ECG — 2024-09-05
News from ECG
In the first 6 months of 2024 a total of 581,485 passenger cars have been imported to Europe (EU27, UK & Turkey only- excluding Russia) from China. This volume of just under 600k marks an annual increase of 3.08%. However, imports to the EU27 have risen just 0.6% in the first half of 2024 compared to the same period a year ago hitting 395,485 units. Meanwhile, imports to the UK of vehicles from China has risen 11.9% to 113,000 units in the same period.
But the story within the EU region is not as simple as it may seem. The numbers hide facets of intra EU trade dynamics and, in this report, we delve into the details to bring clarity to the complexities of finished vehicle logistics in Europe, with special focus on those units coming from China.
Belgium—the gateway to Europe—continues to be just that. Imports of passenger cars to Belgium account for 35% of the total imports into the EU up from 29.5% in 2023. But what has changed dramatically is the volumes shifting directly to other markets in Europe. The other 65% of the volume that comes to Europe from China has found its way to a myriad of countries whether imported by land, rail or sea. And for those involved in finished vehicle logistics this is a constantly changing picture as new tariffs and regulations come into play.
In the first 6 months of 2024, the volume of new cars made-in-China and imported to Belgium reached 139,015 units, up from 117,735 in H1 2023, a year on year increase of over 18%. This has cemented Belgium’s position as the main gateway into Europe. Spain is now the second biggest entry point for new passenger cars from China, accounting for 15.8% of the volume coming to the EU. This means Spain has received 62,394 new cars made in China in the first half of the year, but this is down over 7% year on year. Italy has received 44,936 new cars from China in the H1 2024 period, also slightly down on last year, and now accounts for 11.4% of the volume to the EU.
And the reason that some of the previous main ports of entry are losing share is the aggressive competition from a number of other countries keen on receiving direct shipments from China. Germany, Poland, Bulgaria, Greece and Lithuania stand out.
Germany’s imports of new cars from China were 35,134 units in the H1 period this year, an annual increase of 32.8%. This huge jump means Germany now controls 8.88% of the volume coming into the EU – and 888 is a lucky number in China meaning triple fortune! Will Germany be able to maintain this growth in imports and gain further ground?
Poland has also suddenly risen up the ranks, with volume jumping to 12,988 units imported in the first 6 months of this year, marking an huge 124% increase compared to the 5,807 units imported in H1 2023. Poland today controls 3.28% of the volume coming into the EU.
And while some are seeing growth in import volumes within the EU, there are others who have lost out dramatically. France and Romania stand out in particular. France imported just 11,092 passenger cars from China in H1 2024, down from 22,224 in the same period a year ago and - a 50.09% decline. Last year in H1 2023 France controlled 5.65% of imports to the EU, today that has dropped to just 2.8%. Romania meanwhile has witnessed a 68% drop in import volumes in H1 2024 with volume now at 7,588 down from 24,178.
With trade dynamics and regulations at play, new production plans for Europe and changing consumer preferences in terms of ICE or EV demand, the flow of Chinese-built new cars coming into Europe is changing rapidly and we at ECG Business Intelligence are working to keep you up to date.
Meanwhile, we see the UK cementing its position to make sure shipments destined for the UK market come direct to the UK. Those within the EU seem to be fighting for their own volumes too, strengthening their ports to attract direct shipments, addressing their rail connections and enhancing land networks, resulting in intra-EU trade dynamics intensifying and car imports from China moving directly to more and more final destination markets.
For more detailed insights, please see the latest Business Intelligence report here.