2024-07-16 09:30:32
As a vote by European Union member states on the imposition of provisional customs duties on Chinese electric vehicles is scheduled for Monday, July 15, Techniques de l’ingénieur summarizes the situation.
On 4 October 2023, the European Commission officially opened an ex officio anti-subsidy investigation into imports of battery electric vehicles manufactured in China. Nine months later, on 4 July, she concluded that “ China’s EV value chain benefited from unfair subsidies ». To protect European producers who have been mistreated in this way, it introduced, as of July 5, provisional customs duties on imports of battery-powered electric vehicles manufactured in China, whether Chinese brands or foreign manufacturers. They will apply for a maximum period of 4 months. Hybrid and plug-in hybrid vehicles are not affected.
These duties are covered by a guarantee, determined by the customs of each Member State, and can only be collected if definitive duties are decided. If these were to be voted on by the EU Member States, they would apply for a period of 5 years. These customs duties, ranging from 17.4% to 37.6%, depending on the amounts of public subsidies received by Chinese companies, are in addition to the 10% taxes already applied by the European Union.
Customs duties from 17.4% to 37.6%
Thus, BYD is subject to a 17.4% duty, Geely to 19.9%. And SAIC (which owns the MG brand) is subject to a 37.6% weighted average duty. Other manufacturers that cooperated will be subject to a 20.8% weighted average duty, while non-cooperators will be subject to a 37.6% weighted average duty. The Commission has given manufacturers affected by the increased taxes until July 18 to submit their comments. According to the census conducted by Auto-infosaround thirty models from sixteen brands are affected.
« Electric vehicles from China account for nearly 22% of the European market, up from nearly 3% three years ago, according to industry estimates. Chinese brands account for 8% of electric vehicles sold in the EU [contre 1 % en 2019] “, underlines The crossEuropean officials do not want to repeat the same mistakes as ten years ago, with solar panels that wiped out European competition.
An intense debate in Europe
Not all European countries view this customs duty favorably. While France, Italy and Spain are in favor, this is not the case for Germany, Sweden and Hungary. And for good reason, “ German carmakers Audi, BMW, Mercedes and Volkswagen generate nearly 40% of their global sales in China “, remember France 24. « The negative effects of this decision outweigh the possible benefits “, Volkswagen lamented in a press release dated July 4.
A vote by European Union member states is scheduled for Monday, with Germany expected to abstain, sources told Reuters on Friday. The first vote is not binding. It will be followed by a final vote, at which point the European Commission’s tariff proposal will be adopted unless a qualified majority votes once morest it, Reuters reported.
Towards Chinese retaliation?
This decision is particularly harsh for China. Indeed, nearly 40% of Chinese electric vehicle exports go to the European Union. In mid-June, Beijing therefore threatened the EU with reprisals on imports of European pork, spirits, wines, dairy products and thermal sedans and SUVs of more than 2.5 liters. In addition, the Chinese Ministry of Commerce is giving itself at least until next January to investigate obstacles placed by the EU once morest investment and trade by Chinese companies, it indicated in a press release published on Wednesday, July 10.
With a stock of 5,000 imported electric cars before the tariff increase, MG France has indicated that the price of its electric cars produced in China will not increase until September 30, 2024. On the other hand, Tesla indicated on Tuesday, July 9, that it would increase the price of the Model 3 by €1,500. And Mini, the British brand of BMW, is presenting its arguments to the European Union to try to avoid an increase in customs duties raised to 37.6% on its electric models assembled in China.
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