Global Gist

Europe: Potential Tariff Reductions for German Automakers

The European Commission may lower import tariffs on China-made electric vehicles for Volkswagen and BMW. This move would reduce tariffs from 37.6% to 20.8%, benefiting BMW's China-made electric Mini and Volkswagen's Cupra Tavascan. This decision is pending and has implications for Europe's auto industry, which is wary of potential retaliatory measures from China.

China: Challenges and Opportunities for Foreign Automakers

Foreign carmakers face stiff competition in China's booming electric vehicle market, dominated by domestic brands. Despite new tariffs, consultancy AlixPartners expects Chinese brands to capture over 70% of the domestic new energy vehicle market by 2030 and a significant global market share. Chinese automakers are also localizing European production to mitigate tariff impacts, with BYD opening factories in Hungary and Thailand.

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Japan: BYD's Growing Presence

Chinese automaker BYD is making inroads in Japan's auto market, which is traditionally dominated by local giants like Toyota. BYD's EV sales rose 184% in the first half of 2024, driven by models like the Atto 3 and Dolphin. Despite lower government subsidies, BYD plans to expand its sales outlets and sell 30,000 vehicles in Japan by 2025.

North America: GM's EV Production Goals in Doubt

GM's goal to produce 1M all-electric vehicles in North America by 2025 is uncertain. CEO Mary Barra cited slower-than-expected market demand as a key factor. GM continues to adjust its EV plans based on consumer interest, with more details expected in its upcoming quarterly report.