EU implements tariffs on Chinese electric vehicles
Cylib's new EV battery recycling plant is a game-changer for Europe's electric vehicle industry.
The European Commission made a significant announcement on Wednesday, revealing its intention to levy additional duties on imported Chinese electric vehicles, a move that could potentially ignite tensions with China. These tariffs, slated to take effect next month, could reach as high as 38.1%, depending on the manufacturer.
According to the company breakdown provided by the Commission, the provisional tariffs are as follows:
- BYD (17.4%)
This includes various entities under BYD, such as BYD Auto Co Ltd and Changsha BYD Auto Co Ltd.
- Geely (20%)
This includes Geely's subsidiaries, including Zhejiang Geely Automobile Co Ltd
- SAIC Group (38.1%)
SAIC MAXUS Automotive Co Ltd and other entities fall under this bracket.
- Other cooperating companies: 21%
This category includes well-known names like BMW Brilliance Automotive Ltd and Chery Automobile Co Ltd.
- All other companies: 38.1%
Manufacturers not explicitly listed elsewhere face this highest tariff rate.
The Commission also pointed out that some firms like Tesla may get their individual rate of duty later in November. Based on the above analysis, decision made by the Europe Commission may have serious implications for the member states, both economically and diplomatically. Its intention is to shield local industries from cheaper Chinese imports which may trigger China into taking actions that could lead to a warfare of sorts between the two giants in the global economy.
Nevertheless, Chinese EV maker Nio does not plan to retreat from the European electric vehicle market; on the contrary, the company continues to declare the desire to contribute to the development of the EV market in Europe and find new opportunities to improve its service for users in the region.
In reaction to the changes made by the EU and its decision to list Nio among the cooperating companies that may be further be subjected to 21% duty rate, the company stated that it is constantly monitoring the situation and is ready to make decisions that are in its best interest. By suggesting the specificity of a positive outcome when the investigation is said and done, Nio acted as a stimulant for hope.
Secretary general at the China Passenger Car Association, Cui Dongshu said that majority of Chinese firms including those in the electric vehicle sector are likely to be unfazed by the EU’s proposed tariffs as these fall within expected levels. This feeling is in line with other feelings we encountered in China with respect to what the EU’s tariff measures may contain or imply.
