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China will maintain its leadership in car exports, despite EU duties


December, 24 2024
watermark Economic news

China will maintain its leading position among global car exporters in 2025. Despite this, the volume of supplies will significantly decrease due to the introduction of additional duties by the European Union on electric vehicles manufactured in China. 


Europe, as the largest overseas market, remains an important source of revenue for Chinese automakers who seek to minimize the impact of trade barriers by introducing gasoline and hybrid models.


Large companies such as SAIC Motor are expanding their product lines with hybrid technologies. Hua Chuang Securities estimates that Chinese car exports could reach 5.58 million units in 2025, up 14% from a year earlier, but significantly lower than the 29% increase this year and 58% in 2023, when China surpassed Japan.


According to Canalys, Chinese car exports grew by 27% in the first three quarters, reaching 3.1 million units. However, EU duties ranging from 17% to 35.3% will weaken demand for electric vehicles. SAIC Motor already offers hybrid versions of the MG3 and MG ZS models to retain European customers.


In October, the EU imposed new five-year tariffs on Chinese EVs, supplementing the standard 10% tax. They also affect brands such as Volkswagen and BMW, which produce cars in China.


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Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.