According to leading global auto data firm Jato Dynamics , the average retail price of imported Chinese EVs was 29% lower than models produced in Europe (excluding incentives and discounts).
the EU released individual tariffs that would apply to three sampled Chinese EV makers.
The additional tariffs would include:
** BYD: 17.4%*
** Geely: 20%*
** SAIC: 38.1%*
Other EV makers in China, which cooperated with the investigation, would be subject to a 21% additional tariff.
According to the release, Tesla “may receive an individually calculated duty rate at the definitive stage.”
Even with the new tariffs, the BYD Seagull is expected to arrive as one of Europe’s most affordable EVs, starting under $21,500 (20,000 euros).
meanwhile: In Brazil, BYD’s cheapest EV, the Seagull, starts at around $20,000 (99,800 BRL).
And they don’t think China will retaliate by imposing restrictions on sale of EU branded vehicles in China?
Of course, looking at the sales data, Renault is gone from China, while PSA sells ten times as many Peugets and Citroens in the EU as in China.
The Germans are an interesting case. Audi, BMW, and Mercedes sell as many cars in China as in the EU. VW sells twice as many cars in China as in the EU.
I can see a scenario where everyone in the EU votes for the tariffs on Chinese cars, except the Germans Nein! Nein! NEIN!!!
China is heading to supply side economics. Which means offshoring production. China may raise tariffs on EU and US cars but not cut off sales.
China does not have the resources longer term to dominate any industry. China is more needy of a mercantile solution to attain resources for factory production than we are. Their advantage has more than disappeared.
China is in a gap like the US was in from 1973 to 1981 where their minds are not made up to go to supply-side economics.
Instead, Central Europe is going there immediately. This shifts Europe to dominate demand-side economics later in the cycle.
Just over a year after launching its anti-subsidy probe, the European Commission will set out extra tariffs ranging from 7.8% for Tesla to 35.3% for China’s SAIC, on top of the EU’s standard 10% car import duty.
The extra tariffs were formally approved and published in the EU’s Official Journal on Tuesday, meaning they will take effect on Wednesday.
So? The western automakers are having their head handed to them by the domestic Chinese manufacturers. iirc, BYD has unhorsed VW from it’s long hold as the #1 automaker in the country. If the Chinese sanctioned the western automakers, they would only bring the western presence in China to an end sooner.