Electric cars are becoming increasingly present in the European Union market, with China positioning itself as one of the very important stakeholders in this market. While some economists warn of certain long-term consequences, other analysts consider this dynamic of market development to be positive. In any case, there have been several predictions that the West Europe could be inundated with Chinese cars, primarily because of their affordable and competitive prices.
One of the obstacles for China to launch its campaign in the European market earlier was the lack of large cargo ships, which the country, due to strongly focusing on its own and other Asian markets, rented. The largest Chinese exporter of electric cars the BYD Company recently secured eight cargo ships for the next two years to transport cars to their export markets – the Serbian Broadcasting Corporation (RTS) reported.
Recently, a cargo ship loaded with mostly electric cars from China arrived at a seaport in the northwest of Germany, despite all the difficulties imposed by in the current geopolitical situation. Apart from Germany, the Chinese cars have also been shipped to other European markets. The most interesting thing about this electric car manufacturer is their price, considering that some models of their new cars will cost around 10,000 euros, which is much more affordable than the European cars.
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BYD receives subsidies in China, the EU launched an official investigation a few months ago into the subsidies that China gave to its electric vehicle manufacturers, which could lead to punitive import duties on electric cars produced in China, which could affect both the export and price of these cars.
According to the European Commission, the prices of Chinese electric cars are generally about 20 per cent lower than those produced in the EU. Moreover, projections show that by 2025, China could have a 15 per cent share of the EU electric vehicle sales, according to DPA.
The European Commission has launched an investigation to assess whether punitive import duties should be imposed to protect EU manufacturers from cheaper Chinese electric cars, which are said to benefit from state subsidies. However, as the German car industry mostly exports to the East and as international trade is very complicated, the question remains whether the Commission will take any steps regarding this.
Despite these challenges, Chinese automakers continue to expand into the European market, using their technological innovation and competitive pricing to attract buyers.
Energy portal
