Tag Archives: Chinese cars

News

EU imposes additional tariffs of up to 38.1% on Chinese cars

As was announced a few days ago, the EU introduced additional tariffs of up to 38.1% on electric cars manufactured in China. The decision comes after a long-term consideration of how to respond to the increasing pressure that cheap Chinese electric cars are putting on domestic European manufacturers.

A few days ago, Turkey imposed additional tariffs of 40% on Chinese cars, and before that, the United States also 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.

“We call on the EU to listen carefully to objective and rational voices from all walks of life, to immediately correct its wrong practices, stop politicizing economic and trade issues, and properly resolve economic and trade frictions through dialogue and consultation,” said Chinese Foreign Ministry spokesman Lin Jian at a regular press briefing.

In September 2023, the EU 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.

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.

This decision is valid until the end of the investigation (November), when the new customs tariffs will come into force for a period of five years.

Source: Reuters, Photo: Shutterstock

News

Turkey imposes an additional 40% tariff on Chinese cars

Chinese cars are not only causing problems in the markets of European Union members, but also in other European countries. One of them is Turkey, which announced the introduction of an additional tariff of 40% on Chinese electric cars. The new tariff comes into effect on July 7.

Chinese manufacturers of electric cars are increasingly attacking world markets with cars that, thanks to government subsidies and low labor costs, bring other manufacturers to their knees. Turkey’s trade ministry claims that this move helps protect the country’s balance of payments, as well as local industry. This means that the minimum tariff per vehicle will be $7,000. Last year, Turkey had a deficit of over 45 billion dollars.

A similar decision was recently made in the US, where the tariff on Chinese electric vehicles will increase from 25 to 100 percent. Also, today the EU announced that it would impose additional tariffs of up to 38 percent on electric cars built in China. Is this the only effective way to fight with cheaper Chinese electric cars?

This comes as no surprise as Turkey recently announced its first electric vehicle, the Togg T10X. Also, it should be noted that Turkey introduced additional tariffs for Chinese fully electric cars in 2023, and now they will be applied to hybrid and ICE cars as well.

Source: Reuters

News

Chery is considering building a plant in Italy

European manufacturers are still struggling with Chinese car manufacturers, who are trying to conquer the European market in different ways, so the European Union introduced additional tariffs on vehicles from China. However, Chinese companies seem to have a “plan B”, building plants in Europe. After the Chinese car manufacturer BYD announced that it is building its plant in Hungary, another Chinese company (Chery) could follow the same path, but in Italy.

Currently, Stellantis is the only major car manufacturer in Italy and the new Italian government is trying to increase production by introducing another manufacturer, the Chinese company Chery. According to official information, the government is considering offering the Chinese manufacturer to build a plant in Italy, in order to increase the annual production of cars to over one million. Italy currently produces 800,000 cars a year.

Building a plant in Europe would be a good strategic decision that would allow Chinese companies to avoid obstacles when it comes to additional taxes or potential quotas that the EU could impose on vehicles imported from China. Obviously, Italy is the ideal place for that. According to Italian Industry Minister Adolfo Urso, over the past year the government has been talking to several manufacturers, including Tesla. The government’s goal is to increase production by an additional 300,000 cars per year.

Chery is the fifth largest Chinese car manufacturer with 1,881,316 vehicles sold in 2023. In the next two years, the company will launch three new SUV models with different power options, primarily intended for European customers. “Expectations are high and sales in Europe should be high enough to support the construction of the plant,” said Chery Europe Managing Director Jochen Tueting.

Source: Reuters