The European Commission has issued its definitive decision in its anti-subsidy probe into Chinese electric vehicles (EVs). The outcome of a course initiated in October 2023, culminating in the implementation of temporary tariffs on July 4.
According to reports, the newly announced charges show a decline for some companies: BYD decreased by 0.4% to 17%, Geely fell by 0.6% to 19.3%, and SAIC dropped by 1.3% to 36.3%. For the 17 cooperating corporations that did not face separate charges, a 0.5 percentage point boost is achieved, increasing the overall rate to 21.3%. Tesla successfully negotiates a lower import duty rate of 9% for Chinese-sourced vehicles, down from the previous cooperative arrangement of 20.8%. Firms that refuse to cooperate with government initiatives may face tariffs of up to 36.3%.
A recent adjustment to Tesla’s fees provides valuable insight for the corporation, which had previously sought a comprehensive review of its subsidy benefits. As the largest exporter of electric vehicles (EVs) from China to the European Union (EU), Tesla’s Model 3 cars are sourced entirely from its Shanghai manufacturing facility, with every vehicle available on the market being produced at this site. In late June, the European Commission paid a visit to the Shanghai manufacturing facility as a key step in its ongoing probe, following its initial inclusion among cooperators back when provisional tariffs were first proposed.
Chinese automakers have just 10 days to submit their comments to the European Commission. The final plan will be presented to the 27 EU member states in October for a vote. Until a majority of stakeholders vote against these measures, their implementation is expected to proceed by November 2024. The measures are expected to remain in place for a period of five years, with the potential for extension.
Several producers are involved in this project. The most significant among these collaborations is Highlight Automotive Limited, a joint venture between BMW and Great Wall. The new facility was designed to manufacture the fourth-generation electric Mini, with production slated to commence in 2024 and continue at least until 2026, serving as the main production site for electric variants of the vehicle. Despite efforts to facilitate a thorough examination, the Junior Varsity team refused to fully cooperate with the inquiry. The Volkswagen Group finds itself in a similar predicament with its Cupra Tavascan SUV, manufactured at its Anhui facility.
Supply: Autohome
