EU to hike duties on Chinese EVs by up to 38.1% from July

To combat excessive subsidies, the European Commission will increase tariffs on electric vehicles from 17.4% for BYD to 38.1% for SAIC, besides the regular 10% duty levied on cars. So, the overall duty on vehicles would be nearly 50%. European automakers have been competing with their Chinese counterparts, whose market share has risen from below 1% in 2019 to over 8%. Chinese EVs are expected to cover 15% of the European market by 2025.

Brands like BMW will incur additional duties for EVs made in China and sold in Europe. The Chinese government issued disapproving statements after the announcement. However, the Chinese Passenger Car Association said the hike is within their expectations and will not impact most firms in China. Chinese car exports had surged by over 50% in 2023.

Besides, European regulators will consider loans granted by Chinese governmental banks as subsidies subject to additional tariffs.