EU to assess punitive tariffs on Chinese electric cars. On Wednesday, the European Commission began a probe investigating whether to apply tariffs to safeguard the EU against Chinese EV imports with state subsidies.
“Global marketplaces are inundated with cheaper electric automobiles. Their price is artificially low due to large state subsidies “EU Commission President Ursula von der Leyen’s yearly speech to parliament.
European carmakers realize they must manufacture cheaper, more consumer-friendly electric cars to catch up to China.
As local competition increases and development slows, Chinese EV companies expand internationally. According to the China Passenger Car Association, August car exports rose 31% after rising 63% in July.
According to cars consultant Inovev, 8% of new EV sales in Europe this year were Chinese, increasing from 6% last year and 4% in 2021.
China’s EV shares plummeted following the EU decision. BYD shares fell 2.8% after trading 4.5% higher before the announcement. Nio (9866. HK) lost 1% and Xpeng (9868. HK) 2.5%.
As they capitalize on their cost advantages to export, Nio’s founder warned in April that Chinese electric car companies might face protectionist measures from other countries.
He claimed his business and other Chinese EV producers had a 20% cost advantage over Tesla (TSLA.O) due to China’s supply network and raw materials.
Von der Leyen emphasized electric cars’ relevance to the EU’s lofty environmental goals.
I can disclose today that the Commission is investigating Chinese electric cars for anti-subsidy. Competition is welcome in Europe. “No race to the bottom,” she warned the European Parliament.
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