Efforts by the French government to curb the influx of Chinese-manufactured electric vehicles are showing promising results, according to industry data, underscoring a critical trade issue ahead of China’s president’s visit next week.
A surge in the importation of Chinese electric cars into Europe has prompted threats of tariffs from the EU, expected to be a contentious point during President Emmanuel Macron’s hosting of his Chinese counterpart on Monday.
Rather than await a decision from the European Union on tariff implementation, France took proactive measures in December.
They revamped their cash bonus scheme to exclude the purchase of vehicles manufactured in China, a move aimed at slowing down the rapid market penetration these vehicles had achieved.
Prior to this adjustment, the three most favored Chinese-made cars in France – the Dacia Spring, Tesla’s Model 3, and SAIC’s MG4 – collectively held 22% of the market.
However, in anticipation of the new eligibility regulations which now prioritize vehicles manufactured in Europe, their market share surged to 32% in December.
Since then, their market share has steadily dwindled to a mere 4% in April, marking a significant decline applauded by Finance Minister Bruno Le Maire as evidence of the effectiveness of the stricter eligibility criteria in safeguarding both interests and the environment.
“It’s proof that when we defend our interests and the environment, we get results for our industry, factories, and jobs,” remarked Le Maire during a visit to a Renault factory in late March.
While the French government aims to provide domestic car manufacturers with the opportunity to develop their own electric vehicle models and catch up with their Chinese counterparts, experts caution that these measures may only offer temporary relief.
“I do not think that made-in-China [imports] will remain this low because Chinese manufacturers have the means to adapt with competitive prices, despite the absence of bonuses,” stated Flavien Neuvy, economist and director of the Observatoire Cetelem, a French think tank.