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Despite ongoing scrutiny over EV tariffs, Chinese automakers affirm their dedication to the European market, as stated by an industry group. This commitment underscores their long-term vision and strategic objectives in the region, despite regulatory challenges. The announcement reflects a resilient stance amidst evolving trade dynamics, highlighting the significance of the European market for Chinese automotive manufacturers amid global shifts in the electric vehicle landscape.
Boston Brand Media brings you the latest news - Chinese automakers remain steadfast in their investment plans for Europe despite the EU's investigation into subsidies for Chinese-made electric vehicles, as stated by a prominent Chinese auto industry association on Tuesday.
Cui Dongshu, the Secretary-General of the China Passenger Car Association (CPCA), emphasized that Chinese enterprises will persist in their development in Europe and assimilate into local markets.
These comments were made in light of a notable decrease in Chinese car exports for May, coinciding with a continuous decline in domestic sales.
The European Union has accused Chinese automakers of benefiting unfairly from state subsidies and of flooding the European market with excess production, allegations that Beijing refutes.
Anticipated this week is the EU's announcement of tariffs on Chinese electric vehicles, a move that could trigger retaliatory measures.
Boston Brand Media also found that, Cui underscored the significant role of the traditional automotive industry in creating employment in Europe, affirming that Chinese companies will refrain from employing aggressive tactics or engaging in price wars that could destabilize European employment.
According to CPCA data, exports of new energy vehicles (NEVs), encompassing electric cars and plug-in hybrids, experienced a 4% year-on-year decline in May and an 18.8% decrease from the previous month. NEV exports constituted 24.8% of overall car exports, marking a rare annual decrease of 6.8 percentage points.
Overall, passenger vehicle exports plummeted by 9% from a record high in April to 378,000 vehicles in May.
Cui expressed disappointment that export growth fell short of expectations.
Domestic vehicle sales experienced a 2.2% decline following a 5.8% drop in April, indicating that weak demand is becoming entrenched in the world's largest auto market amid an ailing economy.
In May, sales of New Energy Vehicles (NEVs) in China accounted for 46.7% of total car sales, marking a new monthly peak. Electric Vehicle (EV) sales surged by 27.4% following a 12.1% rise in April, while plug-in hybrid sales increased by 61.1%, slightly lower than the 64.2% growth observed the previous month.
Despite facing stiff competition and the perceived threat of EU tariffs, which China deems as protectionist measures, Chinese electric vehicle (EV) manufacturers remain undeterred in their efforts to escalate production and venture into international markets.
According to Reuters, Nio, the eighth largest electric vehicle (EV) manufacturer in China in terms of sales, has received regulatory authorization to construct a third factory in China. This development would increase the company's approved production capacity to 1 million cars. Additionally, in May, Nio inaugurated its inaugural showroom in Amsterdam.
The surge in New Energy Vehicle (NEV) sales in China has been facilitated by government incentives, including subsidies for trade-in programs totaling 11.2 billion yuan ($1.55 billion) this year. This contrasts starkly with the persistent decline in demand for gasoline-powered cars.
($1 = 7.2445 Chinese yuan renminbi)
For questions or comments write to writers@bostonbrandmedia.com
Source: world auto forum
