Local time on May 8, the European Union president von der Leyen said in an interview in Berlin, Germany, in fact, the European Union for Chinese cars as early as last year began, in September 2023, the European Union president von der Leyen claimed that Chinese trams are sweeping the world, and the reason why Chinese trams can be sold is that China is a huge subsidy for every Chinese car.
Her exact words:
"The global market is now flooded with cheaper electric vehicles, and huge state subsidies are keeping their prices artificially low."
As early as October 4, 2023, the European Union officially launched an anti-subsidy investigation into Chinese-made electric vehicles.
Then on March 1, 2024, U.S. President Joe Biden said that Chinese cars endanger the national security of the United States and announced that he would crack down on Chinese cars.
The United States has also recently announced tariffs on a range of Chinese goods, including solar cells, electric cars, computer chips and medical products. Among them, the tariff on electric vehicles was increased from 25% to 100% (after the tariff was increased from 27.5% to 102.5%), the tariff on power batteries was increased from 7.5% to 25%, and the tariff on battery parts was increased from 7.5% to 25%.
Behind the encircle of China's electric vehicles in Europe and the United States is the development status quo of China's auto exports. In 2023, China's annual vehicle exports of 5.22 million, an increase of 57.9%. The momentum is continuing. The newly released statistics of the General Administration of Customs show that in April 2024, China's total automobile exports reached 556,000 units, and the export amount exceeded the $10 billion mark, reaching $10.7 billion, both hitting a monthly record high. Shi Qingke, vice president of Great Wall Motor and head of its overseas business, said the increase in U.S. tariffs would have no impact on Great Wall Motor. Since the United States is not currently a major market for Chinese auto exports, the actual impact of the United States on China's electric vehicle tariff threshold is not large. Data show that at present, the United States market for China's new energy vehicle exports accounted for less than 1%.
So how will European car companies react to the EU's enthusiasm for protection?
On April 14, 2024, during German Chancellor Scholz's visit to China, 650 German companies, including all German auto companies, jointly opposed the EU's tax on Chinese cars.
On April 15, German Chancellor Scholz made a public speech in Shanghai, China, solemnly promising that the German market welcomes Chinese cars.
German car companies have also said that the EU's imposition of tariffs on Chinese electric vehicles is to shoot itself in the foot. Europe's car industry, they say bluntly, does not need protection.
BMW Chairman Ziptzer stressed:
The successful development of the BMW Group in China is closely related to China's vigorous economic development and social progress in the past 30 years. Over the past 30 years, the BMW Group has always adhered to its home in China, becoming a model of long-term win-win cooperation between Germany and China. "China is where the future lies and is a major market for the BMW Group worldwide. Our continued success in China is inseparable from the continued growth and development of our footprint in the country. We will promote prosperity through deepening cooperation and continue to expand investment in China, "the BMW Group said.
Kang Linsong, chairman of the board of directors of Mercedes-Benz, told reporters:
Mercedes-benz is optimistic about the development potential of the Chinese market, and will continue to invest in China in the future, strengthen cooperation with Chinese partners, and as always contribute to Sino-German economic and trade cooperation.
So what is the actual status of China's auto exports?
The outstanding performance is Russia, in 2023, Russia became the main export destination of Chinese cars, China's total vehicle exports to Russia more than 900,000, an increase of 459%. After the outbreak of the conflict between Russia and Ukraine, car companies from the United States, Europe and Japan and South Korea have withdrawn from the Russian market, providing a rare opportunity for Chinese car companies. Sales of Chinese brands such as Great Wall, Chery and Geely have steadily increased in the Russian market.
It was followed by Mexico with 415,100 units, up 62 per cent year on year and accounting for 8.5 per cent of total exports. Byd, SAIC, Chery and other auto companies are actively negotiating with the Mexican government to build factories, and a number of Chinese supply chain companies have also begun to build factories in Mexico.
In addition, in 2023, the main export destinations of Chinese cars, Belgium, Australia, the United Kingdom, Saudi Arabia are about 210,000; Thailand and the Philippines have approximately 170,000 vehicles each, while the United Arab Emirates and Uzbekistan have 150,000 and 110,000 vehicles respectively.
In Europe, Chinese cars continue to gain market share. Chinese carmakers accounted for more than 4 per cent of the European market in March, with combined vehicle sales of 57,400 units, up 6.6 per cent from a year earlier.
To sum up, it can be seen that in the process of exporting overseas, Chinese automobile brands have not only achieved a rise in volume, but also achieved a breakthrough in brand influence. For the development of overseas markets, although there are some special difficulties around, Chinese cars have still withstood the test and are handing over a brilliant report card to the world.