China | EV sector: forging ahead amid intensifying headwinds

Summary

The EU Commission has recently announced the imposition of additional duties on Chinese EV imports. By examining the evolving landscape of China's EV exports and analyzing the impact of the newly imposed tariffs, the report aims to provide a comprehensive understanding of the future trajectory of China's overseas EV sales.

Key points

• Key points:
• In the first four months of 2024, China's EV exports have shifted their focus from Europe to Southeast Asia, amid the changing trade environment.
• Both foreign & joint-ventured automakers as well as Chinese own-brand manufacturers have contributed to China's EV exports.
• The impact of the new tariffs will vary by company. SAIC will be the most affected, while BYD and Geely could still export to the EU, though with declining profits.
• Western Europe will remain the primary destination for Chinese-brand automobile sales, with a higher EV penetration, while Southeast Asia and Latin America also offer substantial growth opportunities.
• By 2030, Chinese EV overseas sales will concentrate in Western Europe, Southeast Asia, and Latin America, accounting for around 80% of total overseas sales.

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