Factbox-Carmakers respond to EU tariffs on Chinese-made EVs

07/03/2024

1 minute read

2024.07.03 12:04

(Reuters) – With the European Union’s extra duties on Chinese-made electric vehicles expected to take effect on Thursday, some carmakers have decided on counter measures.

So far Tesla (NASDAQ:) is the only carmaker to announce plans to increase prices, but analysts expect other manufacturers producing in China will pass on part of the extra cost to consumers.

Below is a list of the carmakers’ response to the tariffs:

BYD (SZ:)

The Chinese carmaker, which faces the lowest tariff hike of 17.4% on top of the current 10% duty, has not decided yet whether to hike prices on EVs sold in the European Union, sources close to the company told Reuters.

There would be no decision before July 4, when provisional duties take effect, sources added.

CHERY AUTO

The Chinese automaker said its planned EV production in Spain, set up through a joint venture with Spain’s EV Motors, should help offset tariffs on imports into the EU.

Production at the Barcelona-based site is expected to start by the end of the year, Charlie Zhang, vice president of Chery Auto, said.

The site is not big enough for the carmaker’s medium- and long-term plans in Europe, Zhang added, saying the company was looking for a possible second site.

POLESTAR

After posting a first-quarter operating loss, the Swedish carmaker, owned by China’s Geely, said it would need to take “mitigating measures” to offset tariffs and pressure on car prices.

Such steps could include cost reductions across its supply chain, but not further job cuts, a company spokesperson added.

SAIC

Similar to BYD, the Chinese carmaker’s subsidiary MG hasn’t decided yet whether or not to hike prices on EVs sold in the EU, sources close to the company told Reuters. MG faces tariffs of 38.1%, on top of the current 10% tariff.