Tag Archives: China

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The EU is changing tariffs on EVs made in China

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At the beginning of June, the EU announced additional tariffs of up to 38.1% on electric cars imported from China, but according to information from some media, that decision could be changed.

Currently, imported cars made in China have a 10 percent tariff. However, as of July 4, this rate will rise to as much as 38 percent in some cases. For example, BYD will pay 17.4 percent, Geely 20 percent, and SAIC, which with the help of former British brand MG is by far the biggest seller in Europe, will pay 38.1 percent. Other brands that were cooperative will pay a 21 percent duty, and those that refused will pay 38.1 percent.

In 2023, the European Commission launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. “These can also be vehicles from other manufacturers if they have used subsidies in China,” said Executive Vice President of the European Commission for an Economy Valdis Dombrovskis.

According to Bloomberg, manufacturers that cooperated during the investigation will have lower tariffs (20.8% instead of 21%). However, those who refused to cooperate will have tariffs of 37.6 percent instead of the original 38.1 percent. It should also be noted that these tariffs are temporary and that the EU will make a new decision on permanent tariffs by the end of the year.

Source: Bloomberg

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Italy fined DR Automobiles with 6 million euros

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In October 2023, the Italian government launched an investigation against DR Automobiles for misleading customers about the origin of its cars. Eight months later, the Italian government decided to fine the company with 6 million euros, although the company claims that the accusation is unfounded.

DR Automobiles have established a simple system of processing Chinese cars with refined Italian design and partly buying selected European technology. The result is affordable SUV models, and the slogan “Una storia Italiana” itself is part of finely packaged marketing combined with patriotism, trying to hide the origin of the vehicle. The regulator stated that the vehicles, which are sold under the brands DR and EVO, are promoted as Italian products, but are mostly of Chinese origin. Only a small part of assembly and finishing works is done in Italy. “This practice coincides with the period in which the company recorded a significant increase in sales of DR and EVO vehicles on the Italian market,” the statement said.

This decision comes at a time of increased tensions between the EU and China, all because of the privileged position of electric vehicles produced in China due to subsidies. The EU launched an investigation that showed that the Chinese government subsidized cars exported to Europe in various ways, and in response the EU is considering the introduction of additional tariffs (38%).

The EU is not the only one that has introduced additional tariffs on Chinese vehicles. Turkey did the same with additional tariffs of 40% on Chinese cars, and the United States did it before them. The United States raised the tariff rate on imported cars from China from 25% to 100%. Of course, such decisions were condemned by the Chinese authorities, who announced countermeasures to protect their interests.

Source: Reuters

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Stellantis plans to invest 5.6 billion euros in South America

As part of the “Dare Forward 2030” strategic plan, Stellantis Group intends to invest over 50 billion euros worldwide in electric vehicles in the next 10 years, with the goal of achieving carbon neutrality by 2038. One of the markets that Stellantis is seriously counting on is South America, where it plans to invest 5.6 billion euros by the end of the decade.

In recent years, China has been a market where many global manufacturers have invested and opened facilities (independently or in partnership with domestic companies) for the production of electric vehicles. However, due to strained relations between Europe and China, regarding state subsidies for electric vehicles exported to Europe, European manufacturers are looking for other places for investment.

Stellanti has chosen South America as one of its most successful markets. This multinational automotive manufacturing corporation holds significant market shares on this continent (23.5 percent), and in Brazil alone they hold almost one third of the market (31.4 percent).

“The planned investments will support the launch of more than 40 new products in that period and the development of new biohybrid technologies, innovative decarbonization technologies in the supply chain of the automotive industry and new strategic business opportunities,” Stellantis announced.

The facility in the Brazilian city of Betim serves as the company’s global hub for bio-hybrid technology that combines electrification with hybrid engines that use biofuels such as ethanol. Expectations are that these technologies will be available by the end of 2024.

It should also be noted that at the end of 2023, Stellantis formed a joint venture with Leapmotor. Stellantis intends to invest €1.5 billion to acquire approximately 20% of Leapmotor. This will be a good financial injection for the Chinese company to improve its sales results in the domestic market but also to expand its business outside of China. The world’s largest conglomerate will have a 51 percent stake and will have the rights to export, sell and manufacture Leapmotor electric vehicles outside of China.

At a press conference in the Chinese city of Hangzhou, Stellantis CEO Carlos Tavares said: “We have not been so successful in China, so we prefer to rely on a Chinese partner. To win in China, it is better to win with a Chinese company.” This is a good strategic move for Stellantis, with which the group resets its strategy focused on electric vehicles after years of bad sales in China.

Source: Stellantis