The European Union is investigating whether low-priced Chinese electric vehicles are distorting the car market amid growing import numbers, with their government-subsidised prices threatening the livelihood of European car makers.
The investigation was announced in a speech on Wednesday by European Commission president Ursula von der Leyen.
The increased focus on Europe as a market for China’s big car makers posed a problem for the region’s nascent electric car industry, von der Leyen said. “Their price is kept artificially low by huge state subsidies. This is distorting our market,” she added.
Imports from Chinese car makers into western Europe doubled to more than 200,000 in 2022 compared with the year before for a market share of 2%, according to figures from analyst company Schmidt Automotive. In the first seven months of this year, Chinese makers have increased their share to 2.8%.
Within just electric vehicles, that share rises to 8.2% across western Europe, Schmidt’s figures show
The biggest player in terms of numbers is SAIC, whose MG brand was the 11th largest in the UK through August this year, according to figures from UK lobby group the SMMT. MG’s success means the UK has the second highest penetration of Chinese car makers in any European country after Sweden at 5%, according to Schmidt’s figures.
News of the investigation was greeted warmly by European automotive lobby group ACEA. “Von der Leyen’s announcement is a positive signal that the European Commission is recognising the increasingly asymmetric situation our industry is faced with,” Sigrid de Vries, ACEA director general, said in a statement emailed to Autocar.
The news will also be welcomed by Stellantis, whose CEO, Carlos Tavares, has been outspoken about what he sees as an “invasion” of cheaper cars subject to lower tariffs into the region compared with those faced by European car exports into China. Chinese cars are taxed at 10% coming into Europe, compared with 25% going the other way.
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