When the European Union last year imposed steep tariffs on electric cars made in China, it looked like a serious setback for BYD and other Chinese automakers.
But the Chinese companies were not so easily discouraged. They pivoted to hybrids or gasoline-powered cars that were exempt from tariffs. They began importing less-expensive models. And they concentrated on countries like Italy and Spain, where German and French carmakers are less entrenched than in Northern Europe.
Despite the tariffs, which are as high as 35 percent for certain companies, Chinese brands doubled their share of the European car market in April from a year earlier, according to registration data compiled by JATO Dynamics, a research firm. It was a potent demonstration of the flexibility and manufacturing prowess of BYD, Geely, Chery, SAIC and other Chinese manufacturers.
“These big, huge companies in China, they have the possibility of doing whatever they want,” said Pier Giacomo Cappella, managing director of a chain of dealerships in Italy that sells DR brand cars manufactured by Chery.
Some Chinese automakers design and produce new models in just six months, said Mr. Cappella, who also sells German brands including Porsche and Audi. “The Germans, they take at least two years.”
The DR models at one of his showrooms in Rome include a diesel off-road vehicle called the ICH-X K2. It strongly resembles a four-door Jeep Wrangler but, at 51,500 euros, or about $60,000, costs $10,000 less.
Chinese car brands accounted for only 4.9 percent of the E.U. new-car market in April, or 53,000 vehicles, according to JATO. But that was up from 2.4 percent a year earlier.
The Chinese carmakers have even managed to keep selling more electric vehicles in Europe. After an initial dip, sales of electric vehicles by BYD and other Chinese automakers rebounded in April, according to JATO, rising 59 percent that month compared with a 26 percent increase in electric vehicle sales by other manufacturers.
In Europe, sales of electric vehicles are growing faster than for any other type of vehicle. About one in five electric vehicles sold in Europe during the first quarter was made in China, according to separate figures from Schmidt Automotive Research.
The Chinese gains came largely at the expense of Tesla, which recorded a steep drop in sales partly because European buyers were offended by the behavior of Elon Musk, the company’s chief executive. Mr. Musk has supported far-right political parties in Germany, France and Britain.
BYD electric vehicles outsold Tesla cars in April in Europe, although just barely. Europeans registered 7,231 BYD electric cars compared with 7,165 from Tesla, according to JATO. The introduction of an updated Tesla Model Y, the company’s best-selling car, has not stemmed the decline, at least so far.
Because the duties are based on how much Chinese government support the carmakers receive, one unintended effect has been to encourage the Chinese to sell gasoline cars, undermining E.U. efforts to reduce greenhouse gas emissions.
Only one-third of the cars that the Chinese carmakers sold in Europe during the first quarter were electric, according to Schmidt Automotive. The rest were hybrids or conventional gasoline-powered cars that are exempt from tariffs.
“That’s one of the ironies” of the tariffs, said Matthias Schmidt, the owner of Schmidt Automotive.
Cars made by Tesla in Shanghai are subject to an 8 percent tariff; for SAIC, which sells cars under the MG brand, it’s 35 percent; and BYD electric vehicles are subject to a 17 percent duty. Those tariffs are on top of a 10 percent tariff that applies to all cars imported to E.U. countries.
The Chinese carmakers are best known for electric cars, but are willing to supply whatever the market demands, dealers say. That has helped Chinese brands attract buyers in countries like Italy, where many have avoided electric cars because there are too few places to charge the vehicles.
Gabriele Gabrieli, commercial director of Leonori, a dealership in Rome that sells primarily brands from Stellantis like Peugeot and Citroën, added a BYD showroom last year. About two-thirds of the BYD cars that he sells are hybrids, Mr. Gabrieli said.
“It’s very difficult to own an electric vehicle in Rome,” he said.
Europe has traditionally been a tough market for foreign carmakers. In Germany and France, the two largest car markets, buyers show a strong preference for brands from their respective countries like Volkswagen, Renault and Peugeot.
Volkswagen, which also makes Audi, Skoda and SEAT cars, accounts for 28 percent of the European Union’s new vehicle sales. Stellantis, which owns Peugeot, Citroën and Opel, has 16 percent.
Italy, Spain and Britain accounted for two-thirds of the cars the Chinese sold in Europe during the first quarter, according to Schmidt Automotive. Britain is not part of the European Union and does not impose additional tariffs on Chinese carmakers. Fiat no longer commands the loyalty it once had with Italian buyers. Spain and Britain do not have major local brands that residents strongly identify with.
The Chinese companies are gaining share faster than other foreign brands like Hyundai and Toyota, which have been selling cars in Europe for decades. In April, they each accounted for about 8 percent of new car registrations in the European Union, according to data compiled by the European Automobile Manufacturers’ Association.
Ford Motor’s share of the European car market has dwindled to 3 percent, and General Motors has only a minor presence, mostly selling a small number of electric Cadillacs in a few European markets.
BYD is expected to ramp up its European sales after the company begins producing cars in Hungary and Turkey next year. Those vehicles will not be subject to any E.U. tariffs.
“You can’t even imagine how fast they are going to grow when they are producing in Hungary and Turkey,” said Felipe Munoz, global automotive analyst at JATO.
Fabrizio Trentino was among the customers checking out BYD cars at Mr. Gabrieli’s showroom recently. Mr. Trentino was applying for a Rome taxi license and looking for a vehicle. He was intrigued by a BYD electric car on display.
“It looks good,” he said, adding that he thought the car would save him money in the long run because electric vehicles don’t need oil changes and electricity usually costs less than gasoline.
But later Mr. Trentino said by email that the upfront cost of the electric vehicle was too much for him.
“I’ll probably get a BYD as the next one, when I’ll be richer and they will be hopefully cheaper,” he said.
Jack Ewing covers the auto industry for The Times, with an emphasis on electric vehicles.
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