EU tariffs curb Chinese EV imports and spur production shift to Europe

EU anti‑subsidy duties on battery‑electric vehicles (BEVs) from China have reduced the share of Chinese‑made EVs in the European market from a peak of 22 % in 2024 to 17 % in the first quarter of 2026. The decline is mainly due to Western manufacturers such as BMW, Volvo and Tesla moving production from China back to Europe, cutting the proportion of Chinese‑origin BEVs sold by western brands from 38 % to 23 % of total imports.

Chinese manufacturers have responded by expanding production capacity in Europe and shifting sales toward plug‑in hybrid electric vehicles (PHEVs). Their share of the EU PHEV market rose from 3 % in 2024 to 13 % in 2026. Imports of Chinese batteries, which face little or no duty, have risen seven‑fold since 2020, and now supply the majority of batteries used in EU EVs. The study notes that while the tariffs have forced a relocation of some western production and limited the growth of certain Chinese brands (e.g., SAIC, hit with a 35 % duty), others such as BYD have more than doubled imports despite a 17 % duty, keeping Chinese BEVs on average 21 % cheaper than European models.

The analysis concludes that the EU’s tariff regime has partially succeeded in reshaping supply chains but has not eliminated the competitive advantage of Chinese EV makers, and further measures—potentially higher duties on batteries—may be required to protect the emerging European EV and battery sector.