The introduction of EU tariffs on electric vehicles made in China reduced their share of the European market from 22 percent in 2024 to 17 percent in the first quarter of 2026. But the protectionist move triggered an unintended side effect: imports of batteries from China surged sevenfold between 2020 and 2025, as Chinese manufacturers relocated assembly lines to Europe while keeping battery production at home.
Data from the Transport & Environment (T&E) report shows that the tariffs changed the structure of Chinese EV imports. Imports from SAIC, hit by a 35-percent duty, almost halved between 2023 and 2025. In contrast, BYD deliveries more than doubled despite a 17-percent levy. Chinese electric cars remain on average 21 percent cheaper than European ones, according to the report.
Western brands that previously assembled EVs in China – mainly Tesla, BMW and Volvo – reduced their share of Chinese-made imports from 38 percent in 2024 to 23 percent in the first quarter of 2026. Those vehicles are now shifting production back to Europe or to other regions unaffected by the tariffs.
Declining market share of Chinese-made EVs
The overall share of EVs produced in China fell from 22 percent in 2024 to 17 percent in Q1 2026. The decrease is almost entirely due to the withdrawal of Western brands. Chinese manufacturers themselves are offsetting tariff costs by setting up European assembly plants, which bypass the duties on finished vehicles.
Despite this, Chinese EVs still undercut European models on price by about a fifth. The EU’s domestic producers currently cover less than a quarter of the bloc’s battery demand, creating a growing dependency on imports. T&E argues that tariffs should be extended to batteries to prevent Europe’s supply chain from relying on China.
The battery paradox: soaring imports despite tariffs
Battery imports grew sevenfold between 2020 and 2025, as the EU’s own production capacity lags behind. Introducing a 20-percent tariff on Chinese batteries would raise the average price of an EU-made EV by only 2.8 percent, according to T&E estimates. The measure could strengthen local supply chains and reduce dependency on a single source.
– Poland is already one of Europe’s largest battery producers thanks to the LG factory near Wrocław. If all announced investments go ahead, as much as 45 percent of European cathode and precursor production will be located in Poland. Therefore, better protection of the battery production chain in EU legislation is in Poland’s interest – said Adam Guibourgé-Czetwertyński, director of the Polish office of T&E.
The report concludes that current tariffs, while reducing imports of finished cars, have inadvertently encouraged the flow of untaxed batteries into Europe. Without action, the EU risks swapping one dependency for another — from vehicles to their most critical component.
Źródło: WNP.PL, Fot. Ringo Chiu / Shutterstock
