Higher EU tariffs on electric cars made in China have prompted mainly Western carmakers to shift battery vehicle production from China to Europe, according to an analysis by clean transport campaign group T&E.
The EU introduced higher import duties on Chinese-made electric cars in 2024. Since then, the share of imports from China accounted for by European carmakers has fallen from 38% to 23%, while Tesla’s share has dropped from 26% to 19%.
The study found that imports by Chinese carmakers continued to grow despite the higher tariffs, driven largely by overproduction in China. BYD and Geely were the main contributors to that increase.
SAIC was the exception. According to the study, it faced much higher tariffs because the EU concluded the company had benefited more extensively from Chinese state support.
The report also said Chinese manufacturers had accelerated plans to build cars in Europe. Since the EU launched its investigation into Chinese subsidies in 2023, plans for 10 production sites in Europe have been announced.
Chinese companies have also stepped up their focus on plug-in hybrids.
T&E said imports of Chinese batteries, which face little to no tariffs, increased sevenfold between 2020 and 2025. At the same time, the future of European battery makers remains uncertain.
The group argued that trade measures could support European producers without slowing the shift to electric vehicles. A 20% tariff on Chinese batteries would raise the average cost of an electric car built in the EU by 2.8%, it said.
