Chinese EVs: Bargain basement or economic apocalypse?

Chinese EVs: Bargain basement or economic apocalypse?

19 April 2025

The automotive world is trembling, and not because some Italian supercar has unleashed another 1,000 horsepower. No, the shudders come from the East, where Chinese electric vehicles are flooding Europe like a tsunami of affordable batteries. The question on everyone’s lips: are we about to see a price war that’ll make EVs cheaper than a second-hand hatchback, or is this the prelude to an economic catastrophe? Buckle up, because this is going to be a wild ride through the world of Chinese EVs, European tariffs, and the kind of market chaos that makes stockbrokers sweat.

Let’s start with the basics. Chinese manufacturers like BYD, MG, and Xpeng aren’t just dipping their toes in the European market—they’re diving in headfirst with a cannonball splash. These brands have been churning out electric SUVs, sedans, and crossovers that are not only packed with tech but also priced to make your average European carmaker choke on their espresso. Take the MG4, for instance—a compact EV with a decent range and a price tag that laughs in the face of a Peugeot e-208. Or BYD’s Atto 3, a quirky SUV that’s got more gadgets than a Swiss Army knife and costs less than a mid-spec Volkswagen ID.3. These cars aren’t just competitive; they’re a slap in the face to the established order.

Now, here’s where things get spicy. The European Union, in a move that smells suspiciously of protectionism, has decided to slap hefty tariffs on these Chinese EVs. We’re talking up to 36.3% extra on top of the standard 10% import tax. Why? Because Brussels claims Chinese manufacturers are getting unfair subsidies from their government, allowing them to dump cars on our shores at prices that make local factories look like overpriced boutiques. It’s not entirely baseless—China’s government has been pouring money into its EV industry like it’s trying to win a global game of Monopoly. But the result? A trade war is brewing, and it’s got more tension than a reality TV finale.

China, predictably, isn’t sitting quietly. They’ve fired back with threats of their own, promising to slap taxes on European cars with combustion engines. This is a direct shot at Germany’s big hitters—BMW, Mercedes, and Volkswagen—who rely heavily on the Chinese market to keep their shareholders happy. If these tariffs go through, it’s not just the price of a BYD Seal that’s at stake; it’s the entire balance of the global car industry. German carmakers are already sweating bullets, with some whispering that they’d rather ditch the EU tariffs than risk losing their slice of China’s massive market.

So, what’s this talk about a “bodemprijs”—a rock-bottom price—for Chinese EVs? Well, it’s a tantalizing possibility. Chinese brands are sitting on enormous profit margins. They could, in theory, slash prices to absurdly low levels and still make money. Imagine walking into a showroom and picking up an electric SUV for the price of a used Fiat Panda. It’s not fantasy—Reuters has reported that companies like BYD are content with high export prices for now, raking in profits without flooding the market with dirt-cheap cars. But if push comes to shove, they could open the floodgates and trigger a price war that’d make Black Friday look like a polite tea party.

This brings us to the big question: is this good or bad for us, the car-buying public? On one hand, cheaper EVs sound like a dream. Who wouldn’t want a high-tech electric crossover for the price of a fancy bicycle? The rise of Chinese brands has already forced European manufacturers to sharpen their pencils. Citroën’s ë-C3 and Fiat’s Panda EV are proof that the old guard is scrambling to compete with sub-€25,000 electric cars. Competition breeds innovation, and it’s about time someone shook up the complacent European car market.

But there’s a darker side. If Chinese EVs dominate, local factories could start closing faster than high-street bookstores. Jobs would vanish, and the European auto industry—already battered by emissions regulations and chip shortages—could take a hit it won’t recover from. Plus, there’s the moral quandary. Chinese brands like MG and BYD offer great value, but their government’s involvement raises eyebrows. Are we okay buying cars from a regime with a less-than-stellar human rights record, just because they’re a bargain? It’s a question that’ll make you pause mid-test-drive.

Then there’s the quality issue. Early Chinese cars were about as reliable as a chocolate teapot, but things have changed. Brands like BYD and Xpeng are now building EVs that rival Tesla for tech and range. The BYD Seal U, a mid-size SUV, boasts a 4.78-meter length and a platform that’s giving Tesla’s Model Y a run for its money. Xpeng’s G9 is so loaded with autonomous driving tech it could probably drive you to the pub and order your pint. Still, some buyers remain skeptical, haunted by memories of dodgy Chinese knock-offs from a decade ago.

The tariffs could also backfire spectacularly. If Chinese EVs become too expensive, European buyers might stick with petrol cars, slowing the transition to electric. That’s the last thing the EU wants, given its obsession with net-zero targets. Alternatively, Chinese brands could bypass the tariffs by building factories in Europe. BYD’s already eyeing Hungary, and Stellantis is assembling Leapmotor’s T03 in Poland. These moves could make Chinese EVs “European” enough to dodge import taxes, keeping prices low and factories humming.

So, where does this leave us? In a glorious mess, that’s where. The prospect of dirt-cheap Chinese EVs is thrilling, like finding a tenner in your old jeans. But it comes with risks—economic, ethical, and industrial—that can’t be ignored. For now, the Chinese are playing nice, keeping prices reasonable but not apocalyptic. But if the EU pushes too hard, we could see a price war that’ll either save us all money or wreck the industry as we know it. Either way, it’s going to be one hell of a show.

Want to dive into the world of EVs yourself? Head over to our marketplace at https://volty.be/nl/buy/cars/overview/ to browse and buy the latest cars—Chinese or otherwise. Happy hunting!