The time that the European Union itself had given itself to decide on tariffs on Chinese electric cars was about to run out when the European Commission confirmed that these were going to be activated. As a negotiating measure, they indicated that the compensatory duties collected until then were returned but what was collected as of October 31st was not.

The reason for implementing these tariffs was, according to the European Union, the doping that the Chinese State provides to its local companies and those that produce there (including Western ones, such as Tesla, Volkswagen or BMW that have also benefited from their subsidies. or manufacture associated with companies that have received them).

This doping allowed them, according to their accounts, to put electric cars on the market at a lower price than the rest of their European competitors. An advantage that is not considered fair because they would be offering lower prices simply because they have that push from the Chinese Government, not because they have a real competitive advantage.

Europe therefore focused on the technology that should lead the future of the automotive sector in the future. With the measures that have been taken (2035 ban on selling combustion engines that are not carbon neutral but, of course, the new emissions limits for 2030 and 2025), Europe’s interest has focused on manufacturers Chinese do not gain market share now that puts them at a competitive advantage before popularizing the technology.

Data that is not optimistic

According to the latest data from ACEAthe market share of the electric car has decreased slightly so far this year. In 2023, between January and October, 14% of cars sold were electric. Between January and October 2024 (latest data available) that percentage has been reduced to 13.1%.

A decline that comes driven by Germany especially. The German country has had a difficult year. When 2023 was coming to an end, Justice suddenly ended all aid for electric cars overnight. Without the government boost, its sales have suffered in an economy that is not working.

To give us an idea of ​​the disaster, 1,172,737 electric cars have been sold throughout the European Union between January and October of this year, compared to the 1,232,937 cars powered by this technology in the same period of 2023. A drop of 60,200 units. In Germany, Europe’s main market for electric vehicles, the drop so far is 26.6%.

Between January and October 2023, 424,623 electric cars were sold in Germany. This year, sales have remained at 311,881 registrations. That is, almost 113,000 units have been sold in ten months. Almost double the total fall than the sum of the rest of the markets.

Although growth in countries like France (second electric car market), Belgium and the Netherlands continues to grow, the data says that one of the main obstacles to continuing to support its sales is the high price. The market share In countries with lower purchasing power, the electric car is still well below 10% and, in some countries like Spain, they deal with a market share of 5%.

The charging network and purchasing power remain key for drivers to embrace this technology. And China is responding to these two problems. Because the focus has been on electric vehicles until now.

But what if Europe has missed the mark?

Have you aimed where it didn’t belong?

Chinese plug-in hybrids may be the Trojan horse that Europe did not count on.

The cars we need

With these conditions, Chinese manufacturers have set their sights on Europe to sell their electric vehicles but, of course, also other technologies with which they can clearly gain market share.

Aware that in Europe cars with combustion engines are still needed At an affordable price, MG or BYD have a good market niche to conquer. Both with electrified and non-electrified vehicles. ACEA does not offer BYD sales data but does we can expect a very significant increase sales in 2023 with the arrival of new models, including plug-in hybrids.

We do know that in Spain, the company has sold a total of 4,047 units between January and November 2024, according to ANFAC data. It is not a best-selling figure, by any means, but it is above Alfa Romeo (2,569 units), DS (3,721 units) or Honda (3,438 units). And on par with Mitsubishi, which has sold 4,638 units.

And market share continues to increase among models that have non-electrified models. Omoda and MG They are the best example that cars with little or no electrification at a very low price have enormous space to gain. ACA does not provide Chery data in Europe but Omoda in Spain has recorded 6,893 registrations so far this year. In addition to the previous cases, it is on par with Suzuki and MINI (6,083 and 6,867 units, respectively).

The case of MG is the most striking. In Spain it has placed 27,336 so far this year, a little more than the 25,861 registrations last year between January and November. Mazda, Fiat, Ford, Volvo and even Opel have sold fewer cars than MG.

In Europe, ACEA provides data for SAIC as a group, where MG is its leading brand. Its sales have gone from 184,758 units between January and October 2023 to 197,625 in the same period of 2024. In Europe (despite being in the lower part of the table), Suzuki, Mazda, Jaguar Land Rover, Honda and Mitsubishi have sold fewer units.

With this photograph, Chinese manufacturers know that the non-electrified combustion engine and the plug-in hybrid are key. Firstly, because non-electrified combustion engines earn them the favor of a public that has lost support in recent years. Cars are now much more expensive than five years ago, the supply is smaller and European manufacturers are turning their backs on them because they are more expensive to manufacture and less profitable in their sales.

Added to this is a highly competitive plug-in hybrid. BYD’s launches target this market and have allowed it to surpass Honda or Ford in recent times, since the sales of this technology around the world have allowed it grow 70% compared to the previous year.

The plug-in hybrid is essential in china where more and more people are joining in in recent months (in fact, The Chinese Government activated new aid to the purchase of electric boost sales of this technology). But also in European countries where the new limits of emissions from 2025 and 2030 will make them gain weight since, due to their particular approval) they significantly reduce the emissions registered in each automobile group.

In that market, BYD has plug-in hybrids that promise a thousand kilometers of autonomy. They are the DM-i that use complex technology to get the most out of their batteries. To understand it better, the front electric motor is connected to the wheels of its axle but also acts as a generator when braking, taking advantage of regenerative braking to extend the electric range.

So far everything is normal but its four operating modes, like Honda’s e:HEV technology, allow it to move as a pure electric vehicle but, at the same time, as a series hybrid, parallel hybrid or exclusively with the thermal engine. The driving modes are varied by the software depending on the driver’s demands.

To all of the above we must add that BYD plug-in hybrids allow them to be charged with direct current, which is not common in this type of vehicle. Honda, which mounts a very similar system, offers consumption data on its plug-in hybrid Honda CR-V slightly lower than BYD’s with a very similar sized battery and lacks that fast charging.

But, above all, the big difference is in the price. A Honda CR-V with its e:PHEV technology is sold in Spain for 61,760 euros. The BYD Seal U DM-i, which is slightly larger, more powerful and equal in consumption and electrical autonomy, remains at 37,290 euros. In addition, the BYD model can add aid of up to 5,000 euros with the MOVES III Plan, because it remains below 45,000 euros before taxes. The Honda does not enjoy this advantage.

In fact, if we filter plug-in hybrid cars between 4.65 and 4.80 meters longMG and BYD stand out for being much cheaper than the rest of their rivals. The MG HS plug-in hybrid can be purchased for 35,780 euros and the BYD Seal U DM-i for the aforementioned 37,290 euros.

Above, only the Cupra Leon Sportstourer remains below the 40,000 euro barrier. Options such as the Skoda Kodiaq, Opel Grandland or Peugeot 408 sell for above 42,000 and 43,000 euros, the latter two options being significantly smaller than the MG or BYD options. Except for the Skoda, the first plug-in hybrid SUV above 4.70 meters is the Mitsubishi Outlander and we are already talking about more than 48,000 euros.

These are just some examples of how China has a huge market niche to conquer in Europe. The European Union has focused on stopping the Chinese electric car but, perhaps, it has missed the mark by losing sight of the fact that the plug-in hybrid is a technology that is about to grow and pure combustion is not dead. And in both cases, Chinese manufacturers have much cheaper and more affordable options than European ones.

Photo | BYD

In techopiniones | Europe has set out to sell us electric cars and China is rubbing its hands: it already manufactures 76% of those sold worldwide