After the EU imposed additional tariffs on electric cars made in China, companies are trying to circumvent this regulation in various ways. Some have already started the production of their cars on European soil, and some are finding other solutions. Chinese-owned company, MG Motor, announced that it is considering sending its electric cars from Thailand to Europe.

Shipping a car from Thailand to Europe is not an easy task. Considering that Thailand does not currently export cars to the European market, this means that MG would also have to pay 10 to 20 percent customs duty in order to import its cars produced in a Thai factory to Europe. Therefore, Thailand and the EU have started negotiations on free trade, an agreement should be reached by the end of the year, which would open the door to the EU market for electric car manufacturers from Thailand. However, even if this plan succeeds, it will only benefit the MG4, which is MG’s best-selling car in Europe. The brand’s other electric cars are made in China and would not be covered by the deal. Also, MG has been thinking about building a factory on European soil since last summer.

SAIC manager Suroj Sangsnit said technology sharing rules and high tariffs are forcing Chinese brands to manufacture their cars in other countries. This could be a big opportunity for Thailand, as the country is producing more and more electric cars, and Europe could become a new market if a deal is reached.

Under current regulations, MG would have to pay a 46.3 percent duty if it imported cars from China to Europe. This would make their cars uncompetitive on the European market.

Source: Reuters