The EU has joined the US in imposing substantial new tariffs on EVs built in China. In June, the EU announced import tariffs on Chinese EVs ranging from 17.4% to 38.1%. The rationale behind the new tariffs is that the Chinese government has unfairly subsidized its auto industry, enabling Chinese automakers to sell EVs at prices European brands can’t match.

However, one important category of EVs—electric buses—appears to be exempt from the new tariffs. As Mika Takahashi, Technology Analyst at IDTechEx, explains in a recent article, the European Commission, in a statement setting out the aims of the anti-subsidy investigation, defines the product subject to the tariffs as a battery-electric vehicle designed for the transport of 9 or fewer passengers. In other words, the EU will only investigate anti-subsidy claims for vehicles that carry 9 people or less.

Ironically, the market share of Chinese electric buses in Europe is far higher than that of Chinese electric cars. The European Commission estimates that Chinese electric cars made up 8% of the market in 2023. According to IDTechEx’s research, Chinese manufacturers accounted for 28% of the European electric bus market in 2023.

As Charged readers know, electric buses are on a roll. IDTechEx tells us that 2023 was the strongest year yet for e-buses in Europe—over 5,000 were sold in the EU and the UK. (However, this is a small fraction of the number sold in China).

Some European bus OEMs are selling their own EVs, but others are behind the curve. According to IDTechEx, some major OEMs did not bring electric buses into production until 2019. Considering the growing market, the comparative lack of domestic competition, and overcapacity at Chinese factories, Europe is a land of opportunity for Chinese electric bus brands.

Meanwhile, Chinese companies are gearing up to produce buses in Europe. BYD has established a factory in Hungary. Battery supplier CATL is also building a plant in Hungary, from which bus-maker Yutong plans to procure modules.

Source: IDTechEx