Chinese automakers hit by tariffs, Dacia takes lead in Europe
File photo shows thousands of new vehicles awaiting export at a port. (AFP Photo)
The European Union’s new tariffs on Chinese-made vehicles slowed the momentum of Chinese automakers in Europe, paving the way for Dacia Sandero to claim the top spot on the bestseller list.
As Europe’s automotive market prepares to close a challenging year, industry players brace for even tougher times ahead. Rising production costs and shifting consumer expectations are reshaping market dynamics.
Tariffs targeting Chinese automakers
Chinese manufacturers, driving much of the recent competition, face mounting hurdles. To shield domestic producers, the E.U. imposed additional tariffs on electric vehicles (EVs) from China. This move significantly impacted the market share of East Asian automakers in Europe. According to Dataforce, the share of Chinese EVs in the E.U. fell to 7.4% in November—the lowest level since March.
The E.U. introduced tariffs of up to 35% on EVs in late October to counteract what it perceives as unfair advantages from Chinese state subsidies. Among the most affected brands, MG saw its November sales plummet 58% year-on-year.
Chinese EV manufacturers reported a 19% drop in global EV exports, with shipments to Europe declining by 23%. Conversely, in non-E.U. markets like the U.K., sales of Chinese brands rose by 17%.
Shifting market dynamics in Europe
An analysis of Europe’s best-selling cars reveals an intriguing picture at the year’s close. JATO reports that the “big five” European automakers—Volkswagen Group, Stellantis, Renault Group, BMW Group, and Mercedes-Benz Group—accounted for 65% of November’s total sales. Japanese brands followed with a 13% share, while Korean automakers achieved 7.5%. Meanwhile, U.S. brands Tesla and Ford secured 5.9%, and Chinese automakers, hindered by tariffs, managed 6.7%.
Renault Group recorded 8.6% growth in November, followed by Toyota at 9.8% and Chinese Geely Group at 16%. In contrast, Stellantis, Hyundai-Kia, Ford, Tesla, and Nissan suffered double-digit declines.
Consumers opt for affordable, tech-savvy models
Dacia Sandero is on track to become Europe’s best-selling car in 2024, according to JATO data. European consumers, wary of insufficient EV incentives, appear to be delaying purchases of electric models. Instead, they are gravitating toward budget-friendly options during this transitional period.
Tesla’s Model Y, occupying a different market segment, ranks second on the bestseller list, reflecting a growing preference for affordable models. Notably, three of November’s top five bestsellers—Dacia Sandero, Renault Clio, and Peugeot 208—are in the B segment. In contrast, the Volkswagen Polo saw a steep 31% decline in sales, dropping to 25th place.
| Rank | Brand | Model | Units Sold |
|---|---|---|---|
| 1 | Dacia | Sandero | 22,014 |
| 2 | Tesla | Model Y | 17,654 |
| 3 | Volkswagen | Golf | 17,530 |
| 4 | Renault | Clio | 17,213 |
| 5 | Peugeot | 208 | 16,798 |
| 6 | Volkswagen | T-Roc | 16,581 |
| 7 | Toyota | Yaris Cross | 16,442 |
| 8 | Volkswagen | Tiguan | 16,116 |
| 9 | Toyota | Yaris | 15,356 |
| 10 | Dacia | Duster | 14,052 |
Modest growth in EV sales
While overall demand for EVs in Europe grew by 0.8% in November compared to last year, the fastest growth occurred in the U.K. (58%), followed by the Netherlands (44%) and Norway (30%).
In contrast, EV sales fell by 25% in France and 22% in Germany. Tesla Model Y led November’s EV sales with 17,654 units, followed by the Skoda Enyaq at 9,045 units. The Tesla Model 3 ranked among the top five, alongside the VW ID.4 and Volvo EX30.
