China’s ambitions to seize a significant portion of the European electric vehicle (EV) market has resulted in thousands of unsold Chinese EVs inundating European ports. Some of these vehicles have remained unsold for over a year, with the backup delaying many other shipments of goods throughout the continent.
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The overflow of Chinese EVs has led to congestion at European ports, with vehicles piling up, exacerbating logistical bottlenecks and complicating efforts to sell them. In many cases, Chinese automakers are sending these vehicles over without a plan in place to sell them, instead using the parking lots of ports throughout Europe as storage until they are purchased.
To address this issue, some European ports are now requiring importers to provide proof of their plans for moving the vehicles elsewhere once unloaded. However, the cars are still coming from China at what has been described as a “frantic pace.” Instead of the usual shipments that see between 1,000 to 2,000 EVs delivered, cargo boats are now dropping off up to 7,000 cars at once.
This surge in shipments is part of China’s strategy to capture a quarter of the EV sales in Europe by the year’s end, a move that European automakers have warned is a real possibility.
China’s dominance over the EV supply chain enables its automakers to offer their vehicles at significantly lower prices compared to European competitors, posing a threat to the local industry. Studies suggest that to counter China’s aggressive expansion, European policymakers would need to implement one of the highest vehicle tariffs globally.
JACK ALYMER: YOU’RE LOOKING AT THOUSANDS OF CHINESE E-VS.
THEY’VE BEEN SITTING AT THIS DOCK IN BEGLIUM FOR MORE THAN A YEAR.
AND IT’S NOT JUST HAPPENING HERE – BUT ALL OVER EUROPE.
SO WHY IS CHINA SENDING OVER MORE CARS THAN THE CONTINENT CAN HANDLE?
HERE’S WHAT’S GOING ON.
THOUSANDS OF UNSOLD CHINESE EVS ARE FLOODING EUROPEAN PORTS, LEFT WAITING FOR A BUYER FOR AS LONG AS 18 MONTHS.
AUTOMAKERS IN CHINA ARE SENDING THESE VEHICLES OVER WITHOUT A PLAN IN PLACE TO SELL THEM.
INSTEAD THEY’RE USING THE PARKING LOTS AT PORTS THROUGHOUT EUROPE AS STORAGE.
RESULTING IN A LOGJAM OF CARS.
AND THE LOGISTICAL BOTTLENECK IT CREATES MAKES THEM EVEN HARDER TO SELL.
SOME EUROPEAN PORTS ARE NOW REQUIRING IMPORTERS TO PROVIDE PROOF THEY HAVE PLANS IN PLACE TO MOVE THEIR VEHICLES ELSEWHERE ONCE UNLOADED.
BUT THE CARS ARE STILL COMING FROM CHINA IN WHAT HAS BEEN DESCRIBED AS A FRANTIC PACE.
INSTEAD OF THE USUAL SHIPMENTS THAT SEE BETWEEN 1,000 TO 2,000 EVS DELIVERED, CARGO BOATS ARE NOW DROPPING OFF UP TO 7,000 CARS AT ONCE.
IT’S ALL PART OF CHINA’S PUSH TO TAKE OVER A QUARTER OF EV SALES IN EUROPE BY THE END OF THIS YEAR.
SOMETHING EUROPEAN AUTOMAKERS HAVE WARNED IS A REAL POSSIBILITY.
BEIJING’S DOMINANCE OVER THE EV SUPPLY CHAIN ALLOWS THEM TO SELL THEIR CARS FOR THOUSANDS OF DOLLARS LESS THAN THEIR COMPETITORS.
STUDIES INDICATE THAT IN ORDER TO STOP THIS, EUROPEAN POLICYMAKERS WOULD HAVE TO ADOPT SOME OF THE HIGHEST VEHICLE TARIFFS IN THE WORLD.
FOR MORE ON THIS EV CONFLICT BETWEEN EUROPE AND CHINA, DOWNLOAD THE STRAIGHT ARROW NEWS APP.
AND BE SURE TO TURN ON NOTIFICATIONS FOR STORIES FROM ME – JACK AYLMER – SO YOU NEVER MISS AN UPDATE.
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