China’s electric vehicle shipments to the European Union defied the bloc’s newly imposed tariffs to report a surprise uptick in December, prompting market worries that Sino-European trade tensions could escalate further in 2025.
Advertisement
The volume of Chinese electric vehicles exported to the EU rose to 32,849 units in December, up 8.3 per cent year on year, according to Chinese customs data released on Monday.
The gains reversed two consecutive months of sharp declines largely driven by the EU’s decision to raise tariffs on Chinese EVs by up to 45 per cent starting from October. Sales in October plunged almost 40 per cent, while November sales were down by a quarter.
The EU remained the top buyer of Chinese EVs in 2024, purchasing nearly 30 per cent of China’s outbound shipments. But the 27-nation bloc saw its total annual imports of Chinese EVs fall 6 per cent year on year in 2024.
The major European buyers of Chinese EVs were Belgium, Germany, Spain, Netherlands and Romania, according to the data.
An increase in volume but a decrease in value reflects falling prices, which is the key concern of European policymakers
Analysts warned there was a high risk of a further deterioration in EU-China ties this year, with more trade products potentially being targeted by protectionist policies.