The European Commission investigation into subsidies for Chinese electric vehicles (EVs) has concluded with final tariff decisions made, and it’s good news for Tesla, not so good for other companies that cooperated.
BYD, Geely, and SAIC all had their initial rates reduced slightly, BYD taking a 17% tariff, down from 17.4%, Geely facing 19.3% tariffs down from 19.9%, and SAIC, the company affected the most by the initial decision, still facing an enormous 36.3% tariff, down from 37.6%.
The 17 companies that cooperated in the investigation without getting individual rates seem to have drawn the short straw with their tariff jumping 0.5% to 21.3%.
Perhaps it’s a coincidence that these are the companies mostly offering more premium products and without European OEMs as part of their stable, maybe not.
Tesla managed to pull off something of a coup with a reduction in their tariffs from 20.8% down to just 9% for cars imported from China, a positive slice of news for them given all Model 3s sold in Europe are made at the Shanghai factory and their title as the top exporter of EVs from China to Europe.
For everyone who didn’t cooperate, the rate sits at the highest 36.3%.
Chinese car makers now have ten days to submit their thoughts to the European Commission, with a final plan expected to face a vote among the 27 member states in October.
If the motion isn’t rejected by the majority, it will go into effect in November 2024 for an initial five years.
The conclusion of a process that kicked off in October 2023, still leaves a few questions unanswered for European car makers, including MINI.
The latest electric MINI was due to be produced by a joint venture between BMW and Great Wall, called Spotlight Automotive Ltd, and as a non-cooperating party they’re now facing the maximum 36.3% tariff on a car that won’t exactly be too expensive.
Volkswagen are facing the same issue with the Cupra Tavascan SUV, due to be made in China, also looking at the maximum tariff as the European giant unusually chose not to participate in the inquiry.
