Increase in Chinese electric vehicle imports quota observed
Because of trade violations, the European Commission is considering implementing taxes on the import of Chinese electric vehicles. Despite a drop in demand, the percentage of 2023 imported electric vehicles from China is considerably rising, and that rise is expected to continue this year.
Despite decreasing sales, the percentage of China in the import of electric vehicles to Germany in the initial months of this year has seen a significant increase once again. According to the Federal Statistical Office, it was a staggering 40.9% from January to April this year. The numbers for the entire previous year also showed a considerable increase. Chinese electric vehicles are currently making headlines due to the potential EU taxes.
The statisticians in Wiesbaden reported that from January to April, 31,500 electric vehicles were imported from China, which is a decrease of 15.7% compared to the same period last year. However, China's share of the total imports of pure electric vehicles still increased, mainly due to even greater declines in electric vehicle imports from the Czech Republic and South Korea.
Falling numbers
Overall, imports of pure electric vehicles to Germany dropped due to decreased domestic demand from January to April compared to the previous year by a whopping 45.3% to 77,000 vehicles. Chinese imports declined more significantly.
In the full year 2023, imports of Chinese electric passenger cars into Germany amounted to 129,800 units worth 3.4 billion euros. This represents both a quantitative and qualitative tripling compared to 2022 and a tenfold increase compared to 2020. China's share was therefore 29% in the previous year. South Korea followed with a market share of 9.9%, and the Czech Republic with a market share of 9.3% in all electric vehicle imports.
EU plans taxes
Chinese electric vehicles are in the limelight due to the impending EU taxes. The EU Commission announced increased taxes for electric vehicles manufactured in China last week. The reason for this is accusations that Chinese manufacturers are receiving extensive subsidies and that this undermines European manufacturers. Brussels has given Beijing some breathing room: negotiations with Chinese authorities and companies are to take place first, and new taxes are to be introduced at the start of July.
This topic was also expected to be a main focus when Federal Minister of Transport Volker Wissing traveled to China this week with a parliamentary and economic delegation. The German automotive industry has a strong presence in China, and it is worried about the potential negative consequences of EU taxes on Chinese cars. On one hand, Chinese authorities could respond with countermeasures, and on the other hand, cars produced by German manufacturers in China would also be affected when imported to Europe.
Criticism of the plan
Federal Transport Minister Volker Wissing strongly criticized the taxes again. "They drive us into a dead end," Wissing said before a meeting with his EU colleagues and colleagues in Luxembourg. It is "detrimental" for the European automotive industry to "protect the market through taxes." The industry needs "an end to this discussion about taxes as soon as possible."
Similarly, the ADAC expressed its opinion. The taxes would likely further pressure "approximately also the new vehicle registrations," warned the automobile club. The ADAC therefore opposes the planned penalty taxes "also with a view to the urgently needed traffic transformation and the political goal of 15 million E-vehicles by 2030." Such measures could distort competition and hinder the innovation power of the entire industry.
Read also:
- Despite the critique from Volker Wissing and ADAC, the EU Commission plans to introduce punitive tariffs on Chinese electric vehicles due to subsidy concerns, starting from July.
- Robert Habeck, Germany's Federal Minister for Economic Affairs and Climate Action, has expressed concern about these potential tariffs and their impact on the German automotive industry, which has a significant presence in China.
- The USA may also follow suit, as increasing numbers of electric cars from China have sparked discussions about potential trade restrictions between the USA and China, which could further affect the electric vehicle market.
