Tag Archives: EU

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MG Motor will export EVs from Thailand to the EU

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

News

Dacia Spring costs 3,500 euros more due to new EU tariffs

At the beginning of the year, the redesigned Dacia Spring arrived on the market, and two months later it was announced that it will cost 10,990 euros. However, the latest information says that due to the new EU tariffs, this car will cost 3,500 euros more.

In 2023, the EU launched an investigation into the privileged position of electric vehicles produced in China due to subsidies. It was suspected that China is helping domestic companies in various ways to export their cars to the European market at lower prices and thus endangering European manufacturers. In order to respond to the growing pressure and resentment of European companies, the EU decided to introduce additional tariffs of up to 38.1%, which will come into effect on July 4. 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 already showing its impact on car prices, so the Dacia Spring will have a new starting price of 20,400 euros from autumn. On the French market, the price increase will be even higher. Thus, an electric car on the French market would be more expensive by almost 4,000 euros compared to the current starting price.

Dacia is not the only victim of the new EU tariffs, Tesla will also increase the prices of their cars. In some EU markets, the Tesla Model 3 will cost 8,500 euros more, with a starting price of 49,490 euros (subsidies not included).

Source: Reuters

News

The EU is changing tariffs on EVs made in China

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