
CK Tan of Nikkei reports that the decline of 13.2% in June marks the third consecutive monthly fall since March. Tan writes:
China’s electric vehicle exports declined 13.2% from the previous month in June to 86,000 vehicles, new data showed on Wednesday, signaling growing resistance to the cars as Europe raises trade barriers.
The decline marks the third consecutive monthly fall since March, according to the China Association of Automobile Manufacturers. The industry group’s data also showed a modest growth rate of 0.7% in total automobile shipments in June, compared with the previous month.
China’s EV industry is under pressure from the European Commission, which in June announced additional tariffs on imports deemed to have benefited from “unfair” state subsidization by Beijing. The extra duties were confirmed on a provisional basis July 4, at a rate of up to 37.6%. […]
Experts have spotted another risk on the horizon: China’s dramatic shift to EVs spells overcapacity in ICE vehicles that could lead to more political and economic consequences, U.S. advisory firm Eurasia Group warned in a report last month.
The ICE segment accounted for 78% of China’s total vehicle exports in the first six months of 2024. […]
“This would have more immediate consequences for non-Chinese automakers than [EV] overcapacity,” the consultancy warned, adding that it could spark further political tension.
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