EV/Lithium, page-804

..Europeans love their EVs......EV sales across EU dropped -10% in May. Growth no more, after subsidies reduced/removed.
..it is only China left with material EV growth (with a larger base), but that too is starting to wane.

..not only that EV growth narrative has less to no relevance for lithium pricing growth, it won't be long there won't be an EV growth narrative.
Chinese EVs Defend Market Share in Europe as Trade Tension Escalates

• May decline lines up with EV demand drop across region
• Imports from China make up 19% of Europe’s entire EV market

By Anthony Palazzo
July 4, 2024 at 8:00 AM GMT+10
Updated on
July 4, 2024 at 7:10 PM GMT+10

Chinese electric-car brands held on to their share of the slumping European EV market in May, ahead of new tariffs designed to protect local carmakers from their lower-cost imports.

Automakers like BYD Co. made up 8.7% of total EV sales, roughly on par with a year ago, as Chinese firms pressure European counterparts with new, inexpensive models, according to
researcher Dataforce. Total deliveries fell 12% to 13,390 vehicles, a drop that marginally outweighed the let-up in demand for all-electric models across the region.
Chinese EVs Hold Ground in Europe Ahead of Tariff Decision

Market penetration remains below mid-2023 levels
Source: Dataforce
Note: Based on battery-electric unit sales in EU, + EFTA and UK. Includes Polestar, DR and Evo, excludes Smart
Since 2019, Chinese carmakers led by SAIC Motor Corp. — which turned Britain’s defunct MG brand into an EV dynamo — have captured a growing slice of a market vital to Europe’s industrial stability and future jobs. Their growing success prompted the European Union last year to probe government aid to the sector. On Thursday, the EU moved ahead with provisional import tariffs of as much as 48%, up from a current 10%.


A BYD Atto 3 electric vehicle in Paris.Photographer: Nathan Laine/Bloomberg
The EV shift in Europe has recently slowed, with all-electric sales in May declining 11% — they now make up just 14% of the region’s passenger-car market. Yet battery-powered cars remain on course to take over as the EU phases out sales of fuel-burning vehicles by the middle of the next decade.
That’s where Chinese carmakers see an opening to conquer a lucrative export market: lower-cost battery technology and generous government support give them an advantage over the likes of Volkswagen, Stellantis and Renault. State aid for Chinese manufacturers has brought Beijing to the brink of a trade war with the EU, with China threatening to retaliate.
MG Falters in May, Dragging Down Chinese EV Sales in Europe

BYD gains ground while Xpeng looks to build momentum
Source: Jato Dynamics
Note: Excludes Polestar. Great Wall, Zeekr, weren't active in year-ago periods.
The tariffs also target Chinese-made models including BMW’s iX3 SUV, Renault’s Dacia Spring and Tesla’s Model 3. In all, nearly two in five battery-electric cars sold across Europe were made in China, according to automotive consultants Jato Dynamics.

While they’ve maintained market share, Chinese brands haven’t avoided the slump in European EV demand. MG’s sales in the region slid 34% in May from the year-ago period, based on data from Jato.

“Concerns around the upcoming measures taken by the EU, and more focus on ICE cars explain this negative result for the brand,” said Felipe Munoz, senior analyst at Jato, referring to models powered by internal combustion engines. “However, BYD did quite well, thanks to the Atto 3 SUV and the introduction of the Seal, Dolphin and Seal U.”
German Slump Highlights EVs' Dependence on Subsidies

Removal of incentives since December continues to hurt demand
Source: European Automobile Manufacturers' Association
Note: Total includes BEV sales in EU, EFTA countries and the UK.
More broadly, the removal or scaling back of EV buying subsidies continues to hurt demand. Sales in Germany slid 31% in May from a year earlier, after Europe’s biggest automotive market pulled incentives for battery-electric cars late last year.

While talks with the EU could yet avert a trade war, China has threatened to retaliate with levies on cars with large engines that would hit German luxury manufacturers like Mercedes-Benz Group, BMW and Porsche. Chinese officials have also taken aim at French brandy and Spanish ham in a bid to deter the new EV tariffs.