The Chinese automobile industry has just reached a symbolic milestone in terms of electric cars. But this success is not enough to completely mask the risks weighing on this sector within the Middle Kingdom. Explanations.
A historic figure
On paper, everything is indeed very good. The China Association of Automobile Manufacturers (CAAM), a government-led consortium, announced that the 10 millionth electric vehicle was produced in the country last Thursday. This is an increase of 4.3% compared to the same period last year and already exceeds the 2023 production total.
Another concrete reason for celebration: 9.75 million electric cars were delivered to customers between January and October, an increase of 34% over one year. The market share of these green vehicles and plug-in hybrids even exceeds 50% on the Old Continent, which testifies to their success.
Overcapacity problems
After this good news, some observers also point to big dark clouds on the horizon. Quoted by the South China Morning PostPhate Zhang, founder of CnEVPost, a Shanghai-based data provider, points out: “As electric vehicles outsell conventional gasoline cars, more production plants and existing workers will become redundant. »
Overcapacity concerns are also to be deplored. Clearly, the supply is too abundant and the demand is not enough to sell off the stocks. And for good reason: although the sector is doing very well in China, its expansion is being hampered by protectionist measures adopted in the West.
The United States has notably increased customs tariffs on Chinese electric cars from 25 to 100% since September. And this should not get better after the election of Donald Trump who made it his hobby horse during the campaign.
The European Union, for its part, voted to impose a surcharge of 17 to 35.3% on these vehicles produced by the Middle Kingdom, which should once again slow down their marketing.
A direct effect on consumption
It should also be noted that these measures produce concrete effects. According to data from Dataforce, sales of Chinese cars fell by 45% between June and July in 16 major European countries.
This drop corresponds to the introduction on June 5 of a temporary surcharge on imports of “made in China” electric vehicles. Proof if any were needed that these price barriers play a major role in the decisions that consumers make.
