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Ahead of Xi visit, Chinese share of French EV market slumps
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Ahead of Xi visit, Chinese share of French EV market slumps
May 5, 2024 11:20 PM

PARIS, May 3 (Reuters) - French government efforts to

slow an influx of Chinese-made electric vehicles are bearing

fruit, industry data show, highlighting one of the most

sensitive trade issues when China's president visits next week.

A surge in imports of Chinese electric cars into Europe

has triggered EU tariff threats, which are expected to be a bone

of contention when President Emmanuel Macron hosts his Chinese

counterpart for a state visit on Monday.

France did not wait for a European Union decision on

implementing tariffs, instead redesigning its cash bonus scheme

in December to exclude the purchase of models made in China,

which had rapidly gained market share.

In the months ahead of the move, the three most popular

Chinese-made cars sold in France - the Dacia Spring (Renault

), Tesla's Model 3 and SAIC's MG4

- accounted for 22% of the market, according to Reuters

calculations using data from the companies and industry body AAA

Data.

Their share then surged to 32% in December ahead of the new

eligibility rules that require vehicles to meet criteria

covering how much carbon is emitted during the manufacturing

process and transport to market, favouring vehicles made in

Europe.

The three models' share of the market has since steadily

declined to just 4% in April, a drop hailed by Finance Minister

Bruno Le Maire as a sign the more restrictive eligibility rules

are working.

"It's proof that when we defend our interests and the

environment, we get results for our industry, factories and

jobs," Le Maire said at the end of March during a visit to a

Renault factory.

The French government has been eager to give domestic

carmakers time to come out with their own EV models and catch up

with Chinese makers that moved early to build up huge production

capacity.

However experts said the change to measures would only offer

a temporary boost to domestic brands.

"I do not think that made-in-China will remain

this low because Chinese manufacturers have the means to adapt

with competitive prices, despite the absence of bonuses," said

Flavien Neuvy, economist and director of the Observatoire

Cetelem, a French think tank.

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