China’s low-priced EVs reign in Spain, make gains in Europe’s lanes

Beating competitors on price, China’s electric vehicles have made headway in Europe – but tariffs and trade scrutiny may slow their advance.

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Chinese electric vehicles have become a more common sight on European streets, as their competitive prices attracted consumers before the institution of new tariffs. Photo: Reuters

Published: 6:30pm, 15 Sep 2024Updated: 6:22pm, 25 Sep 2024

After taking his neighbour’s electric vehicle (EV) – a model from Shanghai-based MG Motor – for a spin, Spanish taxi driver Jose was convinced.

Following the loss of his high-paying job as an economic analyst during the 2008 financial crisis, he has worked as a cabby while living in Barcelona and London.

In the northern Catalonian city – where Jose returned after the British capital proved too expensive – taxi drivers can earn a decent income, but not enough to keep pace with rising living costs fuelled by inflation in Europe and waves of tourism.

“The quality of Chinese EVs is amazing, not to mention how affordable they are,” he said. Yet just as Jose was set to make a purchase, new European Union tariffs on Chinese car imports arrived.

“This tariff is unfair to consumers here who are facing inflation,” Jose said, frustrated. “Why doesn’t the EU impose a tariff on US cars?” He felt EU decision-makers had overlooked the needs of everyday consumers, especially those with reduced purchasing power in the wake of the pandemic.

Jose is not alone. The MG4 he had set his sights on has soared in popularity, becoming the third highest-selling EV in Spain during the first half of the year, according to car marketplace Carwow.