Fitch Ratings stated on Friday that the European Union's recent anti-subsidy tariffs on Chinese battery electric vehicles (BEVs) are projected to dampen Chinese BEV exports to Europe, which already saw a 7% drop in the first nine months of 2024.

According to the agency, Chinese automakers may ramp up local production in Europe to mitigate tariff impacts. This adjustment could help maintain their market presence amid an ongoing shift away from internal combustion engines, which are becoming less profitable in China.

On the other hand, the report highlighted that China's demand for new-energy vehicles (NEVs) is expected to remain strong through the fourth quarter of 2024, driven by government incentives under a scrappage and replacement program.