top of page
Search

ICEs increasingly drive European imports of made-in China passenger cars

  • Writer: Matthias Schmidt
    Matthias Schmidt
  • 9 hours ago
  • 2 min read
Stacked area chart shows rising imports of Made-in-China cars to Europe despite BEV roadblocks.

According to the latest Q1 2025 Schmidt Automotive Research Quarterly European Chinese OEM Passenger Car Study, more than 0.2 million Chinese made passenger cars (including SKD/CKD kits) entered the Western European new passenger car market during a single quarter for the first time during Q1 2025, with a trajectory approaching one million units by the end of the year. 


That equated to 7% of the total new passenger car market during the same period, which was also a record penetration of the 18-market regional new passenger market.


But how is that possible with anti-subsidy tariffs hitting hard during Q4 2024? 


  • Shift to safe-haven markets such as the UK, which aren't replicating tariffs.

  • Pivot to non-BEV models that aren't impacted by the EU's anti-subsidy tariffs. 


However, BEV model reshoring by Western OEMs such as Volvo Cars (EX30) and BMW Group (IX3) to partially navigate tariffs is seeing the Western OEM share of BEVs imported to the region fall, alongside a shift from Chinese OEMs switching from BEVs to non-BEVs. 


We also expect low-volume Geely brands to follow suit in nearshoring some production, as well as Stellantis' 51% Leapmotor (International) JV. 


The result? More non-BEV models are being shipped from China. 


With BYD only accounting for 13% of those total Chinese imports, the shift from BYD opening a local European production site isn't expected to have a huge impact on dampening the encroachment from models being shipped from China to Europe, which is likely to impact underutilised European production sites further. During the same period we are seeing daily charter rates of Pure Car Truck Carrier (PCTC) roll-on roll-off shipping vessels used to ship the vehicles from China to Europe sink from the peak $120,000 daily charter rates as more vessels ordered during the Covid period come online, which is increasing the competitiveness of those Chinese models entering the region and diluting the impact of tariffs for BEVs.

More in the full study...

Source: Schmidt Automotive Research 



All of our reports, which feature exclusively researched data, can be purchased here. ◼︎︎


*Western Europe 18 Markets: EU Member States prior to the 2004 enlargement plus EFTA markets Norway, Switzerland, Iceland, plus UK

Comments

bottom of page