SHANGHAI (dpa-AFX) - China's export of electric cars is not expected to grow further this year, according to a Chinese association. Although Chinese car exports as a whole are expected to grow by ten percent, said Cui Dongshu, secretary-general of the industry association CPCA. However, he does not expect any growth in e-car exports.

According to the latest CPCA report, exports of electric and hybrid cars in 2024 increased by 24.3 percent year-on-year. Overall, China's manufacturers exported 1.29 million vehicles in these drive classes.

Demand problem and tariffs

One of the key problems for exports is the pressure from tariffs in Europe, said Cui. The EU – an important trade partner for China given the tense trade relationship with the US – voted last year to impose additional tariffs on electric cars made in China. Chinese brands were particularly affected.

The automotive industry in Germany viewed this measure critically and feared countermeasures. Beijing responded with several anti-dumping investigations, for example against spirits and pork products.

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

No end in sight to price war

In China, a price war continues to rage in the e-car segment, which is likely to continue in 2025, as Cui said. One reason for this is that the number of vehicles has risen rapidly. As a result, manufacturers' profit margins also remain low. Many brands in China have not yet made any money from their e-cars. The industry expects further consolidation./jon/DP/zb