The European Union is considering imposing punitive tariffs on electric cars from various manufacturers including BYD, Geely, SAIC, Tesla, and others. This could result in an increase in prices for these models in Europe. Effective from July 4, electric cars imported from China could face tariffs of up to 38.1 percent unless a negotiated solution is reached with Beijing.
BYD, the world’s largest electric car manufacturer, could face an additional tariff of 17.4 percent if the EU decides to impose punitive tariffs on Chinese-made electric cars. The company aims to double its foreign sales in the coming years and increase its presence in the European market by establishing its first factory in Hungary with further expansion expected. BYD’s integrated value chain gives it a competitive edge in terms of cost efficiency.
Geely, another Chinese carmaker, is also subject to an additional tariff of 20 percent if punitive tariffs are imposed on Chinese-made electric cars. The company has a substantial export volume and is moving towards manufacturing electric cars for the European market in Belgium. Geely’s collaboration with Volvo and Mercedes has facilitated its entry into the European market and positioned it well for the future.
SAIC, a state-owned car manufacturer, is a major exporter of vehicles from China to Europe. The company’s popular MG 4 Electric model has gained traction in the European market. SAIC’s cooperative approach in the EU investigation will determine the level of tariffs imposed on its electric cars.
Tesla, an American carmaker that produces its Model 3 for the European market in China through partnership with Gigafactory Shanghai, has requested individual tariff levels and aims to maintain competitive pricing despite potential tariffs being imposed on other Chinese manufacturers.
Other manufacturers from China producing electric cars for the EU market such as BMW Dacia Chery Great Wall Motors and Nio will also be subject to varying levels of tariffs based on their cooperation with the EU investigation.
