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. The level of tariffs will depend on the subsidies received by manufacturers in China and their cooperation with the EU investigation.
BYD, the world’s largest electric car manufacturer, could face an additional tariff of 17.4 percent. The company aims to double its foreign sales in the coming years and increase its presence in the European market. BYD is planning to establish its first factory in the EU in Hungary, with further expansion expected. The company’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. 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, produces its Model 3 for the European market in China. The company has requested individual tariff levels and aims to maintain competitive pricing despite the potential tariffs. 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 tariffs based on their level of cooperation with the EU investigation.