According to Bloomberg, electric vehicle registrations by Chinese automakers in Europe dropped by 48% in August compared to the same period last year, marking the lowest level in the past 18 months.
Data from research firm Dataforce shows that this 48% decline has resulted in a consecutive drop in market share for Chinese brands in Europe for the second month. Similarly, Jato Dynamics, which tracks automotive market data, reported that SAIC Motor's MG lost its leading position in the European market to Chinese competitor BYD in August.
Jato's data revealed that MG's sales in Europe fell by 65% year-on-year in August, largely due to uncertainties regarding EU tariffs on Chinese electric vehicles. In contrast, BYD, a new heavyweight player in the European market, continued to make significant strides, with registrations increasing by 19%.
Among Western car brands, BMW, Mercedes-Benz, and Renault all saw a decline of 50% or more in their European registrations in August. However, Tesla experienced a 7% year-on-year increase in sales, and the popular Volvo EX30 contributed to a more than double sales growth for Volvo's parent company, Geely Holding Group, in Europe.
In addition to the tariff impact, a broader decline in demand for electric vehicles in Europe has added to the uncertainty faced by automakers. Following the removal of purchase incentives in major European markets like Germany, electric vehicle registrations in Europe decreased by 5.5% year-on-year in the first eight months of this year.
Some European automakers have called on the EU to reconsider key climate targets, such as the 2025 automotive emissions goals, as declining electric vehicle sales and non-compliance with emissions standards could result in billions of euros in fines for manufacturers.
