Last year, the European Commission launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. This resulted in the introduction of additional tariffs on vehicles manufactured in China (37.6%), and manufacturers that cooperated during the investigation paid lower tariffs (20.8%). However, the EU decided to reduce tariffs on some car manufacturers like Tesla from 20.8% to just 9%.

After reviewing the business report for July, it was determined that Tesla received less government aid than other firms that make cars in China, so the EU agreed to reduce the tariff. However, this did not mean that the tariff would be removed completely as the company was found to still be getting batteries below market value, which is one of the ways car manufacturers receive help from China. Other ways to help are cheap land, grants and loans at lower rates. This still gives them an advantage over cars made by companies in other parts of the world.

Also, some other car manufacturers will now pay lower tariffs, such as the British brand Mini. Although the company refused to cooperate in the investigation, the EU still decided to reduce tariffs on their vehicles from 37.6% to 21.3%. The tariff was also reduced on the vehicles of some Chinese companies: BYD (17.4 to 17 percent), Geely (19.9 to 19.3 percent), and SAIC (37.6 percent to 36.6 percent).

Source: Reuters