The Chinese EV market has returned to growth despite reports of a sales collapse after the scrapping of Chinese EV subsidies early 2026. China\u2019s rapid electrification continues, relying heavily on export markets to absorb significant domestic overcapacity. With the US market effectively closed, Europe represents a primary destination (second to the APAC region) where vehicles can be sold at higher profit margins.<\/p>\n
While the 2024 BEV tariffs successfully drove the relocalisation of Western OEMs and the onshoring (or nearshoring in Turkey) of Chinese production, pressure remains acute. Rising imports of Chinese-manufactured BEVs, PHEVs, and ICE vehicles \u2014fuelled by unprecedented overcapacity\u2013 threaten EU automaker employment, necessitating decisive policy intervention.<\/p>\n
To address this, the EU must: 1) ensure European automakers remain on track and prioritise EV sales by safeguarding the ambition of EU car CO2 regulations; 2) establish robust final investment decision (FDI) rules for Chinese OEMs producing in Europe under the IAA; and 3) activate appropriate trade defence mechanisms.<\/p>\n
Specifically, the EU must increase tariffs on Chinese battery imports. These duties remain exceptionally low (1\u20133%) despite the EV anti-subsidy investigation confirming that Chinese battery production is heavily subsidised. Without immediate action to support EU-based producers, the domestic battery industry may not survive.<\/p>\n","protected":false},"excerpt":{"rendered":"The Chinese EV market has returned to growth despite reports of a sales collapse after the scrapping of…\n","protected":false},"author":2,"featured_media":1085351,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5174],"tags":[11246,1395,2000,299,5187,9673,475,479],"class_list":["post-1085350","post","type-post","status-publish","format-standard","has-post-thumbnail","category-eu","tag-analysis","tag-china","tag-eu","tag-europe","tag-european","tag-impact","tag-imports","tag-tariffs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/116909298626014391","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1085350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1085350"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1085350\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1085351"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1085350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1085350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1085350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}