Chinese NEV Industry Hits Back at EU Anti-Subsidy Probe

Commission’s investigation comes as China looks set to overtake Japan as the world’s biggest auto exporter this year

The European Union’s decision to launch an investigation into whether Chinese manufacturers of new-energy vehicles (NEVs) are benefitting from massive state subsidies has cast a shadow over a booming market that’s already propelled China to become the world’s biggest vehicle exporter.

The anti-subsidy probe, announced by European Commission President Ursula von der Leyen on Wednesday, comes at a time when many Chinese EV-makers such as SAIC Motor Corp. Ltd., BYD Co. Ltd. and Nio Inc. are ramping up their global expansion push.

Chinese auto exports surged 67.9% year-on-year to 2.53 million vehicles in the first seven months of the year, according to the China Association of Automobile Manufacturers (CAAM), extending the strong growth seen in the first quarter when China overtook Japan as the world’s largest car exporter for the first time.

Overseas shipments of NEVs — a category mainly consisting of electric and hybrid models — more than doubled to 636,000 units, accounting for a quarter of total car exports in the first seven months. Belgium and the U.K. were the two largest importers of China-made NEVs, CAAM data show.

The strong growth has raised expectations that China will claim the title of the world’s No. 1 auto exporter for the full year. Some analysts are forecasting that Chinese automakers will ship more than 4 million vehicles in 2023, with the contribution from NEVs jumping to around 35% from 21.8% in 2022.