China's e-car exports 2025: tariffs and price war strain the industry!

China's electric car exports are facing stagnating growth forecasts. According to the General Secretary of the industry association CPCA, Cui Dongshu, no increase in the exports of electric cars are expected for 2025. Instead, an increase in entire Chinese auto exports is forecast by ten percent. In 2024, the exports of electrical and hybrid vehicles recorded an increase of 24.3 percent compared to the previous year, with a total of 1.29 million exported vehicles of these drive classes.

A crucial problem for China's e-car exports are the tariffs that are raised by the EU to electric cars produced in China. Last year, the EU decided to add additional tariffs that affect Chinese brands in particular. The German auto industry sees this tariff critically and fears possible countermeasures. In response to customs restrictions, Beijing introduced anti-dumping examinations against products such as brandy and pork.

market changes and trade conflict issues

The SWRUSSISCH Auto industry is also seen as a problem area for Chinese manufacturers, since no growth is expected there. Russia has become important for Chinese car manufacturers due to western sanctions due to the Ukraine War. In addition, an intensive price war in the e-car segment in China means that many manufacturers cannot currently make profits with their electric cars.

The EU also plans a competitive examination against China due to market distortions from subsidies for electric cars. This examination could take until summer 2024 and already arouses concerns about a possible trade conflict, especially in the German auto industry, which is heavily involved in the Chinese market. EU Commission President Ursula von der Leyen has described the introduction of punitive tariffs as likely, since Chinese electric cars are 20 percent cheaper than European models.

china reacted to the plans of the EU by the name "Blank Protectionism" and thinks about possible countermeasures how additional tariffs to European products or export restrictions on electronics components. The German automotive industry, in which companies such as BMW and Mercedes are heavily involved in China, demands safe framework conditions for the market.

The situation refers to a possible escalation of a trade war that could have negative consequences for both the EU and China. Future negotiations could pursue similar approaches to earlier discussions about solar cells, where punitive tariffs were avoided by minimum prices.