Chinese made electric vehicles are expected to account for over a quarter of the European market, an increase of 5 percentage points from the same period last year. This poses competitive challenges and policy risks for it.

European governments may respond to competition from Chinese made electric vehicles by raising tariffs and other means, while accelerating the promotion of localized production and improving the self-sufficiency of electric vehicle batteries.

Although Western brands such as Tesla still dominate, the market share of Chinese brand electric vehicles is gradually increasing. In 2024, it is expected that Chinese brand electric vehicles will account for over 25% of the European market. The European Commission is investigating China's subsidies to local electric vehicle manufacturers to determine whether there is unfair competition.

The EU may raise import tariffs on Chinese electric vehicles and promote localization of the European electric vehicle supply chain. Europe needs to accelerate the transition of electric vehicles and improve the self-sufficiency of electric vehicle battery production to cope with the competition of Chinese made electric vehicles.

In addition, electric vehicle manufacturers such as Tesla and BYD are increasing their production efforts in Europe, promoting factory expansion and establishment plans to cope with market changes and policy risks.