Car: Association: China’s electric car exports are unlikely to grow in 2025

China’s exports of electric cars are unlikely to grow any further this year, according to a Chinese association. It is expected that Chinese car exports could increase by ten percent overall, said the Secretary General of the CPCA industry association, Cui Dongshu. However, he does not expect any growth for electric car exports.

According to the CPCA’s latest report, exports of electric cars and hybrid cars increased by 24.3 percent in 2024 compared to the previous year. In total, China’s manufacturers exported 1.29 million vehicles of these drive classes.

Demand problem and tariffs

A key problem for exports is the pressure from tariffs in Europe, said Cui. The EU – an important trading partner for China given the strained trade relationship with the USA – voted last year for additional surcharges on electric cars manufactured in China. Chinese brands were particularly affected.

The auto industry in Germany was critical of this measure and feared countermeasures. Beijing responded with several anti-dumping investigations, for example against brandy and pork products.

Another problem, according to Cui, is that no growth is expected in the car market in Russia. Russia has become increasingly important as a market for Chinese manufacturers since the West imposed far-reaching sanctions on the country because of its war of aggression against Ukraine.

Price wars never end

A price war in the electric car segment continues to rage in China, which is likely to continue in 2025, as Cui said. The reason for this is also that the number of vehicles has increased rapidly. As a result, manufacturers’ profit margins remained low. Many brands in China are not yet making any money from their electric cars. The industry expects further consolidation.