(Yicai Global) Oct. 19 -- Chinese electric vehicle are expected to account for as much as 18 percent of all the new cars sold in the European Union by 2025, according to Europe’s leading clean transport campaign group. 

Chinese battery EVs made up 5 percent of new vehicles sold in the EU in the first half of this year, with further growth predicted as market advantages, such as cost-effectiveness and safer vehicles, become more apparent, the European Federation for Transport and Environment said in a report published on Oct. 17. 

The failure of EU carmakers to expand production could lead to foreign competitors quickly capturing market share in the region, T&E said, adding that the EU needs more policy incentives for local automakers.

“European carmakers have slammed the brakes on their electric car offering at a time when Chinese and American carmakers are rapidly bringing new models to the market,” said Julia Poliscanova, senior director at T&E.

“The absence of regulatory incentives is doing far more than the supply chain crunch to slow EV sales in Europe,” Poliscanova said. “If Europe wants to maintain the competitiveness of its car industry, the EU must introduce a strong industrial policy of its own to match the Chinese and Americans’ muscular support for EVs.”

Last week, BYD’s sports utility car, the Atto 3, scored a five star safety rating at the European New Car Assessment Programme, making it the second Chinese firm to get top marks after Great Wall Motors and further helping Chinese automakers get a foothold in the European market.

Traditional Chinese carmakers BYD and Great Wall as well as new energy vehicle startups such as Nio, Li Auto, and Xpeng Motors are targeting the European market and are considering building production bases there.

Norway has become the European bridgehead for Chinese auto brands. More than 10 percent of Chinese EV brands had registered in the country as of the end of June. Chinese investment also has poured into the Nordic battery industry chain in recent years.

China and Sweden are working closing in the battery industry, the head of the Swedish Consulate in Shanghai told Yicai Global. The European country is one of the most generous in giving subsidies to EVs buyers, providing a 25 percent tax cut to users, and 40 percent to firms. 

EV’s sales made up a record 45 percent of the total number of cars sold in Sweden last year, second only to Norway. 

Editor: Martin Kadiev