EU Cuts Import Tariffs On Selected China-Made EVs

The European Union (EU) continues to revised import tariffs on selected Chinese-made EVs imported into the zone.

The European Union (EU) announced this week that it has revised and lowered tariffs previously levied on electric vehicles (EVs) imported from China by both Chinese and non-Chinese marques. Notable brands benefiting from which includes Tesla, BMW, Volkswagen and more.

For Tesla, the EU had initially levied a 20.8% tariff for its China-made EV models imported into the zone. Following an appeal made by the American firm, said tariffs has been cut down to just 9%, and this is poised to give Tesla’s European operations a profitability boost.

American EV brand Tesla was amongst those that benefitted with revised tariff rates, though the EU did find that it still benefitted from a supply of batteries at below market value in China.

The EU however did not remove the duty altogether as its investigation found that Tesla does benefit from receiving batteries at below market value – one of the ways some automakers the EU accused in receiving help from the Chinese state that grants unfair economic advantage.

That aside, the EU’s report also highlighted several other ways in which automakers backed by the Chinese government can receive help or aid. It includes being offered with cheap land, being awarded grants, as well as approval on loans with favourable rates and terms.

BMW Group saw its MINI brand appealing for reduced tariffs for its China-made Cooper hatch. It now makes do with 21.5% instead of the maximum 37.6% rate levied prior.

Volkswagen Group's Cupra brand saw its Tavascan benefit with similar reductions as the MINI mentioned.

Aside from Tesla, legacy European automakers such as BMW Group and Volkswagen Group also benefit from the EU’s revised tariff structure.

For BMW Group, its new generation MINI Cooper electric hatch that’s made in China was initially slapped with a hefty 37.6% tariff – the maximum rate applied to marques that supposedly refused to cooperate with EU investigators. Following a recent review, said rate has dropped to 21.3% instead now.

Rivals Volkswagen Group saw its Cupra brand and its China-made Tavascan model benefit from a similar revision. Like the MINI, it was also slapped with the maximum 37.6% tariff initially, which has now been revised to just 21.3% now too.

Selected Chinese marques such as SAIC (MG) and BYD also earned 'minor victories' from this latest round of tariff revisions by the EU.

Surprisingly, a handful of Chinese-controlled marques also benefited with revised tariff rates. Earning this ‘minor victory’ were Chinese NEV-making giants BYD, Geely, as well SAIC. However, all three saw arguably ‘marginal’ reductions.

Starting with BYD, its initial tariff rate of 17.4% has been lowered to 17%, whilst Geely’s 19.9% initial rate was slashed to 19.3%. SAIC, on the other hand, which controls brands such as MG, saw their tariff rates lowered from 37.6% to 36.6%.

Source: Automotive News Europe