Friday, September 22, 2023

The EU begins an investigation to combat the massive arrival of Chinese electric cars in Europe

The European Union has begun an investigation to assess whether impose punitive tariffs on Chinese companies that make electric cars, given the wave of vehicles from Asian manufacturers in the European market. Ursula von der Leyen, president of the European Commission, affirms that these companies take advantage of state subsidies to import their electric cars. And thus sell them at a cheaper price than other local manufacturers, thus creating unfair competition against European producers.

The president of the European Commission, specifically, states that the electric car industry is “crucial for the clean economy” and aenormous potential for Europe.” It stands out, however, that global markets “They are flooded with cheaper Chinese electric cars”. And its price is kept artificially low thanks to huge state subsidies.”

Now, the European Commission will assess, in a period of 13 months, whether to impose tariffs higher than those of the EU not only on those companies of Chinese origin that manufacture electric cars. Also to other companies that produce vehicles in the Asian country. The European Union’s anti-subsidy investigation could therefore also affect companies such as Tesla, Renault or BWM, which manufacture some of their models in China or include components made in China, such as batteries.

The China Chamber of Commerce, for its part, has highlighted being against this investigationclaiming that the advantages Chinese EV makers are taking is not due to subsidies.

Electric car manufacturers in Europe are looking for ways to defend themselves against Chinese brands

Meanwhile, Western vehicle manufacturers are looking for ways to reduce production costsn to offer alternatives that are more or equally economical than the Chinese vehicles that arrive in Europe.

The French Renault, for example, confirmed last July its intention to reduce production costs by around 40% with the aim of defending itself against Chinese manufacturers. They will do so, however, starting in 2027. This will probably translate into a considerable price drop for electric vehicles produced after that date.

One of the most recent Chinese electric cars to hit the European market is the BYD Seal. It is an alternative to the Model 3, which will arrive in November at a price starting at 46,900 euros. One of the variants of this 100% electric sedan, the BYD xcellence-AWD (48,990 euros). It is approximately 1,000 euros cheaper than the Model 3 Great Autonomy, as well as 5,090 euros cheaper than the Performance version.

Also in Hipertextual:


Please enter your comment!
Please enter your name here

Latest article