in every 10 new cars registered in the European Union in May was from a Chinese brand, but European analysts say the rapid rise could be approaching a turning point as Brussels moves to extend tariffs and Germany hardens its trade stance.
“We’re at the turning point,” said Beatrix Keim, director of Centre Automotive Research in Germany, lowering her forecast for Chinese brands’ European market share to 15 per cent by 2035, from a previous projection of 20 per cent.
PHEVs, Chinese brands’ fastest-growing segment in Europe, could be the next target for Brussels. Registrations surged about 270 per cent in the first five months, according to Dataforce, although the cars remained subject only to the EU’s standard 10 per cent import tariff – “a loophole the EU unfortunately left in the original penalty-tariff regulation”, Keim said.
The European Commission was also preparing anti-subsidy duties on Chinese PHEVs, according to German business publication Handelsblatt. Any proposal would require a fresh investigation, though Stefan Bratzel, director of the Centre of Automotive Management, said it was “not unlikely” the vehicles would be brought under the tariff regime.