Automotive News Europe — 2024-06-11
Automotive Industry
Chinese car exports fell in May 2024 amid an ongoing slide in domestic sales.
Chinese automakers' plans to invest in Europe will not be deflected by the EU's anti-subsidy probe into Chinese-made electric vehicles, a leading Chinese auto industry association said.
"Chinese enterprises will continue to unswervingly develop in Europe and integrate into local markets," said Cui Dongshu, secretary general of the China Passenger Car Association (CPCA).
He made the remarks while announcing a rare drop in Chinese car exports for May 2024 amid an ongoing slide in domestic sales.
The European Union alleges Chinese automakers benefit unfairly from state subsidies and accuses them of dumping excess production on Europe, charges that Beijing denies.
The EU is this week (third week of June 2024) expected to announced the tariffs it plans to impose on Chinese electric vehicles in a move that could prompt retaliation.
"The traditional automaking industry plays a big part in generating employment in Europe ... Chinese companies will not take aggressive measures or low-pricing moves to disrupt the stability of employment in Europe," Cui said.
Chinese exports of new energy vehicles (NEVs) - which include electric cars and plug-in hybrids - fell 4% year-on-year in May 2024 and were down 19% from the previous month, CPCA data showed.
NEV exports as a percentage of overall car exports stood at 24.8%, a rare yearly fall of 6.8 percentage points.
Overall, passenger vehicle exports fell 9% from a record high in April to 378,000 vehicles in May 2024, the data showed.
"Export growth did not meet our expectations," Cui said.
Domestic vehicle sales were down 2.2% following a 5.8% decline in April 2024, in a sign weak demand is becoming entrenched in the world's biggest auto market amid a sputtering economy.
Sales of NEVs in China made up 47% of total car sales in May 2024, a fresh monthly high.
EV sales rose 27% after a 12% increase in April 2024, while plug-in hybrid sales rose 61% versus a 64% jump the month before (April 2024).
Stiff competition and the threat of EU tariffs, which China labels as protectionism, have done little so far to deter Chinese EV makers from ramping up production and exploring overseas markets.
Nio, the eighth biggest EV maker in China by sales, has won regulatory approval to build a third factory in China that would boost its total approved production capacity to 1 m cars, Reuters reported.
The company also opened its first showroom in Amsterdam in May 2024.
Sales of NEVs in China have been helped by government subsidies for trade-in schemes worth 11.2 bnb yuan ($1.55 bn) in 2024, and contrast with a continued decline in demand for gasoline cars.